Flanagan Realty’s Blog

Monthly Real Estate Market Report for Toms River, NJ – December 2009
December by the numbers:

• 56 The number of Single Family Homes CLOSED during the month

• $387,928 Average LIST price for December*

• $354,078 Average SALES price for the month*

• 109 Average DAYS ON the MARKET for December

• 91.27% The SALES price to LIST price RATIO for the month

• 686 Number of Single Family Homes ACTIVE on the market in December

• 12.25 Number of MONTHS it would take to SELL OFF the existing supply of homes on the market, in Toms River, at this rate, if NONE were to come on the market!

December 2009 saw 56 Single Family Homes CLOSE in Toms River, as compared with 63 in December of 2008. THIS MARKS THE FIRST MONTH, IN THE LAST 6, WHERE SALES HAVE NOT SURPASSED THE SAME MONTH OF THE PREVIOUS YEAR! Of those 56 homes, 20 were in the price range of $200,000 to $299,999 (36%). Clearly, the $8,000 Tax Credit for First Time Homebuyers resulted in the gains in this particular price range during 2009!

*These averages include Single Family Homes from the beach communities of Ortley, Normandy and Ocean, etc. This may result in “higher than actual” averages for Toms River, NJ’s Monthly Real Estate Market Report.

Monthly Real Estate Market Report for Toms River,

 NJ – November 2009

November by the numbers:

• 68  The number of Single Family Homes CLOSED during the month
• $322,726  Average LIST price for November* 
• $303,988  Average SALES price for the month* 
• 87  Average DAYS ON the MARKET for November
• 94.19%  The SALES price to LIST price RATIO for the month
• 714  Number of Single Family Homes ACTIVE on the market in November
• 10.50 Number of MONTHS it would take to SELL OFF the existing supply of homes on the market, in Toms River, at this rate, if NONE were to come on the market! 

November 2009, saw 68 Single Family Homes CLOSE in Toms River, as compared with 47 in October of 2008.   THIS MARKS THE FIFTH MONTH IN A ROW; WHERE SALES HAVE SURPASSED THE SAME MONTH OF THE PREVIOUS YEAR!   Of those 68 homes, 33 were in the price range of $200,000 to $299,999 (48%).  Combined with the CLOSINGS from the First 3 Quarters of 2009, this represents an INCREASE in SALES of 49%, in this particular price range, over the same time last year! 

*These averages include Single Family Homes from the beach communities of Ortley, Normandy and Ocean, etc.      

On November 6th, 2009, President Obama signed, into law, legislation extending and expanding the Homebuyer Tax Credit.

What does this mean for “First Time Home Buyers”?

What does this mean for “Move Up” Buyers?

Let’s see, shall we:

October by the numbers:

·     70  The number of Single Family Homes CLOSED during the month

·     $382,092  Average LIST price for October*

·     $356,125  Average SALES price for the month*

·     120  Average DAYS ON the MARKET for October

·     93.20%  The SALES price to LIST price RATIO for the month

·     737  Number of Single Family Homes ACTIVE on the market in October

·     10.52 Number of MONTHS it would take to SELL OFF the existing supply of homes on the market, in Toms River, at this rate, if NONE were to come on the market!

October 2009, saw 70 Single Family Homes CLOSE in Toms River, as compared with 58 in October of 2008.   THIS MARKS THE FOURTH MONTH IN A ROW; WHERE SALES HAVE SURPASSED THE SAME MONTH OF THE PREVIOUS YEAR!   Of those 70 homes, 28 were in the price range of $200,000 to $299,999 (40%).  Combined with the CLOSINGS from the First 3 Quarters of 2009, this represents an INCREASE in SALES of 41%, in this particular price range, over the same time last year!

*These averages include Single Family Homes from the beach communities of Ortley, Normandy and Ocean, etc. 

September 2009 MARKED the 3rd consecutive month that sales of single family homes, in Toms River, NJ, exceeded the same month of the previous year! Given the fact that this past September also MARKED the one year anniversary of the collapse of FREDDIE MAC and FANNIE MAE, we must acknowledge the influence of the $8,000 Tax Credit for “First Time Home Buyers”, despite what some political pundits may believe!

September by the numbers:

• 61 The number of Single Family Homes CLOSED during the month

• $364,011 Average LIST price for September*

• $342,037 Average SALES price for the month*

• 96 Average DAYS ON the MARKET for September

• 93.96% The SALES price to LIST price RATIO for the month

• 754 Number of Single Family Homes ACTIVE on the market in September

• 12.36 Number of MONTHS it would take to SELL OFF the existing supply of homes on the market, in Toms River, at this rate, if NONE were to come on the market!

September 2009, saw 61 Single Family Homes CLOSE in Toms River, as compared with 59 in September of 2008 (a slight increase but an increase none-the-less)! THIS MARKS THE THIRD MONTH IN A ROW; WHERE SALES HAVE SURPASSED THE SAME MONTH OF THE PREVIOUS YEAR! Of those 61 homes, 24 were in the price range of $200,000 to $299,999 (39%). Combined with the CLOSINGS from the First 3 Quarters of 2009, this represents an INCREASE in SALES of 38%, in this particular price range, over the same time last year!

*These averages include Single Family Homes from the beach communities of Ortley, Normandy and Ocean, etc.

Courtesy of Rick Deluca, the following information illustrates the impact a single existing home sale has on the economy. Further evidence that until the housing market recovers, the economy cannot recover!

Perhaps you’ve heard about how a home sale impacts the local economy in many ways. Well, here is a study completed you may find useful.

The Economic Impact of an Existing Home Purchase:

The National Association of Realtors® estimates that each home sale at the median generates $63,101 of economic impact (2008). Impact of Single Existing Home Purchase
Median Price $198,100

Real Estate Industries Furniture Multiplier New Housing Total
$ 17,829 + $ 5,331 + $ 11,117 + $ 28,825 = $ 63,101

Real Estate Industries: We assume that commissions, fees, and moving expenses, or income to real estate industries, associated directly with the purchase are about 9 percent of the median home price1.

Furniture: Furniture and remodeling expenses are a little more than $5,000 based on a Harvard Joint Center for Housing Studies figure.2

Multiplier Effect: The multiplier effect accounts for the fact that income earned in other sectors of the economy as a result of a home sale is then re-circulated into the economy. The National Association of Realtors®’s macroeconomic modeling suggests that the multiplier is between 1.34 and 1.62 in the first
year or two after an autonomous increase in spending. This means that each dollar increase in direct housing activity will increase the overall GDP by $1.34 to $1.62.

New Housing: Because existing home sales have historically been associated with new construction at a ratio of eight to one, we add in one-eighth of the new home price3 to approximate the value of this construction being added to GDP. The existing home price is not directly added to the economy because the home was produced or constructed in the past. Only the value-added service related to the sale of an existing home is included. When a new home is constructed, the entire price is added to the value of GDP because it is new production.

1 An annual price is used to avoid seasonal fluctuation in home prices. 2008 Median Home Price is $198,100.
2 Improving America’s Housing 2003. Measuring the Benefits of Home Remodeling. Harvard Joint Center for
Housing Studies Report: R03-1
3 2008 Median New Home Price is $230,600 per the Census Bureau.

With less than 3 weeks for “First Time Home-Buyers” to MAKE SURE they are able to take advantage of the $8,000 tax credit, it behooves me to share this video:

In order to ensure they CLOSE on their new home before the deadline of December 1, 2009, “First Time Home-Buyers” must allow 45 to 60 days for the morgage process; which only allows for 3 to 5 weeks to find and secure a contract on their home!

So…why are so many buyers still sitting on the fence?

1. Many believe the government will extend the deadline based on rumor, inuendo and misinformation.
2. Many believe they can get a better deal by waiting until the last minute.
3. And many are SCARED to DEATH!

Truth is:

As it stands today, “First Time Home-Buyers” MUST CLOSE on their home BEFORE December 1, 2009!

By waiting, they risk not only losing out on the tax credit but losing out on the home of their dreams as well!

FEAR translates as False Expectations Appearing Real!  To my knowledge, “Buying a Home” is NOT the leading cause of death for any demographic…

Media Inquiries: Call Jim Flanagan at 732-270-6100

Act Now! – Federal Tax credit for FIRST-TIME homebuyers

COLDWELL BANKER FLANAGAN REALTY Urges Potential First-Time Buyers to Allow Enough Time for Closing to Secure Tax Credit of up to $8,000

Toms River, NJ, September 8th, 2009  – The $8,000 federal tax credit for first-time homebuyers is scheduled to expire on December 1, 2009.  However, in order to qualify, the transaction must be closed on or before November 30th, essentially leaving first-time buyers with less than three months to complete the process. This assumes approximately 45 days to search for a home and another 45 days to obtain mortgage financing and complete all the necessary steps to closing, including appraisals, inspections and title work.  While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn’t have to be. 

“The tax credit is encouraging first-time homebuyers, but we’re concerned that people could miss out on this unique money-saving opportunity if they don’t anticipate the time necessary for closing,” said Jim Flanagan, Broker of Record .  “While every home purchase is a unique experience, we are encouraging first-time homebuyers to be under contract by early to mid-October in order to safely meet the closing deadline and qualify for this tax credit.”

For those first-time buyers who are in the early phase of entering into the home buying process, Coldwell Banker Flanagan Realty offers consumers the following six steps for speeding up the process:

1. Find A Qualified Real Estate Agent.  A team of experienced professionals are key to making the home buying process simple and seamless.  Start by interviewing and selecting a sales associate who understands what you’re looking for.  A real estate agent will arrange showings, and keep track of the properties visited. He / she should also be able to help indentify suitable lawyers, mortgage lenders, home inspectors and others who play a role in the process.  Remember, an agent is an expert who will negotiate the best price and incentives on a home, and will oversee the sales process on a homebuyer’s behalf.  It is critical that you get a timeline from your real estate agent so that you leave enough time for the sometimes lengthy closing process to occur.

1. Know Before You Go.  The first step in the home buying process should always be to have an idea of the type of property one wants to buy. By separating the “must haves” from the “wants,” homebuyers can focus on what’s really important.  Free online tools such as Coldwell Banker On Location (http://www.youtube.com/coldwellbanker ) and the recently launched mobile application for iPhone and Android devices are available to help consumers quickly and conveniently learn about neighborhoods, view what’s on the market and compare home prices in over most U.S. markets and 28 countries worldwide.  Homebuyers who arm themselves with as much knowledge as possible before hitting the ground with an agent are bound to save time in the long-run. 

1. Get Your Credit Report In Order.  A sound financial track record and solid credit score can help lock in a home loan and lower interest rates.  Lenders today are looking at prospective borrower’s credit reports more closely than ever so it’s important to examine one’s credit report for mistakes and eradicate any “toxic” debt such as overdue credit-card payments before the home shopping begins.  Rectifying mistakes is easy to do but it can be a time consuming process.  Checking a credit score and addressing any errors will help expedite the approval process when it comes time to make an offer. 

1. Compile Your Paperwork.  At the same time homebuyers are working to correct or improve their credit report, they should also pull together the documents they will need to provide the lender.  These documents include:

· Verification of employment form

· Two most recent pay check stubs

· Two most recent bank statements

· Copies of the last two W2 forms received from employer

· Copies of any asset statements including those for retirement accounts, stocks, bonds or mutual funds

· Copy of social security card

* If there is a co-applicant on the loan, all of these forms will be required of that person as well.

1. Get Your Pre-Approval.  Once the paperwork is in order, it’s time to get pre-approved for a mortgage.  “Pre-approval” means that a lender has verified the borrower’s credit and other credentials and is committed to making a loan.  This is different (and more valuable to sellers) than pre-qualification, which simply gives the borrower an idea of the size of the mortgage he / she might afford without actually committing to a loan. 

The borrower is not obligated to get a loan from the lender that offers the pre-approval letter but keep in mind that a pre-approval does involve giving permission for a hard credit inquiry.  This could potentially result in a small ding on the borrower’s credit report.  Getting this early green light, however, will put homebuyers in a stronger position with sellers, demonstrating how serious they are about home ownership – and that they are well-qualified. 

1. Shop for the Most Favorable Mortgage Option.  People can face misunderstandings and even lose their homes if they don’t fully understand their mortgages.  It’s imperative for homebuyers to educate themselves on the risks of the different types of mortgages and select the right one for his / her family.  Early on, shop around for the most favorable mortgage rate and terms. A difference of even half a percentage point can mean a considerable savings over the life of a loan. For more information on mortgages visit http://www.bankrate.com/mortgage.aspx. 

For additional information and provisions on the first-time homebuyer federal tax credit, contact your local Coldwell Banker Real Estate agent or visit www.coldwellbanker.com.

Flanagan Realty Inc. i.e., Coldwell Banker Flanagan Realty located at 1541 Route 37 East, Toms River, NJ 08753, can be reached at 732-270-6100 and www.FlanaganRealty.com.  Coldwell Banker Flanagan Realty has been serving the Ocean County market area for over  29 years. 

About Coldwell Banker Real Estate

Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,500 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

Photo Credit

Monthly Real Estate Market Report for Toms River, NJ - August 2009

August by the numbers: 

•·        88  The number of Single Family Homes CLOSED during the month 

•·        $399,009  Average LIST price for August* 

•·        $330,822  Average SALES price for the month* 

•·        101  Average DAYS ON the MARKET for August 

•·        95.44%  The SALES price to LIST price RATIO for the month 

•·        784  Number of Single Family Homes ACTIVE on the market in August 

•·        8.90 Number of MONTHS it would take to SELL OFF the existing supply of homes on the market, in Toms River, at this rate, if NONE were to come on the market! 

August 2009, saw 88 Single Family Homes CLOSE in Toms River, as compared with 67 in August of 2008 (an increase of 24%)!   THIS MARKS THE SECOND MONTH, IN A ROW; WE HAVE SEEN WHERE SALES HAVE SURPASSED THE SAME MONTH OF THE PREVIOUS YEAR!   Of those 88 homes, 33 were in the price range of $200,000 to $299,999 (37%).  Combined with the CLOSINGS from the First Half of 2009, this represents an INCREASE in SALES of 33%, in this particular price range, over the same time last year! 

*These averages include Single Family Homes from the beach communities of Ortley, Normandy and Ocean, etc. 

Photo by Eric Goldstein (www.olivestudio.com)

July by the numbers: 

•·        96  The number of Single Family Homes CLOSED during the month 

•·        $384,189  Average LIST price for July* 

•·        $361,420  Average SALES price for the month* 

•·        96  Average DAYS ON the MARKET for July 

•·        94.07%  The SALES price to LIST price RATIO for the month 

•·        779  Number of Single Family Homes ACTIVE on the market in July 

•·        8.11 Number of MONTHS it would take to SELL OFF the existing supply of homes on the market, in Toms River, at this rate, if NONE were to come on the market! 

July of  2009, saw 96 Single Family Homes CLOSE in Toms River, as compared with 79 in July of 2008.  THIS MARKS THE FIRST MONTH WE HAVE SEEN WHERE SALES HAVE SURPASSED THE SAME MONTH OF THE PREVIOUS YEAR!   Of those 96 homes, 25 were in the price range of $200,000 to $259,999 (31%).  Combined with the CLOSINGS from the First Half of 2009, this represents an INCREASE in SALES of 31.03%, in this particular price range, over the same time last year! 

*These averages include Single Family Homes from the beach communities of Ortley, Normandy and Ocean, etc.