Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
With 2021 right around the corner, what can we expect? I don't think that we will see a dramatic hiccup in the real estate market in New Jersey. More economists in our industry expect the low inventory, low interest rates to continue to fuel this drive to own a home, especially away from the big cities. A little closer to home we feature a story about what Atlantic City can expect for 2021, considering the pummeling it has taken economically. In the long run, the markets will survive; they may look different, but change is always an opportunity for the prepared.
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
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Atlantic City 2021
The impact of the pandemic has been felt across every segment of New Jersey’s economy. Unemployment continues to plague many employed in the service industries and retail sector. And real estate conversely continues to ramp higher due to the exodus of individuals fleeing densely populated areas such as Manhattan.
Yet in South Jersey, Atlantic City continues to face a questionable economic forecast. Now that we’re heading into winter, the casinos and restaurants limited by capacity restrictions are trying to figure out ways to adjust and survive. According to a recent article, in Atlantic City, one out of three workers is unemployed. But news articles are not always the best source of information. Atlantic County’s unemployment rate has actually fallen from 33.8% in April 2020 to 10.1% in October.
A Closer Look
Still, looking at the real estate sector, even in an economy decimated by a pandemic, Atlantic County real estate values have climbed significantly from two years ago.
In October of 2018, the median sales price for single-family home was $182,000. In October 2020 the median sales price for single-family home was $274,000. This represents an increase of over 30% in just 2 years’ of time. In addition to the appreciation of real estate, the inventory of homes for sale over the same 2-year period has fallen from 3,140 to 2,497. That is a significant drop of nearly 30%. Investors and homeowners will have to face some significant hurdles when it comes to property taxes in Atlantic City. For example, property taxes on a home assessed at $210,000 are $8,366 annually. And if you own a home that’s valued at $350,000, taxes will be $11,700.
So in this case, with governments running deficits of 20% to 40%, homeowners cannot hope for a break in property taxes even with an economy that is trying to come back.
On a positive note, the Tanger Outlets The Walk has attracted 2 new opens, one of which was Victoria’s Secret.
The economic conundrum that Atlantic City faces reflects over a 10-year period. Property values in general have lost about 18% over the course of that time.
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Housing projections for 2021 don't appear to be jumping off any catastrophic cliffs.
According to a report issued by Redfin, there is not going to be a dramatic change in the real estate market, as long as inventory remains low, mortgage rates remain even lower, and the pandemic transitions into Q1 of 2021.
Clearly, retail businesses are going to dance along the precipitous cliff of a potential collapse, but food and shelter will continue to fuel our economy until such industries as travel, hospitality and entertainment regroup.
The inventory shortage is working to the benefit of homeowners. Landlords will struggle to cover costs with non-paying renters who are without work.
The unemployment rate is not good, but considering 2010, when the U.S. jobless rate was 9.6 percent, this is by far a less severe economic crisis. Back in 2010, 15 states reported annual average unemployment rates of 10.0 percent or more.
For October 2020, the unemployment rate decreased by 1.0 percentage point to 6.9 percent. That was the sixth consecutive month the rate has declined, but it was still nearly twice the February rate of 3.5 percent.
So it is totally plausible for Redfin to project the housing trajectory to continue well into 2021, based upon mortgage rates continuing at these levels through 2021.
They believe that the "hot housing market during the coronavirus pandemic could heat up further if more homes are put up for sale."
The other invisible stronghold is that credit standards are still very high, which is in contrast with the Crash of 2008 and Great Recession.
In states such as New Jersey, there continues to be a mass migration to low density population regions, which have adequate access to schools, shopping and transportation.
The young city renters continue to flee the city, returning to their parents' multi-bedroom houses, which have ample room for the new work-from-home economy that has been born.
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Many people are held back by self-limiting thoughts about who they are and all they could be. But what if you could break this negative chain and embrace challenges, criticisms and even setbacks as a source of strength and growth? Think about all the possibilities that would suddenly open up for you.
Dweck says people with the growth mindset believe that basic qualities like intelligence can be strengthened just like muscles.
It’s not that growth-minded people believe they can become the next Albert Einstein or Michael Jordan if they work hard enough. It’s just that “they believe a person’s true potential is unknown (and unknowable); that it’s impossible to foresee what can be accomplished with years of passion, toil and training,” Dweck says. Because of this mindset, growth-minded people have every incentive to seek out opportunities for improvement and take on challenges to better their circumstances.
People who have a fixed mindset, on the other hand, believe they lost the genetic lottery and, therefore, have little incentive to work hard. Why bother to put in a little effort to build something if you have convinced yourself you are terrible at it, and there is nothing that can change that basic equation?
1. Start developing a growth mindset.
If you currently have a fixed mindset, there is good news. It’s not a fixed thing. You actually can develop a growth mindset.
“Mindsets are an important part of your personality, but you can change them. Just by knowing about the two mindsets, you can start thinking and reacting in new ways,” writes Dweck.
2. Focus on learning over achievement.
As you go about your life, focus on a growth mindset instead of focusing on your achievements alone. Embrace all the things that have felt threatening: challenges, criticisms, struggles and setbacks. Learn about the brain and all the wonderful ways it can help you grow and overcome.
“Every time they [people] stretch out of their comfort zone, do hard things, stick to hard things their brains form stronger and stronger connections and over time their abilities can grow,” Dweck told The New York Times in an interview discussing her research on women and girls with a limiting mindset.
3. Love the process of growing.
It may be slow, but celebrate every progress you make, every step of the way despite the challenges. “The growth mindset does allow people to love what they’re doing — and to continue to love it in the face of difficulties,” says Dweck in "Mindset."
Contrast that with a fixed mindset. With a fixed mindset, you love the score more, while growth-minded people love what they do more. Oftentimes, growth-minded people don’t even plan to go to the top. They get there as a result of doing what they love.
“It’s ironic,” says Dweck, “The top is where the fixed-mindset people hunger to be, but it’s where many growth-minded people arrive as a by-product of their enthusiasm for what they do.”
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A.S.A.P. Attorney Settlement Assistance Program
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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
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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. |
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.
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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
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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.
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Mr. Ralph Aponte
Our Office: 504 Hooper Avenue,
Toms River, NJ 08753
Phone Number: (732) 914-1400
Fax: 732-914-8898
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