the Resourceful Realtor

More and more, what I really want to know is this: Why did you want to become a Realtor?

During the past year as I've made the transition from agent to broker-manager/co-owner I have become much more involved with the day-to-day drama of agents and I am continually interviewing new licensees looking for a place to call their 'real estate home'.  And I really want to know, why this?

Money, of course, is a frequent motivating factor -- after all this is supposed to be an income-producing activity.  But I think for most of us, there's something else that brought us to the land of open houses and photo business cards. Or, at least, there's more that keeps us here.

I got my license in 2002 after never having worked in sales and wondering what I was getting myself into.  I was determined to be successful but uncertain what it would take to get there -- and maybe a little frightened.

I will always remember a dear friend emailing to congratulate me on my new career path.  She said, 'Shelter is one of the most primal needs we have and you are helping people find not just shelter, but home.'  She suggested that this was a kind of spiritual calling. 

It was a powerful context for what I viewed simply as a mid-life career change brought on because I didn't want to commute to Manhattan to continue working in my then-career, television production & design. 

Truth be told, my neighbor sold his house and said that all his agent did was stick a sign in the ground and collect a substantial paycheck.  I thought, "Surely I can do that!"  And suddenly, a new real estate agent had earned his lockbox key.

But since then, I've realized that my friend was right. Being a real estate professional is a sort-of calling. (If there are any car salesmen in the room, I'll kindly ask you to step outside until you've stopped chortling.) 

Think about it: We engage people in their most private realms. We know the secrets, fears, and aspirations of strangers.  We are welcomed into the dark and sometimes shameful shadows of our clients' brokenness: divorce, financial ruin, dire health prognoses, the death of a family member... there are so many reasons people come to us to sell their homes.

Thankfully, the reasons are also often uplifting: new unions, new babies and job promotions.  But frequently they're heartbreaking -- especially in these times. 

In either case, the reasons are deeply personal and our entry into this intimate space, I think, needs to be informed with respect and humility.

So here I am, asking you -- with a special plea to restrain any soap operatic knee-jerk responses that this question may provoke -- and request that you simply respond with truth... aside from hoping to earn an honest living, Why Did You Become a Realtor?

As a profession, I think we take a good deal of abuse because of a relatively small number of agents who behave without ethics or caring.  I am proud to say that the vast majority of agents in my marketplace are trustworthy, honest and deeply caring individuals whom I am proud to call my colleagues, and many, my friends.

Whatever may have brought me to this career, I can honestly say now that I am humbled by the stories of all those I have encountered: those looking to start anew, those hoping to repair or escape a living situation that simply was not working, those eager to begin a new chapter in their life. 

What a small and insignificant role to play in the lives of others, and yet, one so vitally important.

Wanna buy a house?   Or shall I say, How may I help you build a bridge to that next place where you will experience your life?  'Cause that's what we do.

Let's hear it.  I really want to know:  Why did you become a Realtor?

-------------------

Thomas McCormack
Broker-Manager/Co-Owner
Resources Real Estate

Looking to move to Monmouth County NJ. Search for new homes at my website.

Many towns in eastern Monmouth County are showing significant single-family unit sales gains year-to-date relative to last year during the same period.  While the county overall is down 5.3% here are some of those towns that are "in the black" as of today:

• Fair Haven: up 38.6%
• Monmouth Beach: up 33.3%
• Rumson: up 14.2%
• Highlands: up 11.7%

Looking for a new home in Monmouth County? Visit my website for full search capability.

Resources Real Estate single-family volume sales are up 12% year-to-date compared with last year during the same period!  Congratulations to all those agents who continue to push thru and get the job done!

I think most agents who have been around awhile would agree that pricing correctly is key in both getting the property sold and getting your client the highest return. For that reason, one of the statistics that I especially pay attention to is the list-to-sale price ratio which is the difference between the asking price and the closed price.

This statistic is very telling and of use to both buyers and sellers.  Basically it helps you understand if an offer is worthy of serious consideration.

I have had many buyer clients in the past few years who think that an offering price of 20% off asking is totally reasonable.  When they hear that the market is down 25-30% from the high they assume that the current asking prices are inflated by those percentages.  When I give them accurate data on what the average list-to-sale price ratio is they are better able to put together an offer that they can negotiate and have a chance of getting accepted.

Similarly, with sellers it's important they understand this statistic as well. It is especially important to introduce these stats when first pricing the home, so there's a clear understanding of the potential range of offering prices and how to recognize an offer that should be considered and not rejected outright.

If you are pricing correctly, this statistic for your business should clearly reflect it.  I'm pleased to say that in 2010 Resources Real Estate had a list-to-sale price ratio of 95.79% in 2010 for our sellers while the average list-to-sale price ratio for all Monmouth County real estate companies was 93.52%. That's a difference of 2.27%!  For a $1 million dollar home sale, that's a savings of almost $23,000 that we provide our clients!

And so far this year we're doing even better with a list-to-sale price ratio of 97.59% thru February!

Resources Real Estate also has one of the highest average sale prices of any company in northern Monmouth County so we know we're not underpricing either.

So whether you are an agent, home buyer or seller, take some time to understand this statistic and use it to better understand the market, no matter where it's at.

Thomas McCormack
Broker-Owner
Resources Real Estate
112 East River Rd | Rumson, NJ | 07760
732-212-0440  www.thomasmccormack.com

Find your next dream home in Monmouth County, NJ!

Monmouth County Sales Stats
Year-to-Date Sales Are Up

Since joining Resources Real Estate in 2002, I have tried to provide a perspective to my customers and clients that is both thoughtful and accurate.  I have also tried to focus on the positive things around me, leaving the negativity to others who seem to revel in doom-and-gloom. 

Since coming on board as co-owner in September with additional responsibilities in managing our Rumson office, I have tried to instill this attitude and discipline among our team of agents, as well.  Every Monday morning (with the exception of yesterday due to the distraction of clearing 2.5 feet of snow from my driveway) they've received an email with positive and current stats that reflect encouranging news in our marketplace - Monmouth County.

The impact of my "Monday Morning Mojo" has been very real as I've seen a number of agents engage in their business in a new and upbeat way.  To be able to discuss current sales trends with accuracy and clarity is a powerful thing... it heartens the agent who has felt beaten down by the market and helps them communicate to their clients and friends that, in general, our market is improving. 

There's a real hunger for signs that this economic downturn will pass.  Just recently i was at an event where someone asked how the market was doing.  When I told him that sales in Monmouth County were up from 12 months ago I thought he was going to hug me. And because the stats from my last "Mojo" were still in my head, I was even able to provide specific percentages.  He was impressed - and his house isn't even on the market.

"Finally, someone with some good news," he said. "I'm so sick of everyone telling me how terrible things are."  He asked for my card and wanted to know more about my company.  I was clearly providing him with welcome encouragement.

As we move into 2011 I hope all of us can resist the temptation to dwell on all that is wrong and look with hope toward things that are right, or at least, show some signs of moving in that direction. 

Thomas McCormack

Broker Owner

Resources Real Estate  |  112 E River Rd  |  Rumson, NJ 07760  |  732-212-0440

www.ThomasMcCormack.com

Search for your new home in Monmouth County, New Jersey.

Much of this year we have been seeing that the strongest portion of the market -- the one with the most significant rebound gains have been in the high-end. 

Luxury home sales have been showing big increases much of the year and this continued thru November.  Year-to-date sales of single-family homes between $1. 5 - $2 million are up 22%.  Above $2 million that increase jumps to almost 31%.

Thomas McCormack
Broker Owner
Resources Real Estate  |  112 E River Rd  |  Rumson, NJ 07760  |  732-212-0440
www.ThomasMcCormack.com

Search for your new home in Monmouth County, New Jersey.

Monmouth County single-family home stats for the 12-month period ending in November compared with the previous 12-month period:

• Dollar-volume are up almost 8% (+)
• Unit sales are up almost 4% (+)
• Average sale price is up almost 4% (+)
• Median sale price is up 2.5% (+)
• Available inventory is up 6% (-)

All in all year-end unit sales will probably end up flat relative to last year but the strong rebounding portion of the market is the luxury end... year-to-date sales of homes between $1. 5 - $2 million are up 22%, above $2 million that increase jumps to almost 31%.

Thomas McCormack
Broker Owner
Resources Real Estate
112 E River Rd  |  Rumson, NJ 07760  |  732-212-0440
www.ThomasMcCormack.com

Search for your new home in Monmouth County, New Jersey!

Resources Real Estate Sales Up Across All Categories
Highest in Three Years

Resources' overall unit sales (across all categories: SF, condo, AC, rental, etc.) for the 12 month period ending in September are up 21% over the previous 12 month period.  In fact, it's the highest it's been in three years!

Dollar volume is also up.... 90% for the same 12 month period vs. previous 12 month period... also the highest it's been in three years!

Back issues of MONDAY MORNING MOJO!  (this is from Oct 4, 2010)

Tired of all the bad news?  There is good news out there -- kno about it!

Monmouth County Sales are Up!   Amost 7% Increase
As of Oct 2nd, Monmouth County unit sales are up almost 7% year-to-date compared with same period last year! 
Biggest gains are above $1.5 million (up 38%)!

Resources Real Estate Shows Year-Over-Year Gains:  Significant Increase in Sales
Year-to-date Resources' sales are up almost 9% compared with same period last year as of Oct. 2nd!
Higher than increases for the county!

Thomas McCormack
Broker Owner
Resources Real Estate

Here to help you find your next home in Monmouth County.

Since becoming Co-Owner and Broker of Resources Real Estate last month, I wanted to help my agents see the market more clearly and not fall prey to the glut of bad news, pessimism and naysaying that is so pervasive.  To help them thru it, every Monday morning they receive an email with real statistics that show real progress in the local real estate market. 

I thought this information might prove useful to you as well and so I've decided to begin sharing them as well... stay tuned for Monday Morning Mojo!

Thomas McCormack
Broker Owner
Resources Real Estate

Here to help you find your next home in Monmouth County.

Some ideas are considered “outside the box” just because they’re different. Others are outside the box because the box simply isn’t big enough for it.

When faced with a disappointing lack of awareness among local real estate agents about the many fine attributes of the town of Atlantic Highlands, NJ, one broker had a radical idea: educate them so they can better communicate the value of the town to their customers.

“I was thinking that Atlantic Highlands is under the radar of many agents,” said Thomas McCormack, broker at Resources Real Estate in Rumson, NJ. “And there’s so much here that’s unique and special that it required something out of the ordinary to get their attention.”

That’s when McCormack had an “aha moment.”

“An ‘aha moment’ is a sudden understanding – it’s an abrupt recognition of something that is right in front of you,” said McCormack. He took that concept, used it as an acronym (“AHa: Atlantic Highlands Access”) and created an event that he hoped would draw area agents to the town where they could experience it first-hand and learn about why their customers might want to move there.

With over 100 agents attending 30 open houses hosted by 15 different offices, it was clear this was an idea for which there was a very willing audience and it proved beneficial for the town, its businesses and homeowners hoping to sell their homes.

“Atlantic Highlands has a tremendous amount to offer,” said McCormack, “There’s a high-speed ferry to Manhattan, spectacular ocean and bay views, stunning Victorian architecture as well as brand new homes, a municipal harbor and a great downtown with fine dining options, great shops and a burgeoning arts scene.”

One reason for the event’s success was the support of the town’s chamber of commerce. When approached with the idea, Chuck Lero, head of the Atlantic Highlands Chamber of Commerce, quickly came on board. In a town with a small but vital downtown commercial district, the chamber was eager to flaunt the town’s strengths.

“We recognize that realtors can be instrumental in bringing new people into Atlantic Highlands,” said Lero who is also a loan officer with Two River Community Bank in town. “I think the event helped agents walk away with a deeper understanding of what’s here and that’s great.”

“Chuck and Sherilyn at the Chamber were instrumental in making the event a success,” said McCormack, “They helped coordinate the gifts and prizes we raffled off to the agents, provided a luncheon at the Indulgence Café, they even got the mayor involved – their help was hugely supportive.”

Hundreds of dollars worth of prizes from local merchants -- everything from ice cream and a movie to dinner at one of the many, varied restaurants in town, to gift cards to the local jeweler and eyeglass shop – were raffled off to the many agents who gathered at the Indulgence Café for lunch.

“It was very well organized and informative,” said Rosemary Beales, an agent with Heritage House Sotheby’s in Shrewsbury, “Every town should have one.”

While some might be surprised that agents from different companies would cooperate on such an event, apparently it came together quite easily.

“I wasn’t sure what to expect but when I put the idea out to agents with homes listed in town, the response was immediate and strong,” said McCormack. “In fact, even the morning of the event we had additional homes being added to the tour.”

“Best of all was hearing agents say ‘Atlantic Highlands really is a great place – more people should consider it’,” said McCormack. “That was the goal.” That and, of course, getting some of his clients’ homes sold. “Absolutely, this was also intended to help get my listings sold,” he added, “but I think sometimes we have to sell newcomers on the community and a lifestyle before we can sell them a house.”

----------------------------

Download flyer for event.

Thomas McCormack
Broker-Manager
Resources Real Estate | 112 E River Rd  | Rumson, NJ 07760
732-212-0440  www.thomasmccormack.com

Search Atlantic Highlands' homes!

What do you do when you're in a market where the majority of agents have blinders when it comes to towns outside of their primary market area?

How 'bout, throw it a party?

In the northeastern part of Monmouth County where there are affluent towns such as Rumson, Fair Haven, and Little Silver, among others, that seem to monopolize the attention of many agents, some area towns suffer in comparison despite the fact that these towns have their own strong and distinctly different features.

Prime example:  Atlantic Highlands.

Here's a town with incredible attributes:

• A viable downtown area with great restaurants (Copper Canyon, AMA, Wine Bar), shops (I love The Flaky Tart!), movie theater and more.
• Some of the most astounding views on the east coast with the highest point on the eastern seaboard - views of Raritan Bay, Sandy Hook, the Atlantic Ocean, NYC in the distance
• Great architecture - reportedly the second highest number of Victorian homes in NJ after Cape May
• A municipal harbor - a wonderfully protected harbor for boats large and small that provides easy access to the ocean, the bay and New York Harbor
• High-speed ferry commuter service to Manhattan - I've had clients who were able to walk from their home to the ferry to their office in lower Manhattan and be sitting at their desk in under an hour.
• Proximity to ocean beaches & immense parkland (Hartshorne Woods' 700+ acres of trails.)
• A burgeoning arts community with music events (the monthly open mic), film events (FilmOne Fest of one minute films) and more.

You get the idea.

It's funny, Atlantic Highlands is the place I take any relocation clients I get moving from California and it's the place they inevitably say they want... even after I've shown them the more "affluent" area towns.  Why?  Because of the views, the sense of community and feeling of being in the heart of of natural beauty.

To try to educate our colleagues and perhaps (dare I say) sell our listings, a bunch of us agents with listings in Atlantic Highlands have banded together to create "AHa! - Atlantic Highlands Access" -- we're having a collective "Aha moment" and hopefully will clue others into what we know to be true... this town rocks! 

When:  Sept 14th 11-2pm
What:  28 houses open for brokers representing 15 agencies from great rentals to mult-million dollar homes
Who: Brokers & agents from all over Monmouth County
Where:  Throughout Atlantic Highlands with lunch at Indulgence Cafe compliments of Chuck Lero / Two River Community Bank
Download the flyer.

The Atlantic Highlands Chamber of Commerce is supporting this and we'll have hundreds of dollars worth of prizes & gifts from local shops & restaurants. 

If you're an agent who is less than familiar with this great town, I hope you'll join us.  If you're not an agent, I hope you'll consider Atlantic Highlands next time you want to experience a wonderful small town with a lot goin' on. 

And if you're thinking of moving?  Definitely give me a call.... I'm happy to give you the tour.

Thomas McCormack
Broker/Partner
Resources Real Estate | 112 E River Rd | Rumson, NJ 07760
732-212-0440 x212  www.ThomasMcCormack.com

Search homes in Atlantic Highlands.

Thought I would check in once again check in and see how the market in Monmouth County is doing and was pleased to see we're still in positive territory relative to last year for the same period.  Single-Family home sales are up 10% from last year with a particularly large comeback for the above $1.5 million bracket.

As you can see, the $1.5 - $1.99 million range is up over 48% and $2 million and above is up 53%!  Solid gains were also seen in the $550,000 - $700,000 range, each showing a more than 30% increase.

Perhaps most interestingly, the range with the least impressive results - largely flat or with slight decreases from last year's numbers - is the $250,000 - $450,000 range.  I find this somewhat surprising given all the attention paid to the first home buyer credit which ended earlier this year... this price range would likely have seen signficant increases if the tax credit was a factor in our market this year.  This bears out my experience which was that the tax credit was not playing a major role in getting buyers to take action, at least in my neck of the woods.

Modest gains? Perhaps.  Moving in the right direction?  Absolutely.

Thomas McCormack
Broker/Owner
Resources Real Estate
112 E River Rd, Rumson, NJ 07760
732-212-0440 x212
www.ThomasMcCormack.com

Search Monmouth County homes.

Carolynn Ozar-Diakon, broker-owner of Resources Real Estate in Rumson, New Jersey, proudly announced today that Thomas McCormack, a broker-salesperson with the company for over eight years, has become a partner and co-owner of the company.  McCormack will manage the Rumson office while continuing to service his clients.

"Tom's past experience and skill set has proven very effective for him in real estate", said Diakon, "I am excited that he will bring this to his new role as manager and I look forward to working together as partners in Resources' growth."

McCormack joined Resources in 2002 after an extensive career in television and entertainment. McCormack was on staff at HBO for five years, ultimately serving as production manager for on-air promotion. McCormack worked the following 13 years as a freelance producer and production manager for clients ranging from HBO (where he helped produce family and documentary programming), Showtime, Time Inc., VH1,E!, ESPN2, and others.  Much of his work just prior to entering real estate was with Big Fat TV and Holly Chasin Design, both broadcast design & brand identity firms, where he learned effective marketing and branding. 

His extensive background in television and entertainment has brought him to work with many celebrities, artists and athletes including Billy Crystal, k.d. lang, O.J. Simpson, Lauren Hutton, Mike Tyson, Harry Belafonte, and Elle McPherson

In his real estate career McCormack has received the New Jersey Association of Realtor's Circle of Excellence Award every year since 2003 and has consistently been a top producer in the area and at Resources Real Estate. 

"I have been extremely fortunate to have trained with one of the top realtors in Monmouth County," said McCormack of Diakon, "Carolynn is a very smart and respected professional and I can't imagine that I would have achieved the same success without her support. I am proud to be part of Resources Real Estate and am certain that our position as one of the foremost independent brokerages will continue to grow."

Diakon opened Resources Real Estate, a full service real estate company, in 2000. With 24 years of real estate experience, Diakon maintains an outstanding reputation of leadership and knowledge.

Resources Real Estate is located at 112 East River Road in Rumson. For more local real estate information, call (732) 212-0440. You can also hear real estate trends and tips on resourcesrealestate.com.

At the beginning of this year, anticipating a slow winter season I was encouraged by one of my fellow agents in my office to pursue my real estate broker's license.  It seemed more productive than waiting for the phone to ring and I figured I could DVR "American Idol" which posed a scheduling conflict with the class's nighttime schedule.

Having been an agent salesperson since 2002, I had never really felt the need to have a broker's license and indeed, wasn't sure if I wanted to commit the time to acquire it. (And until recently I was unaware of how significantly DVR can change your life!) But I followed my co-worker's suggestion and enrolled in the required courses, passed my state exam and am now a proud Broker-Salesperson.  Yeah!

Although many use the terms "agent," "salesperson" and "broker" interchangeably, there's actually a significant difference between them in terms of training, testing and responsibility to the public.

• An "agent" is anyone who is working on behalf of another and either a salesperson or broker can act as an agent. In New Jersey, your status of "salesperson" or "broker" (or "broker/salesperson") is a function of the state's licensing laws.
  
• To qualify for a real estate salesperson's license an applicant must be 18 years of age or older, have a high school education or equivalency, complete a 75-hour prelicensure course at a licensed school and pass the license examination. After successfully completing the course and passing the examination the applicant must apply for a license through a sponsoring real estate broker. In addition the Commission must be satisfied as to the applicant's honesty, trustworthiness, character and integrity.
• To qualify for a broker's license an applicant must have a high school education or equivalency and must successfully complete 150 hours of prelicensure education. Applicants must first complete a 90-hour general real estate course, and then two 30-hour courses on Agency/Ethics and Office Management and related topics. In addition, applicants must have been continually licensed and employed on a full-time basis as a New Jersey real estate salesperson for the three years immediately preceding application. An applicant must then pass the state's broker license examination.

As a broker you can work under another broker's supervision as a "broker/salesperson" or you can become a "broker of record" by acting as the supervising broker for an existing brokerage or start your own company.

All highly fascinating, I know. 

Aside from being able to change the title on my business cards and website, I am now held to a higher standard of care given my increased training and higher status in the hierarchy of real estate professionals.  While all this is good and it affords me new opportunities, I feel much the same today as I did before I got the official word of my change of status.

So let this now be the official introduction of my new moniker "Broker-Salesperson" (should I be concerned that its initials are "B-S"?)  Probably better to not dwell on that right now.... and besides, I've got to see who get's into the semi-finals for "America's Got Talent."

The New York Post ran an article this weekend which got a lot of attention in Monmouth County as it was highlighting the higher end of the market, specifically in Rumson, NJ.  If you'd like to read the full article you can do so on the NY Post website. 

Ultimately I don’t think this is a new story… basically they’re saying “prices are down and there’s a lot of inventory” but that’s basically been the story for about three years now.  All they’ve done is make it very specific to one part of the market and made it a bit more colorful by including some interesting quotes from locals and colorful descriptions (I’m not sure exactly how the atmosphere is “surreal” around here but I suppose it sounds good.)

There is one significant inaccuracy in the story, that there are currently 100 homes for sale over $1mil, it's actually 68 (an overstatement of 47%).  This number is not that surprising in that the median home price is well above $1 million (meaning half are above that price point and half below). 

As a side note, this is a clear example of why people should not believe everything they read on the internet…(present author excepted, of course)  I did the same search on Trulia and found that yes there were 100 properties listed above $1million as stated in the article… too bad quite that many were homes & condos & at least one commercial property that are actually in different towns including Sea Bright and at least one in Middletown. So much for fact-checking.

The bottom line is the market is always driven by supply & demand – when supply is up and demand is down prices fall and inventory increases.  When supply is low and demand is up prices rise and inventory decreases.  It’s highly likely that when all of the referenced property owners bought their current homes, they had sold another property which yielded them some decent gains because of where the market was at.  Now the market has changed and those gains have to be averaged out.   Everyone seems to understand how that works when dealing with the stock market but somehow think the same market forces don’t apply when it comes to real estate.  Like I said, not a new story.

A few things to consider to put this all into perspective and offer some clarity:

1. Of the 17 homes currently under contract, over half are above $1million. 
2. In comparison with the previous 12 months, the $1million+ home sales are the part of the market showing the greatest gains:  $1-1.5 million is up $128%,  $1.5-$2 is up 300%,   and the above $2mil is up 80% in number of homes sold. 
3. For all of Rumson across all price points unit sales are up 61%. An encouraging figure in itself but clearly this shows the higher end is doing better than the lower end.
   
4. The median sale price in Rumson for the past 12 months is $1,165,000 (up from $900,000 the previous 12 months… an increase of over 29%... you’d have to go back 3 years to beat that.) 
5. Likewise the inventory numbers on average for the previous 12 months are the lowest they’ve in three years.

If anything, I think this highlights a buying opportunity in Rumson for those who previously may have thought it was out of reach.  Hopefully it will attract some new buyers to the market.  The primary focus for us is to encourage people to see things from a less hysterical perspective than this article presents and simply see that there is tremendous value currently available.

Rather than painting such a negative picture, the Post could have easily told the opposite story which is that sales are up, prices are up and inventory is down.  But that, surely, wouldn't have gotten the same rise out of everyone, and chances are you never would have visited the Post's website.

Thomas McCormack
Sales Associate
Resources Real Estate | 112 E River Rd | Rumson, NJ 07760
732-212-0440 x212   www.ThomasMcCormack.com

Searching for a home in Rumson?

Single-family home unit sales in Monmouth County, NJ,  were up 50% in June relative to the year before (650 homes sold vs 435) - a remarkable increase and hopefully a promising indicator of market improvement.  Interestingly, June's figures were an even bigger increase from May - 94%!

Upon seeing this I thought, "Well of course it means that the prices must have been really low..." but the median sale price actually went up by 6%! (from $385,000 to $408,500)... also good news.

And while current inventory is slightly higher than this time last year, the absorption rate is way down due to the number of homes sold... currently there is only about 7.5 months of available inventory.  That means that at the current rate of home sales, if no additional homes came on the market, it would take 7.5 months to sell out everything.  You may think that sounds like a long time but that's the lowest it has been in at least four years! (Our MLS only provides stats for previous four years so I can't confirm the last time it was that low.)

The next question is "why"?  Was it due to the expiration of the First-time Homebuyer Tax Credit (which also provided tax credits for some non-first timers as well)?  The original expiration date of June 30 was extended by Congress in the 11th hour for those already under contract because there were so many transactions that needed to be closed and not enough time to get it all done.  Banks, title companies, attorneys... many were backed up and couldn't get things closed by the deadline. 

So the sales jump was certainly due at least in part to this incentive but many agents I've spoken with reported very little if any impact from the tax credit.  I had one client who qualified and was able to close in time but the incentive was not the overriding factor in making an offer (but welcome nonetheless).  Similarly, I have other clients who would have qualified but they were not interested in making an offer on something simply to get the credit... they still had to find the "right" house. And haven't. Yet. (Hope springs eternal for us realtors...)

In re-examining last year's sales, the trend was an increase in sales that began in May and really kicked in in June - October.  I'm hopeful that we may see a similar trend this year as prices remain attractive (relatively flat overall for the past 24 months) and the mortgage interest rates are great. 

So if prices aren't going down and money is cheap... isn't NOW a great time to buy?

Stay tuned... 

Last night, the Senate passed the National Flood Insurance Program Extension Act, an extension of the National Flood Insurance Program until September 30, 2010. The bill is retroactive and covers the lapse period from June 1, 2010, to the date of enactment of the extension.

Additionally, Congress passed an extension of the closing deadline for the Homebuyer Tax Credit, the Homebuyer Assistance and Improvement Act. It applies only to transactions that have contracts in place as of April 30, 2010, that haven't yet closed. The new closing deadline for eligible transactions is now September 30, 2010.

I had a closing scheduled for yesterday that couldn't happen because the lender decided last minute to not allow the mortgage to close without flood insurance (previously - as in the day before - they were OK with a paid receipt for the flood policy but changed their mind the morning of the closing)... this was compounded by the fact that the buyer is a first time buyer who was counting on the tax credit which was due to expire yesterday. 

Needless to say the news of both bills' passage was welcome news this morning.  What a difference a day makes! 

--------------------------------------------
Thomas McCormack
Sales Associate
Resources Real Estate | 112 E. River Rd. | Rumson, NJ 07760
732-212-0440 x212  |  732-212-0450 fax  |  732-241-5695 cell
www.ThomasMcCormack.com

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