Peeling back the national numbers and focusing on New Jersey specific statistics will give you a much better idea of what is going on in Ridgewood and surrounding areas.  Below is a recent video and a statement issued by the New Jersey Association of Realtors.

Reacting to the NATIONAL ASSOCIATION OF REALTORS^®‘ (NAR) 2010 Second Quarter Metro Home Prices/State Resales report, New Jersey Association of REALTORS^® (NJAR^®) Chief Executive Officer Jarrod C. Grasso, RCE, today issued the following statement:

“There is no denying the impact the federal home buyer tax credit has had on many local real estate markets. It provided an incentive for first-time purchasers to obtain the American dream of homeownership and, in turn, provided an outlet for sellers to trade up to the homes of their dreams. Many of the trade-up buyers were also able to receive a federal tax credit for their purchase.

“The effect that the stimulus had on New Jersey in particular can be seen directly by looking at the increase of sales activity during the second quarter of this year. Existing home sales in the Garden State increased 15.4 percent from the first quarter of 2010 to the second. They are 29.9 percent higher than the second quarter of last year. New Jersey home sales have also far outpaced the nation, which only showed a quarterly sales increase of 9.1 percent and a yearly increase of 17.3 percent.

“Each of New Jersey’s metro areas have seen year-over-year growth in median home price. This may be a sign of market stability. Even with the tax credit out of the equation, today’s buyers can experience record-low interest rates and affordable prices. However, these conditions will not last forever. Consumers will need to rely on the U.S. government and private businesses to create jobs to revive confidence, which should thus revitalize their confidence in the housing market.”

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What Clients Are Saying About Al Donohue…

Alicia Abdoo and Anthony Inzerillo – formerly of Richards Road, Ridgewood

“Let me just start by saying…the only realtor you should use to sell your house is Al Donohue. We want to take him with us to our new location so that when we sell there, he could be our agent. Now let me tell you why we think Al is unsurpassable as a seller’s agent.

Process: Al took us through the process of getting our home on the market – pricing, timing, marketing approach, preparation and staging with efficiency, professionalism, empathy and thoroughness beyond any realtor we have ever done business with. Al far exceeded our expectations and left no stone unturned.

Tools:Al applies technology to the greatest advantage of his clients. From his well designed websites, to his leveraging of wireless communications, to his Internet statistics which give you a real time update of how many people are looking at your home via his website. With Al’s use of technology nothing is overlooked and you get maximum exposure to the right buyer which is critical in the current market state.

Results: He sold our house in a “buyers” market in 3 days for well over asking price. The asking price he suggested and we agreed to was above what we originally thought the market would warrant but Al’s expertise and savvy educated us and proved to be right on target.

Al Donohue is everything his marketing literature advertises. He instills confidence, integrity, expertise, honesty and sold our house in a difficult market in what we considered record time. Thanks Al.

The VA Mortgage Program boasts some exclusive and attractive perks for veterans.

Benefits

Although somewhat similar to conventional loans, big differences set the VA Loan apart. The government backs the VA program. Therefore, lenders are able to offer lower interest rates.  Also, the VA does not require a down payment on the home. Most conventional loans require an 18% to 20% down payment. 

Veteran’s credit scores also do not need to be as high as is required for a conventional loan.  Even people with great scores can be denied for conventional mortgages.  So breathing a tad easier with the VA loan is a nice thought.  However, a veteran should work to raise his or her score as high as possible.  A higher credit score and reasonable debt to income ratio could help one to get a loan amount up to $729,000.

With conventional loans, private mortgage insurance can cost an extra $100 to $700 per month!  The VA-backed loan does not charge PMI.

Eligibility and Applying

A lending counselor can help a service member gather all the necessary documentation needed for a VA loan.  The Department off  Veterans Affairs website provides a detailed list of what’s required as well.

The service member must be able to prove that they served in the military for 90 days during wartime and 181 days during a time of peace.  He or she must have been honorably discharged. Veterans, active duty personnel, reservists and National Guard members can qualify.  Also, some surviving spouses might be eligible for the VA loan.

Right now, the VA loan is a stress free process for veterans and their families.  Applying is a simple talk with VA loan counselor and a few more simple steps.  Do not let the opportunity pass by.

There’s a Right Way and a Wrong Way to Use a Cash Gift

Mortgage guidelines for Ridgewood Home Buyers are becoming more strict and down-payment requirements are increasing.  It wasn’t that long ago that you could finance a home with zero down. Today, many mortgages require at least ten percent down.

These changes have led to an increase in the number of buyers accepting cash gifts from family members

Gifts are Ok in most cases.  But if you don’t accept the gift the “correct” way, the bank could reject it.

You can’t simply dump a cash gift into your bank account. You need to follow a series of steps and keep good records.

1. You will need a gift letter signed by all parties.
2. You will need documentation of the gifter’s withdrawal of funds.
3. You will need proof of  giftee’s deposit of funds via teller receipts.

Banks and brokers require these steps for 2 reasons.  

1. They want to make sure that the cash gift is not laundered money. 

2.  They want to make sure the gift is really a gift and not some sort of loan.

Banks will typically require that a letter, like the one below, be included in your application:

I am the (relationship to borrower) of (borrower).  Please let this letter serve as proof that I am gifting (name of borrower ) (gift amount) to be used for the a home at (address of property).

This is a gift, not a loan, and I do not expect to be repaid.

Sincerely,

[Gifter Signature]

Buyers receiving cash gifts should make sure that gifted funds are not commingled at the time of deposit.  If the cash gift is for $15,00 the bank’s deposit slip should indicate that a $15,000 deposit was made.  No more, no less.  Don’t add a two hundred dollar deposit to the transaction.  The gift deposit should be a separate and distinct transaction.

Gifting funds between family members can create both legal and tax liabilities.  If you’re unsure about how donating or receiving a gift may impact you, call or email me directly.  If I can’t help you with your questions, I can refer you to somebody that can.

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What Clients Are Saying About Al Donohue…

Sanjay and Uvarshi Tiwary – Ridgewood
“Thank you very much for helping us sell our house. You and your team have lived up to the reputation of representing a great company and fantastic individuals. You have proven extremely trustworthy and effective in an otherwise terrible real estate market. Overall we are extremely fortunate to have had chosen you as our representative for this transaction. I want you to know that we will return to NJ in a few years and we’ll be knocking at your door to help us find a place!”

Pending Home Sales Exceed Already High Expectations

Nationwide Pending Home Sales Chart

Pending Home Sales Burst Out with 8.2% Gain

The National Association of Realtors (NAR) said Monday its seasonally adjusted index of sales contracts rose 8.2 percent from January.

The Pending Home Sales Index is an important measurement. A  pending home is a home that is under contract to sell - but has not yet closed.

According to the NAR, 80% of homes under contract will close within 60 days.  So, a higher Pending Sales figure in February projects that April’s Home Sales will be higher as well.

If you’re a Ridgewood home buyer today, no doubt you’ve noticed the extra market activity.

On homes that are priced well, multiple offer situations are becoming more common and sales prices are getting closer to the listing price.   Also, days on market is falling.  These are the signals of a buyer-heavy market.  This usually drives property supplies down and prices up.

It’s not a bad time to be selling a Ridgewood Home. 

In November 2009, when the home buyer credit faced its first expiration, we saw a pattern of buyers rushing to beat the deadline.  There’s no reason to expect that won’t happen again. And as it does, Ridgewood Pending Home Sales should continue to climb. Average home sale prices should also rise.

About Al Donohue

Check out the list below or Click Here to watch the video for more detailed info.

Click Image to View Video

1.  Not checking all 3 credit reports.
2.  Closing credit accounts thus reducing your overall available credit.  Pay ‘em off – but don’t close them.
3.  Carrying a credit balance of over 30% of available credit on a given account.
4.  Making large purchases right before applying for your mortgage.
5.  Requesting a reduction in your credit limit.
6.  Spending more than 1 month shopping for a mortgage.
7.  Using one credit card to pay off another.

Some of this advice can seem counter-intuitive but I have heard similar advice from several credit experts and local mortgage reps.  I have also witnessed firsthand the negative impact some of these mistakes have had on client’s credit scores.

Click below and let’s connect on Facebook, Twitter, LinkedIn, FriendFeed…

Why Choose Aloysius Donohue?

It’s hard to answer this question myself without sounding like a complete blowhard so please click below to see what clients and local newspapers had to say.

Clients Are Saying…

Local Newspapers are Saying…

Click here to see some of my current listings…

Existing home sales have increased 23% from a year ago and home inventory levels are at a 7 month supply which is the lowest since Feb of ‘07.  Pending home sales are also up sharply.

It seems that beleaguered homeowners may soon have something to smile about as we slowly move from a Buyer’s Market to a more balanced market and perhaps, in time, back to a Seller’s Market.  Sellers will start to see higher prices and may need to give fewer concessions to buyers in coming months.

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New Jersey Home Sales Rise for Sixth Month In a Row

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About Al Donohue

From MND Newswire…

“It is finally official.  The homebuyers’ tax credit has been extended to April 30, 2010.

President Barack Obama approved the extension as part of a $24 billion economic stimulus bill signed Friday.  The bill also includes an extension of unemployment benefits to the longtime jobless and tax credits for some businesses.

The housing tax credit portion of the bill extends the $8,000 tax credit for home buyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to other homeowners who have lived in their current home for at least five years and are seeking to relocate.”

Click here to read the full article.

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Click below to connect with me on Facebook, Twitter, LinkedIn, FriendFeed…

The video below does a nice job of outlining how you can still get a good deal even though housing prices in most areas of the country have started to rise.

You can get a better deal on a home when…

• The property has a “clear ending”.
  • Divorce, Estate Sale, Foreclosure, etc.
• Sellers are in trouble financially.
• You are dealing with a scorned homeowner.
  • Owner has had a deal fall through recently.
• Shopworn Homes.
  • Homes that have been on the market 6 months or more.
• The home is vacant.
  • An overgrown yard is a telltale sign.

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About Al Donohue

Although it has not yet passed, this bill could be voted on as early as today.  The agreement that was reached today includes:

• An extension of the current $8,000 first time home buyer tax credit.
• A new credit of up to $6,500 for existing homeowners.
• An increase in income limits from the existing $75k for single taxpayers and $150k for married taxpayers to $125k and $250k respectively. 
• A  maximum purchase price of $800,000.

This news is particularly good for home buyers and sellers in the Ridgewood area . Many of the homes in the area are out of reach for first time home buyers.  Consequently, the first time home buyer tax credit did not have as much of an impact in Ridgewood as it had in other areas.    However, now that existing homeowners are in the mix, we can expect to see a more direct positive impact in our area.  $800,000 may not be the very top of the Ridgewood Real Estate Market but there is plenty of housing inventory in, and around, Ridgewood below $800,000.

For more details on the plan click here.

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Click Here to Subscribe to The Ridgewood Front Porch

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Click below to connect with me on Facebook, Twitter, LinkedIn, FriendFeed…

Click here to view the video.

The value of homes in twenty major markets rose by 1.2% in August which is the 4th increase in a row, according to Case-Shiller. Prices rose in 17 of 20 cities. Only Cleveland, Las Vegas and Charlotte  saw declines.

“U.S. home prices have apparently bottomed,” said a noted economist for UniCredit Markets.

For the full report click here.

Note: The Case-Shiller report normally comes out on the last Tuesday of the Month, with a 2 month lag, so the report that came out today is for August.

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Mortgage Applications, Building Permits and Housing Starts All Rise

Click Here to Subscribe to The Ridgewood Front Porch

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Click below and let’s connect on Facebook, Twitter, LinkedIn, FriendFeed…

Why Choose Aloysius Donohue?

It’s hard to answer this question myself without sounding like a complete blowhard so please click below to see what clients and local newspapers had to say.

Clients Are Saying…

Local Newspapers are Saying…

Click here to see some of my current listings.