Nov. 5, 2009 - US Senate passes tax credit extention

Credit would extend into next year

In a US Senate vote of 98-0, legislation tied with extending unemployment benefits passed today that would also extend first-time buyer tax credits into the new year. The House of Representatives joined the Senate in passing the legislation, today. This legislation would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30. The Senate's bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would also apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.  The bill now goes to President Obama for his signature.  Click here to read more.

This is the stimulus needed in the local housing sector that will not only encouage first time buyers but add incentive for current homeowners to move-up to larger homes. Congress should be applauded for today's actions. 

Nov. 3, 2009 - Possible Good Tax Credit News

Home owners tax credit could be expanded

Yesterday, Businessweek reported that the Senate is expected this week to pass an extension of the credit that was originally going to expire Nov. 30. Buyers who sign a purchase agreement by April can now claim the credit.

The extension will apply to higher income buyers. Previously the credit was available to individual filers making $75,000 a year or less. For couples the limit was $150,000. The new income limit will be $125,000 for individuals and $225,000 for couples.   There’s also something in for move-up buyers.  For the complete story go to: http://tinyurl.com/yjdv78l 

Source: Businessweek     

Oct. 27, 2009 - First-time home buyers are driving activity

Existing Home Sales Bounce Back in September

Lawerence Yun, National Association of Realtors® chief economist, said favorable conditions matched with a tax credit are boosting home sales.

Oct. 13, 2009 - House bill would extend tax credit for some

First-time homebuyers serving overseas in the military get help

The House of Representatives has voted to extend the popular $8000 first time home buyers tax credit to military personnel who are currently serving overseas.

H.R. 2562 amends the Internal Revenue Code of 1986 to extend the $8,000 first-time homebuyer credit for one year for members of the Armed Services of the United States serving outside the United States at least 90 days during 2009.  

The bill would also prohibit the IRS from "recapturing" the $8,000 credit when service members are forced to sell or rent out their houses because they are ordered to deploy to a different duty station, overseas or inside the country.  Currently, buyers who obtain the credit must use their houses as a principal residence for 36 months or repay the credit to the IRS.

From here, the action now moves to the U.S. Senate, which must also pass the measure before the bill can be signed by the president. Aside from other qualifying requirements, first time buyers must close on the home purchase before midnight December 1, 2009.  To read more click here

Oct. 7, 2009 - Where Americans pay the most to live

A surprise to some, it's not in New Jersey

While New Jersey residents rates highest with an overall tax burden, a Forbes.com survey sights San Jose, California as the location where Americans pay the most to live.  For a comparison table of state and local tax burdens go to the Tax Foundation's Special Report No.163 published in August 2008.

Sep. 18, 2009 - 1.4 million used home tax credit

Century 21 Moretti's Home Buyers' Public Open House

It was reported in today's USAToday that the U.S. tax authorities said 1.4 million taxpayers have already used the $8,000 tax credit for first time buyers. If you qualify as a prospective first time buyer you should know that only 73 days remain to qualify before the credit expires midnight on December 1, 2009. According to the report, the White House is considering an extension to the program. However, there are no guarantees and no one knows if the benefits will be reduced or increased to include all homebuyers or remove income limits. The time to act may be now.

Century 21 Moretti Realty will be conducting a First Time Buyer's Open House, Wednesday, September 23, 2009 at it's Somerset office location; 852 Easton Avenue between the hours of 11 AM and 6 PM. All are invited to stop by to learn more about the home buying process and the $8,000 tax credit for first time home buyers. Bank of America will be available to offer mortgage counceling and prequalify prospective buyers. Realtors will also be available to assist homeowners with a free Comparative Market Analysis (CMA) and answer questions concerning local market conditions. Unrepresented home sellers (FSBO) are welcome to attend to learn how paying a commission may put more money in your pocket. 

Various workshops will be available. Homeowners in need of financial assistance may wish to learn about the state sponsored Housing Assistance Recovery Program (HARP). Refreshments will be served.

For more information send email to: mjadams@century21.com or call directly at: 908.583.0409.

Sep. 7, 2009 - Trading up in today's housing market

One New Jersey couple's story

One couple gives their story of trading up to a larger home and how they benefited using a Realtor that they met while attending an open house.

Here, in Franklin Township, there are currently fifty-two (52) active listings for homes with a minimum of 3 bedrooms between $352,000 and $449,900.

Does moving up make sense for you? Only you can answer that question, but the answers to these might help you decide.

Aug. 18, 2009 - Home buyers' top amenity may surprise you

Broadband service tops the list among current users

A national study of U.S. broadband consumers by RVA LLC Market Research and Consulting shows that 82% of those buyers who have had broadband service over fiber all the way to the home rank it as the leading real estate development amenity. Four other key prospective features ranked lower among buyers shopping for a new home. In another RVA study, very high-speed Internet-such as over fiber-ranked second only to landscaping and setting on a list of 23 amenities, ahead of features such as pools, home automation, shops, a fitness center, a dog park, a golf course, Wi-Fi at the pool area, day care or concierge services. 

Aug. 12, 2009 - NJ housing recovery linked to first-time buyers

NJAR reacts to NAR's report

The New Jersey Association of Realtors (NJAR) in a press release reacted to the National Association of Realtors (NAR) findings that first-time buyers are the key to a successful recovery of the NJ real estate market.

Reacting to the (NAR) 2009 Second Quarter Metropolitan Statistical Area (MSA) Home Prices/State Resales report, NJAR's Executive Vice President Jarrod C. Grasso said, “the home price data signifies an unprecedented opportunity for home purchasers, particularly first-time buyers. Single family homes, apartment and condominium units are more affordable now than they have been in years.”

“Signs of vibrant activity are evident in the New Jersey resales statistics,” added Grasso. Although sales in the Garden State are 10.8 percent lower than they were in the second quarter of 2008, the seasonally adjusted, second quarter 2009 rates are up 11.8 percent from the first quarter of this year. This shows that buyers are entering the marketplace, thus lowering the inventory and driving up demand.

Though median sales price data indicates levels below those of a year ago, nearly all MSAs that cover New Jersey showed an increase in the second quarter of 2009 when compared to the first. Increasing prices paired with slight rises in interest rates signify that market stabilization is under way. Grasso commented, “The time to act is now, since prices may continue this strong, upward trend. We also anticipate sales to increase in the coming weeks and months as more buyers complete their first purchases in time to receive the tax credit.”

To view a video of NARs Economic Report click here

As the clock winds down to expiration of the $8,000 federal tax credit at 11:59 p.m. on November 30, 2009, the opportunity lessens for financially capable first-time buyers to capitalize on the market and obtain the homes of their dreams.

Reported to you, first, in my August 5th posting, How the new regulation Z may affect U, I still encourage first-tme buyers looking to benefit from the $8,000 tax credit to act sooner rather than later to begin the process of procurrining a mortgage and finding a home. The tax credit expries. 

Aug. 5, 2009 - How the new "Regulation Z" may affect "U"

Consumer disclosures and the Truth in Lending Act (TILA)

Regulation Z" is a federal regulation requiring creditors to provide full disclosure of the terms of a loan including the terms or the loan and the annual percentage rate (APR). Changes that became effective July 30, 2009 requires that lenders must comply with new rules under the Truth in Lending Act (TILA) as required under the Mortgage Disclosure Improvement Act (MDIA) which was part of  The Housing and Economic Recovery Act of 2008.

These changes are expected to slow the timeline for obtaining a new mortgage or refinacing to a minimum of two months - at best.  There are some predictions the new reality might be a timeline of up to four months.  This is because it is anticipated that many lenders may add their own time restrictions as a safety precaution against violating the new waiting periods and thereby cause additional delay to the mortgage process. Failure of lenders to adhere to the proper waiting periods for certain disclosure items resets the waiting period requirements.  In addidtion, new changes in Reg Z may result in higher lender costs which are likely to be passed on to borrowers.

Here is a summary of the changes*:    The new requirements apply to all mortgages secured by a borrower’s home, including primary and second homes and refinancings. Investor loans continue to be exempt. 

• Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.

• The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.

• Consumers may shorten or waive the 3 day and/or 7 day waiting periods for a “bona fide personal financial emergency,” but only after receiving an accurate TILA disclosure.  In the final rule’s preamble, the Fed stated that it “believes waivers should not be used routinely to expedite consummation for reasons of convenience.” The Fed decided not to insulate lenders from liability even where a consumer modifies or waives the waiting periods.

 • If the annual percentage rate (APR) changes by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan. The APR includes not only the interest rate on the loan but certain other costs related to settlement, so it will be important for any fees that affect the APR to be as accurate as possible, as early as possible, to minimize the need for a corrected TILA. 

Source: National Association of Reators (NAR)

Aug. 1, 2009 - Soon - First NJ Property Tax Rebate Checks

Seniors and the disabled are first to get 

According to Govenor Corzine's office, senior and disabled homeowners in New Jersey will soon receive state Homestead Rebates averaging about $1,300.  State Treasurer David Rousseau said three groups will be receiving their checks in coming days - elderly and disabled homeowners, elderly and disabled tenants, and other tenants with low incomes.

Applications for rebates for other households eligible for rebates, those with incomes below $75,000, were being mailed this week and are due September 1st.  Homeowners with incomes between $50,000 and $75,000 will receive checks averaging about $700, while those with incomes below $50,000 will receive rebates averaging $900. Those payments will be issued in October. 

For more details on the program, homeowners should call (888) 238-1233 while tenants should call (888) 213-8623, or go to www.state.nj.us/treasury/taxation.

Jul. 23, 2009 - Good news about home sales

Sales of existing homes rose in June

WASHINGTON (Reuters) - The National Association of Realtors (NAR) said sales of existing homes in June rose 3.6 percent to an annual rate of 4.89 million units, compared with a downwardly revised 4.72 million pace in May.  The NAR said it was the first time the industry had experienced three straight months of gains in existing home sales since early 2004.

"Overall, the news is positive. We have increasing home sales for the third straight month, declining inventory and although prices fell, they declined at a less steep pace," Lawrence Yun, NAR chief economist, told a press conference. "The housing market is healing after four years of recession," he said.  Read more.

Jun. 11, 2009 - Good news on New Jersey foreclosures

A steep drop seen in May

The Star-Ledger reported yesterday that foreclosure action on homes in New Jersey dropped more than 40 percent in May versus the same period the year earlier.  "New Jersey continues to have proportionally fewer homes affected than the rest of the country. Hunterdon and Somerset counties proportionally had the least number of homes affected, while Union, Sussex, Essex and Atlantic counties saw the greatest proportion of homes with notices." 

Time will tell if this is a trend that will help to reduce housing inventory and stabilize pricing.  Read more.

Apr. 28, 2009 - 2nd mortgage borrowers to get help

US to pay off mortgage investors

Mortgage servicers that own a small stake in costly loans will receive a cash payment to either erase the debt or agree to accept a reduced return on their investment. 

Tuesday's announcement will build on President Barack Obama's housing rescue plan announced in February that aims to reduce the cost of homeownership for up to 9 million borrowers straining to make their monthly payments. (Read more)

Apr. 27, 2009 - Tour De Franklin a Success

Good weather brings out crowds

Tour De Frankin is an annual community event to raise funds for the Franklin Township Food Bank. The routes were designed for all levels of expertise and physical abilites.

Fore more information about the Franklin Township Food Bank and how to give click here

Apr. 15, 2009 - Is now a better time to buy a home?

78% of buyers say...Yes!

Potential first time home buyers surveyed in March, 2009 by Century 21 say that mortgages are now affordable by 72%.  According to the findings the features that first time buyers look for when choosing a home is price. It is the primary consideration with 87 percent saying this feature is "very important," followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent).  Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are "very worried" about the issue. 

In addition to affordable home prices and mortgage rates, the survey also showed strong interest in taking advantage of the recent government stimulus. More than three-quarters (77 percent) of potential first-time home buyers say they are more likely to buy a home in the next six months because of the $8,000 first-time home buyer tax credit offered in the American Recovery and
Reinvestment Act of 2009.

Most respondents (86 percent) are in the market for single family homes. Tom Kunz, Century 21 President/CEO is interviewed on CNBC.

Apr. 1, 2009 - NJ forclosures 34th in nation

Foreclosure Rates drop in February

Some credit  for the drop in foreclosure rates is being given to Govenor Corzine's signing of the Mortgage Stabilization and Relief Act, in January.

Mar. 25, 2009 - Century 21 Moretti Realty comes to Franklin Township

Century 21 Moretti Realty and Century 21 Our Town Realty join forces

Earlier today the Century 21 offices of Moretti Realty and Our Town Realty joined forces for the purpose of expansion.  The new entity will be known as Century 21 Moretti Realty with office locations at 225 Maple Ave, South Plainfield and 852 Easton Ave, Somerset, New Jersey.

With combined sales of $135 million and 75 sales associates, the company will be among the top Century 21 companies in the State of New Jersey.  Century 21 Moretti will be servicing Middlesex, Somerset, Hunterdon, Union, Mercer and Monmouth counties.  Toni Moretti, co-owner, said "The cultures of both companies compliment one another while our combined strengths offer our customers more marketing resources."  

I couldn't agree more with Toni Moretti. Building upon the strengths of these two well established and respected companies will only serve to benefit our customers and clients.  I am excited by this announcement and by the new opportunities it will bring me to provide greater services to you.

Mar. 18, 2009 - Fed's actions may lower rates

Is it time to refinance?

Literally, time will tell.  Possibly as early as tomorrow mortgage rates may reflect the Federal Reserve's stunning plan to buy up to $300 billion of long-term government bonds and $750 billion in additional mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. The national average rate on 30-year, fixed mortgages was 5.15% on Wednesday, according to financial publisher HSH Associates, up slightly from a day earlier. Rates could drop up to .50%.

Here are two ways refinance may benefit you:

As homeowner #1 - A long time home owner with a mortgage balance of $87,800 might save more than $26,800 in interest charges over the life of the loan by refinancing from 5.75% to 4.75% and reducing the loan from 30 years to 20 years.  In this scenario, the monthly payment would actually increase approximately $7.40 a month while paying 2 points at closing.    You would need to stay in your current home for at least 24 months in order to yield savings.  That's how long it will take for the monthly interest savings to offset the closing costs attributable to refinancing.

As homeowner #2 - Using the same basis numbers of a remaining $87,800 balance with a rate reduction of 5.75% to 4.75% and paying 2 points at closing but refinancing for 30 years the monthly savings would be approximately $102.  However, you would pay an additional $1,885 (approx.) in interest charges over the life of the mortgage.

Consult your financial or mortgage advisor to see how refinancing may benefit you.  Compare current refinancing rates with the HSH Showcase of Lenders

With Spring just days away, homeowners may begin thinking of home improvements. if you are thing of refinancing to extract home equity to improve your home's energy efficiency you might be eligible for up to a 30% tax credit.  For more information, visit EnergyStar.gov

Mar. 13, 2009 - Corzine Budget Hurts Property Owners

Save the Homeowners tax deduction  

Governor Jon Corzine, to a joint session of the New Jersey Legislature, announced plans to eliminate the ability for all non-senior households, regardless of income, to deduct property taxes from their state tax filings. 

At a time when the global economic crisis weighs heavy on the minds of Garden State residents, this proposal is counterproductive and will hinder recovery efforts.  The loss of the deduction will make it even more difficult for families struggling to afford to stay in their homes.

This is impotant for homeowners and future homeowners, alike.  Please join with me and let our state representatives know that this ill conceived plan is unacceptable.   

To learn more about this issue now, Click here to take action.  Please share this posting with neighbors, family, friends and co-workers. 

As the leading advocate for homeowners and the real estate industry in the state, the New Jersey Association of REALTORS (NJAR) is adamantly opposed to this proposal.