Here is the list of homes that closed in Princeton in May 2010. Enjoy!
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Princeton Real Estate
by Josh Wilton
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by Josh Wilton
‘Q: On the market monitor you send out each week, you have a bunch of different economic releases on there. Which release is most important from a housing perspective and can give us a sense of which direction the market is going? Thank you.
A: We give a full sense of all the critical releases each week, as they all may impact Fixed Income directly and Mortgage Rates indirectly. In regards to your question, the index that is probably most relevant to the housing sector is the Case-Shiller Index.
The Case-Shiller Index was developed in the 1980s by three economists: Allan Weiss, Karl Case and Robert Shiller, and is distributed by Standard & Poor’s. (I guess Dr Weiss was out of the room when they were deciding on a name.) The index includes foreclosures and is actually not one index, but a composite of 23 indices. The national home price index, which covers nine major census divisions, is calculated quarterly and published on the last Tuesday of February, May, August and November.
The 10 city composite index covers Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, DC. The 20 city composite index includes all of the above cities plus Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland (Oregon), Seattle and Tampa. There are twenty individual metro area indexes for each of the cities listed above. The indices, aside from the national index, are published on the last Tuesday of each month at 9AM EST. There is a two month lag time in the data that is reported, so the report issued in May only covers home sales through March. Each index measures changes in the prices of single family, detached residences using a “repeat sales method”, which compares the arm length sale prices of the same properties over time (so there is no new construction). So it is a lagging indicator, but gives a good sense of where home prices are heading, directionally, nationwide.
Probably the second most import index is Pending Home Sales, which is slated for release next Tuesday. That gives us, on a lagging sense, which direction home sales are headed and also what type of ramp up percentage we are seeing in the industry nationally. There is also a New Home Sales index, but because of the ratio between Existing and New Homes, and because New Homes sales is that much more muted in the Northeast percentage wise, Existing Home Sales is more traditionally the focus for us.’
by Josh Wilton
’We have always thought that it makes sense to have a linked-in presence, primarily because it gives a perceived level of legitimacy for testimonials. We very much like their ‘recommendations’ section for this. Occasionally we are presented with scans of handwritten testimonials by agents wishing this to be on their website. This image file is very cumbersome for the viewer and has zero value from a search engine’s perspective as its an illegible image to them.
However, ask your customers if they would be happy ‘recommending‘ you through Linked-In. This also has the benefit of someone else providing you content for you, which is always a good thing.
Up until now, the best case is that google would pick up your Linked-In account for someone searching for you. The good news is that with a few tricks you can also start to optimize your content to enable your Linked-In page to start showing up for real estate niche keywords.
Here’s how to do it in 5 easy steps.
Before you begin, think of one or two keywords that sum up your niche. Just as with your website, focus on being narrow, rather than broad. Remember you are not a Broker. You are a single agent. So for example: pick one town name and a style of home, eg. “Princeton Townhouses”. With that settled simply do the following, add your keywords in a natural sentence to the following 5 places:
by Josh Wilton
‘A couple of weeks back, we spent some time talking about the situation in Greece, the impact on the European community, and the global economic impact both here at home and abroad. What we have seen transpire in the two weeks since is a broad-based rally in the Fixed Income sector, as investors around the globe look for a safe haven for investments and cash until this situation simmers down and settles in.
When investors look for safety, the safest instrument they flock to is US Treasuries. Next on the pecking order: Mortgage Backed Securities (MBS). And over the past two weeks, there were is a lot of investors looking for safety given the performance of these two asset classes.
There was much concern (and longer term, there still is, to some degree) about what would happen to mortgage interest rates once the Fed and Treasury halted their MBS purchase program at the end of March. What we have seen transpire over the past six weeks is international concerns driving a lot of money both off the sidelines and from other investment classes and into both Treasuries and MBS investment vehicles.
The good news is that 30 year fixed rate mortgage rates are back into the high 4% range, 10 and 15 year fixed mortgages are in the low 4% range, and hybrid ARM’s are in the high 3% range with points paid. The not so good news: no one is sure how long the rally will sustain, and how long rates can maintain these low levels.
So if you are in spring purchase market, or haven’t refinanced yet, this may very well be your last call. Weichert Financial can help you capitalize on this scenario..ask us how.
by Josh Wilton
Contrary to reports and newspaper articles circulating widely on the Internet, there is not a 4 percent sales tax or transfer tax on the sale of a home included in the recently signed health care reform bill.
This myth has been invalidated by the National Association of Realtors (NAR) and other experts who are knowledgeable about what is included in the heath care reform bill.
NAR is working to spread the word that there is no truth to this rumor.
by Josh Wilton
by Josh Wilton
by Josh Wilton
by, Tim McLaughlin, Senior VP, Weichert Financial Services
Q: Greece is dominating the news as of late with concerns over their economy, the potential impact on both the European “Euro” nations and here at home, and concerns on if/what their situation may do to interest rates, if anything. What is causing the issue, in high level terms? Can you provide some thoughts?
A: In providing a short answer to your question, it is the long history of the Greek government’s spending akrasia, the ancient Greek term that literally translates as “out of control.” This is the crux of what got them here.
In analyzing what is happening in Greece from a credit perspective, Greece is analogous to the subprime mortgages market in 2007, since it also represents a relatively small, low-profile sector of its broader asset class.
When the Greek government first revised up its budget deficit estimates late last year, few predicted it would eventually put the entire euro zone at risk, much as few foresaw the initial subprime mortgage defaults threatening the entire U.S. financial system.
As with 2008, a complex matrix of credit risk exposures between financial institutions is the conduit through which a seemingly isolated event is now spreading to the wider financial system. With small signs of stress beginning to creep into interbank lending markets, banks are again worrying about counterparty risk, particularly evident in credit default swaps.
In analyzing how this will impact the monetary and global-economic world, some believe that this will be the end of the Euro currency, at least in Greece. The odds of a sharp recession have increased, obviously, and naysayers are skeptical about any bailout plan based on recession stricken Portugal, Italy, and Spain contributing billions of Euros to the cause. We have the ECB adopting a pure bailout strategy by accepting all Greek collateral and have seen almost $150 billion in potential economic aid offered to the Greeks. This figure is almost 50% of Greek GDP, and is the equivalent of the United States needing 10x the TARP funds, One analyst likened it to Ohio going bankrupt and taking the entire US economic system down with it.
So what does it mean to mortgage rates if Europe tightens its “Euro belt”?
For the short term, in all likelihood, this would probably continue to help our rates since it would slow the recovery in Europe, reduce the chance of inflation around the world, and allow our Fed to keep short term rates low (monetary policy to be more accommodative) for longer than expected. A stronger US dollar is good for keeping inflation down. And the fact that US Treasuries are a safe haven investment option certainly helps our cause.
by Josh Wilton
The following is from Jeffrey Gordon, Esq. Re the importance of hiring an appraiser when fighting your new Assessment:
‘The New Jersey Tax Court has released a new judicial opinion, Austin v. Township of Pemberton, relevant to those filing tax appeals of their Princeton revaluation assessments. In Austin, three taxpayers had relied solely on the relatively recent purchase prices for their homes, without presenting other sale comparables or an appraisal report to the Burlington County Board of Taxation. The County Board not only sustained the assessments, but it ruled that the taxpayers failed to prosecute their cases because “no comps equal no evidence.” The intended effect of a “lack to prosecution” ruling is that a taxpayer cannot further appeal the assessed value to the Tax Court. The taxpayers appealed the Board’s decision, which the Tax Court overturned. The Tax Court Judge noted that the presentation of a subject sale alone may be insufficient to reduce the assessment, but held that it does not constitute a lack of prosecution.
This case highlights the importance of presenting adequate valuation data and analysis at the County Board of Taxation. The safest course of action is to retain a real estate appraiser to present his or her appraisal report at the Board hearing.’
– Jeffrey Gordon, Esq.
700 Alexander Park
Suite 102
Princeton, NJ 08540
Direct Dial: 609-580-3713
Fax: 609-580-0051
jgordon@archerlaw.com
www.archerlaw.com
by Josh Wilton
Attn Princeton Homeowners:
Following up our discussion in the recent seminars held here at the office, if you hire an Appraiser to appraise your house as evidence in your revaluation the appraiser has to be with you when you present your appeal. This is true both at the Mercer County Tax Board Level and the Tax Court. Good luck with your appeals!