Realtor® Group Serves Somerset And Hunterdon County Homeowner Interests

February 21, 2013 By Leave a Comment
 

 

The sun rises in the east and, almost as dependably, someone in Congress comes up with the bright idea of chipping away at the mortgage interest rate deduction. Think of all that money Washington could spend!

The National Association of Realtors® is one of the main reasons that idea doesn’t get much traction – nor many of the other threats to the traditional benefits Central New Jersey homeowners enjoy. The reason homeowners (even those without mortgages) shudder at attacks on the interest rate deduction is that the result would be to abruptly X-out a great chunk of the home-buying public. That includes most young couples and many other groups, including many retirees who are currently just squeaking by. Home values would necessarily drop; jobs in the new home-building industry, dry up. The disruption of the real estate market (the largest part of the national economy) would spread mayhem through many other sectors. If the damage were widespread enough, total tax revenues might even drop!

Every year, the National Association of Realtors funnels local members’ dues into providing a strong bulwark against the forces that threaten homeowners. The NAR spends over $40 million annually on campaigning and marketing public service messages about the benefits of homeownership.

During the recent world financial debacle, they countered the doom-and-gloom headlines. The underlying good news never changed: owning a home is still one of the most attainable ways average Americans can build long-term wealth. Facts:

  • Over the past half century, median home values have increased by an average of more than 57% every 10 years
  • Home prices typically beat inflation by one or two percentage points
  • Housing sales in 2012 were the best in five years

 

When you have owned your home for only a year or two, you may still be waiting to confirm all that wealth-building potential the National Association of Realtors is always championing. Nevertheless — for Somerset and Hunterdon County homeowners who have ten years or more under their belts – the equity they are likely to have accumulated is at least partly due to the efforts of the NAR.

We all know that real estate is a supremely local thing. But sometimes it’s nice to know that REALTORS in our towns are doing their part to look out for us all at the national level.

The DoorPath Team is the most comprehensive online source for Central New Jersey real estate information and services. Whether you are looking for the latest sales, trends or homes for sale in Somerset, Middlesex Union or Hunterdon Counties in New Jersey, The DoorPath Team at Coldwell Banker Residential Brokerage has it all at your fingertips. Browse information regarding short sales, foreclosures, new construction, investment property, land sales or commercial locations throughout Central New Jersey plus much more at  www.DoorPath.com or call us at 908-658-9000 x 159 or cell at 732-302-1771.

 

 

 
Filed Under: Finance, Sellers Resources, Taxes Tagged With: , , , , , , , , , , , , , , , , , ,

Realtor® Group Serves Central New Jersey Homeowner Interests

February 2, 2013 By Leave a Comment
 

 

The sun rises in the east and, almost as dependably, someone in Congress comes up with the bright idea of chipping away at the mortgage interest rate deduction. Think of all that money Washington could spend!

The National Association of Realtors® is one of the main reasons that idea doesn’t get much traction – nor many of the other threats to the traditional benefits New Jersey homeowners enjoy. The reason homeowners (even those without mortgages) shudder at attacks on the interest rate deduction is that the result would be to abruptly X-out a great chunk of the home-buying public. That includes most young couples and many other groups, including many retirees who are currently just squeaking by. Home values would necessarily drop; jobs in the new home-building industry, dry up. The disruption of the real estate market (the largest part of the national economy) would spread mayhem through many other sectors. If the damage were widespread enough, total tax revenues might even drop!

Every year, the National Association of Realtors funnels local members’ dues into providing a strong bulwark against the forces that threaten homeowners. The NAR spends over $40 million annually on campaigning and marketing public service messages about the benefits of homeownership.

During the recent world financial debacle, they countered the doom-and-gloom headlines. The underlying good news never changed: owning a home is still one of the most attainable ways average Americans can build long-term wealth. Facts:

  • Over the past half century, median home values have increased by an average of more than 57% every 10 years
  • Home prices typically beat inflation by one or two percentage points
  • Housing sales in 2012 were the best in five years

 

When you have owned your home for only a year or two, you may still be waiting to confirm all that wealth-building potential the National Association of Realtors is always championing. Nevertheless — for many homeowners who have 10 years or more under their belts – the equity they are likely to have accumulated is at least partly due to the efforts of the NAR.

We all know that real estate is a supremely local thing. But sometimes it’s nice to know that REALTORS in Bridgewater for instance are doing their part to look out for us all at the national level.

The DoorPath Team is the most comprehensive online source for Central New Jersey real estate information and services. Whether you are looking for the latest sales, trends or homes for sale in Somerset, Middlesex Union or Hunterdon Counties in New Jersey, The DoorPath Team at Coldwell Banker Residential Brokerage has it all at your fingertips. Browse information regarding short sales, foreclosures, new construction, investment property, land sales or commercial locations throughout Central New Jersey plus much more at  www.DoorPath.com or call us at 908-658-9000 x 159 or cell at 732-302-1771.

 

 
Filed Under: Buyers Resources, Sellers Resources Tagged With: , , , , , , , , , , , ,

Congress Passes Flood Insurance Extension Again

June 10, 2012 By Leave a Comment
 

Congress just passed an extension of the National Flood Insurance Program (NFIP) for the 17th time since 2008.  While this may seem trivial to some homeowners, it has a great impact on the local real estate market here in Central New Jersey.  The NFIP has needed the extensions (this one runs for 60 days starting June 1, 2012) since most banks will not lend money to home buyers unless they can acquire the insurance as part of the closing.  Even if the home you are buying is not in a flood zone the person selling a home to buy yours may not close if they are in a flood zone since THEIR buyer may not close.  You can see the domino effect it creates very quickly.  Lawmakers are set to negotiate on a five year program which would take effect in August of this year.

Approximately 5.5 million homeowners and businesses take advantage of the program since the private sector is hesitant to risk the losses in a disaster such as Hurricane Katrina in the gulf a few years ago.  As of early this year the exposure to the program was pegged at $1.267 trillion. While policies are sold through private insurance companies, the risk is held by the federal government.  Most government backed mortgages require the insurance as part of any closing on a home in a flood prone area.

Since 2008, the program has actually expired throwing the housing market into chaos.  Over 1,300 real estate deals came to a halt during the delay.  Approximately 10% of all homes in the United State are located in the 100 year flood plain or other types of areas such as coastlines or hurricane prone zones.

The flood insurance program was created in 1968 after private insurers were reluctant to sell insurance in flood-prone areas.

The National Association of Realtors (NAR) is lobbying lawmakers to reauthorize the program for five years and make reforms to increase the program’s efficiency.

Among those reforms are changes sought by NAR are the appeals process for areas designated as flood hazards areas, fast tracking and improving the review process for flood mapping, and making the pricing structure more accurate and consistent.

If you are considering purchasing or selling real estate in Central New Jersey please reach out to us and we can provide you a copy of the flood maps relating to the property you are considering.  We can also put you in touch with agencies that handle flood insurance to get you covered as soon as possible if you already own a property that falls in the flood area.  Keep in mind that there is a waiting period before coverage takes effect so don’t wait until it starts raining to get this done.  You can reach us by phone at 732-302-1771 or via email at mike@mikedowner.com.

 
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Stable Prices Bring Good News

March 26, 2012 By 1 Comment
 

The National Association of Realtors just came out with their updated Housing Market Statistics.

Prices through February 2012 are starting to show stability over the last few months. Why is this good news here in Central New Jersey?  For the longest time, prices have been falling in just about every price range. When prices are falling, buyers want to sit on the fence, assuming the house they are interested in will be less expensive next month.  This causes an increase in inventory of available homes which further decreases home prices.

When prices start to rise, sellers start demanding higher prices or delay putting their house on the market thinking the price of their home will be higher next month. This causes less inventory short term, until potential sellers start seeing prices closer to what they need in order to sell. As those numbers of sellers be at a price they like or live with, more homes then become available. The more properties on the market, the more prices will decrease leading back to the first scenario all over again.

The best news is for homes which are priced right.  According to the Garden State MLS, homes are approximately selling for 95% of the asking price in Somerset County New Jersey.

 
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