Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
This year is going to require your networking efforts to be intentional, targeted and continual. We don't know when rates will come back down, and so until that point, your personal brand needs to be more compelling than ever. This contraction of the market is hitting new construction very hard, so until we start to see more buyers stepping up to the plate, there may have to be some adjustment in price points. Just one other cloud on the horizon -- the national debt. Should there be a serious economic event, there is the potential of a major recession, since the government owes too much money to itself.
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 See Spike in Buyer Cancellations |
Buyer cancellations in the last quarter hit 68%; this is a new record as compared to the cancellation rate of 47% recorded back in 2008.
Builders are concerned about the weakening demand and the backlog of new homes without new buyers coming in to scoop them up and are sweetening the price tag in order to avoid a dead stop.
According to one published report, new home sales are down approximately 10% from their recent highs.
The streak dating back to 2012 in which for 124 consecutive months existing home prices increased is over. In November 2022, for the first time, prices declined 2.5% from the previous high of June 2022. But this correction is nowhere near as severe as the one back in the crash of 2010.
According to the Zillow Value Index, 79% of the 200 largest markets in September showed a price decrease. October showed a 76% decline in prices for those markets and November and December showed declines of 64% and 67%, respectively. January’s decline was not as severe, only affecting 47% of these same markets reporting a decline in prices.
This reconfiguration of market was triggered by the doubling of mortgage rates from 3% to 6% in less than a year. Now rates are still above the 6% level, not providing any kind of incentive for home buyers to climb back into this unreal estate market.
The concern is the uncertainty of the mortgage rates; should they rise into the 7% level, housing is sure to remain contracted at best. But the shortage of available inventory plus the shortage of available buildable lots makes this market a difficult one to predict. Should the economy fall into a true recession, home values will surely suffer as a result of many first-time buyers buying at the top of the market. We will probably see the same thing occur that happened in 2008, when 0% was required down for purchase and buyers could not afford to cover their monthly nut.
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National Debt - How Big a Problem for the Market
1. The federal government’s total public debt stands at approximately $31.46 trillion as of Feb. 10, according to the Treasury Department.
2. The nation’s debt has been bigger than its gross domestic product, which was $26.13 trillion in the fourth quarter of 2022. The debt-to-GDP is a metric to analyze the debt over long time spans, by comparing it against the actual size of the national economy.
3. U.S. government debt is perhaps the most widely held class of security in the world - the problem is that 21.8% of the public debt, or $6.87 trillion, is held by another arm of the federal government itself. (How can you borrow from yourself?)
4. The Federal Reserve System is the single largest holder of U.S. government debt. The Fed bought Treasuries in massive quantities during the COVID-19 pandemic in an effort to keep the U.S. economy from buckling under the strain of shutdowns and quarantines.
5. The federal government will make payments to cover net interest on the debt which is estimated to total $395.5 billion this fiscal year, or 6.8% of all federal outlays, according to the Office of Management and Budget.
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Your Network Holds Your Breakthrough |
Networking Isn't Accidental
Some of the valuable tips include:
- Research before any meeting or event. If you are attending any conference and networking event, research the panelists and speakers so you can be ready to ask informed questions.
- Perfect your personal elevator pitch. Whether it’s to use in an email, a LinkedIn request, at a networking event, or even if you run into your career hero on a chance encounter.
- Practice explaining what your company does.
- Make sure you don’t send out random connection requests on LinkedIn.
- Build a dynamic LinkedIn profile.
- Make sure that if someone Googles you, your info is up-to-date and accurate.
- Make sure your ask is compelling, know what you want to get out of any networking effort.
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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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BEFORE GETTING TOO FAR INTO 2023...
Before you can go to where you want to be, it is prudent to consider where you have been. The first Perspectives by Counsellors Title Agency is just that - it is a compilation of the best of Ralph's Title Wise blogs posted during 2022.
Some of the blogs include: Your Network Is Your Future, Professionalize Your Home Work Space, Decluttering Checklist, Historic Surge in Home Equity, and Marketing Chemistry.
Click the image of the eBook to download it. You can also pass it along to people who might need the information included in it. |
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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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