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Let’s congratulate the class of 2010 from Morristown High School.  Their graduation was the other night.  The highlight of the ceremony was Dan Knapp’s Valedictorian speech.  It was a fantastic speech and brought the whole crowd to it’s feet.  to see it go to You Tube and type in Dan Knapp but here is the link .http://www.youtube.com/watch?v=EI2w-KhMlx4

Let’s give some props to the All Season Garden Club of Morris Plains. The flower boxes on Speedwell Avenue look great. It is just one more thing that makes the town look fantastic.

Summer has here and the recreation activity has started at the Morris Plains Community Park. The swim team at the town pool is gearing up for another great season. The team lost some of it senior swimmers last year but this year they still look good. The team could go 7 and 0 again this. This would be the third year in a row of an undefeated season.

Don’t forget that Morris Plain’s Family Day is this Saturday June 26; the rain date is June 27th. The action starts at 5:30 PM with rides, games, and activities. Please support the civic organizations that will be selling refreshments and food to raise money for their programs. Around 9:30 PM sit back and watch one of the largest fireworks displays in the area

There is some good news on the economic front. US diesel fuel demand is on the rise. According to the Energy Department said that demand for the fuel is up almost 10 percent from this time last year. Demand for diesel fuel is expected to continue to increase as the manufacturing sector of the US continues to recover. Diesel demand and economic growth are intertwined as the economy gains strength diesel fuel the main fuel for the American Trucking Industry increases. Most of American goods move by truck. Industrial output rose 1.2 percent in May.

Manufacturing in the central Atlantic region expanded for the forth straight month in May according to the Richmond Fed’s latest survey. The Bloomberg survey of 67 economists showed that the US economy has expanded this year at the fastest pace since 2004. Things are also picking up in the Midwest. Demand for diesel continues to grow even after the spring planting season comes to an end. Goods arriving in US ports of Los Angeles and San Francisco are up 18 percent for May.

World wide the demand for diesel demand has really picked up as economies in Europe and Asia continue to recover. More and more Diesel fuel is being exported to the Asian and European Markets to satisfy this demand.

Home sales for May were lower then expected but home sales overall with an increase of 19.2 percent over May of 2009.  “On Average we are looking at a moderate advancing trend in home sales” Stephen Stanly of Pierpont Secrurities in Stamford CT.  The time to move on a new home is now.

The proof is that buyers have moved back into the market and already some of the choicest properties have already been grabbed up. If you are looking to sell and moving up into a larger home or are just interested in the Real Estate market in Morris Plains Just give me a call.

Thanks You for reading My Blog Morris Plains Homes NJ.  Here is the quote: People that pay for things never complain.  It’s the guy you give something to that you can’t please.  ~Will Rogers

Mortgage rates hit new lows for the year.  Rates on a 30 year fixed rate mortgage have fallen to the lowest level of the year and are barely shy of an all time low.  30 year fixed rate mortgages have fallen to 4.72 percent.  The average for a 15 year is 4.17.  This is the lowest rate for a15 year mortgage since August 1991.  Rates on a 5 year adjustable mortgage are at 3.92.

Investors weary of the European dept crisis and the turbulent stock market have shifted money into the safety of US Treasury Bills.  Fixed rate mortgages tend to track that yield.  The unemployment picture shows that few private sector jobs have been created.  This has made the investors nervous of the stock market and pushed bond rates higher and interest rates lower.  When bond yields fell interest rates followed. 

It was expected that when the tax credit for home buyers program had ended that rates would move higher.  Fortunately for the home buyer just the opposite has happened.

Another good omen showing that the economy is improving.  Is that it appears that corporations do not appear to fear future restrictions on credit.  Many corporations have begun stock by back programs.  Instead of hoarding cash to use in the event of tighting credit, corporations are out buying their own stock back.  Over 122 billion has been spent buying stock back.  This is a boom to share holders.

Consider the performance of the Buyback Letter, edited by David Fried, an advisory service that recommends stocks based on buyback activity. Since the beginning of 1997, which is when the Hulbert Financial Digest began tracking this service, it has produced a 10.7% annualized gain, compared to 5.1% for the overall stock market (as measured by the Wilshire 5000 index). Among all the services the Hulbert Financial Digest has tracked since 1997, the Buyback Letter is in third place (second when ranked on a risk-adjusted basis).

Private equity is getting into the investment picture as well.  Just look what happened in Delaware last week.  A refinery that Valero Refining Company had shut down in November and affected the income of over 4,900 families was bought by a private investment company.  The new Delaware Refining Company has already called people back to work to begin startup procedures.

If you are thinking of buying or selling a home in Morris Plains NJ give me a call.  I can help you through the process.

Thanks for reading my Blog Morris Plains Homes NJ.  Here is the Quote: There are so many men who can figure costs, and so few who can measure values.  ~Author Unknown

We have some good news in Morris Plains.  Six homes closed in May.  The average days on market before a contract was signed were 88 days. The average sales price was 394.  This works out to about 94 percent of asking price.  That is about a percentage point lower then in April but still not bad.  What is really good news on the home front is that the in May, 6 homes went under contract and the average list price was 599,000.  The average days on market for these homes, was only 35 days. 

The absorption rate for homes priced over 500,000 dollars is only 3 months. While the average for all homes in Morris Plains is 5 months.  Only one home under 500,000 has gone under contract in May.  What does that mean?  Well all the home owners that sold their smaller home have now out buying their next larger and higher priced homes.   This bodes well for those homes priced higher then 500,000.

On the Macro side of things, US economic drivers continue to improve.  On June 2^nd we saw strong housing data as well as double digit auto sales growth.  This morning the ADP jobless claims number showed a decline of 55,000 and weekly claims were off by 10,000.  This was about what was expected.  However the main driver to watch is will be the May Non-Farm Payroll numbers that are expected to be out later this week.  The consensus is for a gain of 430,000 jobs.  That is HUGE.

Thanks for readding my blog Morris Plains Homes NJ.  Here is the Quote: The results of quality work last longer than the shock of high prices.  ~Author Unknown

Good News, More Good News and Some Bad News for the Housing Market in Morris Plains

There was a great article in the Wall Street Journal this morning.  It appears that the devaluation of the Euro has had a positive effect for The U. S. housing market.   An influx of of international money looking for a safe haven is pushing domestic mortgage rates to their lowest levels in 50 years. 

Most industry insiders were bracing for a rise in rates when the FED was going to stop propping up the market.  Instead 30 year mortgage rates have fallen once again below 5 percent.  Instead because of all this cash could push 30 year mortgage rates as low as 4.5 to 4.25 percent.

For every one percentage point decline in mortgage rates equvalent to roughly a 10 percent reduction in the home price.  If the rates hold economists predict that this will allow current home owners to sell existing homes with out actually dropping the price of their homes.  A home priced at 300,000 dollars to a buyer a month ago has just become more affordable to a larger pool of buyers.  This higher number of buyers will be competing for the same home.

More Good News is that The National Association for Business Economics report that they expect the country’s Gross National Product will expand by 3.2 percent in 2010 and 2011.  Growth prospects are stronger, unemployment and inflation are lower.  The economy in April added jobs at the fastest pace in four years.  Unemployment is expected to drop from 9.9 percent to 9.4 percent by the end of the year. By the end of 2011 it will drop to 8.5%

Now for the bad news for Morris Plains Home Owners.  The number of homes for sale in town has jumped up to 34.  What’s worse is our absorption rate is now 8 months.  At this level our market for homes are squarely in the buyers range.   How did this happen you ask? 

Well first we saw the first hints of it over the last 2 weeks when I reported that over a quarter of the homes in Morris Plains have been on the market for 6 months to a year or more.  Many have been listed many times over.  Some have been listed over a period of years.  The reason they never sold is very simple weak marketing and they are all over priced.  

Now the problem is that too many people waited to long to put their homes up for sale.  The time to strike was  2 to 3 months ago when there was no competition, when we only had 20 homes on the market.  Now everyone is jumping into the market and the number of homes for sale has increased by 35 percennt.  Compounding the problem is that every home for sale in Morris Plains is over priced by 5 to 10 percent.  Get ready for a slow sales season this summer.  There will be much wailing and gnashing of teeth in the community of caring. 

If you are serious about selling your home give me a call.  We will work together, construct a realestic marketing plan, price your house to the market and sell it.  Remember Real Estate is not magic we do not wish or hope someone buys your home.   I will work to sell it.  

Thanks for Reading My Morris Plains Blog.  The Quote for today is:  “The young rebel the old conserve, together we move forward.”  Robert Leckie

If you are an out of state reader of my blog you do not know about Kyleigh’s Law.  This law is to place additional restrictions on new drivers by requiring new drivers to put stickers on their cars to identify them as such.  I have written one Editorial to the Daily Record stating my views against this law and here is my second one

We should all applaud the Newton High School Students for holding a rally to protest Kyliegh’s Law.  It is comforting to know that there are young citizens in New Jersey that are conscientious enough to stand up for what they believe in and act against the state when they feel that their rights as guaranteed by the Constitution of the United States are being violated.  You can agree or disagree with their cause but you must admire their actions.   The forefathers of this country salute you.

Kyliegh’s Law came about due to the death of 16 year old girl who was killed in an automobile accident involving an underage driver and 2 other passengers.  The car involved in the accident was an Audi 2000 tt.  This make of Audi is a two seat sports car made to hold 2 passengers.  There where 2 people more in this car then it can safely hold.  Could this tragedy been avoided if all the occupants where properly seat belted? We have seat belt laws on the books in NJ now. Do we need a new law to put a sticker on the license plates of cars of people who do not wear them?  

Secondly this year and make Audi was known for handling problems it is on the record for having factory recalls for problems with the car’s handling and steering.  Hmm maybe the accident was not due to a young driver’s error but the vehicle’s handling.  Should we pass a law putting a sticker on cars that handle improperly?

But still what is the most troubling is the profiling aspect of this law.  It signals to everyone that is within the distance to read a license plate that the person driving this car is a new driver.   Don’t think for a moment that the profiling has not begun.  Just look what happened at Morris Catholic and Morris Knolls High School.  There the police where stopping citizens and giving warnings to get the stickers.   How did the police know they where under age drivers?  Was cause given by these citizens to be signaled out? Were these vehicles being operated in an unsafe manner?   Were tickets issued for speeding or careless driving?  Was a ticket given out for not wearing a seatbelt? 

My understanding is that all underage drivers are to have the sticker.  My question is if a car does not have a sticker how does one know if the driver is underage or not?   My understanding is that if a car has a sticker and a police officer takes note of that a car and it  has what appears too many passengers in it, it may be pulled over.   That was not what was happening the other day at Morris Catholic and Morris Knolls High Schools.  Now we should not find fault with the police they are just doing their job to enforce the laws of the state.  Do we really need our police baby sitting young adults?  These are the same young adults we pay to watch our children, work in our stores and businesses, that volunteer in their communities and churches, that in a year are going to vote, go on to college and have the right to serve their country? 

Lastly the one argument we all as citizens should all have against Kyleigh’s law is that the State has no right coming into our homes and telling us how to raise our sons and daughters.  I call for the Legislature of the State of New Jersey   to repeal this law and leave the raising of our families to us the parents of this great state.

Thank You for reading my Blog Morris Plains Homes NJ, please support the repeal of Kyliegh’s Law. 

Here is the quote   “Liberty means responsibility. That is why most men dread it.”  George Bernard Shaw

What’s going on in the Market in Morris Plains?  Starting off we have 29 homes for sale  in the month of May.   In April we had 12 homes go under contract and six have been sold.

  What is really interesting is that of those 29 homes that are on the market, over 25 percent are not new listings.   These 8 homes have been on the market for over 6 months some have been on the market for over a year.  Morris Plains has an absorption rate for homes priced under 500,000 dollars of 2 months.   For those homes priced over 500,000 it is 4 months.   This statistically means that that a home on the market in Morris Plains will go under contract in less the 3 months.  Now wait a minute why have these homes not sold in over 12 months?  The reason they have not, is that they are over priced. 

What is  interesting is that Morris Plains still has a Sellers Market Absorption rate of three months.   This means that homes that are well priced have sold so fast that they have off set the fact that 25% percent of the homes listed in town are overpriced and have not sold.   

One of these homes was originally priced at 629,000 this home was on the market for almost 8 months.  It eventually sold at 502,500.  There is another home in the Hill Section of town. It has been for sale a total of 1,274 days.   It first went up for sale in 2006 priced at 899,000 it is still for sale at 699,000 today.  This house is the perfect example of a home that is completely out of touch with the market.  Homes in the same neighborhood same style and have sold for between 550,000 and 670,000 dollars.  Price your house right.  Price your house right.  Price your house right.  If you don’t all you are doing is having a party put not inviting anybody to attend. 

Now that the Tax Credit is finished we may see a slow down in first time home buyers looking for a houses.  With this we are seeing buyers asking for sellers concessions at closing.  Buyers are asking the seller to pay their closing costs or points on their mortgage.  Some sellers are actually offering to pay closing costs up to 8,000.00 and adding that information to the listing to encourage more buyers into their home.  This has been a very popular feature in selling homes in the Midwest and Western sections of our country.  It will become more and more popular with buyers and sellers in the months to come.  

I have also had a buyer request the seller to pay for half of the home inspection.  I have seen sellers offer home warranties to buyers.  As the housing market continues to recover, both buyers and sellers will see more and more concessions from sellers to market their homes to a more educated buyer that has many options to consider.

Hey in closing congratulations to the Morristown High School Boys Lacrosse Team and their run in the Morris County Tournament.  Good Luck against Mountain Lakes.

Thanks for reading my Blog Morris Plains Homes and here is the quote:  “The secret to staying young is to live honestly, eat slowly and lie about your age”  Lucille Ball

The Fed Promise’s to Keep Interest Rates at Current Levels. 

 We dodged the interest rate bullet again.  The Fed promise not raises rates for the near term.  Most people believe that rates will hold at these levels for the balance of the year.  Unemployment numbers need to be lower before they will act. 

 However the economy has shown some serious signs that it is improving.  The stock market has pushed through the 11,000 mark and seems to be comfortable there. Consumer confidence numbers have been showing strength, manufacturing has seen some gains.  But most important of all is that home prices have stabilized and have begun to rise.  Not just in Morris County and Morris Plains but in some of the sections of the country that have been hit the hardest.  California Nevada and Arizona where home values have fallen the farthest have seen a lot of the inventory getting absorbed.  What will be most telling in this market is the home buyers credit will be going away and the chances of it getting extended is slim.

 What does that mean to us in Morris Plains?  There are 27 homes for sale in town, thirteen homes are under contract and are waiting to close and 5 homes have closed for the month of April.  The absorption rate for homes priced under 500,000 is 2 months and homes over a half million is slightly over 4.

 Some change in the market as far as home buyers are concerned is that buyer will expect the seller to give concessions at close.  These concessions could consist of the seller offering to  paying closing costs and points.  Sellers can expect buyers to be a bit more demanding in their negotiations in buying their home. 

Buyers on the other hand have to understand that the inventory of well priced and desirable home is slowly getting bought up, Some of these buyers need to know that they can over shop for a house.  Some buyers will keep looking for their perfect house, what I call the A+ property meanwhile all the B+,A- and A properties are all getting picked up.  

 The next couple of weeks will tell.  The spring home buying season is for all intents is over. In less then a month the kids will be out of school, vacations will be taken, people will not be in such a hurry to be out to look for a home.  All the Sellers out there whose homes have been on the market for over 30 days should seriously look at dropping their price.  And buyers should step up their efforts to purchase a home.  Homes are still affordable and rates are low now.

 The economy is improving and this situation will not last for to much longer. 

 Thanks for reading my Blog Morris Plains Homes and the quote for the day is “When opportunity Is knocking at your front door don’t be out back looking for 4 leaf clovers” Unknown

Isn’t this summer like weather great?  I think that after the winter we had we deserve a few warm days. 

My listing at 9 Cleveland has closed.  The historical event took place on March 29th.  The new residents have already placed a play set in the back yard and have begun to make the home theirs.

What is new in Morris Plains Market?  There are 26 homes that are actively for sale in Morris Plains.  Of those there are 5 under attorney review.  There are 11 homes that are under contract.  In January and February we only had 2 homes close, but in March we saw that trend turnaround with 10 homes change hands.  The average days on market was about 4 months and the list to sale ratio was a very firm 95 to 96 percent. 

If you should have any questions concerning how long a house has been on the market give me a call or e mail me and I will be happy to give you the straight skinny.

On a macro note the government stopped buying mortgages but that has not seemed to have pushed rates up too much. The home buyer credit is coming to a close at the end of this month; A 30 year fixed mortgage is still around 5.25 to 5.30 percent.  The employment picture seems to have begun to stabilize.  Inflation is still very low so the government has no reason to raise rates any time soon.  Home prices nationally have also started to rise.  While in Morris County and Morris Plains in particular the bottom has slipped away and prices are higher.  The stock market is knocking on that 11,000 point mark.  I believe the light is at the end of the tunnel.

Governor Christi is doing what he promised by cutting spending and refusing to raise taxes.  He has taken some unpopular stands with the teachers and government employees unions but these things need to be done.  Hey we are all hurting here and we have all had to make sacrifices but I think if we all work together and stop demonizing those that have to make some hard and unpopular decisions and we work together  we will get through this.  We all shared in the good times now lets share in the bad.   Local governments also need to take a page out of the governor’s book and control spending.  None of us can afford our property taxes  going higher. 

Thanks for reading Morris Plains Homes and here is the quote; “I don’t believe in the no-win scenario” James T Kirk Captain of the Starship Enterprise

Today lets talk about the home buyers tax credit.  For first time home buyers this credit applies to anyone who has not held ownership interest in a primary residence within the past 3 years. The Internal Revenue Service is responsible for implementing the tax credit so give them a call for more information. (yeah I know who wants to volunteer to call the IRS if we don’t have to.) Or check out their web site www.irs.gov they are the go to place for tax credit info

Currently there are 29 homes for sale in Morris Plains. 5 are condo’s in Foxwoods. 4 homes are under Attorney Review leaving 21 homes  as active sales in town. There are 11 homes under contract.

and now for today’s quote: “I used to say that Politics is the second oldest profession, but I have come to realize that it bears a gross similarity to the first.”  Ronald Reagan

If you are looking for a property in the Morristown, Morris Township and Morris Plains, give me a call. I have the inside scoop on properties in the area

Happy Saint Patrick’s Day

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.