The housing market experts made their predictions expecting rates to start decreasing this spring, by summer at the latest. Instead, the rates continued to climb. In Bergen County, this was coupled with record-high sale prices due to the lack of inventory.

This has finally led to a market shift with home prices SLOWLY starting to decline. There are a couple of factors that will determine if we have hit our peak or if this is just a slight dip in long-term trends.

While there are multiple benefits to owning real estate and leveraging properties for financial gain, tax write-offs, and more, in this blog I am going to focus on the benefits of owning a multi-family property over a single-family unit.

Renters are Buying Now, Existing Homeowners Will Buy In The Future

Interest rates had a tough week at the end of June, as of yesterday rates mortgage rates were 7.25%.  For months I have been explaining that high interest rates are preventing sellers who also need to buy with a mortgage from listing which is causing the extreme inventory shortage. For the most part most listings are a result of divorce, people downsizing (and buying cash), people moving out of the area, or estates/ homes of older individuals moving in with their children or into assisted living.

A seller’s disclosure is an optional (not required) document, that gives information about the home’s condition and history. Due to this fact, not all listings are accompanied by a seller’s disclosure. (Here is an example) Additionally, there are different variations of this form based on the real estate company listing the property.

May 2023 was a really tough month for Bergen County home buyers. If you are a cash buyer or you have a home to sell and don’t need to buy in the area, now is your time. If not, buckle up, becuase we are in for more of the same….

For May’s spring market update I want to look at mortgage movement and the impact of rates on our current and future market. Home prices are a determined by supply and demand, in Bergen County there is an increased demand and due to multiple factors (one of which is rates) there is a decreased supply, thus driving up home values and creating bidding war situations.

In bidding war fueled market it is not uncommon for sellers to ask buyers to waive appraisal or at least waive the appraisal gap. While this may have seemed unheard of back in the day, it is now a tool listing agents use to determine “true” offers.

I consider myself to be a knowledgeable, ethical, and hardworking agent, yet there are still some things I am not able to tell my clients because of restrictions imposed by the state of New Jersey or the National Association of Realtors (NAR). Some of these may surprise you, as a few of the restrictions seem counterintuitive.

I am going to go over the most common topics we have to sidestep, explain why, and tell you how you as an informed consumer can do your due diligence.

If you've been watching the news, you may be aware that on Friday Silicon Valley Bank (SVB) collapsed. The frenzy caused Signature Bank which was already in trouble to fall as well creating the biggest banking crisis since 2008. On Sunday the federal government got involved.

Still, looking for a home? Put yourself in the best position to be a strong contender during spring market. Especially if you aren't in a position to buy now, but hope to in the near future, there are a few things you can do to get yourself ready.

In the spirit of Valentine’s Day, I am going to compare the home-buying process to a relationship, specifically focusing on Attorney Review (AR), which is like being engaged. During this phase, you are publicly committed to the other party, but not legally bound.

As Realtors, we claim to be match makers as we take our clients through the following steps:

• Home Search/Meeting People

• Making an Offer/ Dating

• Attorney Review/ Engaged

• Under Contract/ Marrying

As we head into February, the start of 2023’s housing market performed as expected. We had limited inventory which drove up sale prices and there was a significant increase in homes that went under contract.

Looking at the past few years there were 2223 new listings in January of 2021.  There were 1915 new listings in January of 2022 and an estimated 1300 new listings in January of 2023.  That is an increase from the 981 new listings that were added in the month of December 2022 but we are well below the previous year’s inventory.

The new calendar year could mean that you qualify for a new loan amount. This can be great news if you are making more money, but can also be to your detriment if you've seen a decrease this past year. For those of you who are self-employed, I highly suggest making your accountant aware of your home ownership intentions and working with your loan officer prior to filing.

If you live or plan to live in Bergen County and you are getting your housing market data from the national news, you are being misinformed. Our housing market is not reflective of what is happening in the rest of the nation!

Rates Drop For 3 Weeks Straight

The past few years have shown a strong correlation (I would even argue causation) between mortgage interest rates and home sales. Lower rates mean more buyers, more buyers mean less inventory, less inventory results in higher home costs. Mortgage rates are set on a national level, and while the rest of the nation may be headed toward a buyer’s market, this area is still a strong seller's market, buyers should take advantage while they can.

In October (remember our MLS statistics are delayed by 45+ days) Bergen County saw a -31.8% drop in the number of homes sold compared to October 2021, but those homes still sold for 6% more than the previous year. This while the state of NJ averaged a -15% reduction in home sale prices. Although the state of NJ saw a decrease in home prices, Bergen County’s lack of inventory (-31.8%) means home prices are holding strong (+6%).

As we approach the new year, it is important now, more than ever, to budget for end-of-life replacements in the home.

Back in 2021, I shared data I got from the National Association of Realtors (NAR) about how long typical household appliances last and what it costs to replace them. With the cost of everything from gas to milk on the rise, I decided to update the list to reflect current pricing.

The new prices are the national AVERAGE cost of replacement including labor according to Google.

Sellers, get your properties ready to hit the market for January as there will be a wave of buyers and a lack of inventory for the new year. With rates expected to increase throughout 2023 the earlier you can list the better.

Buyers, now is your moment! While it might not seem like it, right now is the best time for buyers to purchase. Historically, buyers get the best deals on properties that go under contract in November and December…

As of July 22, 2022, all 6+ month residential leases for dwellings built prior to 1978 are required to have the unit tested by a state-certified inspector for the presence of lead-based paint. Landlords have the option to go through the municipality for the testing or to choose their own certified inspector. Failure to comply can result in a fine up to $1,000 a week.

When a new resident is moving into a home (new owner or tenant) the previous owner/landlord needs to obtain a Certificate of Occupancy (CO). If the home is currently being occupied (as opposed to new construction) they get a Continued Certificate of Occupancy (CCO). Many times Realtors, lawyers, and town officials will use the two terms interchangeably.

The goal of a CO/CCO is to make sure that the house is safe for the new order or tenant to live in…