Monday, April 25, 2011

It Is Time to Buy Again, Ocean County!

Metrostudy Study

Graphs property of FORTUNE!

Shawn Tully, editor-at-large for FORTUNE Magazine offered this optimistic and powerful argument why now is an excellent time to invest in real estate. Tully opens his argument by introducing us to Mike Castleman, the founder and CEO of a company called Metrostudy. What Metrostudy does, and does well, is collect the number of homes that are vacant and for sale in each city, and the number of months it takes to sell all of them.

Today Castleman is witnessing an extraordinary reversal of the new-home glut that helped sink prices just a few years ago. In the 41 cities Metrostudy covers, a total of 78,000 houses are now either vacant and for sale, or under construction. That’s less than one-fourth of the 343,000 units in those two categories at the peak of the frenzy in mid-2006, and well below the level of a decade ago. “If we had anything like normal levels of buying, those houses would sell in 2½ months,” says Castleman. “We’d see an incredible shortage. And that’s where we’re heading.”


Sunday, April 17, 2011

Ocean County's Waterfront Home Market; 1st Quarter 2011

Ocean County's Waterfront Home Report

Sinking Fast or Still Afloat?

How is Ocean County’s Waterfront Home Market Performing; 1st Quarter 2011 vs. 1st Quarter 2010?

Would it surprise you if we told you that Ocean County’s Waterfront Home Market is 39 sales ahead of the same time last year (Jan. 1st through March 31st)? What if we told you that even as sales of Waterfront Homes increased this year, the Months Supply of Waterfront Homes has remained steady at just over 21 months? Now, what if we SHOWED you that the Average Sales Price of Waterfront Homes in Ocean County fell from $659,495 in March of last year to $422,419 in March of 2011?

TO LEARN THE ANSWERS

CLICK HERE!

Thursday, April 14, 2011

How Important is Video to Home-Sellers in Ocean County?

According to PostLing.com, 73% of homeowners say they are more likely to list with a Realtor offering to do video…

Video Infographic

73% vs. 12%

…Yet only 12% of the real estate industry currently have YouTube accounts?

So, what does this have to do with Selling Your Home in Ocean County, NJ?



Sunday, April 10, 2011

Toms River Real Estate Report-1st Quarter 2011

by Jim Flanagan on April 6, 2011

in Uncategorized

Single Family Homes in Toms River (First Quarter 2011):

Toms River Market Report-1st Quarter

Toms River Real Estate-1st Quarter 2011

This chart displays the sales and inventory of Single Family Homes in Toms River, NJ. The high-lighted area focuses on the first quarter of 2011. As we can see, sales dropped in February before spiking in March but the supply of homes for sale spiked in February and dropped in March (despite the current inventory increasing by over 120 homes)! Both of these factors could be attributed to March traditionally marking the beginning of the “Spring Selling Season”, when we historically see more homes come on the market in anticipation of more buyers entering the market, and January being the “snowiest” month in New Jersey in over 60 years.

Single Family Homes in Toms River (First Quarter 2010):

Toms River Market Report-1st Quarter 2010
Toms River Real Estate-First Quarter 2010

Notice the significant differences in the high-lighted areas between February and March of 2010; sales shot up while inventory dropped! This is because we were entering the last 2 months of the “Extended Home-Buyer Tax Credit” here in Toms River. So, with the Federal Government offering up to $8,000 to home-buyers at this time last year, Toms River is only 12 sales behind, year-over-year. Why?

Sold/Closed Profile of Single Family Homes in Toms River (Year-Over-Year):

Sold profile of homes in Toms River-Year over Year
Sold Profile of Single Family Homes in Toms River (Y-O-Y)

This chart illustrates the four distinct “types” of home-buyers that were active in Toms River during the First Quarter:

  1. The “Investor” clearly; when was the last time we heard of a sale in Toms River UNDER $100,000?
  2. The “First Time Home-Buyer”; and they are competing with the “investor” for homes UNDER $200,000.
  3. The “Move Up Buyer”; who is taking advantage of the price of larger homes that have fallen UNDER $500,000.
  4. The “High End Buyer”; who understands money and is purchasing a home (that cost near a million dollars just a few short years ago) for UNDER $800,000 today.

In a nutshell; without the artificial demand created by the “Extended Home-Buyer Tax Credit”, home prices have depreciated to levels that have made them attractive to investor buyers (short sales/foreclosures), first time home-buyers, move up buyers and high end buyers alike. Combined with slowly but steadily climbing mortgage interest rates, home-buyers may be jumping off that proverbial fence in Toms River, NJ.

Saturday, April 9, 2011

Retirement Homes in Ocean County-First Quarter 2011

Ocean County’s Adult Community Real Estate Market Report for the First Quarter of 2011:

Ocean County Adult Communities 1st Quarter 2011

Adult Communities in Ocean County-1st Quarter

This chart displays the sales and inventory of Homes in all of the Adult Communities in Ocean County, NJ. The high-lighted area focuses on the first quarter of 2011. As we can see, sales dipped in February but rebounded strongly in March. Both of these factors could be attributed to a “snowier” than usual January in 2011. The most significant factor to observe is the “Months Inventory”, which SOLD OFF 3 months worth of supply of homes in one single month (March)!

Year-Over-Year Comparison with the First Quarter of 2010:

Adult Communities in Ocean County in the 1st Quarter of 2010

Ocean County's Adult Communities-1st Quarter of 2010

Notice the major differences, between this year and last, are the number of sales in January of this year (137 over 115) and the HUGE DIP in the “Months Inventory” in March of last year. The latter is because we were entering the last 2 months of the “Extended Home-Buyer Tax Credit” here in Ocean County. So, even with the Federal Government offering between $6,500 and $8,000 to home-buyers of Adult Communities at this time last year, Ocean County is 29 sales ahead of last year! Why?

Sold/Closed Profile of Adult Communities in Ocean County (Y-O-Y):

Adult Communities in Ocean County Sold/Closed Profile

Profile of Sold/Closed Homes in Adult Communities

As we can easily see, there was a SURGE in sales UNDER $100,000 in the Adult Communities of Ocean County in the first quarter of 2011! There were also significant increases in sales between $350,000 and $450,000.

In a nutshell; without the artificial demand created by the “Extended Home-Buyer Tax Credit”, home prices in the Adult Communities have depreciated to levels that have made them attractive to two “distinct” classes of retirees. Remember, beginning January 1, 2011; 10,000 “Baby Boomers” turn 65 each and every day, and will do so for the next 19 years! Obviously, they are finding what they want, need and can AFFORD in the Adult Communities of Ocean County, NJ.

Wednesday, April 6, 2011

Ocean County, NJ-Real Estate Market Report-First Quarter 2011

Ocean County real estate market in the first quarter of 2011:

Ocean County First Quarter 2011

First Quarter of 2011 in Ocean County

This chart displays the sales and inventory of Single Family Homes in Ocean County, NJ. The high-lighted area focuses on the first quarter of 2011. As we can see, sales have steadily increased month-over-month but the supply of homes for sale has remained relatively stable at just over 19 months. Both of these factors could be attributed to March traditionally marking the beginning of the “Spring Selling Season”; when we historically see more homes come on the market in anticipation of more buyers entering the market.

The Ocean County real estate market in the first quarter of 2010:

First Quarter of 2010 in Ocean County

The First Quarter of 2010 in Ocean County

Notice the significant differences in the high-lighted area between February and March of 2010; sales shot up while inventory dropped! This is because we were entering the last 2 months of the “Extended Home-Buyer Tax Credit” here in Ocean County. So, with the Federal Government offering up to $8,000 to home-buyers at this time last year, Ocean County is only 24 sales behind, year-over-year. Why?

Sold/Closed Profile of Homes in Ocean County (Year over Year):

Sold Profile of Homes in Ocean County

Sold/Closed (Year over Year) Ocean County

As we can plainly see, the most active price ranges (between $100,000 and $500,000), saw the most significant changes in the $100,000 to $149,999 and $150,000 to $199,999 price ranges; +54% and +23% respectively.

In a nutshell; without the artificial demand created by the “Extended Home-Buyer Tax Credit”, home prices have depreciated to levels that have made them attractive to investor buyers (short sales/foreclosures) and first time home-buyers alike. Combined with slowly but steadily climbing mortgage interest rates, home-buyers may be jumping off that proverbial fence in Ocean County, NJ.


Friday, April 1, 2011

Sally Got Fired?

You're Fired!

Purchased from istockphoto.com

Last week, one of my freshman sales associates, Sally (not her real name), came into my office and confessed that she had been fired by her “buyers” the night before. What exactly did Sally do that prompted her “clients” to fire her? Her job!

Her former clients, whom I had the pleasure of meeting and consulting with myself the previous weekend, were a young couple looking for their “First Home” in Toms River. Sally had found them a NEW 3 bedroom, 2 bath Ranch listed for $208,900. It wasn’t in the greatest of locations but it was a BRAND NEW home for just over $200K. The young couple liked it so much, they asked his father to come take a look at it…and he did!

Herein lies the problem! As I wrote in a previous post, “No Secrets Here…”;

So, here we are again in Ocean County, 12 years later. The local housing market is poised for a recovery; home prices and mortgage interest rates are at historic lows and their is an abundance of homes to choose from (limited by price range of course). Let’s learn from history and not repeat it; your friends and family may mean well but they just may cost you the home of your dreams. Trust and listen to your real estate professional. Unless, you want to live with mom and dad for the next 12 years!

The father KNEW EVERYTHING about real estate and construction (it only costs $75 a finished square foot) and advised these “kids” to offer $135,000 with a mortgage or $125,000 cash. Now, I happened to be in the office when Sally returned with her “kids” to write up the offer and she did advise me as to the father’s instructions. My initial response to my sales associate was, “is the father with them now”? Unfortunately, he was not so I went with Sally to counsel our clients about their offer.

This is what is known as a NO WIN scenario. How do you counsel a young couple that their father is going to cost them the house they like? I did it as delicately as I could, with Sally observing, and we let them know we would submit their written offer but beware of the consequences (losing the house, not even getting a counter-offer, alienating the seller, etc.). Despite our cautious counseling, the “kids” stayed the course with the father’s directions and…Sally was able to get a counter-offer of $202,000 from the Seller…that’s when they fired her!

They said, and I quote, “that they didn’t like it that we were discouraging them from short sales and foreclosures and they agreed with their father that there are houses to be bought in that price range“. There are…but NOT in Toms River and NOT in that CONDITION and NOT in that (their) time frame! So, we were fired for being honest.

I told Sally to send them a “Thank You” card, for sparing her from the long, painful, frustrating “hell” that their business relationship would have become. She was now FREE to work with buyers that understand the opportunity that exists and WANT a home of their own!