Here is a list of homes that closed in Princeton Boro in October 2010.
[table id=43 /]
Here is a list of homes that closed in Princeton Township in October 2010.
[table id=44 /]
Reasons Buyers Aren’t Buying…
Any successful negotiator will tell you that the most successful negotiators always tries to look at things from the other parties point of view. It is a tried and true principal.
Yet in real estate negotiations both buyers, sellers and Agents often fall victim to the dreaded ‘E’ word, EMOTION.
Here is a link to an article on Trulia that will offer sellers insights into how they can
1. Better prepare themselves for a successful real estate negotiation
2. See the viewpoint of today’s buyers.
3. Mitigate buyers concerns and get the deal done!
Enjoy. As always if you have any questions please feel free to call me. (c) 609-577-6786. – Josh W.
‘Enough with the Doom and Gloom…’
“Enough with the doom and gloom about homeownership.”
– WSJ 9/16/2010
Not sure of whether you should buy or not? The reality is, you buy when you are ready. If you need a little extra assurance here are 10 reasons to think about.
1. You can get a good deal.
2. Mortgages are cheap.
3. You can save on taxes.
4.It will be yours.
5. You’ll get a better home.
6.It offers some inflation protection.
7. It’s risk capital.
8. It’s forced savings.
9. There is a lot to choose from.
10. Sooner or later, the market will clear.
Interest Rate Sale
If you are in the market to buy a Princeton home, take a look at these interest rates. They are available through the weekend via Weichert Financial Services. Good luck shopping for your home.
30 Year Fixed CONVENTIONAL (under $417K)
3.99% w/ .50 pts. (1/2 of a point)
15 Year Fixed CONVENTIONAL (under $417K)
3.49% w/ .50 pts. (1/2 of a point)
Reminder: Princeton Real Estate Market Seminar
Are you thinking of buying or selling real estate in the Princeton area in the next 6 months? If so you need to be at the upcoming Princeton real estate market seminar.
This complimentry seminar will cover Princeton area inventory, absorption rate trends, the changing financial markets and more. Designed for both buyers and sellers, see what one of the over 1,000 people who have attended have said,
“As a neighboring business to Weichert, I stopped in to see what is happening with Princeton real estate. Mr. Wilton impressed me with powerful information gathered from his weekly analysis of all MLS sales and new listings. I’ve never seen an agency provide research of that quality and have such an understanding of the market. When I do decide to sell any of my NJ properties, that kind of analysis will help me best price my real estate investment and quickly convert my earnings into another useful investment.”
RSVP required: Joshua Wilton (o) 609-921-1900 x 103
To download a flyer re the seminar click here:
QE2 (The Stimulus Plan, Not the Cruise Ship)
by Tim McLaughlin, VP Weichert Financial Services
As we near the end of 2010, all eyes are focused on how the markets will finish out the year, and how the rumored effects of “QE2” will further jumpstart the economy. “QE2”, in this case, is not the Queen Elizabeth II, the cruise ship, but, rather, “Quantitative Easing, Part II”, the Treasury and Fed’s collaborative efforts to fuel the recovery, improve the economy, aide employment, and help push inflation rates up a touch.
If you remember in part one, the Fed and Treasury purchased over billions (actually, over a trillion) in Mortgage Backed Securities and Treasuries combine to drive interest rates down.
Let’s explore what the government is hoping to accomplish in part two:
QE2 should help growth via three main channels. First, lower long term interest rates should stimulate various forms of credit sensitive spending such as housing, other consumer goods, capital goods, and state and local construction, as well as further help households reduce interest expense via refinancing. Secondly, higher equity prices should boost consumer spending via the wealth effect and capital spending via a lower cost of equity capital. And third/last, a lower dollar should help narrow the trade deficit.While most of these channels have open questions about their effectiveness in the current situation, they are apt to have a positive net effect.
In summary, Goldman Sachs has estimated that QE2 would boost real GDP growth by 0.5 percentage point per $1 trillion of Treasury security purchases.
Lower long-term real rates should stimulate:
- More housing demand
- More consumer demand for durable goods
- Improved employment picture
- More capital spending
- More construction by state and local governments
- Further refinancing of mortgage
- A lower cost of equity capital
- Higher equity prices, which helps economic activity
- in two ways:
- A positive wealth effect
- A lower cost of equity capital
Certainly, a lot to digest. From a mortgage and housing standpoint, we can see many benefits high level and by digging deeper: more housing demand, more refinancing, improvement in employment which makes borrowers more apt to purchase, higher equity prices = positive wealth = more confidence by real estate consumers. “QE2” is something to watch closely as it evolves in Q4 and 1Q11.
Princeton Real Estate Sold Homes Report, September 2010
Here is a list of the Princeton, Boro Homes that settled in September 2010.
[table id=41 /]
Quick Princeton Boro Real Estate Stats based on the closed sales
Average List Price: $1,752,800
Average Closed Price: $1,644,000
Average Days on Market: 117.2
Here is a list of the Princeton Township Homes that settled in September 2010.
[table id=42 /]
Quick Princeton Township Real Estate Stats based on the closed data:
Average Princeton Twp. List Price: $1,230,857
Average Princeton Twp. Sold Price: $998,000
Average Days on Market: 82.4
Princeton Real Estate Market Seminar, September 2010
Here is the presentation from todays Princeton Real Estate Seminar. Thank you to our guests for taking time out on such a pretty day! Our next Market Seminar is October 23, 11 am.
View more presentations from Weichert Realtors.
The Tax Breaks of Homeownership
Tim McLaughlin, VP Weichert Financial Services
Dear Mr. And Mrs. Homeowner:
Your home is probably brimming with tax advantages!
Do you know about all the breaks you are entitled to?
Obviously, you should always consult a professional tax advisor for details, but here’s a list of the top 5 tax deductions for homeowners:
1. Mortgage Interest – Mortgage interest on a home is usually fully tax deductible.
You can deduct interest on multiple mortgages, as long as they do not exceed $1 million. The purpose of the mortgage must specifically be to buy, build or improve a home.
2. Points Paid on a Purchased/Refinanced Loan – If you refinanced, you may be able to write off any points you paid to buy down the mortgage rate. To do this, you deduct the points proportionately over the life of the new loan. For example, if you took out a 30 year loan, you would deduct 1/30th of the points you paid each year. Remember, if you’ve refinanced before, and you have points from the previous refinance that you haven’t finished deducting, you can write off the rest of those points in the year you refinance. If you bought your
home last year, the points you paid at closing are deductible on your income tax statement for that year. If the seller paid some (or all) of your points for you, you may be able to deduct those seller paid points too!
3. PMI – extended through 2010! Late in 2007, Congress extended the tax deduction for homeowners paying private mortgage insurance through 2010. This one has some restrictions: for example, the borrowers must have an adjusted gross income under $110,000.
4. Capital Gains with No Income Taxes – Thanks to the 1997 Tax Act, once every two years, single homeowners can realize a tax-exempt profit of up to $250,000, as long as the seller owned and occupied the home as a principal residence during any two of the last five years. Married homeowners who file jointly on their tax returns do not have to pay taxes on up to $500,000 of gains when they sell their primary residence.
FHA Insurance Rates Going UP…
Another great article from my friend Tim McLaughlin, VP at Weichert Financial
The FHA announced this week that they are revising the insurance premium structure for loans that are going FHA. The upfront premium is going down from 2.25% to 1.00% ->good. However, and here is the kicker, the annual premiumis increasing from a range of 0.50% to 0.55% up to a newrange of 0.85% to 1.55%. These changes are effective withall new FHA case numbers assigned October 4th andbeyond.
What does this all mean?
Let’s take a 5%, $200K loan amount as an example: regarding the upfront premium, the P&I payment would decrease from $1,098 to $1,083 -> a decrease of $15 amonth. However, the increase on the annual premium goes from $94 a month up to anywhere from $152 to $261 amonth. Thus, the “old” all in payment with the insurance built in (less taxes and home owners insurance) was $1,192 amonth. The “new” payment would be in the range of $1,235 to $1,344 a month -> an increase of $43 to $152 a month.That equates to an increase of anywhere from .375% in rateto 1.125% in rate.So what should you do? Well, one, if you are sitting onthe fence looking for a home, and you are going to need touse FHA as your means of financing/qualification (or if youare going to refinance an FHA loan), you have until October1st to get your application in to guarantee that your paymentrate (insurance tax base) does not increase. That’s about 50days, so get moving to take advantage of this quasi “taxbreak”. And two, if you can’t meet the early October deadline, take a look at alternate financing methods afterOctober 4th (i.e. – a Fannie Mae/Freddie Mac loan with traditional mortgage insurance) to reduce your costs and asa better financing alternative.
Confused? Call us with any questions. 609-921-1900
