Some believe that the combined effects of the new tax code and rising mortgage rates will have an adverse impact on residential real estate prices in 2018. However, the clear majority of recently surveyed housing experts believe that home values will continue to rise this year.
What is the Home Price Expectation Survey?
Each quarter, Pulsenomics surveys a nationwide panel of economists, real estate experts and investment & market strategists. Those surveyed include experts such as:
Daniel Bachman, Senior Manager, U.S. Economics at Deloitte Services, LP
Kathy Bostjancic, Head of U.S. Macro Investors Service at Oxford Economics
David Downs, Real Estate Finance Professor at VCU
Edward Pinto, Resident Fellow at American Enterprise Institute
Albert Saiz, Director at MIT Center for Real Estate
Where do these experts see home values headed in 2018?
Here is a breakdown of where they see home values twelve months from now:
21.6% believe prices will appreciate by 6% or more
71.6% believe prices will appreciate between 3 and 5.99%
5.7% believe prices will appreciate between 0 and 2.99%
Only 1.1% believe prices will depreciate
Bottom Line
Almost ninety-nine percent of the top experts studying residential real estate believe that prices will appreciate this year, and over 93% believe home values will appreciate by at least 3%.
How do you select the members of your team who are going to help make your dream of owning a home a reality? What should you be looking for? How do you know if you’ve found the right agent or lender?
The most important characteristic that you should be looking for in your agent is someone who is going to take the time to really educate you on the choices available to you and your ability to buy in today’s market.
As the financial guru Dave Ramsey advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Do your research. Ask your friends and family for recommendations of professionals they’ve worked with in the past and have had good experiences with.
Look for members of your team who will be honest and trustworthy; after all, you will be trusting them to help you make one of the biggest financial decisions of your life.
Whether this is your first or fifth time buying a home, you want to make sure that you have an agent who is going to have the tough conversations with you, not just the easy ones. If your offer isn’t accepted by the seller, or they think that there may be something wrong with the home that you’ve fallen in love with, you would rather know what they think than make a costly mistake.
“Buyers from all generations primarily wanted their agent’s help to find the right home to purchase. Buyers were also looking for help to negotiate the terms of sale and to help with price negotiations.” Additionally, “Help understanding the purchase process was most beneficial to buyers 37 years and younger at 75 percent.”
Look for someone to invest in your family’s future with you. You want an agent who isn’t focused on the transaction but is instead focused on helping you understand the process while helping you find your dream home.
Bottom Line
In this world of Google searches, where it seems like all the answers are just a mouse-click away, you need an agent who is going to educate you and share the information that you need to know before you even know you need it.
Green Team New Jersey Realty recently attended the 2018 Circle of Excellence Extravaganza and Expo. An annual celebration of Sussex County’s exceptional and excellent REALTORS who have achieved the prestigious Circle of Excellence and Distinguished Sales Club Awards. We had the pleasure of joining several of our agents as they accepted their awards.
Take a behind the scenes look at all the excitement as these top agents went on stage to receive their awards.
February’s numbers are in, we’re nearing the end of March, and the Scoreboards show the possible contenders for the first quarter sales leader awards. Based on actual numbers for January and February, the Warwick Scoreboard has Vikki Garby in the lead, followed by Nancy Sardo and Lucyann Tinnirello. In Vernon, Joyce Rogers leads Charles Nagy and Ted Van Laar. In Warwick, total sales volume is down slightly from January/February of 2017, while Vernon’s total sales volume is up by over $700,000 from the same period in 2017. However, if projections are correct, March will see sales volume increase in both Orange and Sussex Counties. March may also see shifts in the Scoreboard tallies.
This month’s business review meeting marked a Green Team first. The market stats were reviewed on Facebook Live (facebook.com/greenteamhq), giving agents and clients alike the opportunity to participate in real time. Geoff Green moderated the review, with panelists Angela Murphy and Terry Gavan commenting on the Orange County market and Pamela Zachowski providing commentary on the Sussex County market. Melissa Bressette, Green Team’s Marketing Director, also participated, with questions regarding the impact of rising interest rates on home sales.
Orange County, NY Real Estate Market Report – February 2018 Results
We are pleased to share with you a Housing Market Report from February 2018. We break down the local real estate activities and provide you with stats, graphs, and analysis of our local and regional real estate market. You can sign up on our website (www.greenteamhq.com) for monthly market updates. This month the market review was held on Facebook Live. You can visit our Facebook page to view the video, as well as informative posts. (www.facebook.com/greenteamhq/videos)
Average Days on the Market
The faster homes are selling, the hotter the market. Look for the lowest number on the graph as opposed to the highest. The calculation in New York State is from the List Date to the Contract Date.
The average number of days on the market for homes in Orange County continues to decline, which is good news for the market. In February, the average number of days on the market was 104.
Average Price
Prices started coming back in July of 2017. There are Sellers with big mortgages on their homes who are patiently waiting, putting off retirement plans, etc., waiting for prices to come up more. When they do, inventory will open up. February of this year had the highest average price for a February since 2015.
Average Sold to Asked Ratio
The percentage a house sold for under or over the last asking price (not the original price)
The average sold to asked ratio is on the rise. At 96.86%, this is the highest number for a February since 2014.
Homes that sold at 100% or more of last asking price
The stats came in just slightly lower than February of last year, but higher than February 2014-2016. 2017’s numbers were consistently the highest since 2014, and 2018 is continuing that trend, indicating a strong market.
Units Sold
There were continual increases in January. While there was a slight log jam in February, the red line should consistently rise above the blue line for the rest of the year. It’s a healthy market place. According to Angela Murphy of the Green Team’s Warwick office, this is a strong, healthy market. There is a shortage of inventory, but no shortage of buyers. Additionally, most buyers don’t want to do work on a home. They are looking for turn-key properties. This is a good market for investors interested in flipping.
Note
Melissa Bressette, Marketing Director for the Green Team, asked what impact rising interest rates were having. According to Angela, despite rising interest rates, good connections with mortgage lenders can ease buyers’ minds and work with them on financing homes. Rates are still pretty low and affordable. If homes are priced correctly, there is usually a $10-$15,000 spectrum from asking price to where it’s sold. Comps of sold properties are more important than comps of properties that are for sale.
February’s numbers are in, we’re nearing the end of March, and the Scoreboards show the possible contenders for the first quarter sales leader awards. Based on actual numbers for January and February, the Warwick Scoreboard has Vikki Garby in the lead, followed by Nancy Sardo and Lucyann Tinnirello. In Vernon, Joyce Rogers leads Charles Nagy and Ted Van Laar. In Warwick, total sales volume is down slightly from January/February of 2017, while Vernon’s total sales volume is up by over $700,000 from the same period in 2017. However, if projections are correct, March will see sales volume increase in both Orange and Sussex Counties. March may also see shifts in the Scoreboard tallies.
This month’s business review meeting marked a Green Team first. The market stats were reviewed on Facebook Live (facebook.com/greenteamhq), giving agents and clients alike the opportunity to participate in real time. Geoff Green moderated the review, with panelists Angela Murphy and Terry Gavan commenting on the Orange County market and Pamela Zachowski providing commentary on the Sussex County market. Melissa Bressette, Green Team’s Marketing Director, also participated, with questions regarding the impact of rising interest rates on home sales.
Sussex County, NJ Real Estate Market Report – February 2018 Results
We are pleased to share with you a Housing Market Report from February 2018. We break down the local real estate activities and provide you with stats, graphs, and analysis of our local and regional real estate market. You can sign up on our website (www.greenteamhq.com) for monthly market updates. This month the market review was held on Facebook Live. You can visit our Facebook page to view the video, as well as informative posts. (www.facebook.com/greenteamhq/videos)
Average Days on the Market
The faster homes are selling, the hotter the market. Look for the lowest number on the graph as opposed to the highest.
At 90.89 average days on market, this is the lowest number for February since 2014. According to Pamela Zachowski, Green Team New Jersey Realty agent, if buyers don’t act quickly, they’re losing houses.
Average Price
The average price is still below every other year, despite the positive signs in the other categories. There is a tremendous amount of pre-foreclosure and foreclosure inventory and a lot of low priced homes. Banks are starting to unleash some of these homes that they had held on to, not wanting to take too big a loss. Pam finds there are a lot of foreclosures on the market, caught in a long process of investors buying and flipping them. Buyers see the low priced homes and expect turn-key homes to be available at the same low prices. Again, it’s important to use hyper-local comps to get a real sense of what homes are going for.
Average Sold to Asked Ratio
The percentage a house sold for under or over the last asking price (not the original price)
The higher the number, the better the market, and this number continues to rise. The average sold to ask ratio for February, at 96.82%, is higher than any February since 2014.
Homes that sold at 100% or more of last asking price
This number is rising quickly. The higher the number, the hotter the market!
Units Sold
Numbers are up over the last 5 years. In 2014 only 1700 homes sold in all of Sussex County. In 2017, that number has almost doubled. February 2018 numbers are higher than February in the previous four years.
Note
Melissa Bressette, Marketing Director for the Green Team, asked what impact rising interest rates were having. According to Angela Murphy of the Warwick NY office, despite rising interest rates, good connections with mortgage lenders can ease buyers’ minds and work with them on financing homes. Rates are still pretty low and affordable. If homes are priced correctly, there is usually a $10-$15,000 spectrum from asking price to where it’s sold. Comps of sold properties are more important than comps of properties that are for sale.
It’s Launch Time – that “friendly” little competition that inspires Green Team Sales Associates to start the new year off right by building on and enhancing the skills that will lead them to deliver excellent client service throughout the year.
Focused around essential daily activities that utilize the Green Team’s custom-designed CRM (customer relationship management) system, sales associates compete both on individual levels and as part of teams. The CRM features a unique gamification component that tracks competition activity and enables everyone to see real-time competition stats throughout the entire contest, giving associates that little “push” they might need.
The Launch Competition has been going on how for just over a month and it is something Green Team Associates take very seriously. Yes, they are having fun. Yes, they are enjoying strategizing. And yes, they definitely enjoy winning. But they also enjoy the possibility of winning some amazing gifts. Prizes are awarded to the top three individual sales associates and the top team!, and this year the prizes are HUGE!!
The agent with the highest overall points at the end of our Launch Competition will receive a full conference pass to Inman Connect NY 2019 and 3-night hotel stay in New York. This exceptional prize is being provided by Jeremy Miller of First Home Bank.
Additional prizes are awarded to individuals that achieve second and third place as well as the team with the highest overall points.
This is a very special award, given to the Green Team Sales Associate who has created the most positive and consistent momentum in their professional career and personal life.
The 2017 Momentum Builder Award was presented to Tammy Scotto of the Green Team’s Warwick Office. Just as Tammy persevered in both her professional and personal life, Geoff Green persevered in his belief in her. To Geoff, it’s all about the journey, and about not giving up, no matter where the road takes you. According to Geoff, there are three components to success in the real estate business: time, intellect and persistence. Seems like sometimes the three may not align in the beginning. But, as in Tammy’s case, the intellect was there, her persistence paid off and eventually she had the time to put into her real estate career.
Tammy’s Story – In Her Own Words
“Firstly, I want to say thank you to Geoff for giving me this award this year. I really do appreciate the acknowledgment. There are MANY other agents here at the Green Team that deserve to be standing up here right along with me, so thank you. When Geoff called to tell me he wanted to honor me with this award, he said he was really thinking about the year and was going to talk about “Overnight Success.” I said to him, “Are you sure you want to give this award to me? I’ve had my license for 19 years!”
19 years ago I got 2 licenses. One was my Real Estate license, the other my marriage license. I’m happy to say both are in full effect and going strong today. But, as many of you know, this means I have been selling real estate through all stages of family life. I was selling as a mom with infants, toddlers and now teenagers. I am anything but an overnight success. Yet for me, that worked. My marriage and my family were and are number one in my life. But the reason I stuck it out with real estate is because it’s the only job I know that allows you to control your own schedule. We can turn it on and off as life requires. Lord knows we work all hours of the night and weekends. Yet we can also schedule around volunteering in school, sports events and other activities.
And the rest is history!
I’ve learned a LOT over these past 19 years. But, to be honest, I’ve learned the MOST the past 4 years. Four years ago I was selling real estate (very part-time) and working another job. Finally, I thought maybe I should just let my license go. The company I was with was going to start charging a monthly fee that I was not willing to pay. So I thought about it and was just going to get out of the business. My husband said, “Don’t do that, you’ve had it this long, maybe look at other options”.
So after a phone call to LucyAnn [Tinnirello] which led to a phone call from Geoff Green, the rest is history. In 2015, Geoff, LucyAnn, Jacque & I went to a Buffini convention in Philly and Geoff was talking about the Captain’s Club. He looked back and said, “Next year, right Tammy?” I said, “Nah, 2017.” Well, I had that gut feeling I needed that ONE extra year to get my business really going. And with all of the tools that Geoff provides for us, I learned how to really ramp up my business. It means a lot to actually have a broker that wants you to be successful and that is why you will be stuck with me for a VERY LONG TIME!!!!!
Winning your own race…
Part of the Green Team mission statement says: “A Real Estate Agent that is highly productive is more likely to deliver excellent client service than someone who is not. Couple that with a Real Estate Agent who has the time and ability to lead a meaningful life, and you have the perfect environment for an exceptional client experience.”
We’re all different and unique in this room. Some of us are go-getters right out of the gate. I was more of a Tortoise than the Hare….slow and steady… But I’m winning my personal race and wouldn’t give anything for the time I spent with my young kids. Finally, whichever one you are, make sure you’re doing it for you. I am living a meaningful life, have time to enjoy my family along the way and now I’m making a great living as well. 2017 was a great run and I’m looking forward to more years like it ahead! “
Annually, the New Jersey Association of Realtors® (NJAR®) recognizes its members who have demonstrated distinction in sales with two coveted awards: the New Jersey Association® of Realtors Circle of Excellence Sales Award® and the New Jersey Association of Realtors® Distinguished Sales Club Award®.
The NJAR® Circle of Excellence Sales Award® is considered among the most prestigious honors awarded to Realtors in the Garden State. Highly regarded throughout the industry, the award recognizes members who have excelled in the field of salesmanship.
The NJAR® Distinguished Sales Club Award recognizes members who have achieved the Circle of Excellence Sales Award® for 10 or more years (which need not be consecutively earned)
The 2017 award levels are:
Platinum: $20 million and 30 units minimum, or 125 units
Gold: $12 million and 25 units minimum, or 90 units
Silver: $6.5 million and 20 units minimum, or 70 units
Bronze: $2.5 million and 15 units minimum, or 30 units
Achieving the New Jersey Realtors Circle of Excellence Sales Award at any level is no small accomplishment.
Congratulations to all the winners
We would like to recognize the Green Team New Jersey Realty agents who are 2017 recipients of this prestigious award.
You want to make the most money possible when it comes time to sell your home. The way to do that is by improving and updating the things in your home that buyers look for the most. It’s important to focus on the home renovation projects that will net you the highest ROI.
We compiled this list for those looking to boost their resale value. All of the projects on this list were chosen for their ability to produce high ROI as well as create a more desirable home. Remember – it’s important to make money. But it’s also important your house doesn’t sit on the market for a year.
Make these updates and you should fetch a high sale price, quicker than you would otherwise.
1) Remodel the Kitchen
The decision among real estate experts about where you get the highest ROI renovating your home is unanimous. The answer is in the kitchen. For some reason people just want nice kitchens and care about it more than the rest of the house… Maybe it’s because that’s where people like to entertain guests. Your main priority when renovating a kitchen should be layout. Creating a structure (or bones) that is functional and can easily be updated is super important. It’s one thing to replace a counter-top and cabinet doors. It’s a different story to completely renovate the whole kitchen.
Once you get the structure out of the way, search for materials that have a high quality look without a big price tag. You can make a space look modern and luxurious without having to use marble and granite.
2) Update Bathrooms
Bathrooms are the second place buyers typically place the most value in a home. The good news is that making updates to a bathroom doesn’t have to cost a fortune. En-suite/master bathrooms are the most important. As they say, it’s where the magic happens. Cast a spell on potential buyers with a beautiful en-suite. That was really corny I know…
3) Repair plumbing issues
Can we say structural problems? This is the #1 worry of all potential buyers. No one wants to move into a beautiful new house and have a disaster occur two or three months down the road. Re-doing your old piping and updating it to a newer plastic solution is a huge selling point. This removes some of the potential fear that comes with buying a home.
4) Remove paneling
Wood paneling and Stucco are common in older homes. Mainly because when it was popular, we didn’t have walls without imperfections like we do now. Not only are these two things ugly, they also show potential buyers that you lack the ability to update your home. “If you can’t update this, what is is lurking?”
5) Attic Renovation
Attic renovations are a popular choice among DIY projects as expenses can be minimized. In many houses you will have the bones for a room. All that is required of you is putting up walls and handling the cosmetics. Updated attics can sometimes be a stronger selling point than updated basements.
6) Replace Siding
Since curb appeal is so important, it makes sense to focus on the biggest factor. The outside of the house. Everyone knows the dingy, yellow siding that used to be white 60 years ago look. If your house looks like that – sorry. It’s time to update. For those on a budget you can also try power washing. Power washing sometimes brings better results than you could imagine. And it barely costs
7) New Garage Door
In addition to replacing/refreshing your siding and landscaping well, your garage door can play a big part in selling your house. It’s another element of curb appeal that can draw in or turn-off potential buyers. Luckily, new garage doors re-coup on average 80% of their investment in the long term. Basically, it will help you break even (or make money) while making your house more desirable.
Final thoughts
You want to sell your home in the least amount of time and for the most amount of money possible. The way to do this is by performing renovations with a high ROI. In addition, you want to focus on the most desirable updates. Doing so will ensure you attract more interest on your property.
Each of these on the list may not be necessary or feasible with your budget. Remember that curb appeal, kitchens and bathrooms are important. If you can focus on nothing else, focus on those things. These projects will reduce your risk of losing money in the renovation process and also help you sell quicker.
Need more information on selling your home in the area? Give one of our Sales Agents a call!
According to the Consumer Financial Protection Bureau, Pre-Qualification and Pre-Approval in practice both refer to a letter from a lender that specifies how much the lender is willing to lend to you. While there are some legal distinctions, basically both specify a loan up to a certain amount, based on certain assumptions. These letters provide useful information. However, loan offers are not guaranteed. Rather, the letter can help you make an offer. It gives the seller confidence that you will be able to get financing to buy the home.
A buyer in today’s market needs Pre-Qualification/ Pre-Approval. This is the preliminary step to the mortgage process. Consequently, talking with a bank or mortgage lender is vital. The lender will check your credit and ask specific financial questions regarding your income, employment and financial obligations. As a result, the letter is generated based on a “snapshot “ of the financials given. It’s the first step in understanding your eligibility when ready to look at homes to buy. And it keeps you in sync with your financial budget and means.
Are You Pre-Qualified?
“Are you pre-qualified?” is an important question your realtor will ask before showing you properties. If not and you’re serious about buying a home, now is the time to start engaging in mortgage conversations with a lender. A wealth of financial resources will be shared with you to get you started. And to keep you on track understanding the loan process, your eligibility, and working within your price range. The importance of this question will determine if you’re “ABLE” to buy… Now.
Understanding Loan Types is Important
The “loan type” you’re qualified for is of equal importance for you to know and understand. Because some homes, due to their condition, may not be eligible for all loan types. Thus, your realtor will be able to navigate the market for you, finding homes that best match what you are qualified for.
The goal and success of buying a home when financing is to be Ready, Willing and “Able.” Working closely with your buyers agent and mortgage lender will help prepare you for navigating a challenging market for buyers.
My advice to buyers entering the market … understand the market you’re about to enter. Prepare yourself! Have your financing in place, regardless if purchasing with cash or a loan.
Preparation is Key!
I can help you navigate your way through the process and connect you with the right mortgage lenders. Contact Me Today.
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