February Existing Home Sales Rise by 5.1 Percent

WASHINGTON – Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.

The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January. It was the largest sales jump since July 2003.

Sales had been expected to fall to an annual pace of 4.45 million units, according to Thomson Reuters.

The median sales price plunged to $165,400, down 15.5 percent from $195,800 a year earlier. That was the second-largest drop on record.

February’s median sales price was up slightly from January, which recorded the lowest median price since September 2002. Prices are down about 28 percent from their peak in July 2006.

In contrast with the housing boom, when buyers took out ever-riskier loans and maxed out their home equity lines, “homebuyers are not over stretching” said Lawrence Yun, the Realtors’ chief economist. “They want to stay within their budget.”

By summertime, sales are expected to get a boost from a $8,000 tax credit for new home buyers included in the economic stimulus package signed by President Barack Obama last month.

The number of unsold homes on the market last month rose 5.2 percent to 3.8 million, a typical increase for the winter months. At February’s sales pace, it would take 9.7 months to rid the market of all of those properties, unchanged from a month earlier.

The bursting of the U.S. housing bubble has caused foreclosures to swamp the market — especially in particularly distressed states like California, Florida, Nevada and Arizona.

About 45 percent of sales nationwide are foreclosures or other distressed property sales, according to the Realtors group. Those properties typically sell for about 20 percent less than non-distressed homes.

That’s great news for buyers, who are paying the most attractive prices in years. Plus, interest rates have sunk to historic lows.

The Federal Reserve last week moved to reduce already low rates by printing $1.2 trillion and pumping it into the economy through the purchases of mortgage-backed securities and Treasury debt.

The central bank also will double its purchases of debt issued by Fannie Mae and Freddie Mac to $200 billion.

By ALAN ZIBEL, AP Real Estate Writer

Staging Your Home For Sale

Staging Your Home For Sale – Is It Worth The Investment?

For the past three months the average selling price of a staged home was 19% above the listing price while the unstaged home was only 15%. The 4% difference more than paid the staging cost.

Here are the ten secrets fo selling from Marelen Wharmby, a successful home stager:

 

• Freshen up the home by painting walls a light, neutral color, such as antique white. Lighter colors appeal to a wider range of buyers and make each room look larger.
• Take a close look at the floor coverings in each room. If you have hardwood floors under the carpet, you will always make money by removing it, even if the floor is not in perfect condition.
• Allow as much light as possible to enter the room. Open up or remove all draperies, blinds, shades or other window coverings.
• Removing the clutter of everyday life – all utilitarian items, stacks of paperworks, toiletries, kitchen utensils, electronic equipment and television sets.
• Remove furniture from each room that does not go with the decor, such as items that stand out too much and items that are worn or of an unappealing color.
• Place the remaining room furnishings in a way that makes best use of the character of the space. A room should be balanced so that people do not focus on one particular piece of furniture.
• Now that you’ve removed the clutter from your home, adding some nice but inexpensive accessories will greatly elevate the perceived value of the home.
• Clean, clean, clean. Every crevasse within the home should be spotless and gleaming. Even your normal weekly cleaning can not come close to the quality of clean you need.
• You can’t over spend on fresh plants and orchids, elaborate floral arrangements and landscape plants. All these provide a strong addition to the ambience you want to create.
• Go on vacation! The houses that sell for much higher prices are homes that do not have the slightly disheveled look which comes with showering in the morning and cooking dinner in the evening. Being gone also will lower your level of stress and make the house easier to sell.

5 Feng Shui Concepts to Help a Home Sell

5 Feng Shui Concepts to Help a Home Sell

To put the best face on a listing and appeal to buyers who follow feng shui principles, keep these tips in mind.

1. Pay special attention to the front door, which is considered the “mouth of chi” (chi is the “life force” of all things) and one of the most powerful aspects of the entire property. Abundance, blessings, opportunities, and good fortune enter through the front door. It’s also the first impression buyers have of how well the sellers have taken care of the rest of the property. Make sure the area around the front door is swept clean, free of cobwebs and clutter. Make sure all lighting is straight and properly hung. Better yet, light the path leading up to the front door to create an inviting atmosphere.

2. Chi energy can be flushed away wherever there are drains in the home. To keep the good forces of a home in, always keep the toilet seats down and close the doors to bathrooms.

3. The master bed should be in a place of honor, power, and protection, which is farthest from and facing toward the entryway of the room. It’s even better if you can place the bed diagonally in the farthest corner. Paint the room in colors that promote serenity, relaxation, and romance, such as soft tones of green, blue, and lavender.

4. The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while also softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the windows professionally cleaned will make the home sparkle and ensure that the view will be optimally displayed.

Source: Sell Your Home Faster With Feng Shui by Holly Ziegler (Dragon Chi Publications, 2001)

Common First-Time Home Buyer Mistakes

Common First-Time Home Buyer Mistakes

1. They don’t ask enough questions of their lender and end up missing out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who’s willing to help them through the homebuying process.

4. They don’t do enough to make their offer look appealing to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

FIRST-TIME HOME BUYER TAX CREDIT

Here are the details on the FIRST-TIME HOME BUYER TAX CREDIT  –
http://www.glennmason.com/realestate/tax_credit_chart_021308.pdf

NEW CONSTRUCTION! OPEN HOUSE – SUNDAY, FEBRUARY 22nd 1 – 4 PM

http://www.postlets.com/res/1816387

Open Houses this weekend (Sunday, February 15th, 1 – 4 PM)

4 Ranger Road, East Brunswick, NJ 08816
http://www.postlets.com/res/1725267

13 Deerfield Lane, Jamesburg, NJ 08831
http://www.postlets.com/res/1649016

View our newest listings on craigslist

http://cnj.craigslist.org/reb/989332809.html

http://cnj.craigslist.org/reb/1012980274.html

Open House – 13 Deerfield Lane – Sunday 1 – 4PM

Come visit our Open House at 13 Deerfield Lane in Jamesburg this Sunday, January 25th, 1 – 4PM.
Click here to view this listing on Realtor.com

 

 

 

Three Reasons New Jersey Home Buyers Can’t Afford to Wait

(Edison, NJ) New Jersey residents might have heard a lot about waiting for the real estate market to “bottom out” lately from real estate speculators and financial pundits, but before deciding to wait on the sidelines, home buyers need to first consider three timely reasons why waiting can end up costing them.
“No one can time the market perfectly,” said 2008 New Jersey Association of REALTORS^® (NJAR^®) President, Drew Fishman. “We really won’t know when home prices have officially ‘bottomed out’ until they start to go up. That’s why interested home buyers who are financially capable can’t afford to let these opportunities pass them by.”

1. The Federal Housing Administration (FHA) will require a higher down payment percentage after January 1, 2009. The Housing and Economic Recovery Act passed by Congress in July raised the down payment requirement on FHA loans to 3.5 percent, up from the current requirement of 3 percent.
2. FHA, Fannie Mae and Freddie Mac mortgage loan limits will drop after January 1, 2009. The February 2008 Economic Stimulus Package temporarily raised the FHA loan limit to $729,750 in high cost areas through December 31, 2008. According to the Department of Housing and Urban Development (HUD), beginning January 1, 2009, FHA will insure single-family home mortgages in New Jersey up to $417,000 in low cost areas and up to a maximum of $625,500 in high cost areas. Buyers purchasing homes in Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex and Union counties will be affected by the new lower maximum loan limit. Loan limits in the remaining New Jersey counties will vary based on the median home price indicator used by FHA. Depending on the area, some buyers in these counties may also face lower limits. Fannie Mae and Freddie Mac insured loans will also drop down to the lower limits as of January 1, 2009, according to the Federal Housing Finance Agency (FHFA). More information is available at www.fha.gov and www.fhfa.gov.
3. First-time home buyers can only take advantage of a $7,500 tax credit until July 1, 2009. The 2008 Housing and Economic Recovery Act (HERA) became law last July and included a new, temporary tax credit for buyers who have not owned a home in the past three years. To qualify, buyers must purchase a principal residence on or after April 9, 2008 and before July 1, 2009 to qualify for the tax credit when filing their federal tax returns. Individual buyers with an adjusted gross income of less than $75,000 and joint filers with income no more than $150,000 are eligible. Individual buyers with income of up to $95,000 and couples with income up to $170,000 are eligible for a partial credit. The credit is repaid in 6.67% increments over 15 years making it, essentially, an interest-free loan. For an overview of the tax credit, visit
   http://www.njar.com/government_affairs/issues/federal/pdf/tcchart.pdf.