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Date Archives: February 2019

Real Estate In Ocean County NJ Home

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Home Buying | 11 Posts
Home Prices | 4 Posts
Home Sellers | 7 Posts
Smart Homes | 1 Posts
Uncategorized | 1 Posts
February
21

Why A Normal Market is Just What We Need

Why A Normal Market is Just What We Need | MyKCM

The National housing market has been hot for a while now. The Ocean County real estate market realized animprovement in January contract sales as opposed to January of 2018.  Homes have been flying off the shelves as fast as they have been listed. Buyers have been competing in bidding wars just to find a home to buy, let alone find their dream home.

This 'seller's market' has driven home prices to new heights. Home price appreciation averaged over 6% across the country.

What's a seller's market?  Most real estate experts agree that when the supply of homes on the market falls below a six month supply, it's a seller's market.  

However, home price growth has recently started to cool down. The latest report from CoreLogic shows that home prices have only risen by 4.7% over the last 12 months.

Many buyers and sellers planning to enter the housing market this year have started to wonder if we are headed towards another housing crash. Ralph McLaughlin, Deputy Chief Economist at CoreLogic, recently stated in an interview,

"There's no reason to panic right now, even if we may be headed for a recession. We're seeing a cooling of the housing market, but nothing that indicates a crash.

The real elephant in the room here is housing supply."

The simple answer is we are returning to a 'normal' market. The inventory of homes for sale more closely matches the demand in the market. The added supply means fewer buyers are outbidding each other. Therefore, prices are experiencing less upward pressure. McLaughlin went on to explain,

"If there are a lot of homes on the market and suddenly no one wants to buy them, you'll get into a downward spiral of price competition. Right now, however, we're in the opposite situation, there isn't an over-abundance of homes on the market."

As more renters looking for their piece of the American Dream enter the housing market, demand for housing will continue to grow. The Joint Center for Housing Studies at Harvard University estimates over 30 million new households will enter the market from now through 2040.

"There's the natural life cycle of young people getting older and starting to do adult life things which include … buying a house and that's a lot of potential inertia that could last indefinitely."

Bottom Line

Home prices will start to appreciate by historical norms as we continue to head towards a more 'normal' market, rather than the over 6% seen over the course of the last couple of years. This is great news! Homeowners looking to sell their New Jersey home will have buyers, as more buyers will be able to afford them!

Home ownership is how most people gain wealth.  Buy a first or second home and build your wealth. Some of the more popular locations we sell homes are in Point Pleasant, Brick, Toms River, Forked River, Beachwood, Berkeley Twp, Bayville, Waretown, Barnegat, Lacey Township, Manahawkin, Tuckerton, Little Egg Harbor and Long Beach Island, New Jersey.  

If you are considering listing your home for sale, contact us, it is important to work with an agent who knows what they are doing.

February
15

How To List Your Home for the Best Price



If your plan for 2019 includes selling your home, you will want to pay attention to where experts believe home values are headed. According to the latest Home Price Index from CoreLogic, home prices increased by 4.7% over the course of 2018.

The map below shows the results of the latest index by state.

How To List Your Home for the Best Price | MyKCM

Real estate is local. Each state appreciates at different levels. The majority of the country saw at least a 2.0% gain in home values, while some residents in North Dakota and Louisiana may have felt prices slow slightly.

This effect will be short lived. In the same report, CoreLogic forecasts that every state in the Union will experience at least 2.0% appreciation, with the majority of the country gaining at least 4.0%! The prediction for the country comes in at 4.6%. For a median-priced home, that translates to over $14,000 in additional equity next year! (The map below shows the forecast by state.)

How To List Your Home for the Best Price | MyKCM

So, how does this help you list your home for the best price?

Armed with the knowledge of how much experts believe your house will appreciate this year, you will be able to set an appropriate price for your listing from the start. If homes like yours are appreciating at 4.0%, you won't want to list your home for more than that amount!

One of the biggest mistakes homeowners make is pricing their homes too high and reducing the price later when they do not get any offers. This can lead buyers to believe that there may be something wrong with the home, when in fact the price was just too high for the market.

Bottom Line

Pricing your home right from the start is one of the most challenging parts of selling your home. Once you decide to list your house, let's get together to discuss where home values are headed in your area!

We list and sell home in all of Ocean County New Jersey.  Some of the more popular locations we sell homes are in Point Pleasant, Brick, Toms River, Forked River, Beachwood, Berkeley Twp, Bayville, Waretown, Barnegat, Lacey Township, Manahawkin, Tuckerton, Little Egg Harbor and Long Beach Island, New Jersey.

February
6

Whose Mortgage Do You Want to Pay? Yours or Your Landlord's?

Whose Mortgage Do You Want to Pay? Yours or Your Landlord's? | MyKCM

There are some people who haven't purchased homes because they are uncomfortable taking on the obligation of a mortgage. However, everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord's.

As Entrepreneur Magazine, a premier source for small business, explained in their article, "12 Practical Steps to Getting Rich":

"While renting on a temporary basis isn't terrible, you should most certainly own the roof over your head if you're serious about your finances. It won't make you rich overnight, but by renting, you're paying someone else's mortgage. In effect, you're making someone else rich."

With home prices rising, many renters are concerned about their house-buying power. Mike Fratantoni, Chief Economist at MBAexplained:

"The spring homebuying season is almost upon us, and if rates stay lower, inventory continues to grow, and the job market maintains its strength, we do expect to see a solid spring market."

As an owner, your mortgage payment is a form of 'forced savings,' which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

As mentioned before, interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac's latest report shows that rates across the country were at 4.46% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Home ownership is how most people gain wealth.   Buy a first or second home and build your wealth. Some of the more popular locations we sell homes are in Point Pleasant, Brick, Toms River, Forked River, Beachwood, Berkeley Twp, Bayville, Waretown, Barnegat, Lacey Township, Manahawkin, Tuckerton, Little Egg Harbor and Long Beach Island, New Jersey.

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