| Feb 12, 2009 |
The Stimulus Bill now agreed to but not yet law limits the tax credit to $8,000 and home purchasers must be a first time home buyer as defined by the the bill. The positive inclusion is that if a purchaser holds the property for at least 3 years the credit does not have to be repaid. Last years bill required that the credit be repaid over 15 years.
I an e-mail poll to our first time home buyers looking for homes in and around the East Brunswick area most say that they would like to take advantage of this proposed tax credit. Their are many single family homes, condominiums and townhouses in the townships of East Brunswick, Sayreville, Monroe, North Brunswick, Spotswood and Old Bridge that would definitely fall into the first time home buyer category.
As the bill is written buyer would need to close on the purchase of a home by the end of November 2009. Please check for yourself to confirm the details of this bill as more then likely there will be further modification.
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Feb. 7 2009. The house of Representatives version of the stimulus bill would.. |
- Increase the tax credit from a maximum of $7,500 to a max of $15,000
- Make the credit available to all home buyers not just first time buyers.
- Eliminate the requirement for the credit to be paid back as long as the home is not resold within 3 years.
So far the Senate has not agreed to these inclusions in the bill. |
| Dec. 16 2008. FOMC reduces interest rates to historic levels! According to most experts extremely low interest rates are putting a floor in home prices especially in the most desirable areas which includes the Central New Jersey area. This along with huge infrastructure projects the New York / New Jersey area expects to have approved by the federal government's stimulus plan, home values are set to reverse the declines of the last couple of years. |
November 2008 - FHA will now require a down payment of 3.5% as of Jan.1, 2009. The 3.5% can not be for closing cost.!! Ie: $300,000 purchase---maximum mortgage will be $289,500 and the borrower must have a downpayment of $10,500. These changes will reduce the number of home buyers that qualify for a mortgage under the FHA rules. This will not help with the number of homes for sale in general.
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| August 2008 - With housing values still declining the Federal Government has passed a law allowing 1st time home buyers to be eligible for up to a $7500 tax credit. See tax credit . Homes sales in the lower end of the price range should benefit most from this law but if seems like very few potential home buyers are aware of this law. Of course there will be a trickle up effect if we can get the first time home buyer back into the market! We are seeing a little up tick in the activity over the last 2 month especially in the Towns of Monroe, East Brunswick, North Brunswick and Sayreville. Lets hope this is the new trend! |
February 2008 - Report on home sales.
Locally the total number of residential resales continued to decline in January of 2008. The forecast is not looking good in the near term with tighter lending standard limiting first time home buyer ability to purchase a home. Looking at the numbers available in the Middlesex County MLS for home sales in the East Brunswick, Monroe, Old Bridge NJ area we concur the the total number of transactions are down at least 10% year over year. |
January 2008 - Two Cut Cuts
The Federal Reserve lowered the short term interest rates by a total of 1.25% this month. The reaction of longer term interest rates so far has to remain fairly steady as to were they where in December. The main reason being that inflation is now more of a concern. So far these rate cuts have not helped home buyers affordability. |
December 2007- The Federal Reserve Reduces Interest Rates Again.
In response to the deteriorating housing market, new construction starts and increasing foreclosure rate the federal reserve reduce both the discount rate and the Federal funds rate by 1/4%. The market reaction is that the Federal reverse is behind the curve and that rates should have been reduced by 1/2%. Current 30 yr. mortgage rates are at about 6.25% for borrowers with good credit. |
| September 27, 2007 - Foxtons Realtors announces it is closing it's real estate offices. |
With Foxtons Realtors announcing the closing of it's operation what are home owners that are currently listed with Foxtons to do? Our recommendation would be to first call Foxtons and request a release from your listing agreement. Your request should also be put in writing and sent by certified mail to the company's headquarters. The Star Ledger newspaper reports that nobody was answering the phone yesterday at the company headquarters so it may be difficult to get through.
Home owners should be aware that in New Jersey, if a home owner has signed a "exclusive right to sell" listing agreement they can still list their home with another real estate broker but there is a risk! You may be obligated to pay two commissions if the property sells. For home owners contacting our office who are currently listing with Foxtons Realtors this is our advise. Before signing a new listing agreement consult with your real estate attorney. From our view we believe it is unlikely that Foxtons will be able to collect a commission from home owners who decide to list their homes with another broker when still obligated to Foxtons.
Over the last few years our company has had home sellers call us to list their homes while still listed with Foxtons. We gave them the same cautions. Of those owners who decided to list with our company they reported no repercussions after the closing of their property.
Home owners in Middlesex, Monmouth & Somerset counties can call our office for more advise on their personal situation. |
Sept. 11,2007
Fed Reduces Rates |
| The federal reserve surprised most by reducing the federal funds rate by a 1/2 percentage point to 4 3/4%. The immediate response from long term interest rate was a raise of about 1/4 percent on inflation fears. Hopefully the feds actions will have a calming effect the the housing industry and start to change the direction of the market. |
August 2007
Website Educates NJ Homeowners About Home Sales Tax
Campaign Aims To Protect Home Equity, Stop Local Home Sales Tax
New Jersey homeowners can visit a website to calculate how much more their tax on selling your Home may increase if legislation in Trenton is passed. The website ? www.njhometax.com ? is part of a public awareness campaign sponsored by the NJAR® about the state´s Home Sales Tax ? Officially known as the Realty Transfer Fee and legislative efforts to permit local governments to impose their own Home Sales Tax.
Home owners should not wait to get involved in stopping this tax from passing. Call, mail & e-mail your Representatives in local and state government. Let them know enough is enough. The New Jersey Home Owner is already the most over taxed in the entire county. If you don't there is no telling how much you will pay when it's time to sell your home!
Legislation being considered would allow local towns like East Brunswick, Monroe, Old Bridge etc., to impose a local Home Sales Tax on the sale of real property. The tax would be in the amount of $0.50 per $500 of a home´s sales price. The local tax would be in addition to the current Home Sales Tax that is paid to the state.
Home sellers will feel the strongest impact from a local Home Sales Tax. The home seller typically pays the Home Sales Tax, which is based on the sales price of the property. The result is an instant reduction of homeowner equity.
The state-imposed fee, begun in 1968 as a nominal charge for tracking real estate transactions, has increased dramatically in recent years. The Home Sales Tax on an average home is up 80 percent since 2003. The extra local Home Sales Tax will push the total Home Sales Tax bill up 103 percent since 2003.
The current Home Sales Tax due on a home sold for $356,700 - the median price for an existing home in New Jersey - is $2,799. With the extra local tax, the Home Sales Tax bill would increase 13 percent to $3,156.
The campaign includes radio, mail and print advertising and will use on line video to deliver the message to New Jerseyans.
This information was supplied from the New Jersey Association of Realtor. |