Interestingly, I showed many homes yesterday throughout Bridgewater and Montgomery (both in Somerset County), and Raritan Twp, Delaware Twp (in Hunterdon County). The best “value” is in Raritan Twp and Delaware Twp.

I get asked all the time how the market is. I try to explain that although bad news get published about the real estate market around the country and even in NJ, select areas seems to be less effected. Montgomery is a hot area. I showed 2 homes there yesterday…both over $1MM. 1 of the homes needed work and it wasn’t a traditional flow…more contemporary. The other was perfect…move in condition with fabulous walk out basement with all the bells and whistles with home theatre, guest room (ground level) with gorgeous bath. It just came on the market a couple of days ago. I called the listing agent to discuss and request the seller’s disclosure. She informed me that in 2 days… they already had 4 offers!!!!

Another great opportunity is for those that like country, peaceful living. Delaware Twp is right outside of Flemington/Raritan Twp. The schools, I am told from my clients that will only upsize within Delaware Twp, are fabulous. It is a K-8 system and the high school kids go to Hunterdon Central. It is amazing the value. A home I have listed in Meadow View Estates, 4,300 sq. ft, is $785,000. The “same” model house in Bridgewater sold for $1MM. We are working on a new model in that development, The Astor Model, that is also about 4,300 sq. ft with a first floor bedroom and bath, in case you have in-laws that visit that can’t climb the steps.

There are some really great communities and towns that are more “sleeper towns” – less well known, that have great schools and easy living communities. School systems drive the prices of homes.

My colleague at REMAX just listed a really cool house. If you like view lots, here is a great one for you. One of the best street in Watchung, Stanie Brae…have beautiful western views, AND ALSO have level, grassy backyard AND an in-ground pool. The home has a country feel…an expanded ranch. It needs work, but has a lot of charm. Just hit the market.

Really cool view and location. Want to see it?

February 2010 SOLD data is now posted

Click on the “How’s the Market” tab on the website to review this town market information.

The federal tax credits for first time home buyers and buyers “moving up” are set to expire in less then 60 days.
 
Last time this program expired in 2009, there was a fair bit of lobbying, and buzz to get Washington to extend and expand the credit.  The result then was that the credit was extended for first time home buyers and expanded to folks that were not first time home buyers, so-called “move-up” buyers.
 
This time around the effort to expand/extend these tax credits does not appear to have gained much traction. 
 
We anticipate that if buyers are not under contract to purchase a home by April 30, 2010, and the credits are not extended, that they will no longer be available.
 
Tax credits reduce (dollar for dollar) the actual taxes due to the IRS, and are much more valuable than deductions or write-offs.
 
Also noteworthy to report, is that the Federal Reserve has announced they will curtail their highly unusual practice of purchasing mortgage securities, and may in fact become a seller of these same securities.  This measure is slated to occur in March (this month).  In many cases, the Federal Reserve has been the only, or nearly the only buyer, for certain new mortgage securities.  Economists disagree about the exact impact on mortgage interest rates, but most agree that removing a large buyer of these securities will cause a rise in mortgage rates.  Now the debate appears to be about how much of an increase is likely, not whether rates will rise.
 
Therefore, we think the timing is excellent to buy a home, and we are strongly recommending to all that they evaluate for themselves and others, the ability to act now to benefit from both the tax credit and low mortgage rates.
 
Information in the blog was written and provided by:
Matthew J Northup
Private Mortgage Banker
Arlington Capital Mortgage
O-(609) 921-3131ext 1334
C-(908) 507-1642
Email-mnorthup@arlingtoncapital.com

College bills are in my”present” as my son started college in Fall 2009. How about you? Are you going through this now too, or in the near future? Here is some valuable information I have come across that might provide some incite into the process of college financial aid. Angelo Penza is a certified financial planner located in Martinsville, NJ with 20 years experience in college financial aid. He has a wealth of information that I want to share it with you. Here is an excerpt from his most recent newsletter which discusses college gift aid.

If you want to avoid seriously depleting your savings or even going deeply into debt to pay for your student’s college education [Rutgers' costs now exceed $22,000 per year, Penn State's is more than $36,000, and private college costs now range from $32,000 to over $54,000 per year], you should learn whether you are eligible for college gift aid before you submit your financial aid forms (i.e., FAFSA, CSS Profile, etc.).

Please recognize that filling out financial aid forms is very easy, however, doing so does not provide any assurance that the financial data you submit will make you eligible for college gift aid. The real challenge to obtaining gift aid is knowing what actions need to be taken to ensure that the data submitted will make your student eligible for college gift aid before you forward your financial aid forms. Note: Most middle-income parents will not succeed in obtaining gift aid if they prepare their financial aid applications without advance knowledge of how college gift aid decisions are impacted by the financial data submitted.

When a college determines who meets its criteria for gift aid (and for what amount), you should know that it does not rely on the Federal FAFSA formula. Rather, each college uses its own unique multi-factor formula to ensure that the aggregate of gift aid provided to its students does not exceed its gift aid budget.  Unfortunately, most parents invariably fail to obtain college provided gift aid because they have not taken the time to learn: (1) the specific criteria of the gift aid formula of the colleges they are applying to, and (2) how to legally adjust their financial position to become eligible for gift aid from those colleges. Please be aware that a number of legal methods are available (which every family should assess) that will make most middle income parents eligible for college gift aid (i.e., money which you do not re-pay).

If you have questions about this, drop me an email, and I will give you Angelo’s contact info. I am sure he will be glad to add you to his newsletter recipients.

I get asked mostly every day.. how is the Warren market? The market here has been getting is pretty predictable to describe. There are buyers out there looking to purchase in this area… as we offer good schools, nice lifestyle and community in this rural yet commerce nearby. There is pent up demand and buyers are really now ready to buy. However, I see the following fundamental reasons why some homes are selling while others cannot get to the closing table are.

1. The expectation of sellers and what their home is worth in today’s market is not aligned with how the buyers see the market value. Many buyers are looking at assessed value today and won’t pay much more than that. So, the homes that get to attorney review with a meeting of the minds on price, are ones that the sellers are realistic on 2009 market values and motivated to sell.

2. Houses are not appraising. This is a real issue to get homes closed. If the bank won’t lend the money due to their assessment of the home’s worth, then the deal may fall apart unless the seller will adjust the sales price accordingly OR the buyer is putting a substantial amount down.

3. Home inspection issues can keep a deal from closing. Many sellers feel that in this market, that they are already “giving their house away” for a great price and now don’t want to give too much more, if anything, after a home inspection. While I do feel some home inspectors try to prove their worth by finding a lot of issues, buyers do need to realize that in most cases, they are not purchasing a new home and some things in the home may need repair from them. To sellers, however, I always advise to fix reasonable requests to make the deal solid.

It should be noted that mortgage commitments are definitely taking longer to get. Traditionally, I have always put down 30 day contingency period on contracts I write, but now it could take 30-60 days depending on the lender and the issues that arise.

Take a look at the “How’s the market” tab on this WeinigerHomes website… it will help you see the “Solds” activity by month in various towns in my market area. This will give you a sense of what homes are getting sold.

First time buyer activity is high right now. I have 2 listings that are very desirable if you or someone you know is looking to purchase.

1. 118 Arbor Way, Branchburg 2BR, 2 bath townhouse for $249,000 in lovely development called Cedar Book… convenient to local highways. Amenities include tennis and pool facilities.

   

2. 805 Donato Circle, Scotch Plains, 3BR, 2.1 bath townhouse in KHOV development call The Reserve built in 2005 for $409,000. Great train or bus commuting town.

   

Have a great day.
Judy