"We're likely to see here in New Jersey a shallower ... correction in home prices, less of a decline, and an earlier start to recovery because of a number of factors here which favor New Jersey housing," said Jeffrey Otteau.
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With future demographic trends pointing to an aging population, smaller families and a growing preference for returning to the city centers, condos located in urban areas that haven't been overbuilt could return to health as early as 2010, he said.
With most real estate sectors expected to return to basic fundamentals for most of the 2010-20 years, one star of the housing boom -- the exurban McMansion built on the far fringes of metropolitan centers -- could likely become its most visible victims of the bust.
Featuring large lots at the expense of a long commute and few public transit options, some industry observers think these McMansion will eventually be subdivided and become affordable housing -- which, ironically, is exactly what happened to buildings in various downtown areas as a car-crazy populace moved out to the new suburbs during the mid-20th century.
These MCMansions could have considerable trouble finding buyers in the years ahead as larger economic, political and cultural forces change the way Americans live and view residential real estate as an investment class.
Picture bustling downtowns with twentysomethings and empty-nesters living in high-rise condos, suburban villages with light-rail lines, and quaint shopping districts. This is the future trend and it is already starting. Look at Hoboken, Jersey City, South Amboy,and Red bank to name a few.
As I REALTOR, I am clearing seeing this trend. All want to be close to transportation with the train being the first option, then bus and last the feryy in our area.
So Good bye McMansion hello condos, lofts,townhouses, single family houses and great walkable downtown areas like Red Bank, Little Silver, Matawan and the up and coming New Long Branch Broadway area.
Fannie Mae and Freddie Mac are once again getting ready to begin buying "super-conforming" mortgage loans of up to $729,750, which should bring rates down for borrowers with good credit seeking loans previously classified as jumbo.
Currently, loans more than the $417,000 conforming limit in "normal" Fannie mae housing markets -- or the super-conforming limit of up to $625,500 in high-cost markets -- are considered jumbo loans.
Jumbo loans carry higher rates because they are not eligible to be purchased or guaranteed by Fannie Mae and Freddie Mac. Jumbo loan rates are at least 1 percent to 1.5 percent higher than regular loans of less than $417,000.
Then there are the so-called super-conforming loans that exceed the $417,000 conforming loan limit, and are eligible for purchase or guarantee by Fannie and Freddie.
Super-conforming loans also carry slightly higher interest rates than regular conforming loans -- about .25% to .30%.
On Jan. 1, the upper limit for super-conforming loans was rolled back from $729,750 to $625,500. With the economic stimulus bill signed into law Feb. 17,it restored the higher limit for single-family homes in high-cost markets that was in place for much of 2008.
The following week, the Federal Housing Finance Agency published lookup tables for the new Fannie and Freddie limits in high-cost markets -- 250 counties nationwide.
However the eligibility requirements for the new limits from Fannie MAe were not issued until March 30. Freddie Mac published its guidelines on April 16.
Starting May 4 both companies will begin buying super conforming loans of up to $729,750 from lenders, which is great news for Rumson buyers as the average closed price is $786,250 and for Monmouth County average closed price $541,355.
With this new policy this could mean lower rates for some borrowers seeking loans that were previously classified as jumbo.
Buyers will need a FICO scores of at least 700 to obtain fixed-rate super-conforming mortgages, and provide at least a 10 percent down payment.
Freddie Mac will require down payments of at least 20 percent for loans above $625,500.
For the buyers that are putting down less than 20% on loans larger that $625,000 Fannie and Freddie Mac will require Appraisal Reviews.
The secondary market for loans not backed by Fannie and Freddie pretty much dried up and lenders have been charging more for jumbo loans, because they must hold them on their books.
Last year, Congress temporarily raised the $417,000 loan limit, but only in high-cost housing areas. The new rules allowed Fannie and Freddie to buy or guarantee loans of up to 125 percent of the median home price in high-cost areas, with an upper limit of $729,750.
This year's stimulus bill, H.R. 1, the American Recovery and Reinvestment Act, restored the super-conforming loan limits in place for high-cost housing markets during much of 2008.
The bill also restored the Federal Housing Administration's ability to guarantee loans of up to 125 percent of the median home price in high-cost markets, up to a maximum of $729,750 for one-unit properties.
FHA's loan limits in normal markets remains $271,050 for one-unit properties.
There are 73 counties at the $729,750 FHA ceiling, and 666 counties where loan limits are between the $271,050 floor and the $729,750 ceiling for one-unit properties.
A Department of Housing and Urban Development Web search page for New Jersey counties provides current FHA mortgage limits.
GALLUP
Seventy-one percent think now is a good time to buy a house
by Dennis Jacobe, Chief Economist, Gallup
http://www.gallup.com/poll/117586/Americans-Buyers-Market-Housing.aspx
PRINCETON, NJ -- Plunging housing prices combined with historically low interest rates have persuaded 71% of Americans that now is a "good time" to buy a house -- up 18 percentage points from a year ago and the highest level of housing-purchase optimism in four years.
Due to popular demand, NJAR® will be hosting a second free webinar for members and the public on Monday, April 27 at 2:00 p.m. titled Get the REAL StorySM on the First Time Home Buyer Tax Credit.
Linda Goold, director of federal tax programs for the NATIONAL ASSOCIATION OF REALTORS® (NAR), will discuss how home buyers can take advantage of the federal first-time home buyer tax credit, how it functions, and how purchasers can claim it.
NJAR® will begin the webinar with information on the newly redesigned website, www.REALstoryNJ.com, along with details on the revamped Get the Real StorySM public education campaign focusing on the benefits of New Jersey's real estate market.
Reserve your space for the encore presentation of Get the REAL StorySM on the First Time Home Buyer Tax Credit today. The address for viewing the webinar will be http://njar.acrobat.com/tc042709.
Asbury Park Considering New Parking PlanOn April 22, 2009, the Asbury Park City Council will consider a parking plan prepared by the Asbury Park Parking Advisory Committee similar to a proposal considered but not enacted in 2008 in the Borough of Point Pleasant Beach. This plan calls for a combination of meter and permit parking in the beachfront area. NJAR®, along with the Monmouth County Association of REALTORS® and South Monmouth Board of REALTORS®, oppose this proposal as it increases the cost to live in and visit Asbury Park. |
The New Jersey Pinelands Commission's Policy and Implementation Committee is in the process of reviewing a new proposal that changes the designation of approximately 28,000 acres of land in the Pinelands to forest area, or land where only one residential unit can be built per 28 acres.
After hearing concerns that the Borough of Oceanport did not allow the placement of open-house directional signs, REALTORS® from the Monmouth County Association of REALTORS® (MCAR) and NJAR® began working with the Mayor and Council in Oceanport to request a change in their sign ordinance.
On April 16, 2009, the Oceanport Borough Council approved an ordinance permitting the placement of two temporary, directional signs in the public right-of-way advertising an open house. In addition, as was the case under the previous ordinance, one temporary sign is allowed on the property being sold. Under the new ordinance, no sign can block a site triangle or have any attachments such as balloons that can obstruct a driver's view.
This is great new for homeowners and Realtors where the houses were more inland and not of the main road this way people driving by can find the house even if they did not see the ads.
I recieved a letter from Senator Kean stating THANKS TO ALL OF US opposing the tax property proposal the Governor has withdrawn his proposal. To view the complete letter click on this link Download Taxstateltr.