Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
The dynamics that define the real estate market are evolving: housing shortages are being compounded by the massive institutional investments made into the market. According to the Wall Street Journal, more than one in every four homes purchased was by a professional rental investor in the fourth quarter of 2021. This only contributes to the increase in real estate prices. And another area in which construction is seeing a significant jump is in storage facilities.
FACTOID: The best month to sell a house fast in New Jersey is May. The median time it takes for New Jersey homes listed in May to sell is 29 days, which is 13 days faster than the annual average. Realtor.com
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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Builders Are Making a Big Comeback |
According to reports, as of February 2022 there were nearly 800,000 single-family homes under construction in the United States. This represents a 28% increase over 2021, according to US government figures. Despite the rising mortgage rates, and the general shortage of inventory, it appears that single-family homes are an ideal investment target for some institutional investors that have bucketloads of cash on hand.
BUILD TO RENT
Where builders are investing their energies are in building single-family homes that will be rental properties. These rental properties allow individuals to live in desirable single-family home neighborhoods where the school districts are good, and where the crime rates are lower. It also gives individuals a chance to put away additional capital for their own home purchase.
According to the Wall Street Journal, more than one in every four homes purchased was by a professional rental investor in the fourth quarter of 2021. .
The National Association of Homebuilders believes that the single-family rental market is likely to continue to show strength. The rentals also allow renters to have a living-single-family experience prior to their own home purchase.
One such investment firm, Haven Realty Capital, has acquired over $1.1 billion worth of new construction rental homes from builders since late 2020. The Arizona construction company Keystone Homes in 2021 made the decision to exclusively focus on the construction of rental homes for purchase. Right now, Keystone according to the Wall Street Journal article, has an 800-house construction pipeline.
This clearly creates another hurdle for first-time buyers as prices and land are bid up, especially in the hot markets such as the Carolinas, Tennessee and Arizona. The higher the land prices go, the more difficult it is for the first-time buyer to get into their first house. The impact of this surge is also spilling over into significantly higher rents, some of which are growing at double digits for the last few years, especially in such places as the Southwest.
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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
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Surge in Warehouse Construction |
There is clearly a scramble for buildable parcels of land, especially for warehouse use. New Jersey is in the middle of an ongoing warehouse construction boom as a result of the surging demand created by online shopping, where available space is needed for inventory. Demand for space especially in Northern and Central New Jersey is exceeding supply for the fourth quarter of 2021.
The vacancy rate for warehouses fell to 2.7% from 4.1% a year earlier. In addition the vacancy rate fell from the previous quarter to the fourth quarter from 2.9%. Also, the average rent received per square foot climbed from $10.72 to $11 per square foot. Where the biggest increases were reported, the rents received for the top class of warehouse space for average asking rent shot up 46% year-over-year.
The demand for warehouse space in Northern New Jersey is actually creating a demand for warehouse space in Southern New Jersey. The concern is that if warehouses are built, they might overwhelm the local roads with trucks and volume, impacting the quality of life in those residential areas. To date, no state agency has stepped forward to regulate the booming warehouse industry. Yet, the competition for available buildable warehouse land has risen in New Jersey to the point that New Jersey is no longer seen as a combination of local regions but a single market.
Logistics companies that are having capacity and shortage issues in Northern New Jersey are pursuing opportunities in Southern New Jersey such as Burlington County. At this point there isn't any available buildable land off the turnpike entrance in South Brunswick. As demand increases and shortages begin to wear upon the logistics companies, it's most likely that it could lead to the redevelopment of what is now under-utilized office parks.
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Home Prices May Ease as Wall Street Slows Its Purchases |
CoreLogic reports 12 consecutive months of annual home price increases. The home price increases are only further complicated by the rising mortgage rates that have crossed the 5% line. Except for a few days in 2018, mortgage rates have been below the 5% benchmark since 2011. CoreLogic reported February home prices actually increased by 20% since February 2021.
Mortgage applications fell dramatically with refinance applications down 62% from the same period in 2021. The refinance share of total mortgage applications fell from 51% a year ago to 38.3% in 2022. The first-time home buyers continue to face an uphill battle whether due to the inventory shortage, the influx of buyer demand and now the higher mortgage rates.
According to the Mortgage Bankers Association, mortgage demand fell by over 6% from the prior week and 41% from the same period in 2021.
Wall Street
Notwithstanding, Wall Street, in many cases, has bought up many mid-range homes in attractive regions throughout the country, depleting available inventory especially for first-time buyers. Wall Street saw a good investment by stocking-up on single-family homes that they could rent over the last three years.
CoreLogic has also reported that institutional investment purchases of single-family homes, including some of industry’s largest players such as BlackBock, are pulling back on their investment dollars into the real estate space.
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.
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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 April, but just think, you have 9 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
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"The best month to sell a house fast in New Jersey is May. The median time it takes for New Jersey homes listed in May to sell is 29 days, which is 13 days faster than the annual average.” Realtor.com
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.
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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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