Archive for September, 2009

The Morris Plains sales data for September is mixed.  The good news is that the average price of homes sold in September was $516,000.00 that is about $80,000.00 over August and the average days that these houses where on the market was 23.  This is almost 1/2 the amount of days then the August average.   The number of houses that sold where 4 and that is down from 7 in August.  

Some other highlights of the Market in Morris Plainsis that the Market absorbtion rate is around 5 months.  The average sale to list price ratio is still high at 95 percent.  The absorbtion rate for Morris Township jumped from 6 to 13 and Morristown went down from 10 to 9 months.  Morris Plains is still considered to be in a average to a slight sellers market mode.  But lets not get too cocky.  Our competiton is still close and if buyers cant get what they want there they will go to the Township or to Morristown.   The list to sale price  ratio is still very good and the fact the homes have closed in an average of 23 days on the market speaks volume to the fact that well priced homes sell while those that are not priced to the market don’t.  

If you are buying a car and one dealer has a car you want and another dealer has the exact same model and make with everything the same as the first dealer but the price is 5 percent less.  Where would go to buy a car? 

Of course you will go to the second dealer.  It is the same with home buyers.  If they see a home that gives them everything they want for less they are buying that home. 

Mortgage rates are low right now but they will eventually go up, as they do buying power will go down.  Home sellers will bear the burden of having to make up the difference by having to discount the price of their home to the buyer.  A home buyer buying a 500,000 dollar home with 20 percent down with a 5 percent mortgage will have a payment of 2150 a month.  If rates go up just one percent to 6 that home buyer will  need a discount of 50,000 dollars on the price of the home to have the same buying power.  

Many think it is not a good time to sell a home but it could not get much better.  We have buyers they have money and they have the desire to buy a home.  If you are not priced for the market you will miss out on this opportunity.

Are you Thinking of Moving Out of New York City?  Are you looking for a ray of sun shine on a cloudy day.  Do you want a nice home with a yard your kids can play.  Do you want a small town feel but metropolitan style. Do you want to be associated with friends and neighbors that are involved and care about thier community.  Then Look no farther Morris Plains is the place for you.  We are an hour by train to New York City.  it will take you 40 minutes to Newark Liberty Airport.We are a 10 minute drive to the shops and restaurants of Morristown.  We are minutes to interstates 80 280 287 and 78.  We are an hour and a half to the beach or the mountians

Our Schools recieved a 8 out of 10 rating by the  Great School Rating index.  We have a Crime rating of 1.  ( the lowest you can get) We got great amenities a community center parks playing fields and a local government that cares about the town and it’s people.   Our town recreation commission offers programs for every one from todlers to our senior citizens.  It is a great place to live work and play.  So come over to visit we will be expecting you.

While the Fedannouncement yesterday on the surface seemed to be confirming to continuation of status quo both on the interest rates as well as “quantitative easing” the Fed tweaked the “QE” issue just enough to hint that the stimulus package may be getting close to be withdrawn: this the Fed did by slowing purchases of mortgage debt to extend that program’s life until the end of March.   This was seen by the Fed watchers as a first step towards a measured withdrawal of its extraordinary support for the economy during the downturn that the Fed itself confirmed was coming to an end. It was this thought process that caused the initial run up in the equities to become a rout in the last half hour of trading.

Today there are 37 homes on the market in Morris Plains and 7 have gone under contract.  That is a market absorption rate of about 6 months.  Not a great number but not  bad either.  It is an average market.   The  average home price was 425 and those homes that sold went for about 97 percent of their asking price.  

Housing is a commodity and like any commodity the values go up and down with the market.  Check the S&P/Case-Shiller Home Price Indices. Economics 101 page 1 Supply and Demand.   When supply is tight and demand is high prices go up, when demand and is down and supply is up prices go down. 

Many sellers still fine it hard to understand this.  It is because there is a personal attachment to the house/commodity.   Many sellers make the mistake of projecting their  lifestyle or taste to the buyer.   A perfect example recently I was when speaking to a client about selling their home.  When I mentioned that they had a very nice home in a great location but the fact that they did not have a dishwasher may deture  many buyers.  (if it did not have a dishwasher you can imagine what the rest of the kitchen looked like.  plus if  the bathrooms where any older they would have been outside).  The client’s response to this was that it has been good enough for them all these years and is should be good enough for a buyer.  Yea this is fine for two people that use a dish a day but not for a family of 5. 

The attitude by sellers that because the house down the street that is identical to theirs but had a new kitchen and new baths sold for “X” we should get  “X” plus because we have a bigger lot or better trees.  This attitude is hard to combat. 

Although things are getting better buyers still  own this market.  There is no doubt about it.  A well priced, updated clean and well kept home will sell at a good value.  One that isn’t  will not.  Value is the great equalizer.  My grandfather worked in the agriculture business and among other things sold animal feed.  Grandpa would take me up on his knee when I was little and he would say, “Bobby remember when you sell oats sell the best oats you can at the best price you can get.  If you want to try to sell used oats people won’t pay Sh#t for them.  You can’t get the same price for used oats as you would for new, it is the same with houses.

This just out.  Today starts the two day meeting of the Fed’s FOMC with the official announcement tomorrow. This is against a an improving economic backdrop, &  with inflation not an imminent threat the Fed will  not be in a hurry to increase interest rates from their current levels of almost zero percent..  This will keep interest rates low for the time being.  With that being the case the market will be watching any nuances that it may make in the minutes, like the Fed possibly tapering off its mortgaged related security purchases.  If  Fed does slow its buying of mortgage securities 30 year fixed rates could be on the rise.   We are right now in the perfect Storm to buy a house of your dreams.  Low Rates and Low Prices add up to  big value.   

Continuing on the exogenous drivers, The Conference Board’s Index of leading indicators, which is supposed to forecast economic trends six-nine months ahead, rose by 0.6% to 102.5%, the highest level since January 2008, after a revised 0.9% gain in July

I had another great Open House on Sunday the 20th.  I had a 9 people attend two people came back with their spouses and parents.   9 Cleveland is a great property.  The location is perfect it is close to everything schools parks and transportation.  The house has a great basement that is finished 5 bedrooms and 3 full baths.  

Things are going well we are having some great Indian summer weather this week.  The weather this weekend is expected to be great good for open houses.  I have been seeing a lot of clients that need to get in to a larger home.  They may have lost some money on the their  first home but the next home is priced lower as well and with interest rates as low as 5 percent for a 30 year fixed the affordability of a larger home has never been better.   

First time home buyers are out in droves the 8,000 dollar tax credit and low interest rates have allowed many people to afford their first home.  It is great.  

I spoke to my son about the bone marrow donor drive for Kyle Noonan last Saturday.  He could not believe how many people attended.  It was a big success.  That is very goo news.  If you are interested in helping out or would liks to become a donor check out http://www.dkmsamericas.org/

I am holding an open house this Sunday, Sept 20th 1 to 4. You are invited to stop by.  9 Cleveland is a expanded ranch 5 bedrooms and 3 full baths on a large lot finished basement close to schools parks downtown and NJ Tranist trains to NYC and Hoboken. 

The Morristown High School Football Team (1-1) had a nice night, with a 22 – 0 win over West Morris under the lights.  This is the first time a Morristown Footbal Team has played under the lights in almost 60 years.  The Field Hocky Team earned a 4-0 win over Mount Olive in a well played game bringing their record to 2-1  Read about these games in the sports section of todays Daily Record.

Speaking of Schools did you know that our own Morris Plains Boro School has recieved a 9 out of 10 Great School Rating  (10 being the highest score) from Great Schools Inc  This rating is based on the most recent test scores check it out.  Congratulations to all the Staff, Teachers, Students and Parents that have  worked very hard to earn this rating.

You have to like the new look the Morris Plains downtown is sporting,  the new lamp posts, garbage cans and brick inserts in the side walk look great.  It really dresses the town up. 

 Check out the fall recreation schedule at the Morris Plains Recreation Website .   Don’t forget youth basketball sign ups this month.   The Farmers Market will be open every Saturday until October 17 also be aware that there will be a craft show on September 19th rain date is on the 26th .

The Market in the Plains has been humming right along.  There are 38 homes for sale in town.  Over the last 30 days 9 homes have gone under contract leaving us with and absorption rate of 4 months.  This is a very good rate.   6 homes have closed over the last 30 days.  These homes where on the market for an average of 27 days.  the shortest on the market was 12 days and the longest was on the market for 80 days.   These properties averaged a sale price close to 95 percent of list.  This just shows that a property that is well priced to the market will sell in a reasonable amount of time.

When selling their homes most sellers have a number in their head of what their house is worth.  Nine times out of ten this number is five to ten percent to high.  Listen to your local realtor when they explain what like properties have sold for and why.  Your local realtor really knows what the current market pulse is and can guide you in marketing and correctly pricing  your home.  The realtor will have a strategy to market your house and to present it  to get the highest return possible.  The rule of thumb is “if you have listed your home and   you have seen a lot of traffic through the home but no offers, after 30 days you should drop the price 5 percent.  If you have listed your home and  have seen very little or no traffic through your home after 30 days you should drop the price 10%.” 

The correctly priced home will generate a lot of interest  this could result in multiple offers on the property and a sale at or above the asking price.  There are a lot of homes on the market today and sellers have a lot of competition.  Hoping to get a high price is not a realistic approach in marketing your home.  The first 30 days of a  listing are the most important.   Most of the interest in a property are generated during this time.   Let your real estate professional guide you to the right strategy in pricing your home.

Remember HOPING to sell your home is not the same as having STRATEGY to sell your home.  To contact a Morris Plains Neighborhood Specialist  click on  the link to the right. Morris Plains Neighborhood Specialist.

Open House Today at 9 Cleveland Ave. Morris Plains

The Morristown Football Team lost a tough one to Seton Hall yesterday in the rain 24-21.  The Boys never gave up and played real well. 

I will be sitting a open house today at 9 Cleveland Ave Morris Plains.  This is a great house. 5 bedrooms3 full baths on a nice street close to everything.  It has a great yard check it out I am there from 1 to 5.  Take 202 to GrannisAve then Left on to Cleveland Ave.  I hope to see you there.  I am baking cookies

There will be 5 other open house in Morris Plains today.  One at 36 Central priced at 440, another at 31 Franklin which is a two family priced at 579, 1 Brook Drive  South priced at 599.  Also check out 21 Beech Drive priced at 599 and 25 Laurel Street also priced at 599.  For more information on these homes go to www.morri-plains-homes-nj.com

Not much to report on the real estate front.  I am holding an open  house at 9 Cleveland Avenue in Morris Plains.   Take 202 to Grannis then left on to Cleveland.  It promises to be a gala event.  

Morristown Highschool Fall sports season begins this week.  Check out the Daily Records High School Fall Sports Preview this week.  Morris Plains students athletes Matt Gallagher and Chad Fu are mentioned in the articles

Kyle Noonan a graduate from Morristown class of 2004 has leukemia and he needs our help.  Kyle is a gifted athelete that played baseball and soccer for Morristown .  Kyle needs a bone marrow transplant to cure him.  There are no matchs on the registry.  Please join us on Saturday Sept 19th 2009 at the Woodland School in Morristown between 10 am and 4 pm to register.  You may be the one person that can help Kyle or some one like him.  Please help out.