New Jersey Real EstateNew Jersey Real Estate AgentNew Jersey Real Estate BrokerNew Jersey Real Estate Market November 27, 2013

First-Time Homebuyers: Will there be Enough?

It’s no secret that the housing market has been slow to recover, but there has been one group of homeowners that continue to strengthen the market little by little: first-time homebuyers. If you were a first time-buyer within the last couple of years or are looking to make your first purchase, you know the type of market that’s out there. Low interest rates and low housing prices make investing in a home an excellent choice.

What many people don’t know is that being a first-time homebuyer is challenging because there is very little inventory as more people are holding onto their properties and riding out the market. And, loans aren’t as easy to get as they once were, and incentives are dwindling down. For instance, starting June 1, 2013, anyone who takes out an FHA loan and doesn’t have at least 10 percent down will pay mortgage insurance for the life of the loan.

As home prices go up, interest rates go up and housing inventory stays low, first-time homebuyers – the key to a healthy residential real estate market – are still taking it slow. It’s hard to jump on something just because the price is right when the home or the location is not. Perhaps this is why first time buyers make up only 29 percent of recent buyers, according to the National Association of Realtors. Generally, these first time buyers make up about 40 percent of the market.

There are other factors that are making it hard for young adults to enter the housing market. Some are unemployed or underemployed and others don’t have a sufficient down payment. Others have poor credit or are burdened with student loans, with not enough money to handle a mortgage payment. These factors affect the young most of all, and it has some worried that there may not be enough first time buyers to sustain the market.

Only time will tell, as some believe that there are many buyers out there that are “on the fence,” waiting out the market to see what happens. If a young couple finds their dream home and has to pay a bit more in interest, it’s worth the wait.

New Jersey Real Estate MarketReal Estates Sales November 17, 2013

High-End Homes in New Jersey See Slow Growth

New Jersey has some of the most beautiful, high-end homes in the country thanks to their historic charm, intricate details and superior construction. Unfortunately, these high-end homes have been the slowest to recover and slumped the most in 2012. For instance, prices in Bergen County rose 5.9 percent at the beginning of 2013 while prices in Passaic County only rose 1 percent. Should the homeowners with these high-end homes worry?

No. Although the high-end areas in North Jersey have been slower to recover than the rest of the New Jersey market, they are still improving. Upper-end sales have picked up this past spring and should continue to rise over the following months. Some realtors predict that it will take about 2 years for the high-end homes to see sales return.

One reason why the lower market has seen greater home prices is because of the short sales and foreclosures that have been recently purchased, many of which sat for years during the recession. With these homes being sold for lower prices, they bumped up the lower market without having an impact on the higher market. Also, there is more demand for smaller, lower priced homes compared to large, expensive ones. Fewer buyers for these types of homes is what is preventing prices from rising.

Additionally, from 2006 to 2011, the North Jersey economy lost 10 percent of the jobs in high-paying industries. With the crash of the housing market and the loss of good jobs, buyers have been  more careful about what they invest in, even affluent buyers. Young couples and young adults alike are choosing to invest in homes that are more economically priced, sized smaller and are more cost-effective to maintain. All of these factors put the high-end market at a disadvantage.

Still, there is something about the historic homes in North Jersey, and they can’t be replicated anywhere else. As the housing market recovers and these high-end homes can be purchased at a decent price, more buyers will take the opportunity to have a North Jersey home. Sellers may have no choice but to take some loss, but buyers will have plenty of opportunities to own a North  Jersey home at a lower price.

New Jersey Real EstateReal Estates Sales November 12, 2013

More Buyers Keep the New Jersey Housing Market Strong

If you have managed to survived the housing market crash thus far, you don’t have much more to go. The North Jersey market has been very lively this past spring season, giving homeowners a bit more hope that they will be able to successfully climb out of the worst housing bust since World War II. What has been helping the market to grow? Low interest rates, low home prices and added job security.

Bergen County remains one of New Jersey’s strongest markets, but all of the state’s counties have seen growth. What has changed compared to last year is that it’s not just a buyer’s market anymore; it’s both a buyer’s and a seller’s market. Low interest rates and low housing prices make now a great time for new homebuyers. After all, when will you see interest rates at 4 percent again?

At the same time, there is a low inventory and plenty of buyers, which means that there is a seller’s market going on as well. Sellers don’t have to accept low-ball offers or take the first person who bids on the house. In fact, some sellers were surprised to see that their house sold for more than what they put it on the market for just because people out-bid each other. It’s a great feeling, and the market has become an even playing field for both buyers and sellers, good news for the future.

What we hope is that these homebuyers keep the market going strong. A lot of buyers have a “buy now, pay less” mentality, and they want to jump in now before it’s too late. They see prices and interest rates going up, and they know they don’t have much time. Buyers are tired of waiting; they know that the best prices and rates are behind us. This is great for sellers, who are also tired of waiting. Is this the start of a healthy market? We sure hope so!

New Jersey Real Estate November 5, 2013

New Home Construction is 45% Higher than Last Year

It’s another sign of recovery for the housing market: home construction in New Jersey is up 45 percent compared to last year. Nearly 9,000 housing permits were issued in the past five months; last year’s numbers were just around 6,000. And, with reasonable home prices and low interest rates, buyers aren’t afraid to buy. They know that their clock is running down, and they’re ready to take the plunge and invest in a home to get the best rates before they’re gone.

The majority of housing permits were for multi-family construction, which is growing in demand. These homes are cost-effective, easy to maintain and offer plenty of space, and they are good for growing families or those looking to downsize. This makes up a lot of New Jersey buyers at this time, especially as there is more spillover from the New York City market.

People who are used to living in small apartments in the heart of the city find it more difficult to spring for the large home in New Jersey. With jobs being less secure than in years past, people want to remain close the city. That’s where new multi-family homes become the perfect solution; they are a nice upgrade for urban dwellers and packed with new amenities and they still keep a reasonable price tag.

Single-family builds are also on the rise and will serve as great housing for families that may have more job stability and want to move a bit farther out from NYC. The fact that new home construction is up nearly 50 percent from last year is exciting, and it’s definitely what the NJ market needs to grow. With more sales comes more stability, and homeowners who have been waiting out the market may finally have their opportunity to sell. They may still have to take a loss, but it won’t be nearly as bad as last year.

The housing market is unpredictable as we’ve learned, but both buyers and sellers have more opportunities at their fingertips than ever before. With more new construction, there will be a better inventory for homebuyers, coupled with historically low interest rates and reasonable housing prices. Sellers are watching their homes get bid on quickly, and if they can sell without taking too big of a loss, they too can take advantage of a great time to buy.

CENTURY 21® News April 19, 2013

CENTURY 21 Cedarcrest Realty, INC. Salutes our 2012 Top Performers

Our proud congratulations goes to our Top Performers at CENTURY 21 Cedarcrest Realty, INC.:

Debra Tobia:  Top Overall Producer

Frank Conturso: Masters Award, Emerald Level

Susan McGarritty:  Masters Award, Emerald Level

Jill Savva:  Masters Award, Ruby Level

Mark Burton:  Masters Award, Ruby Level

Click here to see our Newspaper ad with photos:  2012 Top Performers

CENTURY 21® News April 19, 2013

2013 CENTURY 21 Cedarcrest Realty, INC. Top Achievers!

Congratulations to our 2013 first quarter top achievers at CENTURY 21 Cedarcrest Realty, INC.!  

Andrew Spano

Susan McGarrity

Pat Popola

Lynn DeLuccia

Frank Conturso

Dennis DiSabato!

Click here to see our newspaper ad:  2013 First Quarter Top Achievers

CENTURY 21® News April 19, 2013

CENTURY 21 Cedarcrest Realty, INC. Service Quality Pinnacle Award

Century 21 Real Estate LLC awards the 2012 Pinnacle Award to

CENTURY 21 Cedarcrest Realty, INC. for providing outstanding customer service.

Our Team Has Met the Challenge!

Susan McGarritty, Sales Associate:  Quality Service Award

Lynn DeLuccia, Broker, Sales Associate:  Quality Service Pinnacle 3 years

John J. Sass, Broker Owner:  Quality Service Pinnacle Office

Frank Conturso, Sales Associate:  Quality Service Pinnacle 2 years

See our Letter from Corporate:  2012 Pinnacle Award Letter

See our Newspaper ad: 2012 Pinnacle Award Ad

Banner April 8, 2013

New Smartphone App!

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CENTURY 21 Cedarcrest Realty voted best realtor 6 years in a row.

Get the CENTURY 21 Cedarcrest Realty New Smartphone App!

CENTURY 21® News December 12, 2012

2012 CENTURY 21 GOLD MEDALLION® Award

Congratulations to our CENTURY 21 Cedarcrest Realty, INC. office on receiving the 2012 Century 21 GOLD MEDALLION® Award.

 

“This is an outstanding achievement and a testament to your office’s hard work and superior results.  I applaud your commitment and dedication to the brand and to the customers you serve every day.”

Rick Davidson, President and CEO of Century 21 Real Estate LLC

Click here to see the entire letter:  2012 GOLD MEDALLION®