Showing posts with label #fastrealtysales. Show all posts

Wednesday, December 2, 2020

Resort Towns Are Becoming Permanent Destinations

Homebuyers Fleeing Big Cities During the Pandemic

Excerpts from an article Published on November 11, 2020 by Lily Katz

The Jersey Shore, Bend, OR, Cape Cod and other vacation destinations are heating up as the coronavirus drives New Yorkers and San Franciscans to greener pastures.

Popular second-home destinations including the Jersey Shore, Cape Cod, Lake Tahoe, Palm Springs and Bend, OR are heating up and becoming full-time residences for homebuyers who have the luxury of working remotely as people leave New York and San Francisco during the coronavirus pandemic.
The Jersey Shore, a popular summer getaway for East Coasters, has also become a hotspot for families looking to escape big-city life during the pandemic. Three of the four New Jersey counties that ranked in the top 10—Ocean County, Monmouth County and Cape May County—are on the Jersey Shore.
“I’ve never seen so many New York license plates at open houses in Monmouth County,” said a local real estate agent. “City folks are coming to New Jersey with New York salaries, and they can get quite a deal here even though competition is fierce. One of my buyers recently lost out on a house because another bidder paid $75,000 over the asking price. Who does that? New Yorkers.”
There are a lot of homebuyers coming to the Jersey Shore from Brooklyn, specifically.
“Where in Brooklyn can you find anything for $500,000? Nowhere,” Gonzalez said. “New York folks are coming to Jersey for a year or two, buying a house on the water and working from home at the Jersey Shore.”
My note:
Ocean and Monmouth counties are facing a shortage of available housing for sale and have inflated prices over 20% and days on market average 28, which is over a 50% drop from one year ago. 35% of homes sold for over list price, making this one of the hottest sellers market in more than a decade.

Wednesday, September 30, 2020

Home Builder Confidence Hits All-Time Record

Building or Rebuilding May Be An Option to the Residential Housing Shortage

The article below explains the surge in vacant land purchases and the demand for distressed properties. Buyers are finding their way around the housing shortage in our area by looking for land and are taking out Rehab loans in order to make a distressed home into the home of their dreams. This also lends to builders counting on quick turnarounds due to the shortage of single family homes. Most new listings (properly priced to the market) are under contract within 10 days of posting on the local MLS.

SEP 24, 2020 — by Janki Patel

HOME BUILDER CONFIDENCE HITS ALL-TIME RECORD

Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of prospective buyers of new homes.

As the following chart shows, confidence dropped dramatically when stay-in-place orders were originally mandated earlier this year. Since then, it has soared back.

Looking at the three-month moving averages for HMI scores, confidence increased in every region of the country:

The Northeast increased 11 points to 76
The Midwest jumped 9 points to 72
The South rose 8 points to 79
The West increased 7 points to 85

CONFIDENCE IS VALIDATED BY THE NUMBERS

This confidence is definitely warranted. According to a recent NAHB report, single-family housing starts increased 4.1% to a 1.02 million annual rate, and single-family permits increased 6% to a 1.04 million unit rate, meaning newly constructed homes are on the rise.

A separate report from the Mortgage Bankers Association (MBA) shows mortgage applications for new home purchases increased by 33.3% compared to a year ago. Joel Kan, Associate Vice President of Economic and Industry Forecasting at MBA, commented on the numbers:

“The housing market continued to exceed expectations in August, as housing demand for new homes stayed strong and the job market continued to recover…The new home market has maintained its path of recovery throughout the summer, and record-low mortgage rates and households seeking more space will likely continue to drive demand into the fall.”

BOTTOM LINE

If you’re thinking about putting your house on the market but are afraid you may not find a home to buy, let’s connect to discuss new construction opportunities in our area.

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Feel free to send me your questions by email at dleone@dianeturton.com or you can leave a voicemail / text at (732) 503 - 8094.

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Thursday, September 10, 2020

Home value: Perception v. Reality

Perception vs Reality

I had a great conversation with a friend of mine over the Labor Day weekend. It had to do with the perceived value of a property versus the actual value of what it was sold for.
   This person Thought that the property had a value of about 1.1 million dollars but it actually sold for $850,000. his complaint was that he felt that he had actually lost money that he should have made $250,000 more on a sale of that property
   The reality is once we discussed his concern a little bit further as to what the demographics of the area were at the time and the market conditions for that area, it only made sense that the property would not sell for what he initially wanted for it.
   He was in a changing demographic that Incorporated certain superstitions and religious qualifications that had to be met by the property. it was obvious that had he been able to overcome certain superstitions that were attached to his property (which he couldn’t) he may have gotten close to what he wanted. He was selling to a community or demographic, for example, that if you were within a certain distance of a cemetery or certain numbers were in the address of the house, it was condemned to bed Karma. therefore making the house undesirable and lowering valuation

When communities change it has a drastic effect on property values. This is evident throughout the United States and in many respects the world. Many communities are communities of culture which set the standard for how and where they will live. Some cultures have a positive effect on Real estate pricing and some do not. In the case of my friend, his property was affected by the community that was changing in his area, which shifted the demands and requirements for that type of house, resulting and a lower value for the properly.

I always think about Michelangelo's portrait of Salvador Mundi which was auctioned off for $450.3 million million dollars. People were astonished at the price that this painting was able to command, but the best way to explain it is the same as with real estate, The market value, whether it be a painting or a home, is based on what someone is willing to pay for it. End of story.

I sometimes go and meet people that are ready to sell their home and have a very inflated perception of the value of the property. Real estate selling and buying is an emotional thing. Your emotions can create a false perception of value, but the hard numbers create the reality of it. How you control your emotions and use the real numbers, will either guide you to a successful close or leave you sitting disappointed with a property that cannot sell.

This is just one example of some of the topics that needs to be discussed when you’ve reached the time that you want to put your house on the market for sale..

If you’re Getting your home ready for sale.