Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
If you haven't already started your 2022 marketing plan, one simple and useful place to begin is your LinkedIn account. Get your information up to date. Spruce up your profile, description and other areas of expertise. The year is almost over but marketing never stops. LinkedIn is just one way to keep your sales funnel robust. Another story in Title Wise is the surge in rental prices. Inventory shortages are also driving the prices of summer rentals even higher. There is so much happening in this market that it's hard to keep up with it all.
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
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Zillow Revises 2022 Home Prices Higher |
Just as Zillow is jumping out of the iBuyer market business, it predicts that home prices will go even higher in 2022 than originally forecast. The new published report forecasts home prices will increase 13.6% between October 2021 and October 2022. This is a 20% increase over the 11.7% increase predicted back in September 2021.
These frothy numbers are still less than what had been reported between August 2020 and August 2021, where home prices climbed 19.9% year-over-year.
In some regions home prices are forecasted to increase by single digits, but in more competitive markets where inventory is short and buyers are plenty, those prices will increase by double digits. This is a new complex home-buying market being fueled by the first-time buyer millennial generation and the work-from-home buyers who have not returned back to the offices.
Projections for home prices in 2022 do range - from Zillow's 13.6% increase to a price drop of 2.5% forecasted by the Mortgage Bankers Association. CoreLogic, another analytics company, has forecasted price growth in 2022 of just 1.9% year-over-year.
But Zillow's analytics have proven to be somewhat shaky at best. Just last month, Zillow had announced that it was closing down its iBuyer platform, which racked up pre-tax losses of $422 million. This begs the question, why would a company be bailing out of the iBuyer program if prices are going to increase by 13.6% over the next 12 months?
The facts surrounding the market are that prices are higher than ever, but inventory will be slow to be replenished due to supply chain issues, and shortages of available buildable lots. There is concern that mortgage rates may also increase to as high as 4% in the coming 12 months, as predicted by the Mortgage Bankers Association.
Another Economic Constraint
Over the last 3 months, actions precipitated by federal agencies and by local municipalities have ignited a firestorm of inflation. Everything from food to gasoline are increasing now at double-digit rates, and this will have a spillover effect upon the housing market as well when discretionary funds shrink the ability of home buyers to put together down payments to purchase homes, creating a true scarcity component to the housing market.
The Rental Market
Not only are home prices rising by double-digits but rents are on the rise as well, creating a real squeeze for potential buyers. Another factor to be considered is that based upon certain Congressional actions and municipalities, it appears that taxes are also going to increase significantly over the next 12 months.
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High Home Prices Increasing Rental Costs |
Inflation is not only being driven up by the ridiculous prices of food and fuel, but also in the prices of existing homes. And so between the high prices and general cost of living, rental prices are also on the rise, the cost of living to soar.
According to RealPage, apartment occupancy struck a new high of 97.5% in November, which is typically a time when such rates decrease.
This resulted in apartment rent and occupancy setting new records in November for asking rents for new move-in leases, increasing by 13.9% year-over-year.
Another driver in demand is household formation, which was gaining momentum until the pandemic hit, but now has resumed.
One long-time Jersey shore broker, Peg McDevitt, from KW Avon Realty said, "This market is crazy strong. We have never had so much of our rental inventory pre-booked like this so early for the next season. It's obvious that the severe inventory shortage is hitting not just existing homes, but rentals as well."
New Jersey Rental Market
New Jersey has the 5th highest rent in the country out of 56 states and territories. The Fair Market Rent in New Jersey ranges from $1,260 for a 2-bedroom apartment in Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA to $1,958 for a 2-bedroom unit in Jersey City, NJ HUD Metro FMR Area.
The average Fair Housing Market Rent in both Monmouth and Ocean counties is $2,277 for a 3-bedroom home. According to an article published in NJ.com, "The price of a one-bedroom apartment in Jersey City, for instance, went up by nearly 7% over the last year, according to Apartment Guide, making Jersey City the ninth-most expensive metropolitan area in the country."
In addition to the increase in household formation, the WFH economy is driving demand as well.
The unabated surge in home prices has slowed, according to S&P CoreLogic CaseShiller, but the places where demand is peaking, is where rents are also peaking. Such cities with the highest price increases include Phoenix, Tampa, and Miami.
At the core of the problem is the crisis in inventory, where most professionals see the market demanding at least one million new homes need to be constructed.
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Learning to Link to Growth |
Tips for Using LinkedIn to Build Your 2022 Network - Your Future Lies in the People You Know
2022 is around the corner. Possibly the first place you should begin your own business development is on LinkedIn. Your LinkedIn may not drive raw leads into your inbox, but should someone come upon your website and then check out your profile, it may be the trigger that makes them reach out to you.
Headshots
A picture is worth a thousand words, and so your headshot is your chance to say what you want without words. Your headshot will communicate trust, credibility, reliability and more. Make sure you are looking at the camera and are smiling.
LinkedIn Profile Description
Also in your description, make sure you are speaking to people, not at them, and definitely not selling them before you even get to know them.
Give Them A Reason
In your profile, give people a reason to connect with you. What is the benefit that you might offer through connecting?
A Case Study
I recently received this invitation on LinkedIn and thought, this guy is good. No pressure. One of the smart things that he did was use my name in the invitation.
HERE IS THE INVITATION
Hi Anthony, saw we had some mutual connections and that you are entrepreneurial minded. Would love to connect!
Scott Hedrick Helping clients find personal fulfillment and financial success thru franchising. #franchise#beyourownboss#franchiseconsultant#entrepreneur#careermanagment
Orlando, Florida, United States
Look at Scott's description, he doesn't throw around any titles, or jargon like New Business Development - Ugggh!
NO! Scott tells you what he can do for you: fulfillment, success through franchising. Simple. To the point!
Also note his use of hash tags: #franchiseconsultant#entrepreneur#careermanagment.
Finally - Location
When it comes to business, people prefer dealing with people that they might know locally. Scott puts in his geographic area that he does most of his business, sparking the possibility of meeting with him if you are close by!
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Riding the Jersey Dunes in December |
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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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