Interest Rates Will Rise in March 2010 and on

The government purchasing of mortgage backed securities is nearing an end. To quote, Steve Harney, national residential real estate expert, “When the banks have to lend their own money to people on a 30 year loan, they’re not going to be satisfied with 5%…”If you’re frequented my website, you know that I pay close attention to what’s happening in the real estate market. I do this so I can be a strong source of valid and useful information for my clients and my readers. What I’m going to cover in this article is going to be like smelling salts that wake you up from a daze.

The Fed will gradually slow the pace of the purchasing mortgage-backed securities (MBS) in anticipation of a full execution of the program to keep the mortgage interest rate low by the end of March, 2010.

It marks an extension of the MBS-purchasing program past the previously anticipated year-end date of December 2009. The slowing of purchases is intended to “promote a smooth transition in markets” as the government ends its participation in the agency MBS market. Basically, the government is going to stop buying mortgage securities in March, 2010.

To implement the gradual slowing of agency MBS purchases, agents acting on behalf of the Federal Reserve Bank of New York’s open market trading desk plan to reduce the average weekly purchase amounts beginning with the reporting week that starts September 24, according to a NY Fed statement.

Will the real estate market be strong enough to withstand this slowdown? Are banks and their investors, willing to invest money into such an unsteady market area, such as the current real estate market? This is the big question…is the party [of low interest rates] coming to an end?

With the largest purchaser of MBS, not buying up these assets (helping turn money over quickly for banks and their investors), will banks be apt to continue writing mortgages at 5%?

The answer is no.

So rates will go up after March, 2010.

Question is, how high and will buyers continue coming out to buy? I would say the answer to buyers still buying is a big fat YES [they just can’t pass up the fact that prices are down 35% from peak]. Additionally, as mortgage interest rates go up, prices must drop.

Great Home Eastside Paterson NJ

December 2009 Case Shiller Report

Case shiller index monitors the most popular metro areas home sales CLICK HERE FOR REPORT

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Paramus New jersey, Oradell NJ & River Edge NJ Real estate market update

wOW!!! things are starting to move in the BIG BC Bergen County. With historic low low interest rates and homes at affordable pricing, this is the

 TIME TO BUY!! As of Dec 1st 2009 Paramus NJ has 100 Active homes for sale, 23 Under contract and 53 Solds in the past 3mos. River Edge NJ has 37 active homes for sale, 11 Under Contract and 35 Solds, and finally Oradell NJ has 38 Active Homes for sale, 11 Under contract and 20 recent sales in the past 3mos also. This numbers are looking alot better then a year ago and looks as if things are beginning to turn around a bit.
      For assistance is selling your home in Bergen County, River Edge NJ, Oradell NJ, Paramus NJ, Emerson NJ, Fairlawn NJ. Contact Carmelo Oliveri, Coldwell Banker Realtor at (201) 618-2854. Visit our web site at www.OurNJhouse.com, www.OurBergenCountyHouse.com or www.SellWithMelNJ.com

Recession Proof Yourself___www.OurNJhouse.com

#1 excuse in todays economy “The Market is Slow”  My question is what are
you going to do about?

Its inevitable this recession isnt going to have a quick recovery,
unemployment isn’t going to be at 2-4% anytime soon, banks are still strict
with lending,  but the most successful CEO’s, entrepreneurs adapt to change
and as home buyers, home sellers and real estate investors so do you, life
is one big business transaction.  Homebuyers what is the biggest challenge?
Living pay check to pay check right?  Well there are numerous things to free
up hundreds if not even thousands of dollars a month

1) Call your bank on refinancing your current mortgage or doing a loan
modification to lower rate.  You owe more then your home is worth, well
Obama implemented the HARP program and most large lenders participate in
this program but they wont tell you that.
2) Put homeowners insurance and car insurance with one company for discounts
and increase deductibles from $500 to $1000
3) Negotiate with your credit card companies to lower interest rates or
consolidate onto one credit card AND SHREAD the others, if you cant afford
to buy cash this month you wont be able to pay it next month you have the
same expenses.

Homesellers

If you need to sell this is the time, the real estate market has yet to
depreciate approx 10-15% before hitting bottom and then its going to be
stagnant for years before the next upswing.

Do you own your home free and clear (mortgage free) but dont want to sell
because the market is weak?  Do you want to get $600k for your home that is
only worth $300K?  Well with todays strict banking guidelines, it is
attactive to buyers if the owner provides OWNER FINANCING when selling.
This will allow you to get a steady stream of monthly income, net more money
for your home because your collecting principal and interest, worst case
scenario if the buyer defaults you keep a 10-20% deposit that they made,
payments that they made and you get your house back.  THIS IS ALSO GREAT FOR
RETIREES WITH SHRINKING RETIREMENT PLANS LOOKING FOR STEADY INCOME AND
AVOIDING PAYING TAXES AT CLOSING IF THEY TOOK ONE LUMP SUM.  ITS LIKE THE
LOTTERY ANNUITY OR CASH =)

Real Estate Investors

WOW this is the time to make money, lowest interest rates in history, ample
inventory to choose from and contractors looking for work, perfect formula
to make money.

You have money in the bank collecting 1-2% interest, well how about
investing it into rental properties and netting a greater return.  Why not
purchase a fixer upper multifamily home renovate it, rent it out and resale
for profit.  If it sells you make money and worst case scenario it doest
sell you have a positive cash flow every month with a property with equity
either way your making money.  Not into being a landlord, why not purchase a
property .40-.50 cents on the dollar from the banks REO inventory for
resale, cash is KING for amazing opportunities.  Word to the wise, just like
the stock market know the real estate market your investing in, study market
trends, number of sales past 3mos, number of inventory currently on the
market, demand etc.

Business Owners looking into the ARC Program (Wachovia and Chase have
special phonelines dedicated to this property) interest free loan up to $35K
to help business owners keep there doors open

I wish you all happy savings and if you ever have any questions please feel
free to contact me anytime

Bergen County Short Sales/ Foreclosures

Its been a while since the last foreclosure email blast, but they have been drying up in the past few months.  With the new HARP Program banks have been remodifing mortgages and limiting inventory which in turn is stabilizing the real estate market.  Homes prices are still dropping (.5-.75% a month according to last few appraisal reports) but home SALES are up, its a great time to take advantage of the interest rates which are fluttering just under 5%!!!!  Below are a few foreclosures currently on the market, if interested in some more please feel free to contact me anytime.

Cresskill 3br 1.5 bth $420K
Park Ridge 2br bth 100×150 Lot $374k Bring your builder
River Edge 4br 3.5bth Move in condition colonial $534k
Saddle River 6br 9.5bth Estate $7.5mil

Also please visit my other sites

www.YouTube.com/OurNJhouse
www.OurNJhouse.com
www.SellwithMelNJ.com
www.MyNJblog.com

WASHINGTON - New U.S. home sales jumped in June by the largest amount in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.

While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Data out last week showed home resales rose 3.6 percent in June, the third straight monthly increase.

Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent. But with home prices still falling, these companies won’t be making much money anytime soon.

Commerce Department said new home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000.

Buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.

“The window of opportunity is closing,” said Bernard Markstein, senior economist for the National Association of Home Builders

June’s results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.

Sales have risen for three straight months. The median sales price of $206,200, however, was down 12 percent from $234,300 a year earlier and down nearly 6 percent from $219,000 in May.

There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.

Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.

But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.

After all, the process of selling a home is always complex. For assistance is selling your home in Bergen County, River Edge NJ, Oradell NJ, Paramus NJ, Emerson NJ, Fairlawn NJ. Contact Carmelo Oliveri, Coldwell Banker Realtor at (201) 618-2854. Visit our web site at www.OurNJhouse.com or www.OurBergenCountyHouse.com or www.SellWithMelNJ.com

Why 9 Out of 10 FSBO end up using a Realtor

My Number one FSBO Tip? Don’t sell it yourself! A “FSBO,” or house “for sale by owner” can sell fast, and for as much as it would have if listed with a real estate agent. Sometimes - but not normally. Consider the following ten points.

1. Buyers work with agents. Most look at MLS listings. Sell it yourself, and they won’t see or hear about your home. How do you find that “right” buyer or get top dollar when you’re invisible to most of the market?

2. Your FSBO will get lower offers. Naturally, the buyer thinks you’ll take less because you’re saving the commission! Save a $10,000 commission, get $10,000 less - where’s the advantage in that?

3. Advertising is expensive. The costs the real estate office normally pays are yours if you sell it yourself. How much could you spend on ads if it takes a a year to sell?4. They have the resources. And you don’t. Agents have books of sold properties to look at, for example, to determine the best price for your home. You can dig through county records, but you do have to value your time too, right?

5. They know the market. What’s the target market for your house? Young couples, retirees? What features do they want? You should know these things before you write your ads. An experienced real estate salesperson will know.

6. They know the laws. What about written disclosures, and who pays for the real estate transfer tax? When you sell it yourself you don’t get to ignore the laws.

7. Are you a good salesperson? Can you develop rapport and properly answer objections? Could your defensiveness scare off a buyer who criticizes your home? Think back on your own purchases, and you’ll realize that a good salesperson makes a difference.

8. Paperwork. Will you help the buyer properly fill out an offer to purchase? An agent would. Do you have the other closing documents ready?

9. Agents negotiate for you. When did you last learn a new negotiating technique? Can you counter-offer without scaring off a buyer? A good salesperson is trained in these skills.

10. You may not save anything. The documents, newspaper advertising, signs for the yard - it’s all your expense when you sell it yourself. After your hard work, you may get low offers and negotiate poorly. Honestly, sellers often net less money from the sale when they try to save the commission.

After all, the process of selling a home is always complex. For assistance is selling your home in Bergen County, River Edge NJ, Oradell NJ, Paramus NJ, Emerson NJ, Fairlawn NJ. Contact Carmelo Oliveri, Coldwell Banker Realtor at (201) 618-2854. Visit our web site at www.OurNJhouse.com or www.OurBergenCountyHouse.com or www.SellWithMelNJ.com

Bergen County Foreclosure Trends

Bergen County Foreclosure Trends - April 2009

Posted by PAULA CLARK @ 6:29 am, May 31st, 2009

Bergen County foreclosure homes have remained relatively steady in 2009 after a spike in October 2008 with 398 new foreclosure filings in April compared to 925 filings last October, according to RealtyTrac.com.

Bergen County Foreclosure Activity and Home Price Index

Bergen County foreclosure activity is based on the total number of properties that receive foreclosure filings - default notice, foreclosure auction notice or repossession notice - each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.

Bergen County Foreclosure Geographical Comparison

The Bergen County foreclosure rate is .03% below the state of New Jersey and .16% below national statistics.

Are you or someone you know behind on your mortgage payments and facing a Bergen County foreclosure? You do have options. A short sale may be the answer to saving you, your family and your home. Give me a call for a private consultation.

After all, the process of selling a home is always complex. For assistance is selling your home in Bergen County, River Edge NJ, Oradell NJ, Paramus NJ, Emerson NJ, Fairlawn NJ. Contact Carmelo Oliveri, Coldwell Banker Realtor at (201) 618-2854. Visit our web site at www.OurNJhouse.com or www.OurBergenCountyHouse.com or www.SellWithMelNJ.com

Bergen County NJ, Creating Curb Appeal

In today’s housing market, home owners need to be more proactive than ever before when it comes to selling their homes.

Whereas the real estate boom at the turn of the century made things easy on sellers, the current real estate climate is not so seller-friendly.

To make their homes more attractive to prospective buyers, these are small and easy projects, but if neglected, they’ll give buyers the impression that other, bigger things might have been neglected as well.

If your home has a front porch or stoop, be sure to inspect it for cracks. An older porch or stoop should be replaced, and any chips or cracks in the steps should be fixed.

• Ready the roof. A new roof is very expensive, and buyers understandably often run from homes that need a new roof.

Sellers should hire their own home inspector to determine the condition of the roof before putting the home up for sale, it will likely take more time to sell the home, and buyers will wonder why the home was listed for so long.

Know the home’s ups and downs before putting it up for sale to minimize any potential concerns from buyers.

• Perfect the paint job.  For homes without siding, be sure that the paint job is up to snuff. Any areas with peeling or chipping paint should receive a fresh coat of paint, and this is another job that should be handled will before listing the home.

• Lavish the lawn with attencion. Buyers love a lush green lawn, and that lawn goes a long way to creating a solid first impression. The first thing buyers will see once they pull up curbside is the lawn. If the grass is dry with brown spots or appears neglected, many buyers will find that hard to over look.

Homeowners preparing to sell their home in the fall should lavish attention on their lawn throughout the summer, keeping it watered and possibly hiring a landscaping service to make it more appealing. Consider planting flowers or other decorative foliage.

After all, the process of selling a home is always complex. For assistance is selling your home in Bergen County, River Edge NJ, Oradell NJ, Paramus NJ, Emerson NJ, Fairlawn NJ. Contact Carmelo Oliveri, Coldwell Banker Realtor at (201) 618-2854. Visit our web site at www.OurNJhouse.com or www.OurBergenCountyHouse.com or www.SellWithMelNJ.com