Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
The cost of everything is rising. But it is not just costs, but scacity - the scarcity of buildable lots. So add inflation, inventory shortages, supply chain disruptions - and now buildable lots. The shortages are also affecting renters - especially New Jersey renters, of whom approximately 25% are behind on their rents. The New Jersey real estate market is a complexity of market contractions and costs, which are going to have a lasting effect on homeownership.
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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Land Shortages Driving Home Prices Higher |
According to a recent Wall Street Journal article, inventory isn't the only issue facing the buyers and sellers within the real estate industry: right now, the United States as a country is short on land, specifically buildable land.
The article mentions that land values in Manhattan have grown by an average of 13% annually between 1977 and 2019. But before that, from the 1880s to the 1970s, land values barely increased in the Big Apple.
Also, land has become an attractive asset for the institutional investors and also other wealthy investors such as pro golfer Phil Mickelson, who began buying land in the Sunbelt a number of years ago.
The recent pandemic has had a dramatic effect upon property values in the Sunbelt due to the work-from-home economy. Cities, such as Nashville, saw increases in the prices for vacant lots zoned for residential building climb, while the number of buildable lots fell dramatically by 43% from 2016 to 2021.
In general, prices for buildable lots, high construction costs, labor shortages and inflation have created a trajectory of higher prices that many builders have not been able to keep up with. Even in Nashville, rents over the last 12 months have increased by 31% year-over-year.
As more and more Americans are able to work remotely, towns within the Sunbelt seem to be the beneficiary of the migration out of the big metropolitan areas such as New York, San Francisco, Philadelphia and Chicago. According to the Wall Street Journal article, "once land inflation sets in, it can be hard to reverse."
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NJ Renters Are Behind on Rent |
National Homeowner Equity
According to the US Census Bureau, approximately 15% of American households, or 6 million people, are behind on rent moving into the fall of 2022. New Jersey happens to be one of those states which is reported to have lagging payments becoming more problematic.
The net effect of this super-hot real estate market for the last two and a half years is how higher home values have driven rents up to new highs as well. Compounding the cost of rent and cost of purchasing a new home, inflation has begun to take a major bite out of American budgets, where many renters are finding themselves behind on rent. The top three states where renters are behind on their rent payments are South Dakota, Alabama and New Jersey, where in the Garden State, according to myelisting.com 24% of renters are behind on their monthly obligations.
The trajectory of median prices for new listings reflects an increase in price by 13.3% over 2021. With the significant increase in mortgage rates, especially for the 30-year fixed rate mortgage, there is less affordability, therefore fewer buyers jumping into this still very hot market. Notwithstanding, the September median price was $23,000 less than that of June 2022, which was an all-time high of $450,000.
Still, the inventory shortage continues to wreak havoc with many of the potential buyers in this market. Compared with this time in 2021, inventory is 15% less.
According to the National Association of Realtors, homes spent an additional 7 days on the market as compared to 2021.
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Saving on Real Estate Taxes
New Jersey’s ANCHOR program is also giving back $2 billion in property tax relief this year for homeowners and renters.
Homeowners who make up to $150,000 a year will get $1,500, and $1,000 rebates will be issued to homeowners who earn between $150,000 and $250,000. Renters who earn up to $150,000 are slated to receive $450. The state says that it will begin issuing payments in spring 2023.
The deadline for filing your ANCHOR benefit application is December 30, 2022. We will begin paying ANCHOR benefits in the late Spring of 2023. ANCHOR payments will be paid in the form of a direct deposit or check, not as credits to property tax bills. We are currently mailing ANCHOR benefit information mailers to homeowners and tenants. Allow until the first week in October to receive your mailer. Homeowners who filed a homestead benefit application last year may be able to obtain their ID and PIN numbers online. Tenants do not need an ID or PIN number to file. Visit the Division's ANCHOR page for all filing information. Due to high call volume, the ANCHOR and Homestead Benefit Hotline may be unable to take your call at certain times. If that occurs, please try your call at another time. Our hours of operation are Monday through Friday from 8:30 a.m. to 5:30 p.m. |
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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