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Passaic County Real Estate: New Jersey Real Estate Podcast - October 2008

Wednesday, October 29, 2008
by Orly Steinberg
The New Jersey Real Estate Podcast



This month's edition of The New Jersey Real Estate Podcast covers New Jersey real estate market activity and then we will talk about how with every change, there are hidden opportunities for both buyers and sellers.

Features special guest Terri Murphy of US Learning.

Program length: approximately 6 minutes
download podcast mp3 file   |   subscribe to podcast feed
Learn more about New Jersey and Passaic County real estate at OnlyOrly.com.
Search all Passaic County real estate and homes for sale.
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Passaic County NJ Real Estate Sales Statistics - September 2008

Thursday, October 23, 2008
by Orly Steinberg

Passaic County NJ Real Estate Sales Statistics - September 2008

Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. "It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.” National Association of Realtors®

Let’s take a look at the Passaic County NJ real estate sales statistics for September 2008 to see how the market looks in our area:

 
       
The sold listings have remained constant in Ringwood this September over September 2007.  The average sales price has decreased by 35% to $300,359 and median sales price has decreased by 37%, while market times have increased by 24 days.

Ringwood
Active
Listings
Sold
Listings
Median
Sale price
Average
Sale Price
Average
DOM
Sept 2008
109
6
$272,300
$300,359
98
Sept 2007
111
5
$429,888
$405,478
74

The Wanaque market saw constant active listings this September, compared against September 2007.  Homes sold this month are down by 3.  The average sales price remained relatively unchaged at $320,375, while market times have increased by 50 days.

Wanaque
Active
Listings
Sold
Listings
Median
Sale Price
Average
Sale Price
Average
DOM
Sept 2008
94
4
$309,000
$320,375
102
Sept 2007
93
7
$322,500
$320,857
52

Pompton Lakes saw an increase of 36% of sold listings in September 2008 compared to September 2007.  Like other areas the median price decreased.  The median sales price dropped 15% to $315,000 while homes remained on the market an average of 10 days longer than last September.

Pompton Lakes
Active
Listings
Sold
Listings
Median
Sale Price
Average
Sale Price
Average
DOM
Sept 2008
141
14
$315,000
$306,314
77
Sept 2007
167
9
$370,000
$370,111
67

Again, as Lawrence Yun said and as these statistics show, people are taking advantage of improved affordability.  
For the latest Passaic County NJ real estate market conditions, please call me at 973-962-5410 or visit HomesByOrly.com.

Statistics are based on information from the Garden State MLS. They are deemed reliable, but not guaranteed. 
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Passaic County Real Estate: Home Buyers Enjoy Reduced Fees

Friday, October 17, 2008
by Orly Steinberg
Passaic County Real Estate: Home Buyers Enjoy Reduced Fees
Fannie Mae and Freddie Mac both announced they will not impose the loan fee increase scheduled to go into effect next month. Fees were to have increased from .25% to .5%, making it even more difficult for Passaic County home buyers. The biggest obstacle many ­­­­­­­­­­­­­­­­Passaic County home buyers face is the necessary cash needed for a down payment and closing costs.
thumbs upBoth companies, now controlled by the federal government, had decided to increase fees to boost their finances during difficult times.
Freddie Mac, however, will raise fees next year for riskier loan products, including mortgages that allow interest-only payments for the first few years. Freddie also will require higher credit scores for "piggyback" loans that allow borrowers to make smaller down payments by taking out two mortgages.
Taken together, Freddie Mac said the changes would provide "some relief from the challenges in the current market environment," but added that it is following lending practices "that are prudent and largely applicable in all market conditions."
Learn more about Passaic County real estate at OnlyOrly.com.
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Is Buying Passaic County Real Estate A Good Idea?

Friday, October 10, 2008
by Orly Steinberg
Let’s face it, our economy and the Passaic County real estate market (not just Passaic County, but the entire country) is in turmoil. I am to the point I refuse to pick up the newspaper…it is just too depressing!
 
Like many Americans, abacusI am tempted to take my money an stick it under the mattress, but as a Realtor, I have to ask is buying a home and investing in Passaic County real estate a good idea? And the answer is yes. As a long-term investment, homeownership is still one of the best investments you can make. And the operative word here is “long-term.”
 
You are probably thinking I’m out of my mind with the number of foreclosures going up and home prices going down. So whey is Passaic County real estate a good idea? Like the stock market, real estate is cyclical and will have its ups and downs. But, homeownership has a track record that is virtually unmatched by any other investment of stocks, bonds or mutual funds.
 
Homeownership’s Real Value
 
Homeownership is a solid stepping stone to financial security and the single largest creator of wealth for many Americans. Despite cyclical ups and downs, real estate has consistently appreciated over the long-term. The National Association of Home Builders reports home appreciation has, historically, increased 5-6 percent annually.
 
This may not seem like much, but let’s look at some figures that will put it into perspective. If you were to put down the 3.5 percent required by FHA on a $200,000 house, you would put down $7,000. At a 5 percent annual appreciation rate, that $200,000 home would increase in value $10,000 during the first year. Earning $10,000 on an investment of $7,000 is an extraordinary annual return.
 
In contrast, putting that $7,000 down payment into the stock market and getting a 5 percent gain would only yield a $350 profit.
 
Compared to Stocks
 
Looking at it another way, over a longer period of time, if someone put $10,000 into the stock market in 1996, the average annual S&P return would make that investment worth $21,500 today—an increase of $11,500. The median home price in 1996 was $140,000.
Today, that same home would have gained nearly $100,000 in value.
 
Try to ignore the ‘nay sayers’ and those who say the sky is falling and don’t miss out on the benefits of homeownership. Conventional wisdom is always to buy low and sell high, making now the time to buy.
 
For more information on Passaic County real estate, visit OnlyOrly.com or give us a call at 973-962-5410.
 
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New Jersey Real Estate Podcast

Friday, October 03, 2008
by Orly Steinberg
The latest edition of the New Jersey Real Estate Podcast covers market activity and then we will examine the Housing and Economic Recovery Act of 2008 recently passed by Congress.
Features special guest Terri Murphy of US Learning.

Excerpt from this month’s show:
“The government is offering $7,500 in what amounts to be a tax-free loan, helping first-time home buyers get into a home. 
Up to $7,500 will be given to first-time purchasers as they file their income tax returns. The amount will be phased out above a certain income level and is to be no more than 10 percent of the home purchase price — though first-time buyers will qualify for the full amount.”
Listen to our Podcast to learn more about how the Housing and Economic Recovery Act of 2008 is helping New Jersey home buyers.
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Passaic County Real Estate Sales Statistics - August 2008

Thursday, September 25, 2008
by Orly Steinberg
Passaic County Real Estate Market Trends
The level of home sales is expected to show little movement in the months ahead, according to the latest projections by the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5 from an upwardly revised reading of 89.4 in June, which had risen 5.8 percent from May. The July index remains 6.8 percent below July 2007 when it stood at 92.8.

Lawrence Yun, NAR chief economist, said home sales continue to edge up and down. “Pending home sales are oscillating month-to-month, with the long-term trend essentially flat,” he said. “Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings.” National Association of Realtors®

Let’s take a look at the Passaic County real estate sales statistics for August 2008 to see how the market looks in our area:

 
       
The market times have decreased by 17 days in Ringwood this August over August 2007.  The average and median sales price has decreased by 2%.  Active listings have remained constant. 

Ringwood
Active
Listings
Sold
Listings
Median
Sale price
Average
Sale Price
Average
DOM
August 2008
108
6
$410,000
$460,817
71
August 2007
119
19
$419,000
$469,808
88

The Wanaque market saw constant active listings this August, compared against August 2007.  Homes sold this month are down by 5.  The average sales price decreased 12% to $319,841, while market times have increased by 55 days.

Wanaque
Active
Listings
Sold
Listings
Median
Sale Price
Average
Sale Price
Average
DOM
August 2008
98
7
$320,000
$319,841
146
August 2007
96
12
$330,000
$364,158
91

Pompton Lakes saw consistant sales activity in August 2008 compared to August 2007.  Like other areas the median and sales prices both decreased.  The median sales price dropped 6% to $350,000 while homes remained on the market an average of 63 days longer than last June.

Pompton Lakes
Active
Listings
Sold
Listings
Median
Sale Price
Average
Sale Price
Average
DOM
August 2008
148
7
$350,000
$381,986
103
August 2007
150
8
$375,000
$350,125
40

Again, as Lawrence Yun said and as these statistics show, home sales are moving up and down, even within the same city. 
For the latest Passaic County real estate market conditions, please call me at 973-962-5410 or visit HomesByOrly.com.

Statistics are based on information from the Garden State MLS. They are deemed reliable, but not guaranteed. 
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When Its Wise To Downsize Your Passaic County Home

Thursday, September 18, 2008
by Orly Steinberg
downsizeI wanted to follow up our blog post, Should You Downsize Your Passaic County Home?  with a reprint on a Money Magazine article from CNNMoney.com, When It’s Wise to Downsize. The article discusses the pros and cons of downsizing, pricing in today’s market, carrying costs involved and lessons learned from other empty nesters.
 
Here is the article in its entirety (but don’t hesitate to visit the link to the original article to see the interesting graphs):
 
"(Money Magazine) -- Last year Rick and Suzanne Pepin moved from the four-bedroom 3,400-square-foot house in Minneapolis where they lived with their three (now grown) kids to a luxury condo that's a third smaller and offers only a Murphy bed for guests. Still, the couple couldn't be happier.
"The location of our old home dictated that we drive to the grocery store, pharmacy and cleaners," says Suzanne, 57, a retired lawyer. Their new digs are across the street from Whole Foods and within easy walking distance of other stores and restaurants. They love the low-maintenance life.
"We have no worries about upkeep. No worries about lawn care. No worries about snow removal," says Rick, 68, also an attorney.
Maybe you too have caught the bug. After decades of hankering after the most expensive and enormous house you could afford, owning a smaller place is starting to look appealing.
Imagine the possibilities! You could move into a posh new condo with everything from a fitness center to a concierge - or into an energy-efficient little cabin on a lake Your commute could be shorter, giving you time in the evening to do something more than watch TV like a zombie.
And, maybe, just maybe, downsizing could save you some dough. Chuck Petitti, a Boston-area real estate agent, says many of his clients right now are empty-nesters who realize, "Hey, I could be traveling or doing something else with all the money I am paying for utilities and property tax on this big house."
If that's what you're thinking, you're by no means alone. A 2006 survey by Hanley Wood, a market research firm, found that 58% of affluent baby boomers say they are very likely or somewhat likely to move to a smaller home within the next 10 to 15 years.
And therein lies a big fat problem. With millions of boomers competing for smaller homes, you may find it hard to catch a break on price. Even though the downsizing trend is in its infancy, over the past five years smaller homes (under 1,200 square feet) have shown a greater rise in value than larger houses (over 3,000 square feet) - 5.2% a year as opposed to 3.5%, according to Zillow.com.
On top of that, you have to get money out of your old house - not an easy proposition with prices in the 20 largest metropolitan areas down 18.4% from their July 2006 peak, according to the S&P/Case-Shiller index. As of July there was an 11-month backlog of existing homes on the market nationwide. The happily downsized Pepins have yet to receive an offer close to the $1.25 million asking price on their old home.
What's more, smaller isn't necessarily cheaper. Depending on where you move, you may face carrying costs that are as high as or even higher than you pay now.
The trade-offs are complicated. You may cut gasoline costs by moving closer to your job in the city and using public transportation, but those savings could be eaten up by costlier car insurance. You could move to a small condo nearby but be unprepared for the dues and fees that condo living entails.
So you have to plan carefully, sizing up the finances underlying both new and old houses, or the savings you're counting on could be skimpier than you anticipate.
Get the prices right
To start you need a clear-eyed assessment of the two markets that make up your downsizing, the one in which you're selling and the one in which you plan to buy. A real estate agent can give you an idea of your home's value, but you should also check how much houses in your area are selling for on Zillow.com, which lists sales prices of comparable houses.
Hanging on to past high prices only delays a sale. Dodi Christiano, 55, a psychotherapist, and her husband, Paul Waldrop, 56, a producer of TV public-service announcements, put a price of $850,000 on their 4,000-square-foot Fairfax, Va. colonial last year - about what nearby homes had fetched a couple of years earlier.
For six months they received nary a nibble. Finally, after slashing the price by more than $100,000, they were able to sell. "We had to face the fact that not everybody loved our home as much as we did," says Christiano.
You can't assume that a home's price is simply a function of its square footage. The national median sales price for condominiums, which are typically smaller than single-family houses, is now 5% higher than that for houses, according to the National Association of Realtors.
If you hope to reduce costs dramatically, you may have to buy your new place in another town or state. Think Decatur, Ill. or Mishawaka, Ind., where single-family houses cost just $79,400 and $80,900, respectively.
George Pollock, 67, a retired engineer, and his wife Marian, 66, wanted to get rid of the mortgage on their house in suburban San Francisco. Pollock worried that if he died before his wife, she wouldn't be able to meet mortgage payments with the 50% portion of his pension that she would receive.
No matter how much they shopped, however, they couldn't find a place they could afford in the Bay Area (median price: $701,700) without a mortgage. So they moved to much less pricey Sacramento (median price: $258,500), where their two grown children live. There they bought a 1,400-square-foot home for $380,000, leaving them with nearly $250,000 extra.
Says Pollock: "My wife is closer to the kids, and I know she has long-term financial security."
Downsize carrying costs
Buying without taking out a mortgage would certainly reduce expenses. At the very least you should look for a house whose price is low enough to allow you to buy with a mortgage that's smaller than what you have now.
If you're at or near retirement, taking on a new 30-year mortgage is overwhelming. You may be long gone before you can repay. Consider one with a 15-year maturity; the payments may look daunting, but you will save money. The interest rate is only about 0.10% lower than that of a 30-year mortgage, but over the life of the loan, you would save about $141,000 in interest.
Another option: Take out a traditional 30-year fixed-rate loan that does not charge a prepayment penalty. Then just send in extra payments each month as if you were on a 15-year repayment plan. You'll be saving by paying the mortgage off quicker, but if you run into unforeseen financial trouble, you'll be able to make lower payments.
Runzheimer International, a management consulting firm, estimates average annual savings of $1,300 in utility costs and $2,600 in property taxes from down-sizing from a 2,800-square-foot house to one with 1,800 square feet.
But the devil is in the downsizing details: You need to crunch the numbers to calculate your net savings. Start by totting up the annual cost for ongoing expenses such as property tax, utilities, lawn service and snow removal. As you shop for a new place, you should be gathering comparable information.
Other potential cost savings: If you move from suburb to city, you may be able to ditch one of your cars and its trailing expenses - insurance, financing, taxes, maintenance and fuel. If you gave up your 2006 Honda Accord, for example, you'd save nearly $26,000 in the first five years, according to Edmunds.com.
On the other hand, some costs could rise. In a condo or a house that is part of a homeowners association, there are monthly maintenance fees, and every so often you'll be on the hook for assessments to replace the roof or carpet the lobby.
Before buying, ask how much fees have risen over the past five years and whether new assessments are in the offing. If your new place is appreciably smaller, make room in the budget for new purchases to replace an oversize sectional or a king-size bed that won't fit.
Sell before you buy
Tempting as a pristine new condo looks next to your drafty old five-bedroom Victorian, don't plop down earnest money until you have a buyer with solid financing. Otherwise you could get stuck with two mortgages, two property tax bills and - well, you get the idea.
At least have your lawyer include a contingency clause in the sales agreement that obligates you to close only if you manage to sell your home by a set date. In the bubble-licious sales frenzy of yesteryear, sellers could make bidders do somersaults and had no incentive to agree to such a clause. But with so many homes on the market for months, sellers may now show mercy.
What downsizers learned
  • Don't price your house like it's 2006. Paul Waldrop and Dodi Christiano of Haymarket, Va. asked the same amount that nearby houses had sold for two years earlier. "We had to realize that what had happened during the boom was not the norm. It took six stressful months to sell," says Dodi.
  • Get the old place sold first. Rick and Suzanne Pepin of Minneapolis moved into their dream condo but now can't sell their house. "Don't wait to put your home on the market if you decide to buy. We waited for renovations on our new condo to be complete, and by then we couldn't sell," says Rick.
  • Plan for smaller rooms. John and Polly Smart of Houston had the wrong stuff. "Smaller rooms may not accommodate your old things. We spent about $20,000 on new furniture and more on a smaller Silverado because the old one stuck about two feet out of the garage," says John.
Do you (and your spouse) make more than $170,000 annually and worry about tax-efficient retirement planning? If so, send your name, age, occupation, income and questions, along with a recent photo, to makeover@moneymail.com. We will be providing advice to a family in this situation in an upcoming article - and it could be you!"
Interested in learning more about Passaic County home prices and possible downsizing? Visit our website, OnlyOrly.com or give us a call at 973-962-5410.
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Should You Downsize Your Passaic County Home?

Thursday, September 11, 2008
by Orly Steinberg
You just dropped your youngest child off at college and have officially joined the ranks of the empty nesters. One of the first questions that usually comes to mind is should we downsize our Passaic County home. The kids are gone and we probably don’t need this big house. But is buying a smaller home right for you?

There are pros and cons to downsizing. Consider your finances and lifestyle before making a decision.

Reasons not to downsize:
  • You want a place for your children and grandchildren to stay when they visit. The family is spread all across the country and you want to have a place for everyone to gather for the holidays and vacations.
  • You can’t bear to part with your cherished belongings. You have been in your current home for many years and have filled it to the gills with mementos you don’t want to part with.
  • You aren’t you emotionally ready to leave? You are not ready to pack up and leave a lifestyle you worked hard to create. Leaving family, friends and familiar surroundings is more than you can bear.
  • You enjoy the prestige that goes along with your luxurious home. A smaller home will not portray the correct image of success.
Reasons to downsize:
  • The lower house payments that accompany a smaller home would give you more discretionary funds to travel and enjoy other recreational activities.
  • A smaller homes means less to maintain and more time to play.
  • You or your spouse, are not able to navigate the stairs like you use to and a single level home is more desirable.
  • A smaller, newer home is more efficient and better for the environment.
  • You need to be closer to a spouse who is in a nursing home?
Make sure it’s affordable:
If you decide to downsize, make sure the place fits both your pocketbook and your lifestyle.

Talk with a real estate professional about how much money you will net from the sale of your current home, as well as the costs of buying another one. This will help you determine if the move benefits you financially.
Under current tax rules, up to $500,000 (if you are married and file jointly) in profits from the sale of your principal residence are not taxable as long as you’ve lived there for at least two of the previous five years. Up to $250,000 in profits are not taxable if you’re single. Consult a tax advisor to discuss your situation.

Look into how much it would cost to move and to maintain a smaller home. Make sure it really is cheaper to live there.

Decide to downsize only once you’re satisfied that the finances make sense.

Buy into your new lifestyle A smaller house in your current neighborhood could be the right decision if your priority is maintaining close ties to neighbors. Just make sure there are amenities like public transportation and stores nearby if your health begins to deteriorate.

A condominium or a unit in a retirement community could be perfect if you never want to mow again, or if you want to focus on travel, hobbies and perfecting your golf stroke in the company of other seniors. Just remember you’ll have to pay maintenance fees for the upkeep of the common areas. Talk to current residents to see whether they’re happy with the way things are run. Also investigate the rules. If the association forbids pets and you’re a devoted dog-owner, be prepared to move on.

You may prefer to purchase a duplex or something similar. Renting one of the units will bring in extra income, and you’ll have built-in neighbors.

Thinking of downsizing your Passaic County home and want to talk with a real estate professional? We are glad to provide you the information you need to help you make the right decision for you. Give us a call at 973-962-5410.
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7 Tips To Staging Your Passaic County Home

Friday, September 05, 2008
by Orly Steinberg
Does your Passaic County home have a façade only a homeowner could love? Selling a home can be an emotional experience, and people can lack objectivity when it comes to their own abode. Presenting a home in its best light is always important, but it’s imperative in our current competitive real estate market.
 
stagingProfessional advice and assistance can make the difference between “Wow!” and
“Whaaa?” – a recent industry study found that staged homes sold for 6.9 percent more than homes that were not staged. Another study compared listing times before and after staging. Homes that had first been offered for sale without staging were on the market an average of 4.5 months; the same homes sold within a week, on average, after being staged.
 
Below are 7 tips to ‘setting the stage’ and making your Passaic County home more appealing to buyers:
 
1. Thoroughly clean from top to bottom, especially kitchens and baths.
A dirty house an immediate buyer turn-off. The two most important areas are the kitchen and the bathrooms. If you have not deep cleaned all counter and tile surfaces to a spotless condition, you stand the chance of having the buyers walk right back out the door.
 
2. De-clutter the entire house.
Clutter makes it extremely hard for the buyers to visualize moving into your home. The disorganization affects the buyer’s ability to focus on your home and they will most likely overlook your key selling features. In addition, clutter has the affect of making your home appear smaller than it is as the “open” feeling is gone.
 
3. Remove the personal memorabilia.
People are generally curious and when you want them to notice the beautiful entryway they may be focused on all the family pictures on the piano or all the “stuff” stuck to the front of your refrigerator. Your objective is to change the view of your home from “lived in” to “ready to move in.”
 
4. Neutralize inside and out.
best way to present a home is for the wall colors to be painted a neutral color. This goes for the outside as well – a loud or non-neutral color may just keep the buyers from even stopping to see the inside.
 
5. Let the sun shine in with spotless windows.
Nothing is more distracting to a buyer than to be looking at a view through a dirty window. What you don’t see is often more important that what you do see.
 
6. Make your pets go away.
While your pets are a loving member of your family, for the buyers their presence, food and boxes are generally a turn-off. Every trace of their presence should be removed so, once again, the buyers are not distracted from the prime objective – viewing your home in the best possible light.
 
7. Add curb appeal.
A healthy, neat, trimmed and well maintained yard and flower beds are the keys to getting the buyers up to the front door. A well-maintained exterior translates to a well maintained home in the mind of the buyer.
 
Need help setting the stage and showing off your Passaic County home in its best light? Give us a call, 973-962-5410. We are glad to help.
 
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Last Fabulous and Fun Fridays at Erskine and Cupsaw Lake for the Season!

Friday, August 29, 2008
by Orly Steinberg

  The last Fabulous Friday at Cupsaw Lake in Ringwood NJ will be this evening, 8/29/08.  It is Greek night.  There will be moussaka (greek lasagna) for purchase.  As always, members and their friends and families will pour in over the course of the evening.  Such a "fabulous" way to spend a Friday night.  The kids all have a blast playing in the lake before dark, and then on the swings, basketball, and volleyball courts.

The last Fun Firday will be at Erskine Lake tonight as well.  Members make miniature boats and set them to sail off with small tea lights.  The whole lake will be glowing after dark with some very well thought out craftmanship from their many builders.  It is Italian night at Erskine Lake, so birng your appetite as well.

Both lakes in Ringwood allow guests, so if you are not a member, try and hook up with someone who is.  Enjoy your Friday in RIngwood and make it both Fun and Fabulous!!

 

written by-

Merry Lapine

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Displaying blog entries 181-190 of 295

Orly Steinberg
Coldwell Banker Residential Brokerage
130 Skyline Drive, Ringwood NJ 07456