New Jersey Estates/Weichert Realtors/ NJ Luxury Real Estate/ New Homes: August 2009

"Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market," said Frank Nothaft, Freddie Mac vice president and chief economist." Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®.

	New Jersey Estates/ Real Estate Group Paul Stillwaggon August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.7 point for the week ending August 27, 2009, up from last week when it averaged 5.12 percent. Last year at this time, the 30-year FRM averaged 6.40 percent.

The 15-year FRM this week averaged 4.58 percent with an average 0.7 point, up from last week when it averaged 4.56 percent. A year ago at this time, the 15-year FRM averaged 5.93 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.67 percent this week, with an average 0.6 point, down from last week when it averaged 4.57 percent. A year ago, the 5-year ARM averaged 6.03 percent.

One-year Treasury-indexed ARMs averaged 4.69 percent this week with an average 0.6 point, unchanged from last week when it averaged 4.69 percent. At this time last year, the 1-year ARM averaged 5.33 percent.

"Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market," said Frank Nothaft, Freddie Mac vice president and chief economist." Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®.

"Similarly, new home sales rose for the fourth month in a row to 0.4 million, the strongest pace since September 2008, the Commerce Department reported. The sales gain helped to reduce the number of new unsold houses on the market to the lowest amount since March 1993. In addition, house prices in June rose nationally for the second consecutive month, according to the Federal Housing Finance Agency's purchase-only house price index."


August 28, 2009 

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Real estate investors are playing a key role in the housing recovery now underway, buying up bank REO property, wading into distressed neighborhoods to turn around boarded-up foreclosures into rentals. But how much of the fast-rising pace of home sales this summer is attributable to small-scale investors?

	New Jersey Estates/ Real Estate Group Paul Stillwaggon August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved.

You can ask Rick Weinberg of REDC's Auction.com, a company that's already sold more than 19,000 foreclosed and REO houses this year for a total of $4.3 billion, and he'll tell you point blank: Investors are HUGE; they've accounted for 48 percent of all his company's volume in 2009.

"There's absolutely no question," Weinberg told Realty Times last week, "investors are responding to the deep discounts in the market on distressed real estate. They are playing a central role."

Realty Times put the same question to Lawrence Yun, chief economist for the National Association of Realtors, and got a different perspective. Yun believes investors went overboard during the boom years - buying properties for unsustainably high prices and using risky mortgages.

At their peak in the 2004-2005 period, investors accounted for almost 40 percent of all sales.

In the current recovery, on the other hand, says Yun, "investors are playing a very beneficial role," acquiring real estate more prudently. They're looking for prices at the rock bottom end of the cycle, and buying not for future appreciation, but for solid, positive rental cash flows.

With first time buyers now flooding the market, investors' share is more restrained, said Yun, but still important.

Though no one has precise figures, there are two indicators that the National Association of Realtors checks to roughly gauge investor participation in the market: Numbers of Realtor members in a periodic survey who identify purchasers as investors as opposed to owner-occupants, and the number of total sales that are "all cash."

The most recent member survey suggested investors account for roughly one of every eleven sales. Sixteen percent of recent transactions were all cash, one of every six, but that number could include owner-occupant purchasers who have the money and choose to avoid taking out a mortgage.

None of the Realtors' statistics from members include sales from auctions, and that may understate the percentage of investors involved.

But Auction.com's Weinberg says whatever the current market share of investors, "the fact is they are essential" to the recovery. In fact, he said, "Every REO or foreclosure they buy is a boost for the economy. They are creating jobs" -- contractors, carpenters, roofers and the like -- for an economy that badly needs them.


Written by Kenneth R. Harney
August 28, 2009 

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The simple fact that the internet is a part of the returning real estate market is not big news, but with so much information coming out so fast, understanding it can be difficult. This article is the second in a series of six that decodes the basics, and even some mild intricacies, of the world of electronic marketing and will show you how to compete and succeed in an area of marketing where you might have previously feared to tread. In this part we will discuss blogging in the general sense of the word and what the advantages and disadvantages of blogging are.

New Jersey Estates/ Real Estate Group Paul Stillwaggon

August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE

Copyright © 2009 Realty Times All Rights Reserved.

Basics first: What is blogging? The word blog comes from another word: weblog. This was a term used early in the genre to label web sites that were populated with commentary or other regular entries such as news or events. Blogging is simply the act of creating a journal online. Perhaps when you were a child you kept a secret journal under your pillow and recorded your most intimate and private thoughts. Well in our new and ‘improved' social networking world, people expect you to put those thoughts online to share with everyone. How nice of you! This can be good or this can be bad for your real estate business. If you are a serious scribe with years of experience to impart on both home buyers and other agents alike, then you have the basics for being a good blogger. However if you are only trying to create a blog because someone told you that it will bring more people to your site, then you might want to re-think this whole blogging thing.

Pros and Cons of Blogging Let's start with a couple of blogging myths.

Myth #1: You have to have a blog in today's market.

No, you don't. As a matter of fact, sometimes it is better NOT to have one. Blogs are a lot of work and having a blog does not necessarily lead to instant participation. The first people to participate in your blog will likely be close friends and family. If it is compelling enough, and you have a large enough customer base, then you may build a small community, but is there really enough attraction for it. What is the market for your particular blog? A blog is a business just like the one that you are trying to build. You have to ask yourself if you want to spend your time with clients or writing blog entries? To build a vibrant community of readers your blog needs to have a consistent focus on a particular topic, fresh compelling content, and good exposure on the Internet.

The general anecdotal rule is that two thirds of blogs die after the first two weeks. That is simply because blogging is so difficult. It is difficult to consistently post day after day - especially in the beginning. Stagnant information can date your site and tell your clients that you are inattentive.

Myth #2: Blogging will bring in more clients and mean a higher page ranking on Google.

Possibly, but everything in Myth #1 still applies. Most people also miss the fact page ranking is page ranking, not site ranking. Some people live and die on the idea that they must have a blog on their site. While they may benefit just as well from a blog on a completely different site that cross links to their home page.

The better alternative is to create articles on your site and then publish those articles in other places on the web linking them back to you.

Myth #3: Blogging is a cheap alternative to advertising.

That depends on how much your time is worth.

Let's run the numbers? It's almost impossible for a real estate agent to determine this so let's break it down by salary. Let's assume that you make $100,000 a year as an average; considering both good years and bad years. Now let's divide that out over 50 weeks (2 for vacation) and 40 hours a week. $100,000 ÷ 50 ÷ 40 = $50 per hour. Now we'll consider that you will keep an active blog and post for about 45 minutes (writing time, plus finding a stock image, plus posting, plus procrastination) 3 times per week. This is equal to about 10 hours per month or $500 per month. At $500 a month you are much better off using a trusted SEO expert to drive the results to your site instead. For $500 a month you can find an excellent SEO expert that will provide relevant in-bound linking and content as well.

Benefits of Blogging (I would be remiss if I did not mention that there are real advantages to blogging as well.)

Advantage #1: Blogging is gaining in popularity.

While blogging is not as hot as a topic as social networking is at the moment, it does continue to increase in popularity, and your continuing education classes will likely emphasize it.

Generally the number of personal blogs appears to be on the decline with the adoption of social networking sites like Facebook and services like Twitter by those in the baby boomer generation. However, many people see blogging as an in-road to their main site and therefore professional blogging is on the rise.

If you look long enough, you can fill a bucket with the names of CEOs, CIOs, and the like that blog in order to promote their company, impart their wisdom, and distract them from the day to day of managing their business.

Advantage #2: Competitive differentiation.

Having a blog means that you get to state who you are and why you are different.

If you have a well designed web site, then this can be covered in the general feel of design, series of pages, etc., but as is often the case, all you have to go with is a corporate site from your broker or whatever was free from the MLS. In this case a blog can help to show potential clients that you have some expertise in your particular area and help you to differentiate yourself from your competition.

Advantage #3: Aids in building your brand.

Blogging is an intimate medium and puts you in direct contact with potential clients.

Because you have control over everything that is in your blog you have the ability to create the brand that is you in a new and different way. Even if you only keep your blog for a couple of months (again, see Myth #1), it will exist as a representation of who you are and what you have to say for many years to come. When people contact you, they will have an idea of who you are and will feel more comfortable with you from the beginning since there is already an air of familiarity.

I Still Want to Blog, How Do I? Now that you know the pluses and minuses of blogging, are you ready to push on? Fortunately the options for blogging are both well developed and easy to come by. Unfortunately though, many companies will incorporate blog options into their software as an afterthought which does not make it as functional as the full featured sites.

There are multiple places where you can get a blog for free. The easiest (and arguably best) option is to sign up with a group that specializes in providing blogs and has done so for quite a while. Off-hand I can list approximately thirty or so blogging engines or platforms that support it.

The current best options for blogging, in my opinion, are Wordpress, Typepad and Blogger.

Wordpress has three main options:

 

1. you can download it and set it up yourself

    

2. you can host it for free at wordpress.com

    

3. you can host it elsewhere for a fee (often as cheap as a few dollars a month).

Word press is an open source blog which means there is constant and heavy development on it. Not easy to change, but easy to use.

Cost = Starts at $0;

Ease of use = good starter blog

Blogger Blogger is the blog offering from Google, so if you are tied into Google this may be the blog for you.

Blogger is feature rich and extremely easy to use for first time bloggers. The disadvantage of blogger is the level of customization which can be difficult.

Cost = $0;

Ease of use = super easy

Typepad Great blogging software to make your blog look professional. Great plug-ins and a solid program. There is no free option here and you will have to be at the Pro pricing level if you eventually want to integrate it into your website.

Cost = $14.95 and up (though smaller plans start at $4.95);

Ease of use = Fairly easy

Obtaining any of these is a simple as going to the website and signing up. You could start blogging within 5 minutes of reading this article. But by now you know that whether or not you can blog is not the question. The real question is ... SHOULD you blog?

Next Article: Your Marketing Life Beyond Life - Social Networking


Written by Brandon Smith
August 27, 2009 

About the author: Brandon Smith is a marketing expert in the real estate industry and is a college instructor. He can be reached at agentexcel.com.

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As energy costs rise and resources become scarcer, more homeowner associations are finding ways to reduce energy consumption and "go green." With state legislation placing limits on the authority of HOAs to prohibit or regulate certain energy generation devices and energy efficient measures,the issue has come to the forefront of the attention of both HOAs and owners. Given all of this, what are some ways homeowner associations can be proactive in creating or encouraging green practices?

	New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved.

Recycling. If your HOA has centralized trash collection, contract with your trash removal contractor to also provide for recycling. If your community has curbside pickup, recycling may be included in the cost of that pickup. Encourage all residents to recycle.

Reduce Water Consumption. Many HOAs have overly ample open space, much of which may be landscaped with lush grass. While grass is attractive, there are many turf and xeriscaping alternatives that require less, if any, water. Consider replacing high-water consuming plants with plants that require less water. Allow owners to install xeriscaping, subject to any approval requirements for any landscaping project.

Practice Landscape Water Management. Apply the appropriate amount of water needed to maintain a healthy landscape. This requires an understanding of plant water use, soils and the irrigation system installed. Spray sprinkler heads distribute water at a different rate than rotor heads, so having both types of heads on the same zone can lead to over saturation in some areas and dry spots in others. Install smart controllers to detect when plants actually need water. Install rain sensors so turf areas are not being watered when it is raining. Your landscape contractor should have expert knowledge of irrigation equipment alternatives. If he doesn't, hire one that does. Equipment needs to be continually monitored and adjusted for greatest water use efficiency.

Energy Conservation or Generation. If your HOA has a clubhouse, have an energy audit done to determine where energy use could be reduced. There may be some simple and inexpensive ways to reduce energy consumption, such as installing weather stripping and programmable thermostats. Replace furnace filters on a regular basis. Replace incandescent light bulbs in the common area light fixtures and lamps with compact fluorescent bulbs. Install photocells or timers on outdoor lighting.

Consider installing solar panels to heat the pool or provide power to the clubhouse. If your HOA makes an energy efficient purchase such as solar panels there many be a tax credit available. While HOAs typically are not be eligible for the tax credits because they don't pay taxes, the tax credit may be bought by those that do or possibly passed through to HOA members. There are strict guidelines on the types of expenditures that are covered, so check with your CPA for more details.

Review the Governing Documents. Review the governing documents and amend them to eliminate provisions that discourage or prevent energy efficiency and add provisions to include proactive provisions to encourage green activities.

This is just a small sample of things HOAs can do to reduce costs and help the environment. There are countless resources and websites that can provide in-depth information for associations. Check out:

 

• epa.gov

   

• nrdc.org/greenliving

   

• usgbc.org

   

• regreenprogram.org

   

• treehugger.com

   

• plantnative.org

   

• caigreen.org

Excerpts from an article by Trisha K. Harris, Esq.


Written by Richard Thompson
August 26, 2009 

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Encouraging numbers on the real estate front, including new housing construction and sales of existing homes, continue to point toward a sustained recovery in the months ahead. Home builders -- who had been the most depressed segment of the real estate industry for the past two years -- are pulling permits again and starting to put up new houses.

	New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved

The Commerce Department reports that single family starts last month were up nearly two percent over the prior month, while permits for future construction jumped by six percent.

Starts and permits are now at their highest levels in ten months.

Meanwhile, existing home sales and price reports from around the country show the breadth of the rebound getting underway:

In five large southern California counties that were near the epicenter of the bust, houses sold in July at the fastest pace in three years, according to MDA DataQuick researchers.

The five counties are San Diego, Orange, Los Angeles, Ventura and Riverside-San Bernadino. Sales there have risen for thirteen consecutive months compared with the previous year's levels. Even median prices are showing modest increases, as foreclosures decline as a percentage of total sales.

But John Walsh, president of DataQuick, cautions against overstating the positive news here though. Walsh believes that "we could bounce along" at this summer's slightly improved levels "for quite awhile" if California's economy doesn't improve.

In another tough market, Sarasota-Bradenton on Florida's west coast, second quarter home prices were ten percent higher than the first quarter, according to the Florida Association of Realtors. Sales were up 20 percent in the same period.

In Davenport, Iowa, median prices were up an impressive 31 percent in the second quarter compared with the year before, and in Cumberland Maryland, they were up 22 percent.

Some lenders are beginning to take note of the improving numbers and are revising their controversial "declining area" designations that restrict mortgage lending or make it more costly for buyers.

SunTrust Bank, a large national lender, has just taken most of California off its "declining markets" list, leaving only a handful of scattered markets still on it.

Mortgage money got a little less costly last week as well, and that's got to help first-time and move-up buyers. The Mortgage Bankers Association reported that loan applications to purchase houses jumped four percent; that's the third straight week of higher applications.

Rates dropped about a fifth of a percent, pushing average 30 year fixed rates to 5.2 percent and 15 year rates to just 4.5 percent.

Whatever your take on the overall economy, you've got to admit: It's looking pretty good out there for housing.


Written by Kenneth R. Harney
August 25, 2009 

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You can Email us at:      njestates@gmail.com We are located at:      55 Stirling Road,      Watchung, NJ 07069

Sales of existing homes and condos continue to power the real estate market, in some areas they're up by double digits, and despite all the negative headlines about foreclosures, even prices are rising in many places as well.

New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish

August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE

Copyright © 2009 Realty Times All Rights Reserved.

Sales in the second quarter ending June 30 jumped by nearly 4 percent countrywide, according to the National Association of Realtors. Second quarter sales in 39 states were higher than the first quarter, as they were in 129 out of the 155 largest markets.

New York saw an impressive 22 percent increase for the quarter, as did Wisconsin. California, Michigan and Minnesota all registered double-digit sales gains compared with the second quarter of 2008.

Prices were still flat or down in markets where large percentages of sales are bank-owned REO. But in relatively healthy metro areas like Beaumont and Port Arthur, Texas, they were up significantly, by 11 percent over the second quarter of 2008.

In the Denver area during June, home prices were 6 percent higher than May, and resales increased by an eye-popping 32 percent, according to MDA DataQuick researchers.

Several of the national home price indexes also continue to point to more than a mere bottoming out -- they're documenting real turnarounds in key areas. The IAS 360 index reported a 1.2 percent average increase in its thousands of data-gathering submarkets and neighborhoods for June.

Average prices in Boston gained 2.9 percent for the month, according to IAS. In Chicago they were up 1.3 percent, Los Angeles 2.2 percent, San Francisco 1.7 percent, and San Diego 1.4 percent.

Meanwhile, mortgages continued their modest but steady gains, with new loan applications to buy houses up last week by about one percent over the previous week, according to the Mortgage Bankers Association.

Rates jumped slightly, however, with 30 year fixed conventional loans going for an average 5.4 percent, and fifteen year rates at 4.7 percent.

Conditions in the overall economy were more mixed than in the housing arena, but the big picture still has most economists, and even the Federal Reserve, encouraged that the recession will be over this year.

Fewer jobs were lost last month than expected and unemployment fell to 9.4 percent. But let's face it: losing a quarter of a million jobs in the span of a month is still a serious drag on the economy - and is certainly no plus for housing.

On the other hand, is there anybody out there who wants to trade today's mixed outlook with last fall's horror show scenario, when we were all tottering on the edge of a global financial disaster?


Written by Kenneth R. Harney
August 18, 2009 

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You can Email us at:      njestates@gmail.com We are located at:      55 Stirling Road,      Watchung, NJ 07069

The House and Senate may have left Capitol Hill for their August break, but housing lobbyists are busy at work gearing up a major campaign to extend the $8,000 home buyer tax credit. The credit for first-time purchasers is scheduled to expire November 30. The National Association of Home Builders and the National Association of Realtors want to persuade Congress to nail down an extension of the credit, and maybe even broaden its coverage, as soon as possible.

	New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved.

The home builders are mounting an aggressive campaign during the congressional recess. The association is sending out local teams of members to meet with congressmen and senators in their home districts, urging not only a one year extension of the credit, but an expansion of the concept to cover all home buyers next year, not just first-timers.

Though the endorsement may, or may not, have been connected with the home builders' campaign, one of the most politically powerful Democrats has already signaled that he favors a one year extension.

Senate Majority Leader Harry Reid of Nevada, said he thinks "it's something we can get done." According to a report in the Las Vegas Sun, Reid made the comment last week during a conference call with Nevada reporters.

Meanwhile, the influential chairman of the Senate banking committee, Connecticut Democrat Chris Dodd, has teamed up with Georgia Republican Senator Johnny Isakson to sponsor a bill that would extend the credit for another year and expand it to a $15,000 maximum.

In the House, two bills have been introduced to extend and expand the credit for either six months or 12 months. The National Association of Realtors is strongly supporting the extension efforts, and is sending its own delegations to lobby key members of the House Ways and Means committee and the Senate Finance committee.

So with all this going on, is it a sure thing that the tax credit will be available in some form for home buyers next year? Should consumers who can't quite make the November 30 deadline breathe easier?

Absolutely not. There is no sure thing on Capitol Hill whenever legislation looks like it's got a clear path to passage. That's when opponents hijack the bill or filibuster it in the Senate.

Nonetheless, extension of the credit looks like it has growing bipartisan support. Mary Trupo, legislative spokesperson for the National Association of Realtors, told Realty Times last week that "we feel Congress is receptive" to the message that the housing tax credit helps create jobs, and stimulates the economy.

But nobody should assume it's a done deal, until it is.


Written by Kenneth R. Harney
August 17, 2009 

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You can Email us at:      njestates@gmail.com We are located at:      55 Stirling Road,      Watchung, NJ 07069

Technology continues to bring the real estate industry and those professionals who earn a living in it, some exciting, new products and services. The latest to hit the market is a Web-based tool that brings to your fingertips an online database detailing land and property values throughout the United States.

	New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved.

The data, developed under the auspices of the Lincoln Institute of Land Policy and the Graaskamp Center for Real Estate at the Wisconsin School of Business, will be featured in its "Resources and Tools" section of Lincolninst.edu, and provide separate price indices for land and structures, in addition to the more common price indices for property, land and structures combined.

"Price indexes and values of land inform the analysis of trends and cycles in house prices," said Morris A. Davis, an assistant professor of Real Estate and Urban Land Economics at the Wisconsin School of Business and fellow at the Lincoln Institute of Land Policy, who created the data sets. Information on the values and rents of residential properties in the U.S. cover three dimensions:

 

• Rent-Price Ratio: The ratio of rents to prices for the stock of all owner-occupied housing.

   

• Aggregate U.S. Land Prices: Values and price indexes for all land, structures, and housing in residential use.

   

• Metro Area Land Prices: Values and price indexes for land, structures, and housing for single-family owner-occupied housing units in 46 major U.S. metropolitan areas.

"If housing were simply a manufactured good, and location or land had no value, then the price of housing would be determined by construction costs, and housing prices would increase at roughly the same rate as the price of other goods in the US economy," explained Davis.

But, Davis noted, housing is on land with a specific location, and good locations are often scarce and valuable. If construction costs rise slowly over time and desirable locations are in limited supply, increases in the demand for housing can translate directly to increases in the price of good locations, the land, and in house prices. Accordingly, information on changes in the price and value of land over time often relate to trends and cycles in housing demand.

Although the rent-to-price ratio and the price and value of land are obvious metrics for understanding dynamics of housing and house prices, few of these data can be directly observed. In the case of the rent-to-price ratio, the implicit rents accruing to homeowners must be estimated based on market rents of similar rental units. In the case of land, direct land sales are rarely observed in built-up areas and occur mainly where new suburban development occurs. To estimate the value of land in built-up areas requires separating the directly observed sale price of housing into the underlying values of the housing structure and the land, neither of which is separately observed. The online database provides disaggregate estimates of property value for real estate analysis.

Technology is great when it works - and when it meets a need. This new site accomplishes both. You can view the Land and Property Values in the U.S. database by visiting lincolninst.edu.

[Editor's Note: The Lincoln Institute of Land Policy is a leading resource for key issues concerning the use, regulation, and taxation of land. For more information on the Lincoln Institute, visit lincolninst.edu. The Wisconsin Real Estate Program is one of the oldest academic real estate programs in the world, www.bus.wisc.edu/wcre. Morris A. Davis is assistant professor of real estate and urban land economics at the Wisconsin School of Business, and a fellow at the Lincoln Institute of Land Policy.]


Written by Peter L. Mosca
August 12, 2009 

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For further information Phone:      Paul Stillwaggon  (908) 561-5492 Cell: (908) 310-1358 Pat Cornish   (908) 561-6499 Cell: (908) 578-0890

You can Email us at:      njestates@gmail.com We are located at:      55 Stirling Road,      Watchung, NJ 07069

Wouldn't it be nice if there were an institutional lender who truly understood the nature of the real estate business and whose underwriting guidelines were reflective of that understanding?

New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish

August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE

Copyright © 2009 Realty Times All Rights Reserved.

It is well known these days that loans, any kind of conventional loans, have become more difficult to obtain. (I emphasize conventional in order to distinguish from payday loans and the kind you get from the fellows who will do damage to your kneecaps if you miss payments. Those loans may still be easy to get). The self-employed -- those whose income is reflected in IRS forms 1099, rather than W-2 - receive particularly strict scrutiny from underwriters. And, within that group, Realtors® -- most of whom are independent contractors - face even greater underwriting skepticism. Even in good years, their income tends to be seasonal, and, over the long run, cyclical.

Wouldn't it be nice if there were an institutional lender who truly understood the nature of the real estate business and whose underwriting guidelines were reflective of that understanding? There is. It is called the Realtors® Federal Credit Union (RFCU). It is new; and it is a safe bet that many Realtor® members of the National Association of Realtors® (NAR) don't yet know much about it.

In May of 2007, Dale Stinton, the CEO of NAR announced the "Second Century Initiatives." These included a proposal to form a Realtors® Federal Credit Union. The proposal was enthusiastically received by the NAR Board of Directors. By November of 2008 a regulatory approval had been received and a charter was granted. Included in the mission statement of the RFCU is a commitment to "meeting the financial needs of members in a cost effective way that recognizes the unique savings, lending, and credit needs of people in the real estate profession including Realtors® who are self employed..." [my emphasis]

Membership in the RFCU is open to, among others, Realtors®, Realtor®-Associates, Member Boards and their employees, and members of the immediate families or household members of any of the above. When its opening was announced in May of 2009, the RFCU was the newest of any federal credit union, but already not the smallest. With an NAR membership of more than one million, the RFCU easily has the potential to become the largest of all federal credit unions. This, of course, increases the benefits potential for its members.

Like all credit unions, the RFCU won't just make loans. All members must have at least a minimum ($100) savings account, and it offers a full array of money market accounts and timed deposit certificates. Because it is a non-profit and wholly member-owned, its rates will always be attractive.

The RFCU is fully virtual. No funds are tied up in the ownership or rental of branch facilities. Yet it still provides its members, through cooperative arrangements, with the physical benefit of a wide-spread ATM network. Near-by locations are easily determined by using the website.

Realtors® interested in and/or wanting to join the Realtors® Federal Credit Union can simply go on line to realtorsfcu.org/. To join, a Realtor® must have his/her NAR identification (NRDS) number.

No, the RFCU isn't going to give a Realtor® a substantial loan if he or she hasn't closed an escrow in the past three years; but those who are still active will probably get a significantly better shake than they would from a traditional lending source.


Written by Bob Hunt
August 11, 2009 

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Last week's 3.6 percent increase in pending sales marked the fifth consecutive month of positive news from this key leading indicator, the first time there's been a string that long since 2003.

New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish

August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE

Copyright © 2009 Realty Times All Rights Reserved.

Steady jumps in pending home sales and low interest rates continue to lead housing out of the doldrums into growth mode -- and even toward price increases in some hard-hit markets as well.

Last week's 3.6 percent increase in pending sales marked the fifth consecutive month of positive news from this key leading indicator, the first time there's been a string that long since 2003.

Every region of the country saw increases in pending sales in June, according to the National Association of Realtors, which compiles the data based on signed contracts for home sales that haven't yet closed.

Lawrence Yun, chief economist for the National Association of Realtors, attributed the string of increases in part to first time buyers getting off the sidelines and looking to qualify for federal tax credits.

Another contributing factor is the dramatic improvements in affordability of houses in many markets, sharply lower prices combined with mortgage rates in the mid to lower five percent range.

The national housing affordability index is now 37 percent better than it was just a year ago. The typical family, with a monthly household income at the national median, can now devote just 16 percent of gross income to paying principal and interest on a median priced home financed with a 20 percent downpayment.

That sort of affordability hasn't been seen for decades!

Meanwhile, there are growing reports of multiple offers on low-priced houses for sale in some major markets, along with the first signs of possible price turnarounds.

For example, in the Portland-Vancouver market, resales in June were up 25 percent from May. But more significantly: the median price of homes sold there gained 2.1 percent, according to MDA DataQuick, a research firm.

On the mortgage front, new purchase applications to buy houses rose again last week, according to the Mortgage Bankers Association. Thirty-year average fixed rates fell to 5.2 percent from 5.4 percent. Fifteen year rates averaged 4.6 percent.

Not all the economic indicators are reading positive for real estate, of course. Unemployment rates in many parts of the country remain in the double digits, consumer confidence is brittle, and gross domestic product, GDP, was down last quarter by one percent, the fourth straight quarterly drop.

But economic forecasters like the Mortgage Bankers' Orawin Velz, see a bright side on the near horizon: The latest GDP negative number is much smaller than the 6 percent plus loss in the previous quarter.

That suggests "the end is near" for the recession, she says, and that's got to be good for housing.


Written by Kenneth R. Harney
August 11, 2009 

COMPLETE INFO UPDATED DAILY
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Land & Building Lots
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All New Jersey Homes
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For further information Phone:      Paul Stillwaggon  (908) 561-5492 Cell: (908) 310-1358 Pat Cornish   (908) 561-6499 Cell: (908) 578-0890

You can Email us at:      njestates@gmail.com We are located at:      55 Stirling Road,      Watchung, NJ 07069