Millburn Numbers

Posted on May 7, 2012 by admin

 I get updates on new listings in Millburn and occasionally check them out. My general impression has always been that things are expensive (overly). I decided to pull some stats and was amazed to find the median list price almost 3x that of Montclair. Here’s a quick comparison.

How much is this is due to the mix of housing stock and how much is a direct value comparison and if it’s the later, to what is it attributable? While I haven’t made an empirical study, there is a definite overinflation of price in Millburn that must be due in a large part to the school rankings (notice I say ranking and not quality). School comparisons and the self-fulfilling prophecy of rankings can take up a whole series of newsletters.

Click below to see the 4BR split level that $1,349,000 (ask) gets you in Millburn.

Millburn Listing

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April Activity

Posted on May 7, 2012 by admin

While some buyers are waiting for the right house, others are committing to buy and multiple offer situations are commonplace.  47 houses went under contract in April versus 38 in March as the active inventory fell to 197 houses at 4/30/12 from 212 at 3/31/12 and 288 at 4/30/11. Inventory measured in months supply fell to 4.2 for the end of April from 5.6 at month-end March and 9 at this time last year.

Source: Garden State Multiple Listing Service.  May not represent all transactions.

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1922 Gallery

Posted on April 9, 2012 by admin

It seemed appropriate to link to our 1922 gallery of homes as we celebrate our 90th year in Montclair. Can you find your home? They are arranged numerically.

1922 Gallery

 

 

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March Activity

Posted on April 9, 2012 by admin

Increased Spring buying activity continued through March as 41 houses went under contract versus 26 in March 2011. This, coupled with only 47 new listings in March 2012 versus 89 in March 2011, has lowered the inventory of homes to 5 months supply. The result has been a spate of multiple offer situations, especially in the $550k – $900k range in Upper Montclair. If you know anyone that is considering selling, now would be a good time. I do, however, anticipate a good number of new listings to keep pace with buyers now that Easter and Passover are over.

Source: Garden State Multiple Listing Service.  May not represent all transactions.

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Search Engines

Posted on March 6, 2012 by admin

Increasingly, I am getting inquires on properties listed on Trulia and Zillow that have incorrect or out of date information. These and other sites aggregate info from various sources and the farther one gets from the local multiple listing service, the greater the chance for error. They are pretty good about correcting mistakes, but agents need to be diligent about monitoring what’s out there. Trulia, until just this past week, featured a “contact the agent” link next to listings which directed people to advertisers that may or may not been the agent on the property; a practice that wasn’t good for buyer or seller. So what search engines to use? Well, ours is pretty good (Stanton Search), but I have to also recommend gsmls.com for the latest info (agents typically update this data first, which, hopefully, then syndicates to the myriad other sites).  Realtor.com is pretty good too as they have a direct link to the respective MLS services. It’s fun to look, but in the end, you still need to get out there and walk through them.

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February Activity

Posted on March 6, 2012 by admin

February buying activity was fairly brisk as 31 houses went under contract versus 19 in February 2011. 52 listings came on the market in February to bring the inventory to 200 houses at 2/29/2012, up from 179 at 1/31/12, but lower than 208 at 2/28/11. The high number of houses going under contract lowered the months inventory to 6.5, the lowest it’s been since March 2010. I believe the lower inventory is causing people to broaden their search. I have seen numerous buyers in our office also looking in the Maplewood area and more Maplewood area agents showing Montclair listings. It was an out of town agent that brought a written contract for one of our recent listings 35 minutes into the realtors open. A new record! The other lesson to take away is that buyers are ready to commit for the right property at the right price.

Source: Garden State Multiple Listing Service.  May not represent all transactions.

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Transfer Tax

Posted on February 7, 2012 by admin

Questions and misinformation continue regarding the “3.8% federal tax on real estate sales” built into the 2010 Healthcare Reform Bill. Most sales are not subject to the tax. The Health Care legislation did create a new tax that would, starting in 2013, apply to a portion of the gain on the sale of any capital asset (including real estate) and benefit the Medicare fund. That tax will apply ONLY to individuals with more than $200,000 Adjusted Gross Income (AGI) (or $250,000 AGI on a joint return). The tax does not apply to any amount excluded from taxation under the $250,000/$500,000 principal residence rules. The tax is never imposed directly on the full amount of any capital gain.The tax is computed under a multi-step formula that captures only a portion of any gain and will only affect those with total AGI above the amounts noted above.

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Attorney Review Period

Posted on February 7, 2012 by admin

Just what is the attorney review period? NJ is unlike many states in that a written contract typically represents your initial offer versus a verbal or other less formal communication. The advantage of this system is that there are fewer misunderstandings if everything is presented in writing at the beginning. This contract is non-binding however until the conclusion of a 3 business-day attorney review period and either party can back out for any reason. However, attorney review can take longer than 3 days if the attorney for seller or buyer disapproves of the contract as written. Typically both attorneys have minor, if not material, changes to the contract. Lately we have seen building inspections run concurrent with attorney review period and inspection item requests incorporated into the attorney letters. In theory, there is no limit to how long attorney review can be and we have seen it drag on for weeks or more. As attorney review items are negotiated, the buyer has to weigh having their concerns met against having another buyer come along with fewer demands. The seller meanwhile, has to factor in the chance of another offer if they let the current buyer move on. This is where agents’ market knowledge is of utmost value to their buyers or sellers.

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January 2012 Activity

Posted on February 7, 2012 by admin

33 new listings came on the market in January (it seemed like less) which were offset by sales, withdrawns and expirations to reduce the number of active listings to 173 at 1/31//2012, the lowest month-end total since 167 at 1/31/2010. 13 houses went under contract in January implying a 13.3 month supply of houses at 1/31/12 vs. 14.8 at 1/31/11. Our website search function has been busy and the phone is ringing with prospective buyers so the spring market is shaping up pretty well. Interest rates are very low and the consensus is that prices are at their lows, or close to them. The impetus to buy is there, held in check by job security and mortgage qualifications. Now we just need some more homes on the market.

Source: Garden State Multiple Listing Service.  May not represent all transactions.

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Real Income vs. Housing Prices

Posted on January 6, 2012 by admin

 

 

 

 

Housing prices have traditionally followed income levels, but spiked between 200 and 2007 due in large part to relaxed lending standards and consumers willingness to assume more debt/assets, and pure speculation. Price have come more in line with income levels and herein lies the problem- flat income levels over the past few years. For all the hype over employment figures, which fail to capture underemployment, the only stats that matter to housing (or in my opinion the broader economy) is income. Combined flat income and lower household debt make for a weak real estate market. Households are delevering despite low interest rates due to a combination of stricter lending standards, defaults, and financial responsibility. The good news is that savings rates have ticked up in the past few years, which should put more buyers in a position to meet higher downpayment standards in years to come or at least lower their default rates.

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