Thursday, January 27, 2011
Wednesday, January 26, 2011
Renters Alert: It's a good time to buy a home in Morristown
Not too surprisingly, New York City remained the top renters' market as two bedrooms in New York City come in at a whopping $1.3-1.4 million and rent for an average of $3,500-4,000 a month, where foreclosure slammed cities like Las Vegas are a discount buyers dream as you can purchase homes for less $100,000, while rents can be $1,000.
When we look at our local market of Morristown and Morris Township, according the multiple listing service (MLS) the average two-bedroom home in Morristown and Morris Township sold for roughly $350,000 over the last year. To get a local calculation we will need to make some assumptions such as $8,000 of taxes for Morristown. Morristown taxes are higher than Morris Township where they would be closer to $6,000 so the rent to buy ratio will be more favorable to buy in Morris Township. We will also assume the buyer will put 20% down at a 5% interest rate and assume $600 a year for insurance. All told the mortgage to buy would come in at about $2,200 a month in Morristown or $2,050 for Morris Township, which maintains lower taxes.
For December, Zillow showed that the average rental was $2,200 a month, meaning that instead of paying your landlord a Morristown renter could by his/her own place. An average renter in Morris Township could actually save money. So first-time buyers consider this, right now it is one of the best times to buy... or to be a landlord.
Keller Williams Towne Square Realty
Cell: (908) 303-0926; Office: 908-766-0085; Fax: 908-766-2254
24 Claremont Road, Bernardsville , NJ 07924
Tuesday, January 25, 2011
National Real Estate Market Update - January 2011
January 2011 Market Update
The housing market is recovering. As more home buyers are taking advantage of the improved affordability conditions. With mortgage rates hovering around recent record lows and home prices having generally stabilized, economists are expecting an upward trend to a healthy and sustainable level in 2011.
As the economy improves, current stimulus efforts by the government and the Federal Reserve Board are expected to gradually wind down. Meanwhile, serious buyers stand to benefit from historically favorable buying conditions.
Home Sales
Existing home sales resumed on an upward trend since bottoming in July. Sales activity rose to a seasonally adjusted annual rate of 4.68 million in November. This was up 22% from July and 5.6% above the 4.43 million level in October, but remained 27.9% below the 6.49 million tax credit rush a year ago. As steady job creation is expected to continue, industry experts are hopeful for 2011.
Home Price
Home prices continued to stabilize. Nationally median home prices edged up slightly to $170,600, 0.4% above year-ago levels. Distressed homes have accounted for a fairly stable market share, representing 33% of sales in November. This is on par with the 34% in October and 33% in November 2009. Historically favorable interest rates, coupled with stable home prices, continue to offer advantageous buying opportunities.
Inventory
The number of homes on the market continued to decline. Total inventory fell to 3.71 million in November from 3.86 million in October. This reflects the increasing response from buyers to improved affordability conditions. As lending standards return to historical norms and consumers become more confident about their financial situation, more people will be able to buy their first home, move up, or invest.
Affordability
Housing affordability set a new record in November. The relationship between mortgage rates, home prices, and family income is the most favorable on record for buying. The home price-to-income ratio, currently at 13.5%, continues to remain well below the historical standard. Stabilizing home prices and rising interest rates are expected to begin drawing affordability back up toward more normal levels.
Source: National Association of Realtors - October housing data released December 22.
Monday, January 24, 2011
How not to sell a house in Morris County
While typically homes are originally built with a certain layout and design (i.e. split levels open floor plan, colonials with defined rooms, etc.) it is amazing what time will do. Over time homeowners will eventually decide to do some "creative" remodeling - they will take a very functional home and turn it into a home that not only turns off potential buyers but also makes it very costly to find buyers who are willing to pay to bring a home back to its full potential. According to a study by the National Association of Realtors, first-time buyers made up nearly half of all buyers this year at 47% -- knowing this and understanding that most first-time buyers don't want to embark on major renovations, you are significantly reducing the number of potential buyers. See recent sales in Morris Township: Morris Township Monthly Real Estate Report.
For that reason it is not surprising that many of these homes go to investors. I've seen homes in Morris Township homes that don't have bathrooms on the same level as the bedrooms, bathrooms where guys over 5' 6" need to crouch while using the "facilities," and a home that had doubled as doctor's offices with numerous tiny rooms that were patient rooms. You never know what you will find when you open the door.
A recent CNN article explained the types of homes that are purchased by HomeVesters - you know the "We Buy Ugly Homes" people. They end up with homes that they can't be sold to standard buyer and the top reasons they end up with these homes include:
- Dysfunctional Floor Plans
- Too Many Bedrooms - Too Few Baths
- Poorly Converted Garages
- Big Kitchen with No Living room
- No Closets
- Overgrown "Mature" Landscaping
- Bad Colors
- Missing Necessities (you know like... um.. floors!?)
Wednesday, January 19, 2011
Moving to Morristown? Check out Morristown Community Information
Want to get to know a little bit more about Morristown? If you are moving to Morristown or just looking to find out more about the town before looking into Morristown real estate. Check out below for Morristown nightlife, restaurants, history and community information.
MORRISTOWN
Morristown located in Morris County maintains a population of roughly 18,500 according to the most recent census numbers. As the county seat of Morris County, Morristown is known as "the military capital of the American Revolution" because of its strategic role in the war for independence from Great Britain. George Washington really did sleep here, for Morristown served as his headquarters for two different winter encampments during the Revolutionary War. Today this history is visible in a variety of locations throughout the town that collectively make up Morristown National Historic Park.
Recreation/Nightlife
The town is centered on its historic Green, where a juxtaposition of business and pleasure meet. Morristown maintains an ethnically diverse community that has for the past several years had a major influx of young professional becoming the Hoboken of the West. Morristown has an extremely diverse collection of restaurants such as Sushi Lounge, Nara, Nagano, Asahi for sushi lovers, Mendi and Caffe India for curry lovers, Italian galore at La Campagna, Valentino’s, Brick Oven etc., Cha Cha Cha for Cuban, Thai options with Origins, Sirin, Andaman Sea Recipe, Afgani delights at Pamir, tasty Mexican at Tito’s Burrito and dozens of more great restaurants. You name a type of cuisine and there is a solid bet Morristown has it covered.
Nightlife includes numerous bars like the Grasshopper, Famished Frog, Pazo Pazo, the Dublin Pub, Hennessey and many more keep the drinks flowing and good times rolling.
The Morristown Community Theater offers a huge array of performers including bands, comedians, plays, symphonies, as well as local and children’s events.
Commuters
Morristown boasts its own train station that provides easy access for commuters heading into New York. New Jersey Transit’s Morris & Essex line provides service to Penn Station in Manhattan, approximately one hour away. Highway access is equally good, with the Town located on I287, US 202, and SR124.
The Morristown Parking Authority provides ample downtown parking for motorists making Morristown a destination. Morristown Municipal Airport is the second-busiest general aviation airport in New Jersey, while Newark International Airport is a mere 30 minutes away.
Location
Located in the north, central part of New Jersey, Morristown hurdles the eastern more hustle-and-bustle part of the state and the more rural western part of NJ. Morristown is totally surrounded geographically by the separate municipality of Morris Township with whom the Town shares a school district, a library and various youth sports leagues. Many departments of the two municipalities also cooperate in the provision of local services.
A state-designated “regional center,” Morristown is the County Seat of Morris County and the home of the highly regarded Morristown Memorial Hospital.
Attractions
The National Trust for Historic Preservation has named Morristown one of its “Dozen Distinctive Destinations.” In and around Morristown are a wide number of historic attractions and museums– Washington’s Headquarters, the Morris Museum, MacCulloch Hall Museum and Gardens, the Morris County Historical Society’s Acorn Hall, Historic Speedwell Village, Fosterfields Living Historical Farm, and Frelinghuysen Arboretum which is a huge hit for Morristown gardeners. More information is available through the Morris County Historic Visitor’s Center
Monday, January 17, 2011
Morris Township Real Estate Monthly Report - December
For the month of December, there included 159 active listings with an average list price of $695,848. There will 13 new listings in Morris Township with an average list price of $764,277.
There were 20 listing under contract and scheduled to close at an average list price of $534,084 and 24 additional listing were closed during December with an average sales price of $520,341. Listings sold at 96% of list price during the month and Morris Towship homes remained on the market for an average of 78 days.
Considering that there were 24 sold Morris Township homes and there are 159 active listings it is estimated that it would take about 6 ½ months to clear the inventory. Anything more than 6 months would be considered a buyer's market.
A list of the sold Morris Township properties is below. To take a deeper dive into finding a home visit www.jeremygulishhomes.com.
There were 20 listing under contract and scheduled to close at an average list price of $534,084 and 24 additional listing were closed during December with an average sales price of $520,341. Listings sold at 96% of list price during the month and Morris Towship homes remained on the market for an average of 78 days.
Considering that there were 24 sold Morris Township homes and there are 159 active listings it is estimated that it would take about 6 ½ months to clear the inventory. Anything more than 6 months would be considered a buyer's market.
A list of the sold Morris Township properties is below. To take a deeper dive into finding a home visit www.jeremygulishhomes.com.
Colonial | 7 | 4 | 3.0 | 0 | Y | $180,000 | 10 | ||
FirstFlr | 3 | 1 | 1.0 | 0 | N | $193,000 | 136 | ||
Ranch | 6 | 2 | 2.0 | 2 | Y | $270,000 | 20 | ||
CapeCod | 8 | 5 | 2.0 | 0 | Y | $260,000 | 513 | ||
TwnEndUn | 6 | 2 | 2.0 | 2 | N | $305,000 | 20 | ||
TwnEndUn | 7 | 2 | 2.1 | 2 | N | $300,000 | 58 | ||
TwnEndUn | 5 | 2 | 2.1 | 1 | N | $315,000 | 11 | ||
TwnEndUn | 7 | 2 | 2.1 | 1 | Y | $355,000 | 100 | ||
TwnEndUn | 6 | 3 | 2.1 | 1 | N | $355,000 | 77 | ||
SplitLev | 8 | 3 | 2.0 | 2 | Y | $416,000 | 11 | ||
TwnIntUn | 6 | 2 | 2.1 | 1 | Y | $402,500 | 34 | ||
TwnIntUn | 7 | 3 | 2.1 | 1 | Y | $470,000 | 113 | ||
TwnEndUn | 6 | 2 | 3.0 | 1 | Y | $485,000 | 22 | ||
Colonial | 8 | 4 | 2.1 | 2 | Y | $471,250 | 132 | ||
Bi-Level | 8 | 3 | 2.1 | 2 | N | $485,000 | 48 | ||
TwnEndUn | 5 | 2 | 2.0 | 2 | Y | $540,000 | 32 | ||
CapeCod | 8 | 4 | 3.1 | 2 | Y | $710,000 | 20 | ||
RanchExp | 10 | 5 | 3.2 | 2 | Y | $650,000 | 14 | ||
Colonial | 9 | 4 | 2.1 | 2 | Y | $675,000 | 5 | ||
Colonial | 9 | 4 | 3.1 | 2 | Y | $750,000 | 52 | ||
Colonial | 12 | 4 | 2.1 | 2 | Y | $800,000 | 47 | ||
Colonial | 11 | 4 | 4.1 | 2 | Y | $870,000 | 78 | ||
Colonial | 9 | 4 | 4.1 | 2 | Y | $999,999 | 41 | ||
Custom | 11 | 5 | 5.1 | 3 | Y | $999,750 | 171 |
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