November 18th, 2021
Title Wise
The New Jersey Real Estate News You Can Use
Greetings!

If you build it, they will come... is not a business model or stategy, and yet Zillow seems to have fallen for the shiny-object syndrome with the news that it is closing down its iBuying program, after sustaining massive losses. What is even more significant about this bust is that it took place in the biggest real estate bull market in history. The lesson is clear: Never Assume and Do What You Do Best, and leave the rest.

We are also including a section on lead acquisition tips that never go out of fashion.

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
Founder & President
732.914.1400
Zillow Calls It Quits for iBuying;
Reports $421 Million Loss for Zillow Offers
Zillow Closes Down iBuying
 
The big decision of Zillow to close down its iBuying business in November of 2021 may not only reveal a flawed business model but also the segue to a new real estate market climate. Inventories continue to contract, and interest rates for mortgages remain at or near historic lows, but the inability of Zillow to flip the homes it has bought for a profit may expose the surging price trajectories seen in 2020 and 2021 to be leveling off.

The decision to cut its losses shows Zillow CEO Rich Barton is willing to take the hit, and not pursue economic pipe dreams.

Certain businesses in a post-pandemic economic climate are going to change dramatically. The decision to close down the iBuying business will cut the number of Zillow employees by over 1,600. The company reported a net loss of $328 million for the third quarter of 2021, which is primarily the result of the $420 million loss attributable to Zillow offers.

Some of the strengths of Zillow is that it currently enjoys 220 million average monthly users. Second, the cost of capital is expected to remain low, and third, the ability of Zillow to monetize its primary lead-generating platform makes for a very bullish position to be in.
Lead Acquisition for 2022
Many of the industry experts are preparing for the current market to continue into 2022.

Yet, with a strong market, the importance of having a specific and strategic plan is critical to the outcome of anyone's business.

Hope is not a strategy.

One of the industry lead development experts is Tim Ferry.

As we might expect, he is recommending:
  1. Database
  2. Geographic farming
  3. Direct from watching videos/content
  4. Google My Business page
  5. Open Houses
  6. Expired Listings
  7. Google Local Services ads
  8. Direct from reading reviews on Zillow or Google
  9. Circle-dialing around recent sales
  10. Just Sold cards

The voracious buyers have, over the last 15 months, eaten away at the inventory within the single-family home market, and much of the rental inventory has been sold, creating a similar shortage of homes available for rent.
Market Overview November 2021

  • People under the age of 44 have been driving the homeownership rate higher; while 45- to 64-year-olds have seen homeownership drop.
  • 3Q 2021 realized a strong upward inflection in household formation.
  • The median price of existing home sales has fallen by roughly $10k since peak values back in June.
  • For NJ, September median price for a single-family priced to be $440K, vs. June's high of $490K, July's $460K and August's $461K.
  • The average price for a single-family existing home priced at $576K, July $569, August $563K and Sept $553K.
  • Inventories: Existing inventories continue to fall, but the pace of that decline slowed for the 7th consecutive month.
  • New inventories, on the other, hand jumped up 30% YoY for the 2nd month in a row.
  • We are seeing softening of the median price of existing home sales. After climbing to over 23% growth in both May and June, the rate of increase slowed to 13% in September.
  • Total building permits were down 1.2% year-over-year and are now up 19.9% YTD.
  • Single-family permits were down 8.0% year-over-year. They remain up 20.3% YTD.
  • Multi-unit permits were up 15.3% year-over-year but are up 19.9% YTD.

# # #
A Shell Collection by the Sea
New Jersey Greats

Thomas Edison
He began his career in 1863, in the adolescence of the telegraph industry, when virtually the only source of electricity was primitive batteries putting out a low-voltage current. Before he died, in 1931, he had played a critical role in introducing the modern age of electricity. From his laboratories and workshops emanated the phonograph, the carbon-button transmitter for the telephone speaker and microphone, the incandescent lamp, a revolutionary generator of unprecedented efficiency, the first commercial electric light and power system, an experimental electric railroad, and key elements of motion-picture apparatus, as well as a host of other inventions.
5 States Losing the Most Population

 ■ Pennsylvania. The state lost an estimated 15,629 people from mid-2019 to mid-2020.
 ■ Michigan. The Rust Belt state lost 18,240 residents.
 ■ California. Reversing a trend of population growth over the past decade, California lost an estimated 69,532 residents. Home prices have grown ridiculously expensive.
 ■ Illinois. Continuing a trend of outward migration, Illinois shrank by 79,487 people from mid-2019 to mid-2020.
 ■ New York. The state was hit hard in the early months of the coronavirus pandemic. New York lost an estimated 126,355 residents.
Get This Month's Free Rental Planner Spreadsheet
Rental Income Planner in Excel Spreadsheet
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
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.
Handy Guide to Real Estate Sources
Here are some of the most widely used governmental websites for the real estate industry.


I look forward to being of service to you, providing you with outstanding real-time information and some humor to make doing business a pleasure.

Sincerely,
Ralph
Ralph Aponte
Counsellors Title
Counsellors Title Agency, Inc. specializes in providing title insurance, title search services and loan closing services serving attorneys, Realtors, banks and various mortgage companies throughout the State of New Jersey. CTA offers full search and insurance capabilities within all 21 counties of New Jersey for commercial, residential and new construction purchases in our Toms River, Freehold, Chatham, and Union locations.
CTA is equipped with the latest digital technologies to ensure a complete and timely transaction.
Mr. Ralph Aponte

Our Office: 504 Hooper Avenue,
Toms River, NJ 08753
Phone Number: (732) 914-1400
Fax: 732-914-8898

Connect With Us