What’s Happening  to the 2023 Housing Market

The National housing market is different from New Jersey’s; national houses increased a lot higher than New Jersey because the prices here are already up there. Our “correction” will NOT be the same as the rest of the nation.

Yes, the pace of home sales has noticeably declined. Yet there are pockets of areas in New Jersey  that are still very active even with multiple offers. 

Talking about a recession well that can be a self-fulfilling prophecy. 

Housing markets that have not seen a rapid growth during the pandemic such as New Jersey, will continue a slower and steady appreciation this year.

 It’s GOOD to be in New Jersey right now where there is a study demand. 

Why this is not 2008… 

Mortgages now are written with stricter credit guidelines than in 2006-2008.

In 2008 house prices dropped fast because borrowers could not afford the payments and did not have any equity cushion. Also there was a large inventory of new construction.

Today we have a severe shortage which will help boost the market.

Even if there were to be a severe recession, we’re not likely to see many foreclosures, because homeowners have a lot of equity in their properties and are more likely to sell before going into default. 

New Jersey was a tight market before the pandemic and people were not selling because there wasn’t anything to buy. 

Rates will definitely come down the second half of 2023, but not down to the 3% level.  

Of course mortgage rates impact the supply and demand in the housing market. 

When the rates come down or dip as they did last summer, we will see buyers coming back into the market very quickly. 

Sellers right now are locked into very favorable rates, and they have no incentive to put their homes on the market, therefore the lack of inventory will persist. 

The biggest issue is with the first time home buyers being squeezed out of the market between the higher rates and the high prices. We need first-time home buyers because it causes a chain reaction that allows move up buyers.
For every first time home buyer there are five transactions that happen.

We need creativity to keep the market moving. 

NJHMFA  New Jersey Housing Mortgage and Finance and the down payment assistance program is an incentive for first-time home buyers. The max down payment assistance is $10,000 and in 2023 it has been increased to $15,000 in 12 counties. This program is for qualified first-time homebuyers to use as down payment and closing cost assistance when purchasing a home in New Jersey AND is an interest-free, five-year forgivable second loan with no monthly payment.

Also NJHMFA offers competitive mortgage rates for those who use the down payment assistance program. 

Another option for buyers is to consider a renovation loan most notable is the 203K from FHA, which combines remodeling costs and purchases into one loan.
Buyers are not taking advantage of this program.

Sellers offering to pay closing costs is coming back. 

The other item sellers are starting to offer, is buying down the rate for the first couple of years because that is less expensive than reducing the price. 

Buyers are now opting for ARM’s that are fixed for 5 to 7 years with plans to refinance before the ARMS adjust. 

While the economy is in for a bumpy year, New Jersey housing market is likely to thrive.,

 It’s good to be in New Jersey now.

• Now that rates are 6 to 7% range some buyers feel that they missed a lifetime opportunity and regret not buying sooner. 
• Know that some buyers that did buy when the rates were low may want to switch places with you now even with higher interest rates in place. 

People Who Bought Between 2021-2022 Have Some Of The Following Regrets 

• Fewer houses to choose from 
• Prices were constantly rising 
• Paying over asking price 
• Extreme pressure to make quick decisions 
• Not able to do research on the houses 
• Sometimes for going home inspections 

Four Reasons Why Now May Be A Good Time To Buy 

1. Hedge against inflation period stabilize your monthly payments against rising rents 

1. More houses to choose from and lower prices. You can always refinance your mortgage when rates go down in the future. 

1. Sellers have not had to negotiate on price or terms over the past couple of years, with the changing market sellers maybe more willing to negotiate. 

1. It could become harder to get a mortgage because as recession happens mortgage companies become more cautious. 

BOTTOM LINE 

It is easy to feel like you missed an opportunity with low interest rates, however it is also easy to forget the downsides that came along with the low interest rates and not the benefits of buying now. 

The market is never perfect! 

You need to weigh the pros and cons for your situation 

PROS TO BUYING NOW 

• Take advantage of house prices stabilizing or coming down 
• Hedge against rising rates, rent and inflation by buying a house 
• There are more homes to choose from now 
• More time to think about the options 
• More potential to negotiate 

Every real estate market is different from one area to another. So, consult your real estate agent for an in-depth advice whether now is a suitable time for you to buy in your preferred area and price range 

Image via Unsplash

Selling a home so that you can move up to a bigger, better home may be the most traditional way of doing things. But it’s not the only way. While there’s certainly nothing wrong with selling, renting out your current home is worth considering. Not only can it allow you to move onto the next chapter of your life more quickly, but it can also set the stage for consistent passive income.

Is it easy? Not necessarily. And you definitely want to think carefully before you decide whether to sell or rent. But if you learn the risks and costs, and you plan and prepare accordingly, then you can supplement your income and open doors to the exciting world of real estate investment.

Here are some tips from real estate advisor Gloria Benaroch to help guide you through the process.

Handle Essential Repairs

Even if you’ll be offering your property at a competitive rental rate, you can’t put your home on the market when it has unaddressed problems. You should plan on making any essential fixes to prepare your property for the first tenant.

For instance, if the roof is in poor condition, it needs to be repaired or replaced. If the foundation is crumbling, it needs to be fixed. Any structural, plumbing or electrical issues must be remedied to make the home safe. And you’ll also want to make any minor repairs such as patching drywall holes, fixing broken steps, or throwing a fresh coat of paint over a bad paint job.

Learn What Tenants Want

If you want to attract good tenants, you need to know what they are looking for. One effective way of doing that is to research the rental market in your area. Look at what appliances, amenities, and features other properties are offering. This will also help to identify any needs for repairs that were previously undetected.

You can also foster a more positive relationship with tenants by working to keep the property looking nice. For instance, if you don’t want tenants to keep repainting, you could allow them to add wallpaper instead. You could even look into some wallpaper that’s customizable, for a little added style.

Focus on Good Tenants

Being a landlord often means that you have to deal with bad tenants. But if you take precautions beforehand, you can reduce your risks of getting a bad tenant. For instance, if you list your property on sites like Rentals.com, you can narrow potential tenants by budget, home layout, pet friendliness, and many other factors.

It’s also critical to have a thorough tenant screening process established before you put your property on the market. Along with running each potential tenant’s credit, make sure they have stable employment, and reach out to past landlords. And don’t forget to request a security deposit and have the property inspected before your first tenant moves in.

Figure Out How to Manage the Property

Successfully converting your primary home into a rental property doesn’t end after you get the home ready and find good tenants. Managing the property once you rent it out requires a lot of time and effort. Determine from the beginning how you will handle this process.

If this is your only property, you may be able to manage it yourself as long as you have DIY skills and spare time. But a lot of landlords find working with professional property managers to be well worth the investment. Along with handling any necessary repairs and maintenance issues, a property manager will ensure the home is cleaned between tenants, that rent is collected each month, and many other aspects.

If you decide to branch out, you may want to start your own LLC, or Limited Liability Company, which has certain tax benefits and legal protections. The process is a bit technical; luckily, working with a formation agency makes the process fairly quick and affordable.

Determine the Rental Rate

Lastly, take the time to carefully consider what price you will rent out your property for. To determine the rental rate, you’ll need to research comparable properties in your area.

Consider the size, layout, and features of each property, as well as the price range. Then, estimate how much it will cost to own the property, including the mortgage, taxes, insurance, and other expenses. The key is to price your property competitively while also ensuring you make a profit.

Turning your home into a rental property can be the perfect introduction to real estate investment. Consider the tips above as you prepare your property for tenants, be selective with the tenants you consider, determine what you will do about property management, and set a competitive and profitable rental rate. Finally, keep researching what it takes to be a successful real estate investor so that you can build a firm foundation for your financial future.

Gloria Benaroch understands that your home purchase will probably be the single most important investment of your life — and she treats it as such. Her knowledge of the area combined with ethical business practices and a commitment to detail mean that her clients go to the closing table with no surprises. For more information, please visit her website or contact her today!

Ocean and monmouth county NJ Real Estate Sales

Curb Appeal That Last through Winter

When most people talk about curb appeal, at least part of what they’re talking about involves landscaping and other greenery to make your home look inviting. That’s great during the spring and summer, and even the fall to an extent. What happens when the icy winds of winter sneak in, though, and a lot of that greenery is taken out of the equation until spring rolls around again? For some reason, it seems acceptable to just abandon curb appeal and making your home look inviting once the days grow short and the temperature drops.

This doesn’t have to be the case, there are ways to make your home seem warm and appealing throughout the year, making it look like a place that friends and family really want to visit. Here are a few things to keep in mind that should help you accomplish your goal when you want to increase your home’s curb appeal throughout the winter months,

Here are Top 5 Projects for Sellers to Boost Their Resale Value

1. Painting

Average project cost: $954 to $2,893 (depending on location, paint type, and labor)
Stick with neutral colors throughout, like whites, beiges, or soft grays. It’s OK to have one accent wall;  when every room’s a different color … then that’s cheap to fix with paint. I always advise sellers to paint their interiors before listing.
Some of the most popular colors: Sherwin-Williams Agreeable Gray and Benjamin Moore’s Revere Pewter.

2. Keep flooring consistent

To install carpet: $789 to $2,794
To install hardwood floors: $2,493 to $6,754
To install vinyl floors: $800 to $2,900

Another item that can sway a buyer to your house is by keeping the floor consistent through out the rooms, halls and stairs.
A more uniform flooring look—one or two types—can be more appealing to buyers. It’s true many buyers may expect hardwood floors or premium vinyl;  not all carpeting has to go. However, removing any dated carpet, like those in bright colors, as well as any stained or worn carpet again makes the house appealing to buyers and less work.

3. Brighten the kitchen

Average project cost: $382 to $1,064 (depending on equipment and labor); $2 to $20 per piece of hardware

White-colored kitchens remain the most popular. They can brighten the look of the space. Today Buyers are looking for white and clean.  It doesn’t have to be stark white, they just want a clean palette

Dated kitchen cabinets can be painted by a pro for a quick fix. If the kitchen has other colors throughout,  painting the walls white to try to brighten the space is always a great idea and also, kitchen cabinets can get an upgrade with new hardware, such as hand pulls.

4. Replace dated countertops and appliances

Average project cost: $40 to $100 per square foot for new countertops (depending on material);
$1,360 to $19,050 for appliances

Dated appliances and countertops can turn off buyers. When thinking of replacing the countertop, a bright, monochromatic look, such as a gray or white countertop made of granite, marble, or quartz is always a good choice. Butcher block countertops could be a more cost-effective option.  Multi colored granite can date a home. Replacing a countertop if the rest of the kitchen has not been upgraded and is dated makes the new countertops will look out of place and have buyers question what else have the sellers skimped on.

5. Hire a professional cleaner for your bathroom

Average project cost: $70 to $85 per hour for a professional.

A thorough cleaning of the bathroom can make a big difference, and often a professional cleaner can do the most thorough job. Pay attention to tile grout lines and any signs of mildew.

Chris’ Landing is an upscale condo community located on the Shrewsbury River in Sea Bright NJ.

Chris’ Landing is a pet-friendly community of 23 three-bedroom townhouse style condominiums located at 1266 Ocean Avenue on the Shrews

bury River in Sea Bright.  Built in the mid-1980, 17 of the homes face directly on the river with the remaining six offering ocean views.  All homes have between 2.5 and 4.5 baths, a two-car garage and all have deep-water boat slips that can accommodate boats up to 50 feet.  Amenities include an on-site pool and beach access across Ocean Avenue.

For those who commute to NYC, the high-speed ferry in Highlands is about 10 minutes away and for rail commuters, the Little Silver Train Station is about a 15-minute drive. 

• All but six of the townhouses at Chris’ Landing are directly on the river and the views are spectacular.
• Every home in Chris’ Landing comes with a deep-water boat slip.
  
• Among the amenities at Chris’ Landing is this community pool.

Sea Bright Listings for Sale

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