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Green Team New Jersey Realty welcomes Sheena Masters
Sheena Masters brings her knowledge of Central and Northern New Jersey to Green Team New Jersey Realty
This lifelong resident of New Jersey is a perfect fit for Green Team New Jersey Realty. Raised in East Brunswick, a fondness for the outdoors led Sheena Masters to move to Vernon in 2010. As such, she has a keen eye on Central and Northern New Jersey. An avid skier, mountain biker, climber and diver, she pursues these passions both at home and abroad.
Sheena also brings some very special skills to her clients…
Sheena graduated from Rutgers University with a BA in Psychology. And, certified as a Registered Behavior Technician, she conducts therapy sessions with children on the spectrum. The joy she finds in helping children extends to helping her clients find a home that complements their lifestyle. Her gift for listening helps her find what is important to them, and her knowledge of local areas can help her guide prospective Buyers.
Focused and high energy, Sheena also enjoys the fast paced world of short sales, foreclosures, auctions and investment properties for flippers. She is alert and tech savvy and keeps an eye on current trends, constantly looking at new listings for her clients.
When Sheena does relax at home, she can be found enjoying time spent with her puppy, Toona, and her three cats.
Charles Nagy and Theodore Van Laar – 4th Quarter and Yearly Sales Leaders for Green Team New Jersey Realty
The Dynamic Duo
The team of Charles Nagy and Theodore Van Laar was Green Team New Jersey Realty’s 4th Quarter and Yearly Sales Leaders for 2018. The Dynamic Duo, as Geoff Green affectionately calls them, are equity partners in the brokerage. And they are committed to leading by example. They are strong believers in the Green Team’s unique system of training and support which gives sales associates the tools to provide the best possible customer service and experience.
The Dynamic Duo come from diverse backgrounds in real estate. Yet together they form a productive, successful team. One bond that unites them is their love of resort properties and living. Charles and Ted have been recipients of the Circle of Excellence Award multiple times between 2014 and 2017. That Award requires minimum sales of $2.5 Million and 15 transactions to qualify. In addition, they were Second Quarter Sales Leaders at Green Team New Jersey Realty for both 2017 and 2018.. In 2018 they also became part of the Green Team’s President’s Club, which honors those associates with $5 to $10 Million in sales volume.
Thoughts from Charlie, the Team’s designated spokesman
Charlie Nagy is the team’s designated spokesman. And there was a lot of growth and success for him to reflect upon. “2018 was an exciting year for GTNJR on a number of fronts. First and foremost it was a year of great accomplishment for the Team. Not only did we bring on some new and experienced talent who came to us with many years of experience and achievement, but we bought our own office building and as a result of the Team effort, we ended the year as the #1 firm in sales volume and transactions in all of Vernon, NJ after only our second year in business. While it’s exciting to have won the award for top producer in the fourth quarter, it is more exciting for me to see what we all did as a Team for the entire year. Congratulations to us all.”
2019 Will Be a Great Year for Buyers AND Sellers
Many homeowners believe that rising interest rates and home prices have scared away buyers and therefore have not listed their houses for sale. However, the truth is that buyers who were unable to find a home last year are out in force, and there are even more coming!
NerdWallet’s 2018 Home Buyer Report revealed that:
“Approximately one-third (32%) of Americans plan to purchase a home in the next five years. Millennials are most likely to have such a purchase in their five-year plan (49%), versus 35% of Generation X and 17% of baby boomers.”
As we can see, buyers are optimistic! According to the report, here are the top reasons Americans plan to buy:
The most common reason Americans prioritize buying is that they believe it’s a good investment!
If you’re a homeowner looking to sell, 2019 is the perfect year to put your house on the market. But why?
- Buyers want to buy
- No competition!
At least 3 of the renowned organizations that report on real estate market trends predict that homeowners are going to wait until 2020 to list their homes, leading to a nice increase in sales (as shown in the graph below).
Don’t wait for a competitive market; be ahead of the curve and sell your house at the best possible price!
Bottom Line
There are plenty of buyers entering the market! Whether you’re a first-time homebuyer or a current homeowner looking to move-up to your next home, get in touch with one of our Sales Agents to discuss your real estate needs!
February 2019 Housing Market Update
Green Team Realty’s February 2019 Housing Market Update went live on Facebook February 12 at 2 p.m. If you were unable to view the webinar live, you can watch it at your convenience by clicking here. Sign up for future updates here.
Meet this month’s panelists…
Moderating the Market Update is Geoffrey Green, President of Green Team Realty. In addition, Geoff presents national statistics as well as local updates for Orange County, NY and Sussex County, NJ. This month he is joined by Jennifer DiCostanzo of Green Team New York Realty, Michael Giannetto of Residential Home Funding, and Keren Gonen of Green Team New Jersey Realty.
The National Perspective
According to Geoff, this time last year no one was really talking about a slowdown in the housing market. The conversation was more about how fast and how far everything would go. A few months later some chinks in the armor appeared. And now we’re looking at national numbers, comparing 2018 to 2017, Sept – Dec, all below the year over year numbers from 2017. The year over year drop by each region, 10.3% overall, 6.8 in the northeast, 15% in the west, etc., is also of interest.
A quote by Mike Fratantoni, chief economist for the MBA, is relevant: “The spring home buying season is almost upon us, and if rates stay lower, inventory continues to grow, and the job market maintains its strength, we do expect to see a solid spring market.” In Geoff’s experience, this just seems to be a very slow moving market pace; unlike the fast paced ups and downs of the stock market. From the perspective of number of units sold, we’re clearly trending down. It seems that every region in the U.S. is on that same path.
Over the last 12 months, housing supply was in the red, meaning there was a lack of it. In June there was a turnaround, with more supply. Some people are saying that transactions are going to catch up again, with more supply becoming available. However, Geoff is not entirely sure that is going to happen at this time. While he does believe there will be a strong market in 2019, the real debate is what is going to happen in 2020, 2021, 2022.
There was a period of time when rates were climbing, but now they are almost 1/2 a point lower than they were in October, November. The Fed is pledging to be patient with raising short term rates, as they’re seeing indicators of a potential recession on the horizon. They’re slowing down anticipated rate hikes which had been slated at the end of last year.
The Local Perspective – Orange and Sussex Counties
Units Sold
There is a lot to glean from the local stats, even as they play out on the national stage. In January, while the same as in 2018, it’s still higher than the previous four years. This is a good indicator.
In Sussex County, we’re just above 2016, but below 2017 and 2018, for the month of January.
Days on Market
This stat is an indicator of how fast things are moving. In Orange County, January 2019 is the lowest it’s been for this month in five years.
In Sussex County, the number of days on the market is tied for the lowest it’s been in five years.
Average Sales Price
As Geoff has mentioned in the monthly housing market updates, price lags activity. Price appreciation should be seen throughout the first half of 2019, but he believes in the second half of the year, prices will start to come down.
The highest peak was in 2018. January 2019 has the highest price for that month in the last five years. In general, higher prices should bring out more sellers, which should create more inventory and allow more units to sell.
Asking to Sold Ratio
This is the ratio of the last asking price versus where are homes selling. This shows on average how much sellers are having to negotiate off the price of their property. This is the highest ratio for this month since 2014.
This number is strong in Sussex County as well as in Orange. The numbers are still showing a strong market.
And thanks to our Sponsor…
The Housing Market Update is sponsored by REALLY – a better, smarter, faster real estate referral network for Agents. Learn more at ReallyHQ.com.
Panel Discussion:
Geoff introduced Jennifer DiCostanzo of Green Team New York Realty, the top producer in the company. According to Jen, supply and demand are a real challenge. On the Orange County side, sellers are afraid to list because they have nowhere to go if they’re shopping in the same market. If sellers are relocating, it’s easier for them to let go as they don’t have the same issues and can secure housing. She is welcoming this market because she finds buyers to be more educated and sellers more realistic. Jen is hoping to see the market open up.
Keren Gonen of Green Team New Jersey is a regular panelist on the Housing Market Update. Her thoughts on the January sales numbers were that the totals were a reflection of inventory not being available. Sales were higher last year as there was more inventory to sell. It still is a seller’s market due to lack of inventory. And there are several sellers on the fence, waiting to see what will happen in the near future. There is hope that these sellers will soon be listing.
According to Geoff, the lack of inventory is a real problem. Nationally and locally, seeing the numbers going down, it seems like less people are buying homes. There has been a lot of frustration for some trying to buy a home, and some may have rented when they couldn’t find anything. Some may now be locked into leases.
What will the market look like over the next few years?
Geoff asked Jen what she thinks the market will look like in 2020, 2021,2022 as far as pricing, activity… She feels that we’re at a more stable point now; that it will not be quite as erratic. After the last downturn, when prices finally started going up in 2016, 2017, it was a very poignant time. If you bought at the height of the market, you could actually sell and recoup equity. That is the silver lining in helping sellers make that decision when they need to sell. And now is that time. If job growth is good and stable and interest rates make home buying and financing affordable, the market should stay at a steady pace. Real estate is fueled by circumstance, regardless of the market. People will always need to buy and sell. If we can give leverage to the market by educating our buyers and sellers and strategically strategizing, you put them ahead of the game.
Geoff asked if Jen had been referring to those buying homes in 2006, 2007 and 2008 when she talked about recouping equity. Jen replied that basically, it would go short. Jen purchased her own home in 2007, and almost immediately she would have been unable to sell her home for what she bought it for. Where we are now is a good time to step back and walk away with equity. Whether you’ve been in your house for 10 years or 50 years, you’re going to recoup on your investment. Geoff recalled the downturn. There was a huge loss, almost 50% of the number of transactions from 2006 to 2008 disappeared, and it was a very difficult time. He found Jen’s point valid; that people should finally be able to move on and move into something else should they want to.
Geoff then asked for Keren’s 2-3 year view. She hopes that we remain in a strong market. With rates coming down, she sees more people who had been renting once again looking to buy. However, the issue remains inventory. Keren sees growth in the area, with people moving to Sussex from other counties in New Jersey and some from New York, attracted to lower taxes, etc. Buyers are more educated, but so are the sellers. Therefore you see homes that are priced correctly. She believes the market will remain good for at least a couple of years.
Mortgage trends
Mike Giannetto of Residential Home Funding was asked if he sees the trend of lowering interest rates continuing. Mike replied he hopes so. There has been a decrease in interest rates. There is a global slow down. The economies in China and Europe are getting weaker. We’ve had a downturn in our rates because we are the safest investment at this point. This definitely had an affect on mortgage backed securities and hopefully the stronger US market will continue.
Geoff recapped. The more risky other assets are, the more money wants to seek a haven in bonds, which drives down the rate that people need to give to attract people to buy those bonds, which ultimately lowers interest rates on mortgages. Instability and uncertainty around the globe actually can be good for mortgage rates to come down.
We know a recession will be coming; just don’t know when. Those that went through the last downturn in the housing market are waiting “for the other shoe to drop.” As long as there is no global meltdown economically, we should be okay. The market is pretty healthy. Geoff has heard of some subprime lending happening; he asked Mike if he’s seen it occurring at levels similar to 2005-2007. Mike replied that there are safeguards in place, even as some new products are being introduced. Some of the products are necessary in order for some people, such as self-employed, to purchase a home. The money behind these products is portfolio money or hedge fund money, which is why the loans are scrutinized. The banks are lending their own money, so are therefore quite careful.
To reach the panelists:
Michael Giannetto, Residential Home Funding: 845-496-0836, rhfunding.com/michaelgiannetto
Jennifer DiCostanzo, Green Team New York Realty: 917-916-9995
Keren Gonen, Green Team New Jersey Realty: 551-262-4062
The next Housing Market Update will be held on Tuesday, March 19 at 2 pm. Stay informed and sign up for updates at GreenTeamHQ.com/HMU.
Geoff and Joe Green – Son & Father Together Again
Forty years after founding his own brokerage, Joe Green has joined his son’s company. And father and son are a force to be reckoned with.
In Orange County, NY the name Green is synonymous with Real Estate. Furthermore, it is associated with exceptional client service. Joseph Green Realtor was founded in 1978, and 27 years later that’s where Geoff Green began his career. That’s where Geoff learned from some of the best in the business – his mom and dad, Marie Pennings and Joe Green.
Eventually Geoff did what kids do. He decided to spread his wings. And in 2005, Geoff founded Green Team New York Realty.
Meet Joe Green
Joe didn’t start out wanting to be in the real estate business. Rather, his goal was to teach. He taught physical education and coached football in Warwick. His wife, Marie, was a registered, part-time nurse.
Joe loved what he was doing, but back in 1974 a teacher’s salary wasn’t enough to support a family with 5 kids. Since he needed to supplement his income, Joe saw real estate as a way to make extra money if he worked hard at it
Finding His Calling
However, once he got into it, he discovered he’d found his calling. Because it wasn’t just about making more money. It was about meeting new people, and the adventure that came with each unique transaction. Maybe the most important aspect was that helping people was becoming emotionally rewarding. Marie also got her license, and real estate became a family affair.
In 1980, Joe and Marie decided it was time to go into real estate full-time. They purchased the building at 7 Main Street in Warwick. In 1982 they bought a building in Goshen and opened their 2nd office. Finally, they expanded into Washingtonville.
Life is what happens while you’re busy making plans
When Geoff was in the third grade, everything changed. Joe and Marie divorced, and the children went to live with their mom. While divorce is hard for the parents, it is also difficult for the children.
But life goes on, even when families are divided. Joe continued to build his real estate business, but found that divorce wasn’t the only hardship. In 1987 the housing market tanked, and they had to downsize. Marie took over the Warwick office. Joe closed down the Washingtonville office and kept the Goshen office. Despite all of the hardships Joe persisted.
Experience that spans decades
Joe has been in this ever-changing profession for over 40 years. Back in 1974, when Joe first started practicing, everything was open listing. Clients would call several brokers and they’d all be in direct competition with each other. Then MLS came along and exclusive right to sell became the norm. One brokerage firm tried to impress Joe with the latest in technology, which would change the way business was done. And so, Joe received his introduction to the fax machine.
However, it’s the experience that counts. And Joe and his team provided a full complement of real estate services. That included residential, commercial, land, farm and ranch sales, investment sales, leasing, property management, residential appraising, financial and legal referral services, and relocation services. They covered Orange, Rockland, Westchester, Sullivan and Ulster Counties. Furthermore, his expertise and vision helped to safely guide his clients through some very difficult economic cycles.
Change in the Air
In 2013 Joe decided to shut down the Goshen office and moved his Agency to Chester. However, he began to see that the key to a successful brokerage was technology. And his son was a master at using technology to grow his business. When Geoff opened his own office in 2005, at the 7 Main Street location, Joe couldn’t have been prouder or more excited.
And through the years, he saw what was happening at the Green Team. Technology was enhancing the way brokers worked. Consequently, Joe decided that it was time to join forces with his son and combine the best of both worlds. Each man brings incredible experience and expertise. Together, there is no stopping them.
And Joe doesn’t come to the Green Team alone. He brings with him three of his best agents. Cam Monaco has been with Joe for 30 years. While Krissy Many is newer to the business, she’s a powerhouse. And Vilma Lawla is also excited to be part of the Green Team.
The Future Looks Bright
Joe looks forward to sharing his knowledge. His advice? “Every day you can learn something new. Be like a sponge. Do it your way. Don’t copy but learn from everyone else. Experience can help some of the more inexperienced.” And Joe hopes that his years of experience will help newer agents.
Geoff is excited about having his dad join the firm, “I can’t explain how blessed I feel that Pop is now part of our Agency. It’s amazing to not only see him around the office, but to watch him doing what he does best: sharing his wisdom. Pop is one of the most experienced Real Estate Brokers I know. It’s a simple fact that our Agency just got a lot better as a result of Pop deciding to come on board with the Green Team.”
The two men respect each other and their individual contributions to the industry and their community. They look forward to combining over 50 years of experience and forging a new beginning. They are indeed a force to be reckoned with.
Tom Folino – This former teacher is getting straight A’s from his clients
Upon retirement, this well-respected teacher and coach decided to turn his attention to a new career – real estate. When Tom joined the Green Team, Geoff Green said, “There might not be a better person to get into Real Estate in the Warwick market than Tom Folino. A true example of someone who has a huge network, is extremely likable, and always acts with integrity. What people might not know about him is that he is extremely diligent in his follow up and a very smart guy to boot. We are extremely blessed that Tom has decided to join our company.”
Geoff’s predictions are coming true. In his first year as a sales associate with Green Team New York Realty, Tom received an Honorable Mention Award for 2018, for achieving $1.5 to $3 Million in sales volume. And, while awards are good, the true reward for Tom is knowing that he has gone above and beyond for his clients. It’s now the former teacher who is being “graded,” and by the looks of it, he’s getting straight A’s!
A Special Transaction
A very special transaction was with Claire and Nick Previdi. Claire was a former student of Tom’s at Kings Elementary School. They purchased their first home in Chester, NY. Tom was also the listing agent for this home! This property was listed on December 4, 2018, and closed on January 18, 2019.
Client Testimonials
Barbara and Rob Lattimer – Warwick, NY 10990 — May 2020
Thomas Folino: Realtor Extraordinaire We recently purchased a condo in Warwick long distance. Tom guided us through the process with patience, professionalism and so much more. The Home Inspection needed to be done. We were 1200 miles away. Tom oversaw that. Major repairs were needed for the heating and a/c system. He supervised that work. Since we have taken ownership we have received texts from Tom letting us know all is well. It is obvious Tom loves his job and genuinely cares for those he serves. Thank you, Tom Folino!
Don Denmead – Warwick, NY — March 2020
Tom did an outstanding job in guiding me through the sale of my rental property. He was able to uncover multiple buyers even though the property had not been officially listed. Additionally, he explained the process and helped with the paperwork which optimized the time it took to complete the sale. I would recommend him to a friend and plan to use him again when I decide to downsize in the future.
Greg Maher – Warwick, NY — March 2020
I have known Tom Folino for roughly 20 years as he was my former elementary school physical education teacher. When I learned Tom was doing real estate I knew he would be the right person to guide me through my first home purchase. I wasn’t wrong. Tom was knowledgeable, compassionate, and understanding of all the questions I had. He regularly called to make sure I had everything I needed. I’m pleased with my new home and glad we could close in nearly 4 weeks. Job well done !!!
Evelyn Rosado – Greenwood Lake, NY — December 2019
Thomas is responsible, dedicated, respectful. He’s someone you feel comfortable working with. I’m very grateful I was able to count on him. I would definitely highly recommend his services.
Troy Edwards & Dashika Stewart– Monroe, NY — October 2019
Working with Thomas Folino was the best choice my fiancé and I could’ve ever made in choosing a real estate agent. We were both first time home buyers looking to relocate out of NYC. Thomas was so kind and patient each step of the way and assured us that everything would be fine within the process. He even went out of his way to connect us with a local mortgage broker who did a phenomenal job. We ended up closing on a three-bed condo in Monroe that we absolutely love. I would totally recommend Thomas to anyone and will for sure use him again. If he ever retired I would ask him to be my agent again one last time. 2019
Patricia and Thomas Lorgan – Warwick, NY — July 2019
We’ve known Ton Folino for over 40 years and both had the pleasure of teaching him. We were able to see his growth into an outstanding young man. Tom also became a teacher, and once again, we saw his growth as both a teacher and coach. He was our son’s basketball coach, and he was our other son’s supervisor as a swimming instructor. Tom was a wonderful and caring role model for not only our sons, but for all those who were fortunate enough to come in contact with him.
As a realtor, Tom continues to be just as outstanding. He worked tirelessly for us as we sold our home. Living in the same house for over 50 years and raising our 2 sons there meant we had some long-lasting memories, which were not easy to give up. Tom guided us through all those emotional times, and he made the transaction of going from homeowner to home seller as smooth and caring as possible. We had complete trust in Tom, and as always, never disappointed us. Whatever the highest rank possible for a realtor, Tom Folino is a deserving candidate. I wish all those who decide to sell their loving home to be as fortunate as we were to have Tom guide them on their emotional journey. Simply put, Tom Folino is the BEST !!!!
Brian Cisek – Warwick, NY — Mar 2019
Tom was very professional and easy to work with. He found me a great place in the location I wanted.
Miriam Stanford-Cusack– Greenwood Lake, NY — Mar 2019
We happened on Tom while wandering beautiful Warwick and knew from that moment he would be amazing! He is so patient and genuine. Tom found us exactly what we were looking for and was personable and informed. The whole process was practically stress-free and I love the place we found. I would recommend him!!
Mary Cusack– Greenwood Lake, NY — Mar 2019
Tom was knowledgeable, honest, always good-natured, and very hard working. He never stopped looking for possible places that might meet our needs and he did accomplish it. Tom found a beautiful place that exceeded our expectations. He negotiated a great price for us as well. Tom was always available when we had questions or requests. We had had previous experiences with realtors and Tom was a breath of fresh air!!! We’d recommend Tom without hesitation to anyone in the future!!!
Claire and Nick Previdi – Monroe, NY — Jan 2019
We are so pleased with our experience working with Tom to purchase our first home! He guided us through the entire process and was always available to answer any questions we had while responding quickly to calls and texts. I couldn’t believe how fast we closed on our house! Tom worked hard for us and always made sure we felt comfortable and understood what was happening at every step along the way. He immediately put us at ease as first-time homebuyers with his kind and personable nature. We highly recommend Tom for anyone looking to buy a house!
Joe LaBarca – Greenwood Lake, NY — Jan 2019
I met Tom Folino from Green Team Realtors when I decided to sell my home. Tom was very personable and upbeat about the process. Our home went up for sale in July and closed in Nov. He worked hard on selling our home and his marketing skills and negotiations were the best. We had lots of conversations about selling the house. He listens to all that is said to him He is fantastic. BIG Thank You, Tom. With his help, we are also in our new home 2500 miles away in Nov. also and I highly recommend Tom if you are buying or selling a house
Nicholas Mazzella – Warwick, NY — Dec 2018
I am so thankful to Mr. Folino, he really helped me find and get a place that I absolutely love, answering all questions, and putting in the time needed to help me. He was always in my corner from start to finish keeping me up to date and informed about any available homes and getting showings. Tom’s a hell of a real estate agent and will give you nothing but the best in service and work his tail off to get you what you’re looking for. Truly a pleasure to work with.
Kathleen Cisek – Warwick, NY — Dec 2018
I’ve never worked with a real estate agent as skilled and kind as Thomas Folino. He didn’t waste my time with rentals that weren’t for me, and found me the perfect house for rent based on the guidelines I gave him from price, number of rooms, to the bright kitchen. Tom knew exactly what I needed without my embellishing. As a woman, sometimes agents take advantage & waste time, but I’m happy to say Tom is not one of them! I was very happy with my experience. Tom was very thorough and helpful with any questions I had regarding paperwork, state regulations, rental procedures, the house, landlord & neighborhood. He helped me put in a strong application and the landlord chose me. With this competitive market, when I buy a house in the future I will definitely contact him. Thank you, Tom!
Joanne Haberlin and William Schwartz – West Milford, NJ — Dec 2018
Mr. Folino is the epitome of professionalism. He had a great knowledge of this area and several others. Tom also had the patience of a saint with my husband and I being so unsure of what exactly we really wanted. He stuck with us found us exactly what we needed and when this lease is up we will be using him again hopefully to purchase versus rent this time. I would highly recommend using him to anyone renting or purchasing!
Alberto Mata – Suffern, NY — Dec 2018
Mr. Folino is a great human being. Always ready to help in any way he can. I will highly recommend him as your realtor. He will always go above and beyond to satisfy your needs.
Scott and Victoria Cable – Washingtonville, NY — Nov 2018
Tom did a great job of helping us purchase our first house. He is a great negotiator and does a great job of communicating with the listing agent to expedite the whole entire process. He was very knowledgeable and informative which was fantastic since this was our first home. Tom is always there for us, responding to text or calls quickly no matter the time or the day! We went through other realtors before Tom and once we met Tom it was night and day in quality of service. I will recommend Tom a thousand times over!
Amanda Calabrese – Warwick, NY — Jul 2018
I just wanted to reach out with some positive feedback regarding one of your agents, Tom Folino. I’m not sure if this is the best forum to send this to you, but wanted to start somewhere. My husband and I have been working with Tom since April and he has shown us nothing but dedication, hard work, positivity, and communication. Tom made himself available to us even on his own personal time and followed up with every question in a very timely manner. I have had a few experiences with other realtors and Tom, by far, has exceeded all of these other experiences. Although we haven’t bought a home yet with Tom I would not hesitate to use him in the future and would highly recommend him to everyone looking for an agent in Warwick, New York. Please let me know that you received this email and would love to put this in a more formal letter if that would be helpful. Thank you for your time, Amanda Calabrese
This post has been updated 6/16/2020
Tammy Scotto receives Commercial and Investment Real Estate Certification
Green Team New York Realty is pleased to announce that Tammy Scotto has just received her Commercial and Investment Real Estate Certification. The CIREC covers a variety of topics that are important to handling Commercial and Investment transactions.
About Tammy
How to Get a Better Perspective on Affordability
Headlines spotlight the fact that buying a home is less affordable today than it was at any other time in more than a decade. Those headlines are accurate.
Understandably, buying a home is more expensive now than immediately following one of the worst housing crashes in American history. Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) selling at 10-50% discounts. There were so many that this lowered the prices of non-distressed homes in the same neighborhoods. As a result, mortgage rates were kept low to help the economy.
Prices have since recovered. Mortgage rates have increased as the economy has gained strength. This has impacted housing affordability. However, it’s necessary to give historical context to the subject of affordability.
Two weeks ago, CoreLogic reported on what they call the “typical mortgage payment”. As they explain:
“One way to measure the impact of inflation, mortgage rates and home prices on affordability over time is to use what we call the ‘typical mortgage payment.’ It’s a mortgage-rate-adjusted monthly payment based on each month’s U.S. median home sale price. It is calculated using Freddie Mac’s average rate on a 30-year fixed-rate mortgage with a 20 percent down payment…
The typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home…
When adjusted for inflation, the typical mortgage payment puts homebuyers’ current costs in the proper historical context.”
Here is a graph showing the results of CoreLogic’s research:
As the graph indicates, the most recent calculation remained 28% below the all-time peak of $1,275 in June 2006. That’s because the average mortgage rate at that time was 6.68%. As seen in the graph, both today’s typical payment and CoreLogic’s projection for the end of the year are less than it was in January 2000.
Bottom Line
Even though home prices are appreciating at a slower rate, home affordability will likely continue to slide. However, this does not mean that buying a house is an unattainable goal in most markets. It is still less expensive today than it was prior to the housing bubble and crash.
Get local housing market updates – sign up to receive the Green Team’s Housing Market Update Report.
Green Team New Jersey Realty is #1 in Vernon
Green Team New Jersey Realty is the #1 real estate office in Vernon* and they couldn’t be prouder.
Some of Green Team New Jersey Realty Partners share their thoughts
According to Equity Partner Charles Nagy, “2018 was an exciting year for Green Team New Jersey Realty on a number of fronts. First and foremost, it was a year of great accomplishments for the team. Not only did we bring on some new and experienced talent, but we also bought our own office building. And, as a result of the team effort, we ended the year as the #1 real estate office in sales volume and transactions in all of Vernon, NJ after only our second year in business. It is exciting to see what we accomplished as a team for the entire year.”
Kim Lasalandra, Managing Broker, described how she felt. “I’m ecstatic! To be the #1 office in terms of sales volume within two years of opening our doors is truly remarkable. And it’s a tribute to the incredible work ethic and determination of our sales associates.”
Geoffrey Green, the founder of Green Team New York Realty and a partner in Green Team New Jersey Realty, shared his thoughts. “I’m very proud of everyone at Green Team New Jersey Realty for taking Green Team Realty’s model, bringing it to Vernon, growing it, and achieving #1 status. I just can’t wait to see what 2019 brings!”
Green Team Realty’s dedicated approach…
Green Team Realty’s dedicated approach has proven that the results are impressive when you provide productive, dedicated agents with continual training and support, a culture that values clients through excellent service and an appreciation program, and an array of competitive advantages. Furthermore, Green Team Realty’s commitment to local community and charities is another aspect that attracts like-minded real estate professionals.
Green Team New Jersey Realty’s new office is located at 293 Route 94, Vernon, NJ. To learn more, visit GreenTeamHQ.com or call 973-814-7344.
*As compared to all GSMLS Offices located in Vernon Township by closed sales volume for the time period of 1/1/18-12/31/18.
January 2019 Housing Market Update
The Green Team’s January 2019 Housing Market Update was held on Facebook Live Tuesday, January 15 at 2 p.m. If were unable to view the webinar live, you can watch it at your convenience here. You can also sign up for future updates at GreenTeamHQ.com/hmu.
This month’s panelists…
Geoffrey Green, President/Broker of Green Team Realty, moderates the monthly webinars. He also presents national statistics, together with local updates for Orange County, NY and Sussex County, NJ. This month he is joined by Carol Buchanan of Green Team New York Realty, Keren Gonen of Green Team New Jersey Realty and Patrick “PJ” Keelin of Family First Funding.
The National Outlook
The above charts are raw numbers – the number of homes that were sold from 2014-2018. It appears that things are softening a bit, but it doesn’t appear that it will be drastic.
The analytic showing inventory levels is important. It has been difficult to find homes for buyers over the last few years. However, it appears that inventory levels may be coming back a bit. Lower demand should yield more inventory, but hopefully what some inventory may do is bring some people back into the game who may have been been frustrated previously.
This survey of experts, market analysts, etc. addressed the question, “What Will Home Prices Do in 2019?” 100 people were surveyed and 94% projected that housing prices on a national basis will continue to appreciate. Geoff aligns himself with that 94%. He believes that in 2019 prices will come up again in spite of the fact that activity went down. Price always lags activity.
According to Geoff, this quote from Goldman Sachs is a good one. “Despite the headwinds facing the housing market going into 2019, we expect U.S. house prices to generally achieve a soft landing. We expect national average price appreciation to remain positive.” If this comes true, it’s music to Geoff’s ears. He lived and worked through the last downturn, where 50% of the number of homes that sold went away within a 2-year period of time once the market starting declining. It was a difficult time
The percentage of Americans who believe homeownership is a good investment continues to increase. The market is at a peak and confidence continues to increase. However, Geoff finds that people tend to buy high and sell low. They should be buying low and selling high. The bottom of the market, 2011, 2012, and 2013 would have been a good time for investment.
However, people are confident that it’s a good time to buy now. And one thing that will never change is that homeownership is a good thing.
January 2019 Local Housing Market Update for Orange and Sussex Counties
Units Sold
Five year look back. The thick green line is 2018 and while it’s been a mixed bag throughout the year, we ended up just a tad bit lower than the past two years.
In Sussex County, Units Sold was also a mixed bag, with one of the lowest totals in almost 4 years.
Average Price
In Orange County, prices were up substantially for a good part of the year. However, there was a cooling-off period towards the end of the year.
Sussex County never saw as much of an appreciation as Orange County did. However, 2018 was still a leading year over the past 5 years.
Asking to Sold Ratio
What price do homes on average sell for versus the last asking price? The higher towards 100% the hotter the market. The numbers have been strong for Orange County throughout the year.
Sussex County was strong in this category throughout the year. However, it hit its highest point in December 2018 with a ratio of 98.50%.
Panel Discussion
Geoff asked Carol Buchanan and Keren Gonen what they think of the market, as it appears a softening is underway. Carol stated that inventory is still low, and January and February are common months for the market to slow down. Carol does believe that 2019 is going to be a very good year. People seem undaunted by higher interest rates. Still a lot of buyers; just not enough homes.
Keren also agrees that 2019 will be a very good year. She thinks that people will start listing homes for sale within the next few months. Right now buyers are looking but there is still not enough inventory. She feels there are sellers sitting on the fence, not sure what to do and just holding out for a few more weeks or months. Geoff commented that the bread and butter of the season is March through August. So it’s natural for many homeowners to wait until March to list their homes.
Talking with Keren regarding foreclosure activity, Geoff asked if she see a decline? Banks are fixing up houses and putting them up at market prices. If the quality of work was good, that would be fine. However banks are bidding jobs out and the resulting work is not necessarily good work. Buyers expect to see good quality and are disappointed with what they’re finding. They often would prefer to pay more for a house that is in good shape. Therefore, many of these homes being sold by the banks are just sitting on the market. Banks are now competing with flippers who, generally speaking, do a better job at fixing up homes than the contractors. Buyers most often prefer paying full price for a home that was “flipped” well than on an REO that was not done well.
Geoff mentioned that this was not the trend in the past. Banks would not fix up their properties and try to sell them for more money. They’d just try to unload them at lower prices and buyers could get a good deal. Over the course of time we’ll see if banks decide to go back to the way they used to handle foreclosures.
Regarding the financing environment, Geoff asked Patrick “PJ” Keelin what we’re looking at for 2019. As Geoff put it, at the end of the day we’re really in the land of the banks, dependent on what they’re willing to do. And how many times the Federal government is willing to let banks leverage their money. PJ indicated that on a global scale, at the end of the year there was talk of the Feds raising the interest rate. That usually indicates a stronger economy; stronger aspects coming from the financing angle and mortgage-backed securities, etc. Unfortunately, at the end of the year there was a huge difference and the Dow dropped significantly. The drop in the Dow affected reports of things they were coming out with. So trends and thoughts of increased interest rates by the end of the year through that New Year boom fizzled out. There are reports that there is potentially going to be a decrease in interest rate for the year 2019. PJ believes that is something being put out there for a little bit of hope.
However, the biggest thing we’re competing with is the lack of inventory and what people will be able to purchase. Looking at an average household income of $60,000 to $70,000, that probably puts a person on average of what they can afford in terms of a property at $1,500 to $1,600 range. That gives them a certain price point that they have to stay in, and with increases in interest rates that is going to affect their eligibility to be able to purchase properties within a certain price range.
Geoff stated that all signs point to Fed raising interest rates. He asked PJ if he thinks that won’t be the case in 2019. PJ replied that there will be a lot less than they were expecting in 2018. They may skip the first interest rate rise. Hopes on the industry side are that there will be a potential interest rate drop. That may push that boom for people who are still sitting on the edge. He sees a stronger trend with the amount of people who are actually motivated in purchasing. They may finally be believing the reports that interest rates are not going to stay historically low and will go up. So many reports are going in different directions that it’s unsure what to make of it. Industry leaders are saying the market is staying relatively steady, but be prepared. There could be a drastic change.
Right the now trend is slow and steady. PJ commented that Geoff is proactive in all that he does; communicating with his sales associates and with the lenders they work with. Because ultimately these transactions need to happen quickly in order for them happen. When they remain open, bigger changes are coming.
Geoff wrapped up, saying that at the end of the day, interest rates are impacted by bond markets. As long as there is no major economic collapse, the housing market should be fine. He predicts a good 2019. PJ agrees, that it will be a good, strong year. People are getting more motivated.
Join us for the next Market Update
The next Housing Market Update will be held on Tuesday, February 12 at 2 p.m., when the Green Team will again be going live on Facebook. Sign up for updates at Greenteamhq.com/hmu.
