Real Estate Information

This week in the NY Times, Antoinette Martin writes that Housing Affordability Improves in New Jersey.  That's great news for buyers.  Inventory is rising and prices are still falling.  On the flip side, it's not good news for sellers.  According to Jeffrey Otteau, of the Otteau Valuation Group, prices are still falling at a rate of 1% per month.  People who bought in the years 2004-2006 who need to sell now, could be facing big losses.  In Montclair NJ, we are seeing more houses  listed below the price they were purchased for.  For example, 394 North Fullerton Ave, is listed for $715,000; it sold for $841,000 in 9/2004.  218 Christopher Street, which was under contract, is back on the market for $999,000; it sold for $1,100,000 in 9/06.  The housing market had been strong in Montclair for so many years, it is difficult for many sellers to come to grips with the new reality.  Those who really need to sell will market their homes aggressively; the unmotived will probably overprice and languish on the market. 

Things are tough in New Jersey.  With a budget shortfall of 5 billion dollars, there is bound to be a lot of unhappiness all around.  Jon Corzine announced this week a number of proposals, including eliminating the property tax deduction for state income taxpayers and greatly reducing the number of people eligible for homeowner rebates (The Jockeying Begins on Plan for Fiscal Pain).  The New Jersey Association of Realtors (NJAR) came out strongly against the plan in a March 10th Press Release: NJ REALTORS^®: BUDGET PROPOSAL IS AN ASSAULT ON PROPERTY OWNERS and is asking homeowners to take action by sending a letter to Jon Corzine opposing the plan (Take Action: Oppose Elimination of Property Tax Deduction). No homeowner is going to like this approach---but let's hear about some viable alternatives!

The long awaited stimulus plan, The American Recovery and Reinvestment Act of 2009,  was signed into law yesterday.  It includes an $8,000 tax credit for first time home buyers, which is $500 more than tax credit already in place.  This tax credit does not have to be repaid unless the home is sold within three years of purchase.  Here's a chart from National Association of REALTORS® detailing the modifications made to the American Recovery and Reinvestment Act of 2008.  In my opninion,  this plan falls short - including all home buyers would have had much more impact on the housing market.

 FIRST-TIME HOMEBUYER TAX CREDIT As Modified in the American Recovery and Reinvestment Act Major Modifications Italicized

Will Work For Food is a non-profit organization started by students at The University of Michigan in 2007 to raise  money for hunger relief in Darfur, by volunteering in their own local communities.  100% of the money collected is donated to Doctors Without Borders, for the purchase and distribution of nutritional supplements, such as Plumpy'nut®.  Here's how it works. Individuals or groups create a profile on the Will Work For Food website, which details the participants' community volunteer work (working at a food pantry, cleaning parks, providing assistance to the elderly, etc).  With the click of a mouse, friends & family can send a donation, to honor the work being done in the local community.  I heard about this non-profit through a friend, whose son, Ben Legman, a University of Michigan senior and Montclair High School graduate, is a Vice President of the organization.  What a great way to work in the local community and raise money to help starving children across the globe!

February 1 - Superbowl Sunday - we got a brief respite from the cold & icy winter.  Edgemont Park was packed with kids enjoying the frozen pond and playground.

Too bad it won't last!

There are still buyers out there.  Montclair remains a great place to live, with its vibrant town centers and excellent commuting options to NYC.   The pace of sales may be slower in 2009, and prices will probably be lower, but I believe that we will survive the downturn better than most.

Every day we are being barraged with bad news about the economy.  I know many people who have lost their jobs, and I'm sure that everyone knows someone who is hurting.  On the housing front, however, there is some good news.   Prices have come down after many years of huge increases, and mortgage rates are unbelievably low --you can find loans under 5.5% with no points, and there is talk of the rates going even lower. For those with job stability and the desire to own a home,  it really is a great time to buy here in  Essex County NJ.

Take a look at the New York Times Article,  It May Be Time To Think About Buying  a House.

Here in Montclair, NJ, we are lucky enough to have two independent community bookstores, the Montclair Book Center. and the Watchung Booksellers. Entering the 15,000 square foot Montclair Book Center, customers are transported back in time. Worn wood floors, a tin ceiling, gentle lighting and floor-to-ceiling bookshelves stocked with new and used titles, create an inviting space for browsing. 

The Watchung Booksellers also carries a large selection of books, as well as toys & gifts.  With a knowledgeable and helpful staff, always happy to give recomendations, it's a place where customers visit time and time again.  There are frequent author readings & booking signings, often by local authors,as well as an inhouse bookclub.   

See New York Times article - NEW JERSEY AT ITS BEST;Somtimes You Need To Curl Up With A Good Bookstore