The Tom Johnson Group,

The economy continues to send mixed messages -- some encouraging for real estate, some not -- but this week the positive are edging out the negatives.

Take housing prices for example. The research company with the largest database of ongoing real estate transactions - First American CoreLogic, which tracks property values in thousands of Zip codes and neighborhoods - reports that nominal price drops have "stabilized" in 883 core-based statistical areas, showing no declines in the past two months.

Why's that important? Because flattening out is what we need before we can see a cyclical turnaround -- in other words, where even in the hardest hit local markets in California, Florida, Arizona and Nevada, prices have hit bottom.

They're not likely to drop much further, and in some parts of California are now at such bargain levels that large investors are prospecting for entire packages of houses -- ten or more in some cases -- to buy in bulk and rent out.

Gary Crabtree, an appraiser in Bakersfield, California, told Realty Times that he knows of one investor who has a standing order for 20 houses that fit specific price and locational characteristics that he wants to purchase.

The National Association of Realtors sees similar bottoming out -- even the first signs of turnaround -- in a number of key markets in the U.S. In its latest quarterly report, home sales were up year-to-year in 26 percent of all states and 35 percent of metropolitan statistical areas.

Biggest price jumps were in Yakima, Washington, where the median was up 8.9 percent, Binghampton, New York, up 8.7 percent, and Amarillo, Texas, up by 7.2 percent.

On the other hand, the Realtors also reported the national median sales price was down by 7.6 percent from the second quarter of 2007, and now stands at $206,500.

In other key economic developments: New housing starts fell by three percent last month - which is only logical given builders' still bulging unsold inventories.

And mortgage rates took a dip this week to an average 6.47 percent for 30 year fixed. Fifteen year rates slipped below 6 percent to 5.99 percent. New loan applications for FHA mortgages to purchase homes rose slightly, according to the Mortgage Bankers Association of America -- even while applications for conventional home purchase mortgages from Fannie Mae and Freddie Mac dropped for the week.


Written by Kenneth R. Harney
August 26, 2008 

Prices in the Atlantic County New Jersey (NJ) and Brigantine NJ real estate second home and condo markets also appear to show signs of stabalization.  Indications of price stabalization, may signal that we are at, or near, the bottom of the market.  As the confirmation of the bottom cannot happen until after we have passed, buyers that wait too long will have missed their oppotunity.  Now is the time to buy and take advantage of the selection and prices at the Jersey Shore, Atlantic County, and Brigantine Beach area - condos, townhomes, and single family homes all show purchase opportunities.

10 Deadly Mistakes Buyers make When Purchasing a Home:

1.  Making an offer on a home without being prequalified.  Prequalification will make your life easier - so take the time to speak with a lender.  Their specific questions in regard to income, debt, etc., will help you determine the price range you can afford.  It is an important step on the path to home ownership.

2.  Not having a home inspection.  Trying to save money today can end up costing you tomorrow.  A qualified home inspector will detect issues that many buyers can overlook.

3.  Limiting your search to open house, ads, or the internet.    Your best course of action is to contact a Realtor (r).  A full time Real Estate agent, that specializes in the market you desire, has up to date information that is unavailable to the general public.  Furthermore, a full time agent will commitment to work for you, and help you find the home you want.

4.  Choosing a Real Estate agent who is not committed to forming strong business relationships with you.  Making a connection with the right Realtor is crucial.  Choose a professional who is dedicated to serving your needs - before, during, and after the sale.

5.  Thinking there is only one perfect house out there.  Buying a home is a process of elimination, not selection.  New properties arrive on the market daily, so be open to all possibilities.  Ask your Realtor for a comparative market analysis.  This compares similar homes that have recently sold, or are still for sale.

6.  Not considering long-term needs.  It is important to think ahead.  Will the home suit your needs.

7.  Not examining insurance issues.  Purchase adequate insurance.  Advice from an insurance agent can provide you with answers to any concerns you may have.

8.  Not buying a home protection plan.  This is essentially a mini insurance policy than usually lasts one year from the date of closing.  It usually covers basic repairs you may encounter and can be purchased for a nominal fee.   Talk to your agent to help you find the protection you need. 

9.  Not knowing total costs involved.  Early in the buying process, ask your Realtor or lender for an estimate of closing costs.  Title company and attorney fees should be considered.  Pre-pay responsibilities such as Homeowner Association Fees or Condo fees, and insurance must also be taken into account.  Remember to examine your settlement statement prior to closing

10.  Not following through on due diligence.  Buyers should make a list of concerns they have relating to issues such as, crime rates, schools, environmental conditions, recreational activities, etc.  Ask the important questions before you make an offer on a home.  Be diligent so you can have confidence in your purchase.

Tom Johnson of Prudential Fox and Roach Realtors, Brigantine, and any member of The Tom Johnson Group can help you to avoid all of these common buyer mistakes.  Tom Johnson has the experience to help you through all elements of the home buying process.

Contact Tom, or any member of the Tom Johnson Group for all your second home, real estate needs.

The Tom Johnson Group, your Shore Home Connection

www.ShoreHomeConnection.com

• If you like shopping when there's lots of selection and prices are good, buy now.
• If you are financially secure and plan to move to a more expensive home in the future, then sell now and buy now.
• If you are renting and would like to own a home, buy now
• If your personal life circumstances dictate a move, sell or buy now

these are simple answers for difficult decisions and opinions differ from person to person.  Let me share how I've come to my conclusions.

The National Economy

As consumers, we are apprehensive about our national economy.  However, most economist believe that any downturn we may exerience will be mild and short-lived.  The Federal Reserve Bank has proactively addressed both the Credit Crunch and concerns about recession by reducing the federal funds rate  and adding liquidity to the market.  Congress also resonded to the threat by passing an economic stimulus package. 

Our Local Economy

Our local economy is stable and continues to grow.  It has a diverse economic base and job growth is expected to continue.  Demographics, including baby boomers, echo boomers and immigration, are also exptect to significantly contribute to the health of our local economy.

The Mortgage Market

August 2007 marked the end of a three year credit free-for-all, and signaled the beginning fo the Credit Crunch.  .... Despite necessary corrective actions in the banking industry, it is important to know that many financing options are available for today for buyers with reasonable credit scores.

Our Local Real Estate Market

Real estate markets are like the weather.  Thre is no such thing as a national forecast.  The national media may dwell on reporte 14% price declines, but our local market is performing better than those in many other parts of the country.

When Will We Hit the Bottom of the Market?

Most economists believe that we are bumping along the bottom of the downturn.  Housing starts have reached a level of equal to the bottom of the last three housing downturns..  But if an upward swing isn't expected until 2009, why would you want to buy or sell now?

The bottom of the market is only known after has passed.  While many people are 'waiting out the market', a pent up demand is forming.  By the time a general feeling of recovery permeates our society, those who waited for the bottom will have waited too long.  Home buyers will have more competition in the marketplace.  Housing prices will begin to rise.  Interest rates will begin to rise.  There will be less inventory and fewer, more expensive choices.

Summary Notes - Tom Johnson

In summary, now is the time for buyers to take advantage of this market.  Here at the Jersey Shore, the local economy remains strong.  The casino industry continues to invest in Atlantic City with the construction projects such as Revel, The Chairman's Tower at Trump, and the anticipation of the MGM in the marina district.

For all your real estate needs at the New Jersey Shore, Atlantic City, and Brigantine, contact Tom Johnson - The Tom Johnson Group, your Shore Home Connection.

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Beach Front Complex - $275,000
 
For directions or more information,
Charles Thomas (Tom) Johnson, ABR, CRS
The Tom Johnson Group
...your Shore Home Connection
Prudential Fox and Roach Realtors
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Say Yes to CRS

Before hiring a contractor to tackle your next home-improvement job, take the time to do some in-depth research so you won't be stuck with regrets ? or an unfinished project.

According to Inman Real Estate News, the best way to find a dependable contractor is to talk to friends. Compile a list of names from people you know and trust, then research each contractor online to determine if they are licensed to do business in your state. You should also search for complaints filed against each contractor. 

Once you have a short list of potential candidates, call to ask them for references who can give you first-hand accounts of their past performance. Make sure the contractor has a reputable history of paying off their suppliers, and sub-contractors, and fininshing the jobs on schedule. 

If the contractor won't gladly supply names of previous clients, cross them off your list. Also, for bigger projects, it's often best to have a real estate attorney look over the contract and point out any red flags.

The Tom Johnson Group, and Tom Johnson can help in finding information on builders and contractors and new homes.  For questions, call us at 609-264-7208 direct, or main office number 609-264-8444 ext. 7208.