Archive for February, 2010

Is the interest rate party coming to and end?  The housing bears think so. FEDERAL RESERVE RAISES DISCOUNT RATE TO 0.75 PCT FROM 0.50 PCT, EFFECTIVE FEB. 19. However Fed Reserve Chairman Bernanke   says that this is a normalization of lending then a change in policy.  The Federal Bank is still painfully aware that the nation’s unemployment numbers are still high and that it will be their policy to keep interest rates low until such time as real signs of a recovery.

That continues to bode well for the housing market for the time being but one must also remember that The likelihood of interests rates going any lower is remote.  Chances from this year forward it would not surprise me to see rates rise 1 to 2 points by 2011 2012. 

For those home owners that are waiting for the housing market to recover to the levels of 2005 and 2006 before putting their homes on the market will have a long wait.  Homes values have only just begun to flatten out.  Those sellers that act now sell their home and get into a larger or smaller one will tend to make out better in the long run as they will get into a property at the bottom.   One other thing to note is that when home values go up they just don’t go up for your home they go up for everyone’s home.  You may have lost value in your property over the last 5 years but chances are you will make that value up in the coming years.

Below is a chart that shows that Average monthly Close for the stock market since 1995 and 4 bedroom 2 ½ bath home prices in Morris Plains.  One can see as the stock market moves up so does the housing values .  Some things to note here are that the unemployment rate in years past has never been this high.  However the economy is improving and  we  have shaken off the shock of the a near financial meltdown.  But Hey we are still here we are a little banged up  a little bruised maybe. But hell we are ok.  That is what you are seeing in today’s market now.   America is recovering.   Always remember no matter how bad it gets “They can’t eat you.”

There is no better time then now to either buy a home or sell a home in Morris Plains today.  Give me a call if you have any questions.

 Here is the quote: “You can observe a lot just by watching. Yogi Berra 

Thank You for reading My Blog On Morris Plains NJ Homes  Bob Sittmann.

PS. By the way 10 Court Rd did not sell it was taken off the Market.

Below is a graph showing what the average sales price for a 3 bedroom 1 and 1/2 bath house from 1995 to 2009 in Morris Plains NJ.  In the last 15 years these homes have gained on average about 4 percent a year in equity with 2006 being the height of the market.  One thing to note is that the downward trend on home value has leveled off.   If the the historical rate of 4 percent a year returns to the market these homes will begin to increase in value.  The one thing to keep in mind is that in order to get back to the values we where at in 2005 and 2006 we will need 9 years of steady growth.

Manufactureing continues to pick up and unemployment has begun to level off.  These are all good things.

If you are interested in what your home is worth today in Morris Plains NJ or any other town in Morris County NJ Send me and e mail or give me a call and i can give you a customized and detailed report on the value.  www.Zillow.com and www.Trulia.com can not  give you the information you want.  Remember Good Information is Power, Power is Wealth. Bad information is Stupid.

Federal Reserve Chairman Ben Bernanke said Wednesday he doesn’t expect the central bank to sell its huge trove of mortgage securities anytime soon, easing fears the move would raise borrowing costs for home buyers.  The fed is not expected to raise interest rates until next year.

If you have any questions concerning the graph please give me a call or e mail me.

Thanks for reading Morris Plains Homes Here is the quote:  “There has never yet been a man in our history who led a life of ease whose name is worth remembering.“  Theodore Roosevelt