Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
December sales soared by 22% year-over-year, and inventory in most New Jersey counties is running at an average of two-months supply. Not since the industry has kept such records has it hit such a seriously low level. Still, buyers are unrelenting, driving prices up by double-digits nationwide. Additionally, the northeast continues to see a steady stream of its residents migrate to states such as Florida, South Carolina and Texas, making for a very fluid market.
Whatever the final outcome of this economic and health pandemic, watchfulness is definitely called for.
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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2020 A Blockbuster
According to the National Association of Realtors, hungry buyers continued to be driven into the arms of sellers when it came to existing home sales.
The total number of existing home sales in December increased over November 2020 but also drove the number of home sales to a record 5.64 million units.
These sales figures left all prior estimates in the dust; sales increased in December year-over-year by 22% on a national basis.
The concern that many real estate professionals had during the first and early part of the second quarter of 2020 regarding the pandemic's impact on buyers appears to be erased.
Economists in the industry pondered that the number of purchases could have hit 8 million had the agents had more inventory to work with. Between the rush to buy homes in less densely populated regions and low mortgage rates, the industry saw some of the most lucrative profits made in decades.
Of course the big story remains the inventory shortage that stands at just over 1 million homes available for sale nationwide, a 23% decrease from this time in 2019. According to December metrics, the months supply of available inventory translates into 1.9 months worth of home sales.
The National Association of Realtors reported that the median price of an existing home sold in December hit approximately $310,000, a 12.9% increase over December 2019 and a record for the month of December.
Buyers and home flippers have clearly scooped up a large percentage of a supply of homes under $100,000. The number of homes sold below $100,000 fell by 15% in December year-over-year. The number of homes that sold between $500,000 and $750,000 skyrocketed by 65%.
It appears that first-time home buyers still are not making up a greater percentage of the number of home sales recorded, translating into just 31% of all total sales. According to the Association, first-time home buyers typically account for 40% of all home purchases. The final metric that reflects this torrid market is that nationally it required just 21 days for a home to sell once it was placed on the market in the month of December. This is another record.
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On the Move
New Jersey, New York, Illinois, Connecticut and California topped the states with the most number of people moving out of them.
States showing inbound movement included Florida and South Carolina.
COVID-19 became the big trigger causing many people to move in 2020. Many people moved to locations which had considerably lower population densities and lower taxes.
As of 2019, the US Census Bureau estimated that New York saw a decrease of nearly 77,000 residents, putting New York State in the #1 spot for loss of residents for 2018 and for 2019.
Reasons for the moves included high cost of living, climate, job opportunities and now the pandemic.
According northjersey.com,in the last decade, New York lost 1.4 million people to domestic migration. New Jersey followed as did California, reporting a loss of 491,000.
Back in September, according to Bloomberg News, the New York State population saw that 67% of all long-distance moves were made by people leaving New York. New Jersey and Connecticut also experienced net losses of people migrating out of their states.
It's Not Just About the Weather
Vermont and Idaho reported reverse migration patterns with only 25% of the people moving leaving the state, while 75% were moving in. Idaho saw only 33% of the people moving out and Oregon reported only 37% of those moving going out of state.
According to Move.org, New Jersey and Pennsylvania were identified as the states most likely to lose residents in 2020.
Move.org reported California, New York, Texas, and Florida as states having the most number of people move from them. The states showing the highest number of individuals moving to them were Florida, Texas, California, and Colorado.
In general, 2020 was the year of a lot of movement with one in five Americans moving.
According to a Move.org report, 60% of the people who moved were renters, and 63% of those became homeowners.
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Monmouth County
Single Family Homes for December
Key Metrics 2019 2020 Change
New Listings 374 391 + 4.5%
Closed Sales 557 834 + 47.7%
DOM* 65 41 – 36.9%
Median PX $435K $550K + 26.4%
% of PX 97.0% 99.1% + 2.2%
Inventory 2,340 1,170 – 50.0%
Months Supply 4.1 1.7 – 58.5%
*Days on Market
Ocean County
Single Family Homes for December
Key Metrics 2019 2020 Change
New Listings 548 547 – 0.2%
Closed Sales 690 1,025 + 48.6%
DOM* 76 41 – 46.1%
Median PX $310K $396K + 27.8%
% PX Rec'd 96.8% 100.1% + 3.8%
Inventory 3,225 1,410 – 56.3%
Month Supply 4.4 1.6 – 63.6%
*Days on Market
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Get This Month's Free Rental Planner Spreadsheet |
Rental Income Planner in Excel Spreadsheet
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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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