5 Reasons to Love New Jersey
Are you considering relocating to New Jersey? Or perhaps you’re already a NJ native but are trying to convince a friend or family member to make the move. Whatever the case, this blog post is for you! Here are five amazing reasons to give the Garden State a chance!
1. Varied Landscape
On the West Coast, you get mountains and white sand beaches. The South – warm, sandy deserts. In the central part of the U.S., you see hundreds of miles of flat land. But in Jersey, you get everything. There are miles of farmland, breathtaking mountains, cityscapes and beaches. This means you can make your home anywhere you want – you can literally never get bored!
2. Adorable Mini Towns
One of the neat aspects to living in Jersey is that there are quaint little towns throughout the state. Most offer the perfect blend of urban and suburban life. There are places to grab a bite to eat, charming streets and rich history embedded in each town. From family friendly Little Falls to the marshes of Meadowland, you can get an entire history lesson in one drive.
3. Proximity to the Beach
Another highlight to New Jersey is the cozy beach towns. Many people have summer homes on Long Beach Island where they spend the weekends in the summer. And, no matter where you live in NJ, most residents are no more than an hour away from the coast. Nothing beats sitting off the beach in the summer, enjoying salt water taffy and french fries with vinegar.
4. Proximity to Manhattan
Millions of people can only dream of visiting the Big Apple, but for people living in NJ, it’s only a bus, train or ferry ride away. In fact, many people work in the Big Apple where job opportunities are more plentiful, and enjoy suburban living in New Jersey. Living right next to the city offers financial security, especially in an unstable economy.
5. Excellent Schools
New Jersey takes a lot of pride in their education system. There are numerous NJ schools in the 2014 U.S. News Best High Schools rankings, including 25 with gold medals, 19 silver medals and 32 bronze medals. Each municipality has their own school district essentially, which means that each district gets a lot of attention from committed families.
New Jersey Housing Market Continues to Strengthen
According to the New Jersey Association of Realtors, the NJ market continues to strengthen thanks to a lower inventory of available homes, higher median prices and faster selling times. How do these numbers compare to last year?
According to NJAR, the number of homes for sale in all markets is down 15.5 percent from September 2012. Closed sales in all markets have risen 21.8 percent, though. Single-family homes have seen a median sale price of 7 percent more compared to September 2012, and single-family homes are spending less time on the market.
To add more good news to the picture, positive trends are being seen in the townhome and condo communities as well. While NJ isn’t back to pre-recession prices, at least the housing market is moving in the right direction.
Why Inventory is Low – But Maybe Not for Long
Part of the reason why inventory is low is because would-be sellers are holding onto their properties because they are not willing to sell their home at a discount. This deters many would-be sellers, so they either remain in their homes or rent them out to continue paying down their mortgage.
Over time, we can expect to see some of these sellers slowly listing their homes when they can finally make the numbers work for them, but in the meantime, inventory will remain relatively low – at least for these types of homes.
Foreclosed homes are a different story. With the high number of foreclosures, there are still many that need to make it onto the market. Once they are listed, we can expect to see them clear out very quickly, boosting sales and driving up the market, hopefully allowing today’s would-be sellers to finally list their homes without taking as much of a hit. This has been the trend for much of the country, and it has helped many states rebound to better sales.
We can only hope that the housing market bubble will be a thing of the past, and housing prices will continue to strengthen over time. We’re making positive steps in the right direction, making now – potentially – a great time to sell, buy or both.
Tips for the First Time Homebuyer
First-time homebuyers – those who have no present home ownership – are some of the luckiest in the market today. In order to stimulate a sluggish housing market, there have been a handful of incentives and loan opportunities that encourage those without a home to buy, in turn stimulating a down economy. Since the housing bubble, the market has been most generous to new buyers thanks to low housing prices and historically low interest rates. The drawbacks have been that lenders have tightened their lending guidelines, and there is a low inventory of homes available.
Why Buy?
Homeownership offers many benefits:
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Increased control (no more cancelled leases)
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A residence that better meets your needs
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Home equity
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Tax benefits
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Builds credit
Below are a few tips for the first-time homebuyer.
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Check the selling prices of homes in your area. For the most accurate data, you’ll need to look at the MLS, so contact a real estate agent who can give you access to this up-to-date, real-time system.
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Use a mortgage calculator to determine how much you can afford each month. Overestimate your expenses so that you leave ample room to afford your mortgage and the hidden costs, such as HOA fees, property taxes and utility bills.
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Find out what property taxes will be. There are big differences from one county to the next. Unfortunately, no matter where you live in NJ, you can expect to pay high taxes.
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Determine how much closing costs will be. First-time homebuyers sometimes have more incentives than other buyers, so you may be able to get your closing costs paid for. Still, it’s not as common for these costs to be rolled into your loan as in years past, so know what you will have to bring to the table.
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Work with a reputable realtor. A realtor is your best guide during the home buying process and will match you with the best properties, while also keeping you up-to-date on fluctuating interest rates and taxes.
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Start the pre-approval process. A lender will look at your finances, qualify you based on your income and tell you how much home you can afford. Fannie Mae recommends that you spend no more than 28 percent of your income on housing, so take this into consideration. You want to afford your home, not make it a financial strain.
What is the Multiple Listing Service (MLS)?
If you’ve been working with a realtor or will be in the near future, you will definitely hear a lot about the MLS system. MLS stands for Multiple Listing Service, and it refers to one large database with many of the listings that are currently available on the market. When a property is sold, it is then taken off the database. The MLS is a fast and convenient way to access the homes that are available for sale at any given moment. After all, being a good realtor means that you need to have quick knowledge of what properties are out there.
Let’s take a look at the advantages to using the MLS for your home buying or selling experience.
Benefits to Buyers
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Convenient. The majority of homes for sale in your area are placed on the database, so you don’t have to bounce back and forth to various websites.
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Easy to use. A few simple clicks of a mouse give you access to all the properties for sale in your area.
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Up-to-date and relevant. The MLS is continuously updated, so what you see reflects the current market, unlike other sites that are out of date.
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Free service. The MLS does not cost a penny for buyers to use.
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Sorting features. Instead of sorting through hundreds of homes, you can use the handy sorting features to find homes based on the square footage, number of bedrooms/bathrooms, zip code and so on.
Benefits to Sellers
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More exposure. You want to sell your home fast, so putting it in front of the most buyers makes this possible. The MLS gets you the largest number of buyers in a short amount of time.
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Help from a professional. To get your listing on the MLS, you’ll need a real estate agent or broker to list the property. Not only do you get your home on the MLS, but also you get professional assistance from a realtor who can help get your home sold quickly and for the most money possible.
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Increased competition. The more buyers that see your home, the more competition it will create. Competition is good for sellers since it puts more power in your hands as you price your home and sell it quickly.
Bidding Wars are Back!
If you’ve been sitting back, waiting for the housing market to improve, it’s time to get your ducks in a row. The housing market is advancing, and there’s real proof to be seen. It’s not just in the numbers, but also in the bidding wars that are taking place across the U.S. These wars are bigger and badder than ever, with some homeowners watching their homes being sold for more than what they asked for.
What’s the big deal with bidding wars in the first place?
Currently, there is very low inventory out there, so for people looking to buy, there’s not much to choose from. Homeowners are still holding on to their properties and waiting for a better market, contributing to the limited inventory. When a family finds the house they want, they’re not afraid to fight for it, which may mean paying more for it. They know they can’t just turn around and find something comparable within a few days or weeks, so they have to be aggressive.
That’s where the bidding wars come in. And, for homeowners, this can mean more money in their pocket as well as a quick sell time.
Bidding wars are also beneficial for the housing market at large. These bids create buyer activity; after all, only one person wins. That means the other two or three or five people bidding on the house will continue looking for another comparable home, and this continued activity pushes more people to list their homes and ask higher prices.
It’s not uncommon for homes in New Jersey to see five, six or even seven bidders on a house. Since New Jersey has a prime location, with some counties a mere 20 minutes from NYC, the suburbs remain a great place to buy a home. And, this is what fuels bidding wars even more. Interest rates and housing prices are slowly climbing back up, which means the “best time to buy” is behind us. Buyers know that their window of opportunity is short, so they must buy NOW to get the best rates and home prices.
Bidding wars are created whenever demand is high and supply is low, and this can quickly change at any time. So, whether you’re interested in selling or buying, the market is hot right now. It’s a win-win for everyone, and we can only hope this trend will continue.