Title Wise
The New Jersey Real Estate News You Can Use
|
Greetings!
As the values of properties continue to go up, the proposal by Governor Murphy should give some temporary tax relief to not only homeowners but also renters. And we continue to see buyer demand transition from the most active winter season into the spring of 2022. It will be interesting to observe if the market will remain a seller's market or not. The good news is that there is still demand, and the economy remains solid. At Counsellors Title, we continue to stay focused on making sure that deals close as quickly as possible.
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
|
New Jersey homeowners are going to see something happen that's never happened before: they are going to get property tax relief.
New Jersey Governor Phil Murphy presented a proposal for the coming fiscal year as part of his effort to finally address the burden of property taxes for New Jersey homeowners. The governor framed his proposal in the form of making New Jersey more affordable. But his efforts will have a long way to travel, as New Jersey ranks number one in the nation for the highest property taxes. Not only have New Jersey property taxes taken first place for the last five years or so, you also have seen property values appreciate over the last 3 years by up to 39% due to the pandemic bull market.
The governor's choice of words, affordability in New Jersey, will be fighting a very stiff uphill fiscal battle in the coming years.
This new proposal will also benefit New Jersey renters.
To qualify:
New Jersey homeowners filing for the relief must make less than $250,000 a year in order to get the credit toward their property taxes of up to $700 for the coming fiscal year. New Jersey renters will receive up to $250 as long as they do not make more than $100,000 a year.
It is estimated that the proposal would benefit up to 1.8 million New Jersey residents. The cost of the program is estimated to be $900 million, and would grow by 2025 to $1.5 billion. This would bring the total benefit to a homeowner to $1,150 per year.
But as with every state concession, it will require the lawmakers to renew it each year in the budget, as opposed to the state sales tax, which never needs annual renewal. Current tax laws in the state of New Jersey traditionally have targeted the wealthy and businesses. There is really an effort to address the chronic compulsion to spend as much as possible on the state, county and town level.
The governor's proposal is being challenged with another $3 billion package, which gives back to the taxpayer excess tax collections in the form of refundable tax credits.
According to recent estimates, the average annual property tax rate is approximately $9,300 a year and is the highest in the country. The bulk of those taxes are funding schools and local governments with their ancillary services. This proposal by the current New Jersey governor is the first he has made in an effort to address New Jersey's punitive property tax code.
|
As a customer, or a potential customer, you know the importance and value that title services deliver to the overall customer experience.
The Counsellors Commitment
Counsellors Title services and products are designed to help you reach the next level in your business. Let Counsellors' team work to show you just how much more effective you can be.
Reach out TODAY to speak with me to learn more.
732.914.1400
|
Springtime is usually the traditional time that home buyers and home sellers are coming together as the flowers bloom.
As I said, traditionally; but the last two years have been anything but traditional. The average home appreciation in the state of New Jersey over the last two years is approaching over 30%, inventory shortages are creating bottlenecks for buyers, and sellers are finding it difficult to find a reasonably priced home to move to. This is May 1st in terms of the real estate market coming to somewhat of a standstill. Plenty of buyers, not so many sellers and interest rates continue to rise.
According to realtor.com, April 10th to the 16th is the best time to list a home in 2022. That may have been true in 2019 but this is in no way a traditional market. Home prices, according to their research, are $39,000 higher than they had been back in 2021 and there are 29% more buyers viewing listings online.
The experts, those who run the numbers, are trying to match 2022 with trends that have been in existence from 2010 to 2019, but right now there is a shortage of open inventory, and affordability is now the new big mitigating factor.
According to realtor.com, homes during this week sell 13.2% faster than the average week. But again, inventory shortages and high prices are having their impact, and historical evidence no longer appears to be as relevant as housing shortages dominate everyone's mindset.
One thing is for certain: listing price for a home is currently what sellers are now used to getting plus a few thousand dollars more. The average single-family home in the month of January 2022 sold for 101.3% above listing price. And the days on market sell on an average of 40 days. If you want to talk historical, let's look at the average percent of price received back in September 2018, which was then 97.8%. And back in September 2018, the months supply for homes was at a six-month supply with the average days on market coming in at 63 days.
This is clearly going to be a very interesting spring, as to whether buyers will become completely impatient and spend more than they should for houses that they can't afford, or will they consider waiting out this market for another year?
According to realtor.com for the New-York-New-Jersey-Newark area March 20th is the best week for a home to be listed.
|
Weaker Builder Sentiment Could
Hold This Market Back
|
One of the things that we have learned over the last couple years is that we can't really predict what will happen in a crisis, or even a disruption.
As existing home sales thin because of the shortage of available inventory, and interest rates begin a slow and steady climb by 25% above what they had been a year ago, inflation comes in and begins to play havoc with construction sentiment.
For the fourth straight month there has been a decline in the National Home Builders Housing Market Index, which has fallen below 80 for the first time since last September. According to the NAHB, anything above 50% is positive but there is concern that the trend line continues to give pause to individuals' unbridled optimism over the course of the current real estate market. February's NAHB Housing Market Index fell to 79.
Even though builder sentiment, conditions, expectations and supply-side building material constraints have always affected the market's perception, when it comes right down to it, it is buyers and sellers who determine which way the market will head. Even though mortgage rates are climbing, they are still below a 5% fixed rate for a 30-year fixed mortgage. What first-time buyers are going to have to contend with is the "new geography" for home buying. For decades homes in the attractive neighborhoods have been affordable, but affordability in good neighborhoods today has become a rarity. Individuals seeking to enter the real estate market today may have to take other considerations into their buying equation to determine how and where they are going to be able to enter and remain despite economic highs and lows. If the housing market is going to remain as stable as it has for the last 40 years with the exception of the 2008 collapse, buying and selling strategies will have to account for inventory shortages and inflation. Right now, the market projections are being determined by interest rates, inventory, and a strong economy. If any one of those changes dramatically, there will be a shift in the strength of the real estate market in the United States.
Builders at this point are not going to risk overextending themselves financially and so with the builder's skeptical sentiment falling to 79, it's still at a very robust level.
It's easy to forget that we have come out of a 2-year bull market when it comes to housing. Since 2019 many markets have appreciated between 30% and 40%.
|
Super Cool FREE 2022 Marketing Calendar |
Every business today needs a marketing calendar.
Planning ahead can often make all the difference in the world between a successful year and one that is just so-so. You can download this Marketing Calendar.
When it comes to marketing, the most important thing is to just start! I know it's March, but just think, you have 10 more months to plan to make 2022 the best year ever.
So you can start right NOW. Regardless of where you start planning, what’s most important is that you start planning your 2022 year.
This Marketing Calendar makes it easy for you to know what you need to do and when you need to do it. It also provides quick access to your upcoming and past marketing activities
|
"Find out where the people are going and buy the land before they get there.” William Penn Adair
Counsellors Title is initiating this feature of Title Wise called Life Quotes.
Oftentimes we are so busy doing that we forget the reason(s) why. Life Quotes are those mental speed bumps that we will occasionally come across and insert, just to rehearse the important things in life.
|
|
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. |
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
|
|
|
|
|
|
|
|
