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Adjustable-Rate Mortgage Demand Hit It’s Highest Level In A Year

Sales of new single family homes in the US were way up in September.

Adjustable-Rate Mortgage Demand Hit It’s Highest Level In A Year

Adjustable-Rate mortgage demand hit it’s highest level in a year as interest rates continue to climb.

Major Retailers Reevaluate Store Strategies, Prompting High-Profile Closings

Some of the nation’s largest retailers are taking a harder line when it comes to deciding whether to preserve or permanently shut struggling outposts, a shift that has resulted in a number of high-profile closings as some brands appear no longer willing to stick it out in challenging locations.

US Home Values In August Jumped 1.3%

US Home values in August jumped 1.3% compared to a year earlier.

Sales Of New Single-Family Homes In The US Fell

Sales of new single-family homes in the US fell 8.7% in August.

Demand For Parking At Multifamily Properties In New Jersey Is Below State Guidelines

Demand for parking at multifamily properties in New Jersey is well below what state guidelines require, according to a new study, highlighting the potential to reduce construction costs and improve housing affordability by easing state mandates.

The US Homeownership Rate Has Risen To Almost 66%

The US homeownership rate has recently risen to almost 66%, exceeding pre-pandemic levels.

US Banks Tighten Lending Standards in Real Estate

US banks recently reported that lending standards tightened for all residential real estate.

Existing US Home Sales Fell 0.7% In August

Existing US home sales fell 0.7% in August.

$8B Of Multifamily Commercial Mortgage-Backed Securities Is Coming Due

$8B of multifamily commercial mortgage-backed securities is coming due in the second half of this year, with some in real estate predicting a “Red October” because of expected mortgage defaults.

The Unit Size For New Housing Starts Has Declined 10% Since 2018

The unit size for new housing starts has declined 10% since 2018. New single-family homes are shrinking as cost-constrained buyers respond to soaring prices and builders try to reduce building costs.

Retirements Will Continue To Whittle Away At The Construction Workforce

With nearly 1 in 4 construction workers older than 55, retirements will continue to whittle away at the construction workforce and continue to increase labor shortages.

US Home Sales Declined In July

US home sales declined in July for the fourth time in 5 months.

The Number Of Homes On The Market In NJ Is 35% Lower Than Last Year

The number of homes on the market in NJ is 35% lower than last year which is continuing to push home prices higher.

Only 1.4% Of The Nation’s Homes Changed Hands This Year

Only 1.4% of the nation’s homes changed hands this year, the lowest level in a decade.

The Number Of Homes On The Market In NJ Is 36% Lower

The number of homes on the market in NJ is 36% lower than last year which is continuing to push home prices higher.

US Existing Home Sales Fell 3.3%

US existing home sales fell 3.3% in June from May.

The Number Of NJ Home Sales Have Declined For The Past 25 Months

The number of NJ home sales have declined for the past 25 months, falling by 20% in June.

Owners Of Many Office Properties Are Struggling To Find Buyers

Owners of many office properties are struggling to find buyers due to high interest rates, and declining occupancy & cash flow.

Hard-To-Refinance Multi-Family Debt Is Coming Due

Many hard-to-refinance multi-family debt is coming due in October and November of this year.

US Home Prices Posted Their 1st Year-Over-Year Price Decline

In April, US home prices posted their 1st year-over-year price decline in 11 years.

The NJ Economic Development Authority Has Established A $25 Million Fund

The NJ Economic Development Authority has established a $25 million fund to support the redevelopment of vacant malls, suburban office parks and hospital facilities.

New Lease Asking Rents Rose Just Under 2% Over The Last 12 Months

New lease asking rents rose just under 2% over the last 12 months–this is down from double digit increases a year earlier.

Commercial Borrowing Declined 42% In Q1 2023

Commercial borrowing declined 42% in Q1 2023 in all major property categories and from all major lender sources.

Mortgage Rates Shot Higher Last Week

Mortgage rates shot higher last week, as economic data stoked more fear that the Federal Reserve will not lower interest rates anytime soon. In turn, mortgage demand dropped to the lowest level since the end of February.

Sales Of Previously Owned Homes Fell In April From The Prior Month

Sales of previously owned homes fell in April from the prior month and prices declined from a year earlier by the most in more than 11 years.

NJ Has Become The First State To Adopt A So-Called Environmental Justice Regulations

NJ has become the first state to adopt a so-called environmental justice regulations to limit the development of projects that could bring pollution to lower-income communities.

Home Prices In Q1 2023 Fell

Home prices in Q1 2023 fell in more parts of the US than they have in over a decade with a third of metro areas posting annual price declines.

Most U.S. Cities Are Unaffordable Based On The Most Recent Data

Most U.S. cities are unaffordable based on the most recent data available on market rents and median income.

Banks Executives Are Signaling Upcoming Trouble

More banks executives are signaling upcoming trouble for office loans.

Mortgage Rates Dropped To The Lowest Level In Two Months

Mortgage rates dropped to the lowest level in two months, prompting buyers to return to the housing market.

Home Price Gains Have Been Weakening Every Month Since Last Summer

Home price gains have been weakening every month since last summer, with the average home price nationwide now down six percent from its June peak as sales have dropped.

Housing Starts Rose In February

Housing starts rose in February as builder sentiment and buyer demand increased.

NJ Home Prices Increased Only 4% In 2022

NJ home prices increased only 4% in 2022 after a 16% increase in 2021 and a 12% increase in 2020.

Multi-Family Housing Starts Hit A Near 40 Year High In 2022

Multi-family housing starts hit a near 40 year high in 2022.

The Swift Closure Of Two Major Banks Sent Shock Waves Through The Financial System

The swift closure of two major banks sent shock waves through the financial system, pushing mortgage rates down enough to potentially lure buyers back to the housing market.

First-Time Home Buyer Sales Dropped Recently To An All Time Low

The first time home buyer share of US housing sales dropped recently to an all time low of 26% (historically, first-time home buyers make up 40% of US home buyers).

Declines Continue Into 2023 For NJ Home Sales

Declines continue into 2023 for NJ home sales with a 19% drop in January & another projected decline of 15% in February.

Apartment Rents Fell In Every Major Metropolitan Area

Apartment rents fell in every major metropolitan area in the US over the past 6 months through January 2023.

The Average Age Of 1st Time Home Buyers Rose In 2022

The average age of 1st time home buyers rose to 36 in 2022, a record high.

Gov. Phil Murphy Signed Into Law A Bill That Aims To Speed Up Construction Permitting

Gov. Phil Murphy has signed into law a bill that aims to speed up construction permitting in New Jersey, allowing developers to hire private-sector code inspectors if local officials cannot complete a review within three business days of a requested date.

Fourth-Quarter Property Sales Were The Worst Slowdown

Fourth-quarter property sales were the worst slowdown since the great recession.

Wells Fargo Will Pay $3.7 Billion To Resolve Allegations

Wells Fargo will pay $3.7 Billion to resolve allegations it harmed more than 16 million people with deposit accounts, auto loans and home mortgages.

US Existing Home Sales Fell Again In December

US existing home sales fell again in December, concluding the weakest year for home sale activity since 2014.

Housing Inventory In The US Decreased In November From October

Housing inventory in the US decreased 6.6% in November from October but was up 2.7% from a year ago.

1.6 Million Homeowners Were 30+ Days Past Due On Their Mortgages

In November, approximately 1.6 million homeowners were more than 30 days past due on their mortgages, leading to a national delinquency rate of just over 3% which represented a 3.5% increase from October’s total, while loans 60 or more days late saw an 11% surge.

Home Sales Fell .5% In October

Home sales fell .5% in October compared with September.

Big Tech Companies That Drove US Office Demand For Years Are Now Canceling Leases

Big tech companies that drove US office demand for years are now canceling leases and flooding business districts with office space as they downsize.

Home Prices Fell In September From August

Home prices fell in September from August, the first time prices have declined for 3 straight months in nearly 4 years.

Fannie And Freddie Are Buying Fewer Multifamily Loans

Fannie and Freddie are buying fewer multifamily loans as interest rates rise and property sales fall.

Builders Have Become More Eager To Offer Prospective Home Buyers Incentives

Builders have become more eager to offer prospective home buyers incentives— including more affordable rate buy-downs, reduced closing costs and free amenities—as mortgage rates soared to a 22-year high last quarter and more homes emerged on the market.

Buyers Who Purchased Homes Moved A Median Of 50 Miles From Their Previous Residences

Buyers who purchased homes in the 2nd half of 21′ and 1st half of 22′ moved a median of 50 miles from their previous residences–the highest distance on record since 2005.

Largest Supply Of Unsold Homes In NJ Is In The $1 Million+ Price Point

The largest supply of unsold homes in NJ is in the $1 million to $2.5 million price point.

Americans Are Renting Fewer Apartments

Americans are renting fewer apartments as demand in the third quarter fell to its lowest level in 13 years.

Luxury Second-Home Demand Remains Above Pre-Pandemic Levels

Luxury second-home demand remains above pre-pandemic levels.

A Movement To Abolish Parking Mandates Has Grown

A movement to abolish parking mandates to encourage affordable housing development in cities across the nation has grown to include California as the first state to broadly eliminate the zoning requirements.

Meta, Airbnb Shed Office Space

Meta, Airbnb shed office space as they adjust to pandemic-related changes.

Lumber Prices Have Fallen To Their Lowest Level In More Than 2 Years

Lumber prices have fallen to their lowest level in more than 2 years back to the cost it was before the pandemic building boom.

US Home Prices Slid In July From June

US home prices slid in July from June, the first monthly drop in years.

Apartment Rents Are Falling From Record Highs

Apartment rents are falling from record highs across the US for the first time in almost 2 years.

The Average Rate On A 30-Year Fixed Mortgage Climbed To 6.02%

The average rate on a 30-year fixed mortgage climbed to 6.02%, up from 2.86% a year ago–the first time since 2008 the average 30-year fixed mortgage interest rate has hit 6%.

US New-Home Sales Fell

US New-Home Sales Fell to Slowest Pace Since Early 2016.

US Construction Costs Continue To Soar

US construction costs continue to soar–rising more than 10% since last year.

US Housing Starts Fell 9.6% In July

US housing starts fell 9.6% in July from the month before.

The US Economy Has Recovered 98% Of Jobs Lost During Initial Months Of The Pandemic

The US economy has now recovered 98% of the jobs lost during the initial months of the pandemic. Jobs and personal incomes more than any other factors drive home prices.

NJ’s Unsold Housing Inventory Continues To Rise

NJ’s unsold housing inventory continues to rise, increasing 70% since January 2022.

California Has Allotted $400 Million To Help Convert Commercial Buildings

California, with the biggest US homeless population, has allotted $400 million to help convert commercial buildings for residential use.

The Amount Time It Takes To Complete A Multifamily Project Has Continued To Rise

In addition to the rising costs of materials and labor in residential construction in recent years, the amount of time it takes to complete a multifamily project has also continued to rise. The rising costs of materials and labor in residential construction in recent years, the amount of time it takes to complete a multifamily project has also continued to rise.

US Housing Sales Dropped In June

US housing sales dropped in June as the median sales price of an existing home climbed to $416,000.

Building Material Prices Have Begun To Decline Or Experience Moderate Price Increases

Building material prices, which skyrocketed amid a period of intense demand and insufficient supply during 2020 and 2021, have begun to decline or experience moderate price increases.

The Construction Labor Shortage Is Set To Intensify

The construction labor shortage is set to intensify over next 6 months.

US Home Construction Fell Sharply In May

US home construction fell sharply in May.

The Pace Of Home Sales In NJ Continues Its Decline In 2022

The pace of home sales in NJ continues its decline in 2022 down 13% YTD compared to the same period in 2021.

Redfin And Compass Announced Layoffs

Redfin and Compass announced layoffs–8% and 10% respectively.

NJ’s Unsold Home Inventory Continues To Rise

NJ’s unsold home inventory continues to rise, increasing 44% since January 2022.

Credit Conditions Tightened For Builders And Developers In Q1 2022

Credit Conditions Tightened For Builders and Developers in Q1 2022 as Indices from the NAHB and the Federal Reserve indicate tightening credit conditions for the first time since mid-2020.

New Home Buyers Are Confronting Multiple Obstacles This Year

New home buyers are confronting multiple obstacles this year, from surging mortgage rates to home construction delays due to supply-chain and labor constraints.

Building Material Prices Continue To Rise

Building Material Prices Continue to Rise: According to the latest Producer Price Index, building material prices have increased 20.4% on a year-over-year basis.

The Share Of Adults Planning A Home Purchase Fell For A Third Straight Quarter

The share of adults planning a home purchase within a year fell for a third straight quarter in the first three months of 2022, down to 13%.

As Of February, There Were 799,000 Single-Family Homes Under Construction Across The U.S.

As of February, there were 799,000 single-family homes under construction across the U.S., up 28% from a year earlier.

More Than One In Every Four Houses Purchased In The 4th Quarter Of 2021 Was A New Construction Home

More than one in every four houses purchased by a professional rental investor in the 4th quarter of 2021 was a new construction home–brand new homes were only 3% of what these investors bought during the 3rd quarter of 2019.

243 Million Square Feet Of U.S. Office Space Are Set To Expire In 2022

243 million square feet of U.S. office space are set to expire in 2022–about 11% of all leased office space in America.

Online Searches For “Homes For Sale” Are Down

Online searches for “homes for sale” are down 10% year over year.

Home mortgage rates hit 5%

Home mortgage rates hit 5%.

The Pace Of Home Sales In NJ Continues To Decrease

The pace of home sales in NJ continues to decrease with another decline of 12% projected for March.

Pending Home Sales Fell For Third Consecutive Month In January

Pending home sales fell for third consecutive month in January-decreased 9.5% compared with January 2021.

Multifamily Rents Nationwide Registered An Increase

Multifamily rents nationwide registered an increase in January 2022.

Building Materials Prices Increased 20.3% Year Over Year

Building materials prices increased 20.3% year over year and have risen 28.7% since January 2020.

Work-from-Home Has Changed Multifamily Renter Preferences

Work-from-Home has changed multifamily renter preferences to include amenities like reliable high-speed Internet, more space and soundproofing have become more important to apartment tenants.

Rents In Manhattan Including Landlord Concessions Reached Their Highest On Record

Rents in Manhattan including landlord concessions reached their highest on record for the month of December 2021.

Real Estate Investors Are Flocking To High End Student Housing

Real estate investors are flocking to high end student housing as students are still heading back to colleges and universities across the U.S.

Demand For Downtown Apartment Properties Has Fully Rebounded

Demand for downtown apartment properties has fully rebounded as investors are rushing in to buy in the biggest U.S. cities.

Homes Priced Between $800,000 and $1 Million Saw The Highest Rate Of Bidding Wars

Homes priced between $800,000 and $1 million saw the highest rate of bidding wars in December.

Home Prices Soared For A Second Straight Year In NJ During 2021

Home prices soared for a second straight year in NJ during 2021. After climbing 12% in 2020, they gained about another 15% in 2021.

NJ Home Sales Were Down The Last Five Months Of 2021

NJ home sales were down for each of the last five months of 2021.

New York City Became The Largest City To Agree To Phase Out Fossil Fuels

New York City became the largest city in the country to agree to phase out fossil fuels in all new building construction.

Multifamily Asking Rents In The United States Have Expanded By An Average Of 11%

Multifamily asking rents in the United States have expanded by an average of 11% year over year in 2021, the single highest increase ever recorded.

Multifamily Investors Are Lengthening Their Hold Periods

Multifamily investors are lengthening their hold periods, as inflation fears and dearth of available product disrupt local real estate markets.

Average Retail Lease Size Continues To Decline

Average Retail Lease Size Continues To Decline.

U.S. Rent Hikes Are Spreading to Older, Cheaper Apartments

U.S. Rent Hikes Are Spreading to Older, Cheaper Apartments.

Major New York Employers Expect To Cut Office Needs

One-third of major New York employers expect to cut office needs in next five years.

Home Prices Are Rising Much Faster Than Personal Incomes

Home prices in the US are now rising much faster than personal incomes.

Zillow Announced That It Is Exiting Its iBuyer House Flipping Business

After racking up over $1 billion in losses over 3.5 years, Zillow announced that it is exiting its iBuyer house flipping business.

The Proportion Of 1st Time Home Buyers As A % Of Home Sales Dropped To 28%

The proportion of 1st time home buyers as a % of home sales dropped to 28% in September, the lowest level since July 2015 as rising home prices are pushing some buyers out of the market.

US Median Existing-Homes Sales Prices In September Rose 13.3%

The National Association of Realtors said US median existing-homes sales prices in September rose 13.3% from a year earlier to $352,800.

Some Of The Biggest US Companies Have Begun Buying Commercial Real Estate

Some of the biggest US companies including Google, Facebook & Amazon.com have begun using their vast stockpiles of cash to buy commercial real estate.

Mortgage Rates Rose Above 3%

Mortgage rates rose above 3% for the first time since July.

The U.S. Multifamily Sector Headed Into The Third Quarter Of 2021 On The Upswing

The U.S. multifamily sector headed into the third quarter of 2021 on the upswing, as record-setting demand pushed vacancy rates lower in the first half of the year.

U.S. Construction Starts Declined In August For The Third Straight Month

U.S. construction starts declined in August for the third straight month, pushing starts to an 11-month low.

Qualifying Multifamily Property Owners Can Continue Applying For Forbearance

Qualifying multifamily property owners can continue applying for forbearance as the previous Sept. 20 deadline has been lifted.

Home Sales Fell 13.2% In July

New home sales fell 13.2% year-over-year in July

1.5 Million Homeowners Are 90 Days Or More Behind On Their Mortgage Payments

1.5 million homeowners are 90 days or more behind on their mortgage payments but not in foreclosure. Those who aren’t forced out will still be displaced if selling is their only option, and an estimated 1 in 10 borrowers in forbearance will not have enough equity to sell.

Building Materials Prices Have Declined Since December 2019

Building materials prices have declined just twice since December 2019 and have increased 19.4% over the past 12 months.

In July U.S. Rents Rose 7%-8.7% For 1 And 2 Bedroom Apartments

In July U.S. rents rose 7% for one bedroom apartments & rose 8.7% for 2 bedroom apartments year over year.

50% Of U.S. Homes Sold For More Than Their List Price

In May, a record high of 50% of U.S. homes sold for more than their list price.

Commercial Real Estate Trade Groups Are Challenging The CDC

Commercial real estate trade groups are challenging the Centers for Disease Control and Prevention’s decision to reinstate the federal eviction moratorium, arguing the agency lacks the authority to issue such an order.

NJ Gov. Phil Murphy Has Given Lower-Income Tenants In The Garden State Protection From Eviction

New Jersey Gov. Phil Murphy has given lower-income tenants in the Garden State protection from eviction until the end of the year, as well as setting aside an additional $750 million in coronavirus emergency rent and utility-payment assistance.

Unsold NJ Housing Inventory Continues To Rise

Unsold NJ housing inventory continues to rise month-on-month, increasing for 5 months in a row.

Home Prices In NJ Increased 12% In 2020

Home prices in NJ increased 12% in 2020 and are expected to increase at about the same rate in 2021.

NJ Is The Sixth Most Expensive Place To Rent In The US

NJ is the sixth most expensive place to rent in the US behind only Hawaii, California, New York, Massachusetts and Washington, D.C.

Revisions To The 2020 Census Revealed The Population In The Northeast Grew More In The Past Decade

Recent revisions to the 2020 Census revealed that the population in the Northeast grew much more in the past decade than previous estimates had indicated–a potential boon for multi-family investors.

Nonperforming Commercial Real Estate Debt Doubled Last Year

Nonperforming commercial real estate debt on the biggest banks’ balance sheets doubled last year.

New Home Sales Declined In May 2021

New home sales declined again in May 2021.

CDC Extended The Federal Ban On Tenant Evictions

The CDC has extended the federal ban on tenant evictions.

Fast-Rising Housing Costs Helped To Push Inflation

Fast-rising housing costs have helped to push inflation to a 13-year high.

Pending Existing Home Sales Dropped 4.4%

Pending existing home sales dropped 4.4% month to month in April.

National Association of Home Builders CEO Attributed Spike In Home Prices To Breakdown In Supply Chain

National Association of Home Builders CEO Jerry Howard attributed the spike in home prices to the ‘complete breakdown in the supply chain for building materials.

Existing Homes Sales Fell 2.7% In April From March

Existing homes sales fell 2.7% in April from March–the 3rd straight monthly drop.

US Home Prices Rose In 182 Of 183 Metro Areas In Q1 2021

US home prices rose in 182 of 183 metro areas in Q1 2021 from one year earlier amid robust demand and limited housing inventory.

Newly Built Homes Now Make Up 26% Of US Home Inventory For Sale

Newly built homes now make up 26% of US home inventory for sale–a record high.

The U.S. Housing Market Is 3.8 Million Single-Family Homes Short

New apartment leases in Manhattan jumped by 89 percent in March from a year earlier.

The U.S. Housing Market Is 3.8 Million Single-Family Homes Short

The U.S. housing market is 3.8 million single-family homes short of what is needed to meet the country’s current demand, according to a Freddie Mac analysis.

Private And Government Buyers Are Finding Real Estate Conversion Opportunities With U.S. Hotel Owners

Both private and government buyers are finding real estate conversion opportunities with U.S. hotel owners who are reevaluating the highest and best use of their properties due to the COVID-19 pandemic.

Median Credit Score Approved For Mortgages Reached 786 in Q4 2020

16 percent more US residential properties received a foreclosure filing in February compared to January.

16% More US Residential Properties Received A Foreclosure Filing In February

16 percent more US residential properties received a foreclosure filing in February compared to January.

US Housing Inventory Declined At The End Of December 2020

US Housing inventory at the end of December 2020 declined 16.4% from November and declined 23% from one year before.

Millennials Represent 3/4 Of NJ Home Buyers

Millennials currently represent 3/4 of NJ home buyers.

Home Prices In NJ Rose 11.6%

Home prices in NJ rose 11.6% in 2020.

NJ Home Inventory Is Down 50%

NJ home inventory is down 50% from one year ago.

Mortgage Rates Surpassed 3%

For the first time since July, mortgage rates surpassed 3%.

More Than Half Of 2.7 Million Active Forbearance Plans Are Set To End

More than half of 2.7 million active forbearance plans are set to end in March, April, May or June.

“Housing Trend Report” Shows 15% Of Americans Are Planning To Purchase A House

The National Association of House Builder’s fourth-quarter “Housing Trend Report” shows 15% of Americans are planning to purchase a house in the next 12 months, up 4% from the same time a year ago.

Extended Ban On Housing Foreclosures

President Joe Biden is extending a ban on housing foreclosures to June 30

Renters Have Racked Up $70 Billion In Unpaid Rent

Renters have racked up $70 billion in unpaid rent since the start of the economic crisis caused by the pandemic.

Retail Space Vacancy In New Jersey Is Up By 4 Million Square Feet

Retail space vacancy (including restaurants) in New Jersey is up by 4 million square feet compared to the beginning of 2020.

Proposal For Commercial Landlords To Convert Office And Hotel Buildings To Residential Use

New York Gov. Andrew Cuomo is throwing his support behind a proposal to let commercial landlords convert office and hotel buildings in New York City to residential use as workplace and hospitality properties go partially empty in the pandemic.

National Rental Demand Closed 2020 at Strongest Level Since 2000

National Rental Demand Closed 2020 at Strongest Level Since 2000.

US Homeowners Gained Over $1 Trillion in Equity in Q3 2020

US Homeowners Gained Over $1 Trillion in Equity in Q3 2020.

Median Rental Price In Manhattan Plummeted 22% In November 2020

The median rental price in Manhattan plummeted 22% in November 2020 from a year earlier to $2,743 a month.

Gains in Home Ownership Stem from Younger Households

Recent Gains in Home Ownership Stem from Younger Households.

About 5.8 Million Adults Say They Are Likely To Face Eviction Or Foreclosure

About 5.8 million adults say they are somewhat to very likely to face eviction or foreclosure in the next two months.

Economists Are In A Debate About The Geography of Housing Demand

Economists are engaged in a debate about whether the geography of housing demand is changing as a result of the COVID-19 crisis and the recession of 2020

Demand For Flex Office Space Is The Fastest Growing Product Line

Demand for flex office space on an as-needed basis is the fastest growing product line for many co-working operators.

Retail Closings Are At A Record High

Retail closings are now at a record high for any year.

Rents Are Falling Near College Areas

Rents are falling near college areas as millions of students stay home.

US Home Prices Are Rising At The Fastest Rate

US home prices are rising at the fastest rate in 2 years as home inventory levels are down 17% since the same time last year.

Apartment Tenants Missing Payments On The First Of The Month Are Taking Longer To Catch Up

Apartment tenants who are missing payments on the first of the month are taking longer to catch up, a sign of financial strain in the pandemic that could affect owners and lenders.

More Than 29,700 Homes Were Sold In June And July

Across New Jersey, more than 29,700 homes were sold in June and July, an increase of 33 percent over the same period in 2019.

Apartment Buildings In Urban Areas Have Struggled Since The Pandemic

High-end, four-and five-star apartment buildings in urban areas have struggled to maintain rents, and in some cases struggled to retain residents, since the onset of the Coronavirus pandemic.

The Available Housing Inventory In The US Was Down 30% In August

The available housing inventory in the US was down 30% in August compared to the same time last year.

7% Of Mortgages Are Still In Forbearance

7% of mortgages are still in forbearance, according to the Mortgage Bankers Association.

FHFA Extended Foreclosure and Real Estate Owned Eviction Moratoriums

FHFA Extended Foreclosure and Real Estate Owned Eviction Moratoriums Through Dec. 31.

Soaring Lumber Costs Could Push New Home Prices Higher

Office Sales Plunged to a 10-Year Low

Office Sales Plunged to a 10-Year Low in the Q2 2020.

NJ’s New Jobless Claims Hit Low Point

NJ’s new jobless claims hit low point amid pandemic rebound.

NJ Governor Murphy Will Use $25 Million In Federal CARES Act Funding To Assist Landlords

NJ Governor Murphy via The Small Landlord Emergency Grant Program will use $25 million in federal CARES Act funding to assist landlords who own properties of three to 10 units whose tenants have missed rental payments between April and July.

The Mortgage Bankers Association Forecasts Lending Could Fall

The Mortgage Bankers Association forecasts lending could fall almost 60% this year.

Fed Says Largest US Banks Face $48 Billion Commercial Real Estate Loan Loss

Fed says largest US banks face $48 billion commercial real estate loan loss. Snowballing distress in commercial real estate loans are threatening to become an avalanche that could overwhelm banks.

Existing-Home Sales Rose In June

U.S. Existing-Home Sales Rose 20.7% in June.

US Home Mortgage Delinquencies Surged

US home mortgage delinquencies surged to the highest level in 9 years.

State Law Passed To Extend The Timeline For Governmental Permits & Approvals

NJ Governor Murphy passed a state law to extend the timeline for governmental permits and approvals for real estate projects that were stalled by the pandemic.

Mortgage Applications Rose By 9.3% From A Week Earlier

Mortgage applications rose by 9.3% from a week earlier.

Demand Remains Strong For Life Science Buildings In Major Metropolitan Areas

In the midst of a pandemic, demand remains strong for life science buildings in major metropolitan areas.

Home Sales In May, June And July Net Home Sellers The Biggest Premium

An analysis of more than 33 million single family home and condo sales over the past nine years shows that home sales in May, June and July net home sellers the biggest premium.

New Residential Multifamily Construction Projects Are Struggling

New Residential Multifamily Construction Projects Are Struggling to Land Tenants Amid The Frozen US Economy.

Nearly One-Third Of All American Households Are Cost-Burdened

Nearly one-third of all American households are cost-burdened, according to the most recent data from the U.S. Bureau of Labor Statistics, meaning they spend at least 30% of their income on housing costs. NJ is 3rd highest cost-burdened state in the US behind New York & California.

Newly Listed Homes Dropped 44.1% In April

Newly listed homes dropped 44.1% in April.

Home Sales Activity Could Be Down 30% or 40% In The Next Months.

Lawrence Yun, The chief economist of the National Association of Realtors, said “home sales activity could be down 30% or even 40% in the next months.”

More Households Paid Rent On Time In May Than Expected

More households paid their rent on time in the first week of May than was expected (80.2% vs. 78% in the 1st week of April).

Retail Store Closures In The US Are Expected To Explode

Retail store closures in the US are expected to explode because of the Coronavirus.

The Surge In Unemployment Claims Are Straining Household Budgets And More

The surge in unemployment claims filed since mid-March resulting from the mitigation efforts to slow the spread of the coronavirus (COVID-19) are straining household budgets and leading to more requests for mortgage forbearance.

The Average Rents On Apartments Are Already Dropping

The average rents on apartments are already dropping, as the U.S. economy grinds to a halt and millions of workers have lost their jobs, been furloughed or have been asked to stay home.

FHA Releases Information On Eviction Suspensions

Federal Housing Finance Agency (FHFA) announced that eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance.

Increased Demand For Warehouse Space And Labor Created by COVID-19

Increased demand for warehouse space and labor created by COVID-19 Could Be A Long-Term Trend.

New Jersey Unveiled a 90-Day Mortgage Grace Period

New Jersey unveiled a 90-Day mortgage grace period in the wake of the COVID-19 pandemic.

Construction Deemed An Essential Business During Coronavirus Crisis

Construction is set to continue in New Jersey after being deemed an essential business during the Coronavirus crisis.

Amazon Says It Needs 100,000 New Employees to Handle Surge

Amazon Says It Needs 100,000 New Employees to Handle Surge in Online Ordering.

Today’s Unsold Housing Inventory In NJ Equates To 3.3 Months Of Sales

Today’s unsold housing inventory in NJ equates to 3.3 months of sales, a significant decrease from 4.5 months this time last year.

NJ home sales increased 12% year-on-year in January

NJ home sales increased 12% year-on-year in January.

Today’s Unsold NJ Housing Inventory Equates To 4.4 Months Of Sales

Today’s unsold NJ housing inventory equates to 4.4 months of sales (non-seasonally adjusted), a significant decrease from 5.8 months this time last year.

Home Sales This Year Have Increased In 10 Out Of 12 Months

Home sales this year have increased in 10 out of 12 months, resulting in an overall increase of 5% in all of 2019 compared to 2018.

International Code Council Approves Changes To Building Standards

In January, the International Code Council approved changes to building standards that preview a world in which every home has at least one electric car.

Miami’s Luxury Condo Market Inventory Is High & Volume Is Stagnant

Miami’s luxury condo market inventory is high and volume is stagnant as many high end projects are still coming online.

Average New Apartment Size in East & West Coast Cities Is Shrinking

The average new apartment size in east and west coast cities is shrinking as developers are focusing on delivering studios and one bedrooms.

Grim News Continues To Roll In For Mall-Based Retailers

Grim news continues to roll in for mall-based retailers, with several companies reporting declines in a key sales metric over the holiday period despite a broader rise in consumer spending.

Lenders Showing They Still Have An Appetite For Financing Construction Projects

In early 2020 lenders are showing they still have an appetite for financing construction projects.

Americans Are Moving Less Now

Americans are moving less now—despite a strong economy, young adults, who have historically been the most mobile, are staying put thanks to housing and job limitations and so are aging adults who are reluctant to make a move due to costs.

Big Snow, North America’s First Indoor Ski Slope

Big Snow, North America’s first indoor ski slope opened in the American Dream mega mall December 5th in East Rutherford, NJ.

Voters in Jersey City Upheld New Restrictions on Short-Term Rental Properties

Voters in Jersey City overwhelmingly upheld new restrictions on short-term rental properties, dealing a blow to home-share service Airbnb as it faces potential fights over similar regulations across the country.

U.S. Homeowners Staying In Their Residences Longer

U.S. homeowners are staying in their residences much longer than before, keeping a glut of housing inventory off the market, which helps explain why home sales have been sputtering.

8.3 Million First-Time Homebuyers To Enter Mortgage Market

8.3 million first-time homebuyers will enter the mortgage market between 2020 and 2022.

Final Rule to Raise Threshold From $250,000 to $400,000

The Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve have issued a final rule to raise the threshold from $250,000 to $400,000 for residential real estate transactions that would require an appraisal.

Average Rents Nationally Dipped .1% in September

After increasing by 3.2 % in the past year, average rents nationally dipped .1% in September. In NJ, Newark registered a .4% decline in avg rents, Elizabeth a .3% decline and Jersey City a .2% decline.

Coworking Creates A New Financial Risk to Commercial Real Estate

The president of the Boston Federal Reserve Bank is warning that coworking creates a new type of financial risk to the commercial real estate market in major urban office markets.

S&P CoreLogic Case-Shiller Index of Property Values Increased

The S&P CoreLogic Case-Shiller index of property values increased 2% from a year earlier, the slowest since August 2012.

Jersey City Will Add as Many Apartments as Manhattan in 2019

Jersey City Will Add as Many Apartments as Manhattan in 2019.

Guidance Affords Property Owners Greater Flexibility

The National Association of REALTORS®, after reviewing the Department of Housing and Urban Development’s new condominium financing rules, says the guidance affords property owners greater flexibility in the qualification process for loans insured by the Federal Housing Administration.

More Than 54% of Young People Move Back Home After College

More than 54% of young people about to graduate from college plan to move back home to live with their parents instead of renting.

Apartments Reached a 5 Year High

Demand for apartments reached a 5 year high this spring.

Smallest 25% of One-Bedrooms Have Lower Vacancy Rates

The smallest 25 percent of one-bedrooms in the U.S. have lower vacancy rates compared to larger one-bedrooms, according to research firm the CoStar Group.

New Bill Signed by NJ Gov. Phil Murphy

NJ Gov. Phil Murphy has signed into law a bill that allows municipalities to provide new redevelopment incentives for vacant shopping malls.

Department of Housing & Urban Development’s New Condominium Financing Rules

US Homeownership Rate Fell For a 2nd Consecutive Quarter

The US homeownership rate fell for a 2nd consecutive quarter from April to June this year.

Contract Sales in NJ Decreased by 2% in June 2019

After 3 consecutive months of increases, contract sales in NJ decreased by 2% in June compared to June 2018.

Home Sales Fell 4.2% The First Half of 2019

Existing home sales fell 4.2% the first half of 2019 compared with the same period in 2018.

Just 16% of Home Buyers Paid in Cash in June

In June, just 16% of home buyers paid in cash, down from 23% in February.

NJ and Two Other States Sued the IRS on July 17th

NJ and two other states sued the IRS on July 17th in an effort to restore a mechanism designed to offset the $10,000 cap on federal deductions for state and local tax payments.

New Jersey’s Unemployment Rate Fell to a Historic Monthly Low

New Jersey’s unemployment rate fell to a historic monthly low in June to 3.5%, lower than any monthly rate since the U.S. Bureau of Labor Statistics began state-level records in 1976.

NJ Governor Murphy Signed a Land Bank Bill

NJ Governor, Murphy signed a land bank bill that allows New Jersey municipalities to assemble blighted properties within its borders, creating land banks that can be use to spur development.

Internal Revenue Service Closed a Loophole

The Internal Revenue Service closed a loophole the Murphy administration and legislative leadership were hoping to use to bypass a $10,000 federal cap on state and local property tax deductions.

Foreclosure Inventory Rate Down 0.2 Percentage Points From March ’18

As of March 2019, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.4%, down 0.2 percentage points from March 2018.

Jersey City – 60 Day Cap for Short Term Rental Properties

Jersey City council passed an ordinance instituting an annual 60 day cap for short term rental properties (ie. airbnb) if the owner is not on site.

Fannie Mae and Freddie Mac Refinancing Fewer Mortgages

Fannie Mae and Freddie Mac are refinancing fewer mortgages than at any point since the financial crisis.

Prospective Home Buyers Want a Security Camera or Video Doorbell

46% of prospective home buyers want a security camera in their home, while 45% want a video doorbell.

Average Sale Price for Luxury Homes Nationwide Fell 1.6%

The average sale price for luxury homes nationwide fell 1.6% to $1.55 million in the first quarter of 2019.

Developers Converting Mall Spaces Into Offices

Developers are converting mall spaces into offices to generate stable revenues and foot traffic for the remaining stores.

New Jersey’s Surcharge on Short-Term Rentals

New Jersey’s surcharge on short-term rentals, ‘the Airbnb tax’ is causing vacationers to rethink their summer travels and stirring anxiety among some Jersey Shore homeowners.

Prices of Goods in Residential Construction Have Risen Quickly 2019

Prices paid for goods used in residential construction have risen more quickly thus far in 2019 than they did during the same period in 2018 and are at their highest level since last October.

1,300 Rental Units in Downtown Jersey City

1,300 rental units in Downtown Jersey City are rented out through services like Airbnb which represents 7% of all Downtown rental units.

Renters Pay a Premium for Waterfront Apartments

Apartment buildings located near rivers, lakes and ocean shores earn extra money in rents as renters pay an overall premium for waterfront apartments.

Purchase of New Homes in the US Rose in March

Purchase of new homes in the US rose in March.

Banks Cutting Back on Commercial Real Estate Lending

Banks are cutting back on commercial real estate lending, reflecting moderating property value growth and rising construction costs, while loan loss allowances grow.

Affordable Housing in Federal Opportunity Zones

HUD Secretary said HUD will give preference for grants to developers & investors who build affordable housing in federal Opportunity Zones.

Renters Aged 60 Or Older

The share of renters aged 60 or older has risen dramatically in the past decade in many US cities.

Construction Material Prices

Apartment developers continue to be stressed by the unpredictable cost of construction materials. Overall, construction material prices keep rising faster than inflation.

Senior Homeownership Rate Dropping

The homeownership rate for those 65 years & over dropped to 78.8% from 79.2% a year earlier.

New Jersey Attempts to Regulate AirBnB

A new bill, Assembly Bill 3721, would allow New Jersey towns to request licensing and enforce other regulations on AirBnB rentals in their towns as lawmakers make efforts to regulate the emerging business model taking on the hotel and hospitality industry.

More Apartments Coming to Jersey City Performing Arts Complex

A development team has doubled the number of apartments previously slated for a new performing arts complex on Jersey City’s west side.

Social Balconies Help Neighbors Connect

A Dutch designer has introduced a new idea called Social Balconies to help residents get to know their neighbors. The Social Balconies project is a modular structure that connects apartment balconies together with bridges and stairs, creating a semi-public outdoor space.

New Tax Credits For Developers Unveiled

New Jersey Governor Murphy unveiled legislation that would allocate up to $20 million in tax credits annually to help developers or tenants close a financing gap when rehabilitating certain buildings or sites. According to the bill, a developer can receive up to $4 million in historic preservation tax credit for an eligible rehabilitation project Developers can now seek up to $4 million under proposed historic tax credit program.

New Jersey Tops Foreclosure List

New Jersey once again leads the nation in home foreclosures.

Mortgage Rates on the Rise

Mortgage rates are expected to rise again in 2019.

Investors Are Building More Rentals

More single-family rental investors are building homes to rent rather than to sell especially in local markets where building and land costs are lower and where there is more entry-level home building.

Home Sales Continue Decline

Compared to a year earlier, U.S. home sales dropped 10.3% in December.

Unemployment on the Rise

The number of unemployed persons in the US rose 276,000 jobs to 6.3 million in December.

Self-Storage Rents Falling Despite Being At Capacity

Most U.S. self-storage properties are fully occupied, but average rents in the sector are still falling.

Single Women More Likely to Be Homeowners

Single women own 70,000 more homes in metro areas than single men.

Home Purchase Contracts Decline in November

The number of home purchase contracts in November declined by 3% compared to the same month the previous year.

Homeowners Prioritize Garage Space

Single family home owners still want garage space-of the 795,000 single-family homes completed last year, 65% had two-car garages, 6% had one-car garages, while only 7% had no garages.

Homeowners Staying Put

Homeowners are staying put longer than ever before-median tenure for home-ownership has jumped to 10 years, up 10% from last year

Fewer Apartments in the Future

Developers have been taking out fewer permits to build apartment buildings.

Homeownership Rate Continues to Increase

The homeownership rate increased to 64.4% in the third quarter of 2018.

Real Estate Investment in 2019

Institutional investors plan to dedicate more of their funds to real estate next year.

Median Home Price Increases

The national median existing single-family home price increased 4.8% annually in the third quarter.

Natural Light Sells

From floor-to-ceiling windows to retractable glass walls, more of today’s homes are being built to incorporate copious amounts of natural light in all rooms.

2018 Home Sales Decline Expected

Freddie Mac said it expects home sales (existing and new) this year to come in below 2017.

Majority of Homeowners Staying Put

More than 6 in 10 adults would like to remain in their current residence for as long as possible.

Foreclosed Homes Becoming Affordable Housing

New Jersey towns and community development organizations would be able to turn foreclosed homes into affordable housing under a measure approved by the Senate Economic Growth Committee.

US Homeowner Equity Tops 6 Trillion

American homeowners have amassed a record $6 trillion in equity in their properties, a figure boosted by surging home prices and a trend of owners staying put longer.

Starbucks Drives Up Housing Prices

When a new Starbucks comes to town, you can expect to find a 0.5% increase in house prices in that ZIP code within a year, according to a recent study by the Harvard Business School.

New Incentives For New Tenants

Property managers are offering more months of free apartment rent to attract new tenants in markets across the United States.

Vacant Manhattan Storefronts

One fifth of Manhattan storefronts are currently vacant.

Existing Home Sales Decline In July

Existing home sales fell for the fourth consecutive month in July.

Fannie Mae & Freddie Mack To Stop Financing Investment Homes

Fannie Mae and Freddie Mac will stop backing loans for single-family investment homes.

Home Construction Remains At 60-Year Low

Home construction per household remains near the lowest level in 60 years of record-keeping.

Home Mortgage Applications Decrease

Home mortgage applications decreased in June.

June 2018 Home Sales Decline

Existing home sales fell .6% in June from the previous month and declined 2.2% from a year earlier.

Flood Insurance Extended

The Senate voted to extend the program that provides flood insurance for five million homeowners & business owners for 4 months.

Home Prices Outpace Wages

Home Prices In 80% Of US Cities Grew 2x Faster Than Wages.

New York City Condo Prices Decline

Condo prices in New York City fell .5% from March to April.

U.S. Home Sales Continue Decline

Sales of previously owned U.S. homes declined in May for the 2nd consecutive month.

Managing Property From Afar Adds Expense

Managing property far away tends to be more challenging than close by, and real estate expenses often end up costing more than they would in your local area.

The Importance of Parking in Real Estate Development

More developers claim that the difference between a new construction deal working financially or not working comes down to the parking requirement.

Unsold Housing Inventory Dips

Today’s unsold housing inventory equates to just 3.7 months of sales, which is lower than one year ago, when it was 4.2 months.

New Jersey Home Sales Surge in April

After home sales recorded a 6% retraction in March, New Jersey recorded more than 11,000 purchase contracts during the month of April equating to a 7% increase compared to the same month last year.

Rise In New Jersey Home Ownership Rates

New Jersey homeownership rate has risen to 64.3% in Q1 of 2018.

Self-Storage Transaction Cap Rates Trend Down

Cap rates on self-storage transactions averaged 6.3% in the 4th quarter of 2017, down from 6.5% in 2016.

Fannie Mae Allows Lenders to Gift Closing Costs

Fannie Mae announced this week that it will now allow lenders to contribute to borrowers’ closing costs, as long as the money is a gift and is not used towards a borrower’s down payment.

Home Prices Rising

Home prices picked up steam in the first few months of the year.

New Jersey Homes For Sale Hits New Low

The number of homes being offered for sale today in New Jersey has fallen to its lowest point since 2005, having declined by 11% over the past year.

Out of Town Landlords Pay More in Construction Costs

Out of town landlords are more vulnerable to getting ripped off by contractors. If contractors get wind that an owner is from out of town, expect to receive higher priced work estimates, invoices and gamesmanship when you negotiate prices for labor and materials.

New York City Foreclosures Skyrocket

New York City saw a year-over-year increase of 58 percent for foreclosed homes.

Millenials Hold Highest Share of Home Buying Activity

Millennials held the highest share of home buying activity out of all other generations for the fifth consecutive year, according to the 2018 Home Buyer and Seller Generational Trends study from the National Association of Realtors.

Census Bureau Insights

The Census Bureau’s annual county and metropolitan area estimates through 2017 reveal a revival of suburbanization and movement to rural areas along with Snow Belt-to-Sun Belt population shifts.

Chinese Investments Abroad Slow

Chinese firms are slowing down real estate investments abroad as their regulators restrict overseas investment in an effort to curb speculative purchases and keep capital from flowing out of the country.

New Jersey Home Sales Soar

In 2017 a record number of residential homes were sold in New Jersey.

Home Prices At All-Time Highs

Nearly two-thirds of U.S. housing markets have recently seen home prices hit all-time highs.

U.S. Home Construction Reaches New Low

U.S. home construction per household is near its lowest level in 60 years.

Families Increasingly Moving to Multigenerational Homes

Currently about 19% of Americans now live in a multigenerational household, the highest level since 1950.

Homeownership on the Rise

U.S. homeownership rate rose in 2017 for the 1st time in 13 years, but remained below the long term average of about 65%.

Are Property Taxes Charitable Contributions

New Jersey may lead others in testing whether property taxes can be counted as charitable contributions.

Property Tax Rates in New Jersey Rising

Average property tax rates in NJ rose by the smallest amount in four years, up just 1.6 percent to $8,690.

Single Family Homes in New Jersey Decline

The number of single family homes in NJ fell 18.8% in 2017 to 33,887 from 41,736 from a year earlier in 2016.

New York City Foreclosures

New York City foreclosures rose to post-financial crisis high last year with the third highest in the last decade.

Average Days On Market

The average number of days on market for single family homes to sell in NJ fell 13.6% from last year from 81 days in 2016 to 70 days a year earlier in 2017.

Total Value of All US Homes

The total value of all homes in the U.S. increased in 2017 to a total $31.8 trillion.

Median Down Payment Rising

The median down payment for single family homes & condos purchased with financing in the 3rd quarter was $20,000, up from $18,161 in the previous quarter and up from $14,400 in Q3 last year.

Commercial Real Estate Investment Plunges

Commercial real estate investment activity fell 9.6 percent from a year ago.

US Housing Starts Skyrocket

US housing starts (the number of new houses begun during a particular period) hit their highest level in over a year in November.

New Jersey Rents Skyrocket

Penthouse Five at the Ellipse building recently broke the previous rental ask price record in Jersey City at $10,995 a month.

FHA Loan Limits Increasing

FHA is increasing loan limits in most of U.S. in 2018.

New Jersey Housing Market Numbers

About 33,000 (-46%) fewer homes are on the market in NJ compared to the cyclical high in 2011.

New Jersey Housing Inventory

Currently, all of New Jersey’s 21 counties have less than 8.0 months of supply, which is a balance point for home prices.

New Jersey Homes For Sale Numbers Fall

The number of homes being offered for sale in New Jersey has fallen to the fewest in the past 12 years.

Delinquent Mortgage Loans in New Jersey Decline

The percentage of delinquent mortgage loans in New Jersey that are 90+ days past due fell to 4.1%, down from a peak of 11.4% in September 2012, but still remains the highest delinquent mortgage rate in the United States.

Student Debt Hampers Home Buying

A report from the National Association of Realtors looking at student debt and housing finds that 83 percent of millennials who do not own a home cite student debt as the reason.

Newark Vies To Become Second Amazon Headquarters

Newark was selected to be New Jersey’s state endorsed recommendation in the effort to land Amazon’s second headquarters.

Mortgage Company Offers Student Loan Repayment Assistance

Eagle Home Mortgage offers a unique lending product targeting Millenials that helps homebuyers pay off their student loan debt.

Home Purchase Contracts Rising in New Jersey

After declining by 7% in April, home purchase contracts in New Jersey have increased for four consecutive months. In August, the number of purchase contracts rose by 3% compared to the same month last year.

First-Time Homebuyer Numbers Climbing

First-time home buyers purchased 570,000 single-family homes in the second quarter, compared to 426,000 in the first, marking the highest number of first-time home buyer purchases during a second quarter since1999, which had 599,000.

Judge Rules “Zestimates” Are Just Estimates

A federal judge ruled that Zillow “Zestimates” are just estimates, dismissing an Illinois lawsuit by homeowners who sued Zillow Group over its controversial home valuation algorithm – a tool which they alleged had undervalued their homes and made them harder to sell.

After the Condo Boom

Three years after the condo boom swept through New York, developers citywide are sitting on unsold units.

Investor Owned Housing Units

About 23 percent of residential homes built for one to four families are now owned by investors. Out of about 125 million households in the U.S., an estimated 43 million live in investor-owned housing units.

Toronto Real Estate Booming

Rental supply in Toronto is down to two weeks, meaning it would take that long to rent everything in town, and average rents have hit an all-time high.

Has the Real Estate Market Reached Its Peak?

More than half of respondents to an NREI survey conducted in July said the real estate cycle has reached its peak. The percentage of survey respondents who believe we are currently at the peak of the market totaled 52 percent.

Underwater Homeowner Numbers Continue to Drop

The population of underwater homeowners with no home equity in the US has dropped by nearly 1 million borrowers since last year. This marks the first time the number of underwater homeowners has dropped below 2 million since 2006.

Investors and Non-Occupant Buyers in US

Nationwide, about a third of home and condo sales went to investors or other non-occupant buyers last year.

Foreign Buyers and Immigrants Increasingly Buying in US

Foreign buyers and recent immigrants purchased $153 billion of residential property in the US over the last year, an almost 50% increase from the year before.

Canadian Lumber Tariffs Affecting US Homebuilders

Homebuilders are feeling the impact of the rise in Canadian lumber tariffs.

Amazon Announces New Real Estate Service

Amazon recently disclosed a new real estate service coming to its users, that will compete with Zillow and Redfin.

New Tall Condo Projects Launched in Jersey City

A decade after the financial crisis and condo market implosion, two new tall condo projects launched sales in Jersey City, with more than 670 apartments in a variety of styles, finishes and prices.

New Real Estate Listing Service: Nextdoor

Neighborhood social network Nextdoor launched a real estate listing service that now competes with Zillow, Trulia, realtor.com, Redfin, and other online real estate listing sites.

New Jersey Landlords Adding Urban Amenities

New Jersey office landlords have been adding urban amenities like food trucks and fitness centers to stay competitive.

Home Occupancy Length on the Rise

The average time someone stays in their home has risen to 8.5 years, the highest they’ve seen since data began in 2008.

Manhattan Condo Prices Trending Down

In Manhattan, the average unit price on condos approved for market has been steadily trending down over the past two years.

What Really Killed The Malls?

Newer shopping centers played a bigger role in the demise of malls than increased online shopping did over the past 10 years.

China May Threaten the New York Real Estate Market

A regulatory crackdown in Beijing on capital leaving China is threatening the flow of cash into New York’s real estate market.

Developers Increasingly Moving to Concrete

Developers are swapping steel for concrete, discovering it allows for faster and cheaper construction.

Home Sales Decline After First Quarter Growth

Existing home sales rose 1.4% in the first quarter 2017 and reached their fastest pace in 10 years, but fell 11.4% in April.

It’s a Renter’s Market for Office Space

Office space is getting cheaper in many urban markets as a result of a boost in new supply giving tenants more power.

Rent in NYC on the Decline

The share of New York City rentals that cut prices surpassed 42% in October 2016, the highest level since December 2010.

Commercial and Industrial Lending Slowing

Bank lending to consumers and businesses is slowing down. As of last week, commercial and industrial lending had not increased since September 2016, the first six-month period of declines since the aftermath of the financial crisis.

Cost of Building Materials Rising

The cost of building materials including lumber and concrete is on the rise according to the Producer Price Index (PPI) released April 13.

The Construction Labor Market

A very tight construction labor market has many apartment building developers facing a shortage of workers to complete their projects.

Traditional Office Buildings Embrace Tech Startups

Hoping to attract bigger, creditworthy tenants, landlords with big traditional office buildings are putting tech start-ups in small chunks of space to give their buildings a cool vibe.

Manhattan Rents Falling

Rents fell in February 2017 for Manhattan apartments of all sizes, the first across-the-board price decline in at least four years.

Rents Declining in Major US Cities

Rents in major US cities declined about 1% in 2016 from 2015 levels.

United States Apartment Rents

US apartment rents rose 3.8% in 2016, a significant drop from the recent high of 5.6% year-over-year growth in 2015.

New Housing in Jersey City

Over 7,000 new housing units are expected in Jersey City in 2017.

Airbnb in New Jersey

New Jersey Airbnb hosts earned over $50M in 2016.

Financing Apartment Buildings

Apartment Building Owners Are Recently Facing Higher Rates on Loans.

Real Estate Taxes in New Jersey

The 2015 American Community Survey data shows that New Jersey still leads the nation with the highest average annual real estate tax (RET) bill of $8,180.

New Jersey Foreclosures

New Jersey Topped The National Foreclosure List For Second Consecutive Year.

Chinese Overseas Investment in Real Estate

Chinese overseas investment in real estate is poised to drop for the first time in about 15 years, according to a new report by a government think tank.

Changes in Construction Financing

As banks pullback construction financing, developers are increasingly turning to life companies for construction financing, particularly developers who also plan to hold the completed property long-term.

HUD Suspends Mortgage Insurance Premium Reductions

The Department of Housing and Urban Development announced it suspended the reduction of Mortgage Insurance Premiums, effective immediately.

Development Seeks Transit Options

Saxum Real Estate Partners has launched a fund to deploy $75 million to acquire properties in transit-oriented downtowns, starting with an acquisition in downtown Red Bank, New Jersey.

New Jersey Developer Partners With Uber

New Jersey Real Estate Developer, Capodagli Property Company/Meridia has partnered with Uber to help reduce people’s dependence on owning a car. New lease signers at Meridia Properties will get $100 Uber credit.

Homebuilder Sentiment

Homebuilder sentiment spiked 7 points in December 2016.

The Hotel Market Mystery

Investors spent less that half as much money buying and selling hotel properties in the first half of 2016 as they did last year.

Foreclosure Activity Increase

U.S. Foreclosure Activity Increased 27 Percent in October from a 129-month low in September, the biggest monthly increase since August 2007.

US Home Prices on the Rise

Average US Home Prices finally topped record levels set in July 2006, according to the S&P CoreLogic Case-Shiller Index.

Where Are Mortgage Dollars Coming From?

Banks accounted for less than half of the mortgage dollars extended to borrowers in the 3rd quarter. This is the 1st quarter that banks, credit unions other depository institutions have fallen below that threshold in more than 30 years.

Mortgage Originations Projected to Surge

Government-sponsored enterprise, Freddie Mac is currently projecting a “surge” in mortgage originations during the third quarter, further reinforcing its view that 2016 will be the “best year” for home sales since 2006.

Newark Expansion

Newark recently began expansion of Riverfront Park along the Passaic River.

Making Money in a Rising Market

If you sign a contract to buy property in a rising real estate market, you’ve already made money by the time you close.

Biggest Driver of Residential Real Estate

Household income is the biggest driver of residential real estate markets.

Top Indicator For Real Estate Growth

The most important economic indicator for housing and real estate is job creation.

Brooklyn Rent Breaks

Brooklyn’s rental market is becoming saturated, pushing landlords to offer breaks on rent, including one and two months free in some cases.

The Rising Costs of Building

50 years ago, about one-fifth of the cost of a new building went to systems such as heating, cooling, and lighting. Now, those systems are responsible for about 60 to 75% of construction costs.

Will Your Home Equity Line of Credit Change?

840,000 home-equity lines of credit (HELOCs) are resetting this year with principal now being due monthly in addition to just interest.

Real Estate Prices

Real estate prices are 2% below the peak reached in July 2006 according to S&P CoreLogic Case-Shiller Indices.

Is Builder Confidence Growing?

Although The National Association of Home Builders recently said builder confidence is growing, not all builders are agreed due in part to the fact that good lots in many places are hard to find and current banking practices make them too restrictive for builders.

Women and Millenial Mortgages

Women are the primary borrowers on a third of millennial mortgages.

First Time Homebuyers Finding Difficulty

Lenders remain resistant to making loans to many potential first-time homebuyers, especially younger people who may not have built a credit history or gathered enough money for a large down payment.

New Jersey Tax Relief

Gov. Chris Christie’s proposed school funding overhaul could produce some property tax relief for as many as 368 towns across New Jersey according to state data.

Insight Into Multifamily Loans

The delinquency rate for bank-held multifamily loans was 0.26 percent in the first quarter this year, the lowest since 2005, data from the Mortgage Bankers Association shows.

Foreign Real Estate Investing in the US

Foreign real estate investment in U.S. declined in the last year.

Real Estate Trends in Retail

Department stores are being replaced by newer types of retail tenants like supermarkets, gyms, restaurants and movie theaters at American shopping malls.

Home Prices Outstripping Inflation

Home prices are rising twice as fast as inflation according to Case-Shiller Home Prices Indices.

All the Single Ladies…Are Buying Houses

Single women are now the 2nd largest home buying group after married couples.

New Jersey Home Ownership Declining

New Jersey’s homeownership rate declined from 71.3% in 2005.Q1 to 60.9% in 2016.Q1, its lowest level in more than ten years.

US Home Sales Surge

US new home sales posted their strongest month in more than 8 years in April of this year, while prices jumped to a record level.

Home Loans For Low Credit Scores

Wells Fargo will offer a low-down-payment mortgage loan that allows borrowers with credit scores as low as 620 to make down payments as low as 3%, while allowing them to use income from family members or renters to qualify.

Demand For Industrial Space

Demand for big industrial space has soared past surging supply according to Commercial Real Estate Services, Worldwide (CBRE).

Disposable Income and Mortgage Debt

The share of US consumers’ disposable income going to pay mortgage debt is now at its lowest level in 35 years according to the latest S&P/Experian Consumer Credit Default Indices.

Home Sales and Apartment Rentals

Homes sales and apartment rentals are inversely related.

Home Prices and Income

From 1992-2005, home prices went up 205% while income during that period only rose 10%.

Luxury Home Buyers Vs. First-Time Buyers

Luxury home buyers normally buy in spring and summer whereas 1st time homebuyers buy throughout the year.

Population Figures and Home Prices

Declining population typically reduces housing demand and home prices.

What is a Letter of Attornment?

A letter of attornment is a notice from a landlord to a tenant that the property has been sold and which directs the tenant to pay rent to the new owner.

Equity Returning to Housing Market

One million borrowers regained home equity In 2015.

New York Real Estate

The market for high end rentals in New York City is slowing.

The Rise of Multi Family Dwellings

Single family building permits declined but multi-family building permits increased in 2015 in New Jersey.

Are People Buying or Renting in Manhattan?

Over a third of Manhattan new development condos sold in 2015 were later listed for rent.

Rental Property in New Jersey

Demand for rental apartments remains strong in NJ with statewide occupancy rates being amongst the highest in the US.

New Jersey Foreclosures

The pace of foreclosure filings in New Jersey remains elevated at a time when other states are experiencing decreasing activity. New Jersey foreclosure filings in 2015 recorded a 14% increase over the prior year, rising from 67,350 to 76,800.

Insight Into New Jersey’s Inventory of Homes

More than half of New Jersey’s 21 counties have less than 8.0 months of supply, which is a balance point for home prices.

What Do Millenials Want Most in a New Home?

A modern, updated kitchen topped the list of ideal home features in a recent survey of millennials, registering as most important to more than a third of respondents.

How Long Do You Have for a Like Kind Exchange?

The IRS gives you 45 days from the closing date on sale property to identify up to 3 replacements for a 1031 (like kind) exchange.

What is a Real Estate Variance?

A real estate variance is a request to deviate from current zoning requirements. If granted, it permits the owner to use the land in a manner not otherwise permitted by the zoning ordinance. It is not a change in the zoning law. Instead, it is a specific waiver of requirements of the zoning ordinance.

How Does Land Depreciation Work?

Land does not depreciate for tax purposes because it is considered to have an infinite useful life. Land improvements like buildings, furnishings, equipment, etc. have limited useful lives and can be depreciated.

What Are Riparian Rights?

Riparian rights are the rights of land owners bordering waterways that relate to the water and its use.

Short Term Vs. Long Term Rentals

Although short term rentals can produce higher income for property owners, they normally result in higher management, maintenance and advertising costs for owners than long term property rentals.

Buying Property With No Cash Down

A property purchased with nothing down is unlikely to have much, if any, cash flow.

Today’s Definition: Hypothecate

Hypothecate: To pledge (property) as security or collateral for a debt.

The Surprising Truth About Lots and Income

A moderately priced house built on a great lot will appreciate more and yield higher income on average than a larger, expensive house will on the same lot.

Beware of Property Foreclosure Claims

If someone has a claim against a property in foreclosure and does not receive proper notice that the claim is about to be erased by the sale, their claim is not extinguished.

The Financial Benefit of Garages and Basements

Garages and basements are cheap spaces that typically add more value to a property than their cost.

Easing Mortgage Standards

Easing mortgage standards are allowing first-time homebuyers to finally jump into the housing market after a rough start to the year held a lot of them back. The share of mortgages going to first-time buyers has risen sharply since the start of the year.

New Jersey’s Industrial Real Estate Market

New Jersey’s industrial real estate market continued to shine in the third quarter, bringing vacancy down to levels not seen since before the recession.

New Jersey Mortgage Delinquency

The mortgage delinquency rate in New Jersey is currently 8.3%. The national average is 3.5%.

Growth of New Jersey Home Prices

The average New Jersey home prices are currently increasing at a 3% annual rate.

2015 New Jersey Home Sales

New Jersey Home Sales in 2015 are the highest since 2005.

Buying a Home Sight Unseen

A survey commissioned by online brokerage Redfin of 2,134 Americans finds one in five buyers made an offer on a home without having visited it in person.

Investing in Senior Housing

Investor interest in the seniors housing sector is strong and growing. Transaction volumes are at record high levels, pricing is close to a cyclical peak, and auctions are active and often fully priced.

The Widening Gap Between Home Owners and Appraisers

For the seventh consecutive month,the gap has widened between what home owners say their home is worth compared to what appraisers say, according to Quicken Loans’ Home Price Perception Index. Home owner estimates now stand 2.65 percent higher than appraiser opinions, the largest gap in more than a year, according to the index.

Banks Are Loosening Underwriting Criteria for Big Mortgages

The nation’s biggest banks are loosening their underwriting criteria for big mortgages, as lenders ramp up competition to grab a bigger share of the high-end housing market.

Qualifying for a Mortgage with Bad Credit

You may still qualify for a mortgage loan even if you have a lower credit score if you pay a big down payment and don’t have much other personal debt in your name.

FHA Loan Credit Requirements

FHA mortgage loan credit requirements tend to be more relaxed than the credit requirements for conventional loans.

New Jersey Property Tax Appeals

Property tax appeals continue to rise in New Jersey as property owners seek to have their property taxes reduced to align them with lower property values since the housing peak of 2006.

New Jersey Home Prices

Average home prices in New Jersey are still down about 20 percent statewide from 2006 peak prices, which is twice as much as the national average.

Upcoming Changes to Fannie Mae

Fannie Mae starts a program this year that lets lenders include income from non-borrowers within a household (i.e. extended family members) toward qualifying for a loan.

The Role of Community Banks in Real Estate

Community banks are filling the gaps in the residential mortgage market left by an exodus of big banks in the wake of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

New Jersey Foreclosures

New Jersey foreclosure filings spiked 24% in the first half of 2015 fueled largely by trouble in South Jersey housing markets including Atlantic City as well as Cape May, Ocean and Cumberland Counties.

Configuring Property Depreciation Allowance

Property Depreciation Allowance = (Depreciable Basis)/(Useful Life); Useful life=27.5 years for residential property, 39 years for non-residential property.

Gross Rent Multiplier

Gross Rent Multiplier = Sales Price/Gross Monthly Rent.

The Effect of Bidding Wars on Property Value

Bidding wars and sales concessions can distort property values in a local real estate market.

Shape Matters

Square housing lots are generally more desirable than oddly shaped lots.

How Lower Interest Rates Affect Buyers

Lower interest rates push housing demand by expanding a buyer’s purchasing power

Overpricing Your Home

When you overprice your home, you give the buyer too much power, leverage and control in the negotiation.

Price vs. Value

Sellers determine price but the market determines value.

How Short Sales and Foreclosures Affect Home Values

When short sales and foreclosures represent less than 30% of real estate market sales, they should be deemed outliers and not be considered in determining home values.

How Home Buyers Price

Home buyers price from the bottom of the market up-starting with the least expensive, underpriced house.

How Home Sellers Price Real Estate

Home sellers price from the top of the market down-starting with the most expensive, overpriced house.

Strongest Housing Markets in New Jersey

The strongest housing markets in New Jersey are the ones closest to jobs, major highways and New York City.

5 Real Estate Market Vital Sign Indicators

5 real estate market vital sign indicators: existing home sales new home building permits mortgage loan defaults foreclosure sales interest rates

Market Bottoms and Peaks

Real estate market bottoms tend to take more time to develop than real estate market peaks.

Decline in Home Ownership Continues

The homeownership rate continued its multi-year slide, falling to a rate not seen since 1993.

New Jersey Land Prices

New Jersey’s land is worth more per acre than any other state (almost 50% more valuable than the 2nd highest state).

Pricing Your Home Accurately

When you overprice a home it takes more than three times as long to sell.

New Jersey Luxury Homes

The biggest increase in NJ home buying activity recently is for homes in the $600,000-$2.5 million price range.

Future of New Jersey Housing

70% of New Jersey households have no children–this will significantly affect demand for large suburban single-family housing.

Rent Vs. Own

Rental apartment demand continues to soar as mortgage lending requirements remain relatively strict.

Income Drives Real Estate Sales

Income drives real estate sales. Even though more people in the US are working now than before the global financial crisis, the quality of jobs are lower and there are more part-time workers, so incomes are flat.

The Importance of Rental Consistency

In order to maximize return on investment (ROI), getting a property rented fast to a good tenant is more important than getting the highest rent because just 1 month of vacancy can destroy your ROI and cash flow for the year.

Paying Off Your Mortgage Early

Bi-weekly early mortgage payoff plans essentially make about 1 extra monthly mortgage payment for a borrower every year. You can accomplish this on your own without paying your lender a fee to join their program.

Demand for Housing Near Mass Transit

Demand for housing in pedestrian-friendly downtowns near mass transit is increasing in cities throughout the US.

First Time Home Owners

In 2014, first-timers made up about 33% of ‪home‬ buyers—the lowest share in nearly three decades, and well below the historic average of about 40%. This is due in large measure to high student loan debt.

Homes that Spend More Time on the Market

Homes that spend more time on the market usually sell for less money.

Functional obsolescence

Functional obsolescence reduces the desirability of your home to buyers and makes it more difficult to sell. Here are some examples of functional obsolescence: 1) No bathrooms on first floor 2) Bedrooms with no closest 3) Knob-and-tube wiring or fuses instead of a circuit breaker box 4) One outlet per room

Housing Inventory

The break-even point for months supply of ‪‎housing‬ inventory is about 6 months–if housing inventory is higher than 6 months prices normally fall, when housing inventory is lower than 6 months, property prices normally increase.

Eviction history

Eviction history is more important than personal credit score in determining whether a prospective tenant will pay their rent on time.

Cleaning surface mold

When you clean surface mold in your ‪home‬, don’t mix ammonia or any detergent containing ammonia with bleach because the combination forms a poisonous gas.

4 causes of excess home moisture to avoid/address

Moisture is the key cause of mold growth in ‪homes‬. 4 causes of excess home moisture to avoid/address: 1. Humidity 2. Leaking pipes 3. Poor ventilation 4. Flooding

Useful Life of Your Roof

The excess weight caused by dirt, debris and snow accumulations may rot, stress and reduce the useful life your roof.

New lending guidelines

The new lending guidelines announced by #mortgage giants Fannie Mae and Freddie Mac will soon help more low-income and first-time buyers afford #homes by allowing them to buy a home with a down payment as low as 3%.

The 3 Keys To Buying Property That Will Make You The Most Money

Q: Which properties will make me the most money? (The 3 Keys To Buying Property That Will Make You The Most Money) June, Freeport, NY A: Good question, June. There are many factors that play into whether you’ll make money on a property you buy, but here are 3 key ones: 1. Picking the right area/neighborhood/street. This is critical because the right area will make your property more attractive to tenants if it’s a rental property and more attractive to buyers whenever you choose to sell your property 2. Picking the right kind of property-based on your budget (what you can afford to buy and maintain while you own it) and your exit strategy—exit strategy just means what you ultimately […]

House Prices

Whenever house prices outpace income, a downward correction in home prices is forthcoming.

Flood zones

Most ‪‎homes‬ in a flood zone never flood. Flood zones are determined by a probability index: that it may flood once within 100 years.

Flood Insurance premiums

Flood Insurance premiums are determined by many factors including deductible amount as well the location, age, occupancy and type of property structure in the floodplain.

Capital improvements

Capital improvements to a home add only 50% to ‪#‎home‬ value on average.

Lending requirements

Tighter lending requirements affects 1st time home buyers most in a real estate market.

Negotiating power transfers

Real Estate Insights: Whenever the pace of property sales slows, negotiating power transfers from sellers to buyers.

Zillow Home Price Estimates

Zillow home price estimates are less accurate than property appraisals and realtor comparative market analyses because they use linear regression algorithms based on a point system to estimate home values.

House Pricing

A 10% decline in house price is equivalent to a 25% decline in land value.

Property appraisals

Property appraisals reflect prior market prices when purchase contracts were signed, not when properties are actually closed and sold.

The Housing Affordabilty Index

The Housing Affordability Index measures the degree to which a typical family can afford the monthly ‪‎mortgage‬ payments on a typical home.

Eviction History

Real Estate Insights: Eviction history is more important than credit score or income in determining whether a prospective tenant will pay their rent on time

3 Monster Mistakes People Make When They Sell A Home

1. Counting a room without a window or a closet as a bedroom 2. Not disclosing flaws and repair items to buyers 3. Asking for an unrealistically high price for a home

Mortgage calculators don’t factor all the expenses

Most mortgage calculators don’t factor all the expenses that many borrowers are likely to have to pay after they buy a home. 3 examples of expenses that many homeowners, particularly first time homeowners will face that many mortgage calculators overlook are: 1) private mortgage insurance (PMI 2) Property Taxes 3) HOA (home owner’s association) fees and monthly condominium fees.

FICO Changes May Ease Credit Access

Recent changes to the way Fair Isaac computes people’s credit score are welcomed, long overdue and benefit borrowers, creditors and real estate markets across the country. The revision to the credit score algorithm that eliminates medical bills from consideration is especially appropriate given the high incidence of mistakes and miscommunication. What a lot of people don’t know is that creditors report information to the 3 major credit reporting agencies on a voluntary and inconsistent basis which unfortunately means that mistakes are made all the time; AND the 3 big credit reporting agencies : Experian, Transunion and Equifax, really don’t have much of an incentive to fix mistakes on your credit report. The good news is that you can take control […]

Gerald’s Real Estate Article Insights: 5 Housing Trends for Summer 2014

Looser mortgage lending standards and more real estate financing options for self-employed borrowers is welcomed news this summer. In many real estate markets, mine included, there continues to be a shortage of available homes for sale. Smart buyers must therefore be more patient than ever in order to get good real estate value—as I often tell my coaching students, you make your money in real estate when you buy. When you buy, you have the most control in a real estate transaction—when you buy you can always say no, walk away and live to buy another day. It’s hard to say no when everyone else in the market and the media is putting pressure on you to move quickly and […]

Gerald’s Real Estate Article Insights: Reasons to Use Home Equity – 5 Good, 1 Bad

Untapped home equity can be a dangerous temptation for homeowners and real estate investors. You have to be careful before you take on additional debt, even if it’s mortgage debt which is normally considered to be good debt, because when you do, you increase your monthly fixed payments. People often tap home equity to renovate or upgrade a property. This may be a very good idea if you’re renovating an income-generating property so that it earns more money for you. However, I have seen many people over-renovate their primary residence spending tens of thousands of dollars on over-the-top kitchens and bathrooms that they didn’t need and didn’t really increase the value of their home!—also, don’t forget, you’re supposed to pay […]

Why The Housing Market is Suddenly Struggling

The recent cooling of the US housing market is as much the result of unrealistic earlier expectations of another impending real estate boom as anything else. The first signs of increased real estate activity sent journalists into a frenzy. Economic fundamentals not media hype drive real estate, as all economic activity ultimately is driven by demand. Also, every residential property market is different and some markets aren’t cooling right now. Housing affordability in many places has gone down which obviously has a dampening effect on demand particularly for first time home buyers who are essential to all residential real estate markets. Click here for the full article!

U.S. housing market in recovery…thanks to China?

More foreign buyers of US real estate is a natural consequence of increased global trade. In addition, housing bubbles in places like China make US real estate investment more attractive. The percentage of foreign buyer-driven real estate transactions throughout the United States is exaggerated. Foreign buyers are only buying in big numbers in a small select group of markets and they are only buying certain types of properties so their impact on US real estate in general is not as high as you may think. Ultimately, income and household formation are bigger drivers of real estate demand than foreign buyers. -Gerald Click here for the original article!

U.S. Banks Move Away From Home

This latest data that shows a record low in real-estate-linked debt’s share of bank assets highlights the mortgage lending reluctance that we’ve been seeing in US real estate for quite some time. Unfortunately, good borrowers today are being penalized for the sins of the past. In a typical knee-jerk reaction, the pendulum has swung way too far in the other direction locking many responsible buyers, particularly younger, first time buyers out of the real estate market. The fact that Wells Fargo is cutting its minimum credit scores for loans backed by Fannie Mae and Freddie Mac however is a welcome sign. -Gerald Click here for the original article!

Crowdsourcing Comes to Commercial Real Estate

Crowdsourcing, the practice of obtaining services, ideas, or content by soliciting contributions from a large group of people, especially from an on line community is shaking up the economic status quo in many ways. Crowdsourcing in commercial real estate is providing access to major real estate developments for individual investors previously locked out of that sector. As with any investment, there are risks, particularly now as these new crowdsourcing models evolve. Nevertheless, why should accredited investors have all the fun? A truly free market should allow access to these kinds of investments to regular people too. -Gerald Click here for the original article!

Why Millenials Rent

A lot has been written recently about the changing attitudes among Millenials regarding home ownership. This change is obviously driven primarily by current economic and credit realities in the US. The desire for home ownership is high among Millenials like previous generations, however, current economic circumstances make buying more difficult. Income ultimately drives everything in our economy—the American Dream of home ownership is alive and well but for many in the Millenial generation it is a dream deferred. -Gerald Click here for the original article!

Nearly 10 Million Mortgaged Homes are Still Underwater

One of the main reasons real estate prices throughout much of the US have risen so precipitously recently is because of the lack of supply of houses to buy. That shortage of supply is due in large measure to the millions of homeowners whose mortgages are still underwater and are unable to sell. The ‘technical’ end to the recession occurred a long time ago but the mortgage crisis still looms large in many places particularly in working class and lower-income neighborhoods. -Gerald Click here for the original article!

Housing Recovery Leaves Millennials Out in the Cold

The percentage of 1st time home buyers is shrinking. Tight lending standards are partially to blame. As a result of improved technology and globalization, the US economy requires fewer workers—this in turn is contributing to high unemployment among young adults. We’re still missing 1.3 million people working since the beginning of the recession and many of the jobs that have been created are low wage service jobs. Increasing job opportunities and income among young people is critical for the overall economy and is critical for sustaining a real estate recovery. When a young person buys their first home from someone who’s outgrown that home, the purchase and sale triggers another purchase and sale of a higher priced home—this is what […]

NJ Still Drowning in ‘Underwater’ Mortgages, New Study Reveals

Real estate price swings in the US are most dramatic on the coasts. Many property owners who purchased real estate when prices were sky high during housing bubble, particularly in urban areas are still underwater without any equity. The truth is that the value of a property only matters when you buy it or sell it just like a stock or another asset. The price, the value and your equity position while you own a property is less important than whether you can afford to keep up with mortgage payments and maintenance costs. Although having negative equity in a property is disconcerting, the key to thriving as a property owner is being realistic about what you can reasonably afford when […]

All Cash Homes Sales Hit Record High

Cash purchases for homes are at all-time highs for two primary reasons: 1) more wealthy foreign buyers see US real estate as a safe place to park assets 2) a low interest rate environment has institutional buyers chasing higher returns wherever they can find them. Despite increased competition for real estate, you should never allow the fear of losing a deal trick you into paying too much for a property. There will always be new buying opportunities– patience is the key to sound real estate investing. -Gerald Click here for the original article!

Consumer Financial Protection Bureau Taking Mortgage Complaints Seriously

After all the fraud, deception and now infamous robosigning that went on during the housing bubble, it is hard to believe that there’s someone out there looking out for the mortgage consumer. The CFPB states as its mission to make markets for consumer financial products and services work for Americans. Giving consumers the information they need to understand the terms of their agreements with financial companies is a worthy goal that is sorely needed in our country given how little financial education Americans at all age levels have. Click here for the original article!

New Jersey Foreclosures Are Slowest in the Nation

The way that home foreclosures are handled varies enormously from state to state in the United States. For example, the time it takes for a home foreclosure to work through the system in the state of Georgia is typically weeks, in New Jersey it often takes several years. It’s important that homeowners and real estate professionals are aware of the idiosyncrasies of the local real estate markets where they live and do business. There is no “real estate market” per se; there are lots of local real markets each with its own unique laws, regulations and procedures. -Gerald Click here for the original article!

Looking To Buy? Best Cities for First-Time Home Buyers

Buying a house for the first time is daunting and all the paperwork & forms can be intimidating. Nevertheless, applying for a mortgage is a good financial exercise that among other things forces you to pay attention to your personal credit, which increasingly has enormous impact on your financial life. However, beware of generalizations you read in the financial press like “Best cities for first-time home buyers”! You don’t buy an entire city or a real estate market, you buy an individual property which is why it’s so important you do all the necessary due diligence to make certain you buy wisely—buyers have the most control in any transaction, so do your homework before you sign a purchase contract. Click […]

3 Reasons THIS Spring Could Save Chilled Housing

The nasty winter weather we’ve unfortunately had to endure over the last few months has negatively affected real estate activity. In my state of New Jersey, we had 13 snow storms in January and February! The good news is that significant snow and bad weather only affects home sales temporarily. Housing demand just gets pushed a little further into the future—buyers who didn’t make offers in the middle of winter because they were snowed in don’t suddenly change their minds about buying—they just wait until the weather breaks. This bodes well for real estate sales this spring. -Gerald Click here for the original article!

Home Sales Woes: Fewer People Moving Out

The 2 things that affect residential real estate the most are new household formation and income. Since income has enormous influence on new household formation, it’s really income that drives real estate and the economy. The key to income growth is jobs—particularly jobs for young people entering or trying to enter the workforce for the first time as well as older displaced workers. Unfortunately, in the U.S., we’re still missing 1.3 million full-time jobs since the beginning of the recession. Household formation will remain tepid until younger people are able to get the jobs and additional income required to move out and form new households. -Gerald Click here for the original article!

Underwater Mortgages Tick Up But Trend Down

We’re not out of the woods yet with respect to people being upside down on their mortgages. This is particularly true in many coastal real estate markets that tend to experience bigger price swings. In New Jersey, my home state, home prices tend to increase between 4-5% annually. Based on that average appreciation, New Jersey home prices at the height of the real estate market bubble in 2005 reached 2020 price levels! We have a ways to go, but I’m an eternal optimist and things are getting better. Click here for the original article!

Buying A Home Is Now 38% Cheaper Than Renting

Rent-versus-buy declarations like this one from Trulia’s chief economist often paint a misleading picture for people trying to decide whether it’s time to purchase a home. The actual mortgage rate a borrower will pay depends on many factors that averaged mortgage rates don’t capture. In addition, rent prices, property taxes and home insurance rates vary greatly from place to place. If you’re buying property in a flood zone, you’ll have to add the additional cost of flood insurance to your calculation. It’s important that any prospective homeowner do their own individual rent-versus-buy determination based on their credit profile and local housing market. -Gerald Click here for the original article!

New Jersey Leads Nation In Share of Distressed Mortgages

New Jersey is among several ‘judicial’ states in the US that process foreclosures in the court system. This judicial review provides a layer of protection for struggling homeowners, giving them more time to avoid foreclosure by working out loan modifications or by selling their homes via a negotiated settlement called a short sale. One consequence of this policy is much higher numbers of New Jersey homes in active or pre-foreclosure. The actual number of distressed homes varies enormously from city to city within New Jersey based on income and unemployment levels as well as local housing demand. The higher number of distressed homes also provides buying opportunities for savvy buyers and investors. -Gerald Click here for the original article!

Housing Inventory Continues to Fall

Housing inventory is low in many real estate markets across the US now due to a number of factors: 1) many homeowners who bought or refinanced at the height of the real estate market are still upside down on their mortgages which prevents them from selling without doing a short sale 2) there is still substantial “shadow inventory” from unresolved pre-foreclosures particularly in states like New Jersey that adjudicate foreclosures in the court system 3) Many builders are reluctant to start new construction projects because of fear of tepid demand -Gerald Click here for the original article!

Why We Fall in Love—With Houses

It is often said that people make buying decisions with emotion and then justify them with logic. This is especially true for home purchases. This unfortunate tendency can be particularly destructive if you fall in love with a property that is intended strictly for investment and end up overpaying for it. Emotions must be held in check, and subdued with cold, calculated, logic when you are making buying decisions on investment property. -Gerald Click here for the original article!

Wealthy Americans Pick Real Estate As Best Investment For 2014

Real estate has always been a predictable way to build wealth. Real estate is also a good hedge against inflation. Other financial benefits of real estate investing include cash flow, tax benefits and leveraged asset appreciation. After a banner year on Wall Street, it shouldn’t surprise anyone that many stock investors are taking some of their profits off the table and looking to park them in a real, tangible asset like real estate. -Gerald Click here for the original article!

Welcome Relief for Homeowners, Then the Tax Bill

We’re still anxiously awaiting Congress’ extension of the Mortgage Forgiveness & Debt Relief Act (MFDRA) for 2014. I am optimistic that Congress will extend the MFDRA to provide relief to homeowners. Even without the extension of the MFDRA, the IRS allows exceptions that may eliminate any tax burden after the cancellation of mortgage debt. Ask your accountant about IRS Publication 908. -Gerald Click here for the original article!

The Forecast For Housing in 2014: Higher Prices, Rates

It’s anyone’s guess where rates or housing prices are going to go over the next year. You don’t need to be Nostradamus, you need to be like Macgyver. The key is to try to be as prepared as you can for whatever the market throws at you. Mortgage rate increases will definitely reduce the amount of house you can buy—about a 9% reduction in purchase potential for every 1% mortgage rate increase. You should also consider non-traditional sources of financing, like seller financing, financing from private individuals and ‘hard money’ lenders for short term real estate rehab projects. It’s not one size fits all—the type of financing you’ll need or can qualify for will depend on the amount of time […]

Real Estate: Look For Value in 2014

Look for value in 2014? You should ALWAYS look for value in real estate or any other investment you make! As billionaire investor, Warren Buffet once said, “Price is what you pay and value is what you get; if you’re a smart investor, the first will always be less than the second.” You should never change your basic investing criteria based on what ‘the crowd’ is saying. You make your money in real estate when you buy—when you buy at a discount, your profit is baked in from the start. If there is less housing inventory and more competition out there, then you may have to make more purchase offers and wait a little longer to get a good deal. […]

It’s The Price That Sells a Home

Correct pricing is critical to selling a home at the highest possible price. When the asking price is too high, your house will only help sell other houses in your neighborhood. The more you overprice a property, the more likely you are to eventually sell it below market value. If you want to sell, you should price your house to attract as many buyers as possible. The more buyers that come to see your home, the more they will compete for your house, which will drive your sales price up. -Gerald Click here for the original article!

Gerald’s Article Insights: Real Estate in 2014: A Need-to-Know Guide

Although mortgage rates remain at historic lows, lending standards for home buyers remain stringent. New regulations intended to prevent risky mortgages from entering the market will keep underwriting standards strict. With average FICO credit scores for conventional loans well above 700, establishing and maintaining good personal credit has never been more vital to obtaining a mortgage loan. -Gerald Click here for the original article!

Gerald’s Article Insights: Fannie, Freddie Give Non-Investor Home Buyers ‘First Look’ Period

Fannie Mae and Freddie Mac are giving first time homeowners an additional 5 day head start on investors to make offers on some of its properties. First time homeowners now have 20 days with no competition from investors to view houses and submit bids. Some of the property listings also come with attractive mortgage terms like 5% down payments and no mortgage insurance. Fannie Mae’s listings can be found on homepath.com and Freddie Mac’s listings on homesteps.com. -Gerald Click here for the original article!

Gerald’s Article Insights: NJ Foreclosure Pipeline Clogged

‘Judicial’ states like New Jersey and New York that require home foreclosures to go through the court system normally have more houses in the foreclosure pipeline and usually require more time to resolve mortgage defaults. Homeowners who fall behind on their mortgage in these states have more time to find the most knowledgeable and experienced people to help them resolve their financial hardship. -Gerald Click here for the original article!

Gerald’s Article Insights: Underwater Homeowners Could Face Extra Tax Burden in 2014

The Mortgage Forgiveness and Debt Relief Act has provided tax relief to homeowners upside down on their mortgage facing foreclosure who would otherwise have owed taxes on forgiven mortgage debt. The original Mortgage Forgiveness and Debt Relief Act was introduced in Congress in 2007 and after first expiring in 2009 has been extended by Congress each year since 2009. The Act expires again this month (January 2014). With millions of homeowners around the country still upside down on their mortgage and facing foreclosure, hopefully Congress will extend the Act again for at least another year. -Gerald Click here for the original article!

Gerald’s Article Insights: 7 Ways to Stage Your Home For This Holiday Season

Staging helps make a home easier to sell because people buy on emotion and staging makes it easier for potential buyers to picture themselves in a home. When staging, little things matter (odors, appearance and lighting all count). Also, less is often more—you don’t have to go overboard furnishing every inch of a home, just the basics, neat and presentable—it’s a good idea to leave enough empty space for your buyers to imagine their belongings in the house. -Gerald Click here for the original article!

Gerald’s Article Insights: Home Equity And The Five-year Rule

It’s a good idea to have at least one exit strategy when you buy any asset especially one as expensive as a house. Nobody can predict the future, but you can and should think about how you would deal with a job transfer, job loss, an extra mouth to feed or some other unexpected life event. If you had to sell, do you have enough money to pay closing costs and transfer fees? Would you be able to rent your property if you needed to? If so, what is the current market rent and would the monthly rent cover your mortgage payment and other housing-related expenses? There are no guarantees in life, but in real estate as with most financial […]

Gerald’s Article Insights: Unrecorded Mortgage From ‘Bank of Mom’ Fails to Qualify for Interest Deduction

Your mortgage must be secured and recorded to be tax deductible. If you borrow from a big financial institution to buy a home like most of us do, you shouldn’t have to worry about your lender making sure their collateral is safe and your interest payments are deductible. Your lender should send you a statement every year indicating the amount of mortgage interest you paid—it’s a good idea to check that statement to make sure it matches the scheduled interest to be paid for that year on your mortgage loan’s amortization schedule. There are some politicians who have recently suggested we reconsider the powerful mortgage interest deduction that property owners benefit from. Eliminating or restricting the mortgage interest deduction would […]

Gerald’s Article Insights: How Cash Income Can Cost You When Applying for a Mortgage

In addition to bank account cash deposits, you must be careful about all your credit card purchase activity for the few months before you close on your mortgage. A big purchase like a car for example, may affect your debt-to-income ratio which could derail a mortgage approval. As a precaution and part of your mortgage planning, I suggest you ask your mortgage broker or banker exactly what activities may spoil your mortgage confirmation; avoid all those activities until your mortgage is approved AND funded! -Gerald Click here for the original article!

Gerald’s Article Insights: “How Much Should You Save to Buy a House?”

The ultimate cost of owning a house unfortunately goes well beyond the initial money required to purchase a home. There are regular maintenance, upkeep and replacement costs you’ll have to pay for over time, particularly if you do not purchase a new home. Home ownership is a worthy goal and in order to maintain your home, make certain you put aside enough reserves to pay for unexpected repairs and replacement of major items like a roof. In order to do this, it’s a good idea not to spend your last dime when you purchase your property–leave some money left over for unanticipated costs which almost always occur. -Gerald Click here for the original article!

Gerald’s Article Insights: Now Americans Are Going Crazy About Tiny ‘Micro’ Apartments

The new micro-housing trend seen in cities across America underscores broader demographic changes that will affect the US economy and urban real estate markets for many years to come. More than 2/3rds of all households have no children and housing demand in general is becoming more concentrated in areas where there are jobs. In addition, people are living longer and seniors normally require less living space after they retire. Smaller households require less living space which is why this micro-housing trend will continue. -Gerald Click here for the original article!

Gerald’s Article Insights: Congress Urges Loan Limits Stay Put

This letter sent by 13 Senators, one of whom is my Senator from New Jersey is a welcome sign that at least some of our representatives in Congress are paying attention to something other than raising money to get re-elected. While encouraging private growth in the mortgage market is an admirable goal, as the saying goes: the road to hell is paved with good intentions. Lowering the Freddie Mac and Fannie Mae loan limits may turn out to be a dangerous experiment that we can ill afford right now in the middle of an encouraging yet fragile real estate recovery. -Gerald Click here for the original article!

Gerald’s Article Insights: “Your Credit Score Needs to be This Good to Get a Mortgage”

Your credit score has an enormous influence on your ability to borrow money to buy a home or even to qualify to rent an apartment. Your credit score also has a profound impact on many other aspects of your life like the qualifying to get a job, qualifying to get student loans, car loans or credit cards as well as the amount of interest you’ll ultimately pay on those loans. There’s only one true credit score that is used by lenders to decide whether you qualify for a home loan, a car loan or some other kind of credit–that one true credit score is your FICO score; FICO stands for Fair Isaac Corporation. Proof of the fact that your FICO […]

Gerald’s Article Insights: “Foreclosures dog even wealthiest home buyers”

Defaulting on your mortgage payments is rarely what you have in mind when you buy a property—but if you don’t have the money, then you can’t pay. As the saying goes, you can’t get blood from a turnip. The good news for people who did default on their mortgage during the financial crisis is that there are lots of other people who found themselves in this identical position. With millions of people in the same unfortunate situation, it’s in the best interest of both banks and the federal government to find a responsible way to lend to previously foreclosed-upon homeowners who have since recovered financially. It will most likely take more time and require more paperwork to get approved for […]

Gerald’s Article Insights: Real Estate Matters | “Why You Need a Home Inspection Contingency”

You should always have a home inspection contingency in a real estate contract you sign to protect yourself from unforeseen problems with a property like termites, a leaky underground oil tank or major structural defects. In a hot real estate market where there is lots of competition between buyers, people often get frustrated are often tempted to cut corners just to win a bid and make a home purchase–this is a huge mistake that may come back to haunt you later. You have the most control in a transaction when you buy, if you waive the inspection contingency in real estate contract you sign, you may end up stuck purchasing a property with major problems that make the property uninhabitable […]

Gerald’s Article Insights: “Why Real Estate Could Be the Next Hot Investment, Even Now”

Real estate is always a good investment if you know what you are doing regardless of whether the writer of this article says it’s the next hottest investment or not. Also, you should not use averages and macro trends like # of housing starts or # of new permits to make an individual real estate buying decision. There are people who make money and people who lose money in EVERY real estate market–you just want to make sure you are one of the former. The writer does give two good pieces of advice: 1) “Investors should should filter opportunities based on the project partner and project’s ability to generate yield & 2) investors should come in with an understanding that […]

Gerald’s Article Insights: “5 Red Hot Housing Markets”

Headlines like RED HOT HOUSING MARKETS are compelling and attention-grabbing, but it’s important not to lose sight of the fact that banks are still saddled with tons of foreclosures and pre-foreclosure properties. Because there are still so many homeowners upside down on the mortgages or behind on their mortgage payments, banks are deliberately manipulating housing inventories giving the impression that a housing recovery is happening. Ultimately, income drives everything and a long sustained housing recovery is not going to happen until the economy and people’s incomes start rising again. Do your homework and get intimately familiar with your local real estate market because every residential real estate market is different—each local market has its own property characteristics, its own regulations […]

Gerald’s Article Insights: “FHA gifts prior offending homeowners a shortened wait to purchase another home”

By the reducing the waiting period for a government-backed mortgage, this new FHA rule change represents a huge benefit to homeowners who’ve experienced financial hardship and found themselves unable to meet their mortgage obligations. The welcomed change incentivizes homeowners in mortgage default to resolve their current financial hardship quickly rather than languishing in pre-foreclosure limbo. The rule change should help homeowners in crisis to get back on the road to financial solvency and homeownership more quickly which is a boon for the real estate industry, the banking industry as well as the overall US economy. -Gerald Click Here to Read The Original Article!

Gerald’s Article Insights: “HOA Horrors and How Not to Fall Victim to Them”

Proper due diligence is critical to making wise real estate buying decisions. While nobody can predict the future, you should always take the time to do your homework before you sign a purchase contract to buy real estate. Unexpected surprises that can affect your property are not limited to homeowner association documentation. Towns, gated communities and condominium associations may also have rules or ordinances that can have an enormous impact on your real estate investment. Here are 5 additional questions you should answer before you buy a property: 1. Are there any deed restrictions on the property you want to purchase? (Control) 2. What is crime rate in your property’s neighborhood? Are there any registered sex offenders in the neighborhood? […]