Home Equity Breaks Record

CounsellorsTitle.net

October 10, 2019

Title Wise

Title Tips & Tactics for Today's Real Estate Professionals

Inventory and rental shortages are contributing to the surge in homeowner equity these days. The average NJ home has increased by almost $5,000 over the last year. In addition, Monmouth County tourism has accounted for $2.5 billion in revenue. All told, the market appears to be headed only higher.

Please feel free to email me at ralph@counsellorstitle.com

if you have any questions or would like to follow up on any of this edition's articles.

Ralph Aponte

732.914.1400

Inventory Shortages & Rents Create Equity Juggernaut

The fiscal health of homeowners nationwide appears to be improving based upon the data published by CoreLogic. Homeowner equity has risen from the first quarter of 2019 to the second quarter of 2019, according to CoreLogic. The number of residential properties underwater (with a negative equity position) fell to 2 million homes or 3.8% of all mortgaged properties. This represents a decrease of 7% from the first quarter of 2019. Based upon numbers reported for the second quarter of 2018, negative equity fell 9% from 2.2 million homes.

Overall, home equity increased by 4.8% year-to-year at the end of the second quarter of 2019. This accounts for a collective gain of approximately $428 billion according to the same CoreLogic report, translating into an average increase of $4,900 in homeowner equity since the second quarter of 2018. In New Jersey, the percentage of homes with negative equity stands at 6% of all mortgages. But this is better than Connecticut, which stands at 8.5%. The metropolitan area that has gained the most over the course of the last year is Miami, which saw a 9.5% rise in homeowner equity.

Total Homeowner Equity
Total homeowner equity hit a record high of $6.3 trillion, according to another report published by Black Knight.

Rental Surges Also Drives Up Prices

The unaffordability of housing is indirectly the result of a strong rental market and the shortage of new construction. Especially in the case of New Jersey, Manhattan seems to be driving values in New Jersey higher and higher as rents in August in Manhattan hit $4,272 a month on average. This makes Manhattan the most expensive place in the country to rent an apartment. Other cities in which rents are extremely high include San Francisco, where rents average $4,272 a month and Boston, where the average apartment rental is $3,545. The average rent in Los Angeles stands at $2,525 per month.

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Home Closings Taking Less Time

The speed of technology has enabled the transaction time necessary for a home to be purchased to be greatly reduced. The home purchase process has cut weeks off of the closing time in many cases. Digital platforms are playing a greater role in this acceleration of this complicated process. Technology is enabling buyers to get mortgages quicker and sellers to close on properties even faster.

According to a recent report published this year, on average the closing time for a typical U.S. homebuyer has fallen by 11 days in 2019.

The increased speed in closing on a property has accelerated the overall ability of real estate agents and loan officers to increase the number of transactions per month.

As long as inventories remain historically low, the demand for speed has become a premium value for anyone involved in the real estate industry.

A big part of the speed at which deals close is attributed to the quality and knowledge of the title agent. A title agency plays a critical role in the ability of the home seller and home buyer to quickly bring together all the parts that are necessary to close a property transaction. The title agent is responsible for identifying and making sure that the property owner possesses a clean title on the specific property they are seeking to sell.

At Counsellors Title Agency, one customized service is its Attorney Settlement Assistance Program, also known as ASAP. The Attorney Settlement Assistance Program was created specifically to help real estate attorneys process much of the secretarial paperwork involved in a real estate sale. ASAP includes such services as:

Documentation Preparation

Disbursement of Funds

Attendance at Closing

HUD Preparation

The title agents also coordinate with many industry professionals such as lenders, real estate agents, buyers, sellers and their attorneys to make sure all the documents are prepared properly, filled out, signed and ready at the time of the closing.

The title agencies can also provide Escrow Services that will allow buyers and sellers with the disbursement of funds. According to the FBI, nearly a billion dollars was diverted or attempted to be diverted by fraudulent actions. The best title agents use only secure communication platforms and are knowledgeable when it comes to hackers and fraud.

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Monmouth County Tourism Hauls in $2.5 Billion

Monmouth County tourism has grown significantly in 2019, most likely due to its proximity to New York City. The Jersey Shore has established itself as a summertime destination, complete with historical sites, famous rock landmarks, trendy restaurants and galleries in many of its shore towns from Red Bank to Barnegat Bay.

According to the Monmouth County Division of Tourism, Monmouth County accounts for a $2.5 billion dollar tourism industry which produces 30,000 jobs.

In addition to its famous Jersey Shore beaches, Monmouth County also represents numerous outdoor hiking trails within the Monmouth County Park system.

The dozens of lakes that separate many of the Jersey Shore towns, such as Ocean Grove, Asbury Park, Deal, Allenhurst, Spring Lake, and Belmar, are also great places to drop in the fishing line and catch some freshwater fish.

The financial windfall from Monmouth County's tourism has resulted in $47.7 billion in total economic impact since 2009.

According to a recent report from Brand USA, New Jersey attracted 98 million visitors, both domestic and international, in 2016, generating $3.6 billion in tax revenue for that year, which translated into more than $1,500 per New Jersey household.

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A.S.A.P. Attorney Settlement Assistance Program

Our real estate secretarial services are able to assist you in every

aspect of the sale, purchase, refinance or loan closing process. We will directly communicate with all the parties involved in the transaction and coordinate and obtain all the items necessary to bring the matter to closing.

Our ASAP services can be individually customized to fit your needs. These services include:

Documentation Preparation
Disbursement of Funds
Attendance at Closing
HUD Preparation or
Post-Closing Matters

Our Commitment to Excellence

Counsellors Title Agency wants to thank you for the opportunity to work with you and your clients to grow your business. Please feel free to click the link above or here to leave us a review on Google. We appreciate your business.

Careers @ Counsellors

Sales: Leading NJ title insurance agency seeks experienced licensed salespersons to help expand its market share throughout the entire state. Benefits include health insurance, 401k with an employer match, flexible spending account, expense account, & marketing support. Send resumes by fax: 732-914-8898 or ralph@counsellorstitle.com

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Free Online Title Insurance Calculator

Counsellors Title Agency announced its updated Title Calculator for New Jersey home purchases & refinances at: Title Calculator

Loan officers, real estate agents and home buyers can find out how

much title insurance will cost for purchases made in New Jersey.

Easy-To-Use Functionality
This online tool includes many of the endorsements involved in calculating the cost of a title policy in New Jersey. CTA's Title Calculator is a great tool for real estate salespersons, loan officers, attorneys and those who are buying or refinancing their home.

It calculates the cost of title insurance based upon the purchase price of the home, the loan amount, and the various endorsements that can accompany the loan. The calculator provides the user the scalability of selecting the various endorsements involved in the transaction.

Counsellors Title Closing Services for Attorneys

Counsellors Title provides its Attorney Settlement Assistance Program [ASAP] with the real estate attorney in mind.

The Counsellors ASAP program offers secretarial services to assist in the process of a sale, purchase, refinance or loan closing.

Counsellors will even communicate directly with all the parties involved in the transaction to coordinate and obtain all the items necessary to assist in the close.

ASAP includes:

Documentation Preparation
Disbursement of Funds
Attendance at Closing
HUD Preparation or
Post-Closing Matters

For more information about the attorney services provided by Counsellors Title call our home office: 732.914.1400 or email us at info@counsellorstitle.com.