The Green Team is proud to announce that James Colgan has decided to join our Vernon, NJ office. We’re excited to have him join on Vernon Location and continue to work in are Warwick Location as well!
Please join us in WelcomingJames Colganto The Green Team New Jersey Realty Team!
In a recent article, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), discussed the state of today’s housing market.
When addressing whether or not today’s high buyer competition and rising home prices are evidence of a housing bubble, Yun said that this “is not a bubble. It is simply lack of supply.”
Today’s housing market is healthy, and rising prices are driven by real buyer demand. Let’s connect to talk about the best ways to navigate such an energetic market.
This year, mortgage rates have started to slowly climb above recent record-breaking lows. Many homeowners planning to move may feel like they’ve missed the chance to score a great rate on their next mortgage. In reality, there’s still time to secure a rate far below the historic norm. Here’s why.
After creeping up for seven consecutive weeks, average mortgage rates have dropped more recently (See graph below). With rates taking a slight dip over the past two weeks at the same time the inventory of houses for sale is so low, homeowners today are sitting in the optimal seat to sell. What’s the advantage of selling your house now? Securing a low mortgage rate on your next home.To take advantage of today’s real estate market, experts are encouraging homeowners to act now before interest rates climb. Danielle Hale, Chief Economist at realtor.com, explains:
“…mortgage rates slid for a second week … but we don’t expect rates to stay at this level for too long.”
Hale continues to say:
“For sellers, getting in early optimizes odds of a quick sale at a good price before there’s too much competition, but that means acting now … In this environment, sellers probably really can’t go wrong, and that’s especially true in the nation’s hottest housing markets where homes are selling quickly and getting the greatest number of viewers online.”
Most experts agree that rates will continue to trend upward. Sam Khater, Chief Economist at Freddie Mac, states:
“Despite the pause in mortgage rates recently, we expect them to increase modestly for the remainder of this year.”
In addition, Freddie Mac recently released their Quarterly Forecast, which notes:
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.” (See graph below):
While buyers everywhere want to secure the lowest rate possible, it’s important to remember that today’s rates are still much lower than the historic norm. Odeta Kushi, Deputy Chief Economist at First American, emphasizes:
“While mortgage rates have trended up in recent months, they are still historically low, so relative to one year ago, housing actually is still more affordable and that’s really thanks to this low mortgage rate environment we find ourselves in.”
Bottom Line
If you’re thinking of moving, don’t miss the opportunity to score a great rate on your next home mortgage. Let’s connect today so you can get your house ready to sell and find your dream home while mortgage rates are still low.
The financial benefits of buying a home as compared to renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.
Most experts are calling for home prices to continue appreciating over the next several years. The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home appreciation to increase as follows:
2021: 6%
2022: 4.5%
2023: 4%
2024: 3.6%
2025: 3.5%
Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a $350,000 home as an example:A homeowner could increase their net worth by over $80,000 in five years. That’s an average of $16,000 annually. That number should be in any equation determining the financial benefits of owning a home compared to renting.
Bottom Line
Homeowners are going to make a substantial amount of money in home equity over the next five years. If you’re ready to buy a home, let’s connect so you can enjoy this great benefit as well.
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[et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]Green Team New Jersey Realty would like you to meet Barbara Matchett.
From City Girl to Country Girl
Barbara began life as a city girl, born in the Bronx, NY. However, she eventually fell in love with beautiful Sussex County NJ and easily made the transition to country girl. Barbara lived in Vernon for over 30 years. And it’s where she raised her two children, now married adults. Barbara has been an active member of the community. She was a coach for Vernon Youth Cheerleading. In addition, she volunteered for the Social Committee for her homeowner’s association. Furthermore, she is well known in the area for her work as a Personal Trainer and Instructor.
Barbara is very energetic and very rarely sits still. Therefore, country life suits her. She enjoys running, hiking, cycling, and cross-country skiing. Of course, the incredible Sussex County landscape provides the perfect backdrop for these outdoor activities and more.
A unique skillset
Barbara brings with her over 25 years in the fitness industry as a Personal Trainer and Instructor. In addition, she has 12 years of experience in Fitness management. She attended Berkeley College and holds numerous certifications in fitness. Barbara projects a positive attitude in everything she does. She enjoys working with people and stays committed to them every step of the way. Barbara hopes to show this strength to help her clients achieve the best outcome.
Meet Barbara Matchett, Real Estate Salesperson
Barbara has been interested in real estate for some time. In 2019 she purchased a home in Crystal Springs, her fourth home. With each home she has purchased, her interest grew. Barbara understands the importance of finding the right home. Her desire to help people and her focus and dedication to helping them reach their goals extend from personal training to real estate salesperson. In addition, her ability to listen to her clients’ needs helps to provide an excellent experience, whether buying or selling a home.[/et_pb_text][/et_pb_column]
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One of the biggest hurdles homebuyers face is saving for a down payment. As you’re budgeting and planning for your home purchase, you’ll want to understand how much you’ll need to put down and how long it will take you to get there. The process may actually move faster than you think.
Using data from the U.S. Department of Housing and Urban Development (HUD) and Apartment List, we can estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home. Since saving for a down payment can be a great time to practice budgeting for housing costs, this estimate also uses the concept that a household should not pay more than 28% of their total income on monthly housing expenses.
According to the data, the national average for the time it would take to save for a 10% down payment is right around two and a half years (2.53). Residents in Iowa can save for a down payment the fastest, doing so in just over one year (1.31). The map below illustrates this time (in years) for each state:
What if you only need to save 3%?
What if you’re able to take advantage of one of the 3% down payment programs available? It’s a common misconception that you need a 20% down payment to buy a home, but there are actually more affordable options and down payment assistance programs available, especially for first-time buyers. The reality is, saving for a 3% down payment may not take several years. In fact, it could take less than a year in most states, as shown in the map below:
Bottom Line
Wherever you are in the process of saving for a down payment, you may be closer to your dream home than you think. Let’s connect to explore the down payment options available in our area and how they support your plans.
Green Team New York Realty announced that Tammy Scotto is the 1st Quarter Sales Leader of 2021. Rounding out the top three in sales were Carol Buchanan and Nancy Sardo.
Green Team New Jersey Realty announced that Keren Gonen is once again the Quarterly Sales Leader. Keren was Sales Leader for Quarters 2, 3, and 4 of 2020, as well as Yearly Sales Leader. Rounding out the three top three in sales were Kristi Anderson, and the team of Charles Nagy and Ted Van Laar.
Tammy Scotto, Green Team New York Realty
Tammy finished 2020 as a member of the Green Team Realty Presidents Club, for sales between $5 and $10 million. Geoff Green had this to say about Tammy:
We are very excited to announce that Tammy Scotto has won the Quarterly Sales Leader award for Q1 of 2021. Tammy is a very consistent top producer who remarkably has never won this award. That said, Tammy is always near the top of our production charts. So it comes as no surprise that she ultimately finished in first place this quarter. What makes Tammy such a great producer is the fact that her clients truly love her. Why do they love her? It’s quite simple. She just doesn’t give up. Tammy truly goes above and beyond the call of duty for her clients. She never takes on more than she can handle, and takes every client’s situation very seriously. Big congrats Tammy! We are all very happy that you have won this award!”
According to Tammy,
” Last year was challenging on many levels. The Pandemic left us housebound for many weeks. That made our business even more challenging. The floodgates opened around May/June and I took off running. Clients from NYC, Long Island, and New Jersey were looking to relocate to the beautiful Hudson Valley. I can’t say thank you enough to all my clients who trusted in me through those difficult times to find them a new home. Last year’s business has trickled over to the start of 2021 and for that I am grateful. Looking to keep the momentum going for the remainder of the year.”
Keren Gonen, Green Team New Jersey Realty
It is not surprising that Keren Gonen is in the top 20 of all agents in Sussex County, With $17.8 Million in sales in 2020, she was Yearly Sales Leader for 2020 and joined the MVP Circle. Also, she was the 2020 recipient of the special Momentum Builder Award. .According to Geoff,
“Keren Gonen’s roll seems to have no end. Keren finished 2020 in grand fashion producing more sales volume than 99% of her peers in Sussex County. She has now officially won our Q1 2021 Sales Leader award, and I can say with certainty that she is not taking her foot off the pedal anytime soon. It’s truly remarkable to watch Keren’s business soar higher and higher. But what is truly most remarkable about this Lady is that she is one of the nicest people you will ever meet. It’s hard to find such a great producer who truly respects all people she comes in contact with. Great job Keren! Here is to many, many more such awards.”
Keren had this to say about being 1st Quarter Sales Leader:
“In true fashion of the times, 2021 continues to surprise us all. The Market is still strong and plenty of people are still selling and buying. Thank you to all my Buyers, Sellers, and investors for choosing me as your Realtor of Choice. I am grateful to all of you. Stay safe.”
As vaccines are administered and travel resumes, many of us are beginning to plan for those long-awaited vacations we missed out on over the past year. Some households are focusing their efforts on buying a vacation home rather than staying in a hotel, too. The National Association of Home Builders (NAHB) reports:
“Second homes (i.e., homes sold to buyers who are not going to occupy the home year-round, but use it as a vacation home, investment property, etc.) account for 15 percent of new single-family home sales.”
It’s not surprising that there’s an increase in demand for vacation homes. The majority of Americans are realizing they prefer to be around small groups, as shown in a recent survey from The Harris Poll:
“Social distancing taught consumers new things about how they like to socialize; (75%) said, ‘during COVID social distancing I realized I preferred smaller social gatherings at home or at friends’ place.’”
Not only are vacation homes seen as a potentially more pandemic-friendly way to travel and socialize, but they can also serve as an extended home-away-from-home. With more Americans being given the option to continue working remotely or retire earlier than expected, vacation homes can be used year-round. The NAHB explains:
“Remote work arrangements have made it possible for some wealthier Americans to move to alternate locations that are not just small, suburban shifts from within their current metro area. More fundamentally, second home demand may also be benefitting by an acceleration of retirement plans, as well as stock market gains.”
Bottom Line
The demand for vacation homes has increased and will continue to rise as we head into summer. If you own a house in a destination area and have thought about selling, now is a great time to take advantage of today’s high buyer interest. Let’s connect to discuss your opportunities in our local market.
Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams. What’s your home’s value?
A recent Survey of Consumer Finances study released by the Federal Reserve reveals the net worth of homeowners is forty times greater than that of renters. If you’re wondering if homeownership is a good investment, the study clearly answers that question, and the answer is yes.
Do Americans believe a home is a better investment than stocks?
In a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York notes that 93.3% of Americans believe buying a home is definitely or probably a better investment than buying stocks.
Here’s how the results break down:The survey also shows a wide range of reasons why Americans feel that way (respondents were able to pick more than one answer):
Bottom Line
The data show how strongly Americans believe in homeownership as an investment. That belief is warranted. The Liberty Street Economics blog put it best by saying:
“Housing represents the largest asset owned by most households and is a major means of wealth accumulation, particularly for the middle class.”
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