Housing Better, Still Not Normal

      By Kathleen Madigan

Housing continues its slow creep toward stability. Normalcy is a long way off.

The National Association of Realtors announced July sales of existing homes rose to an annual rate of 4.47 million, close to expectations.

Interestingly, the NAR says sales could be even higher: “The market is constrained by unnecessarily tight lending standards and shrinking inventory supplies, so housing could easily be much stronger without these abnormal frictions.”

What would be normal? The NAR said current demographics would support existing home sales in the 5.0-5.5 million range if conditions were optimal.

But of course, conditions are not. First-time and move-up buyers are restrained by tight lending standards and weak job growth.

Investors are stepping into the breach. Their purchases of homes reflect the shift from owning to renting among U.S. households. It’s a lifestyle change triggered by high unemployment, stagnant incomes and tighter mortgage conditions, and one that will hang around for a few more years.

In July, investors bought 16% of homes sold. That’s on the low end of their share of sales over the past two years but that’s not because of less interest.

Instead, it’s because speculators are finding fewer bargains to buy. Distressed homes–foreclosures and short sales sold at deep discounts–accounted for 24% of July sales, down from 29% a year earlier.

Fewer cheap homes, in turn, helped to push up the median price of the existing homes sold. It rose to $187,000, a 9.4% jump from year-ago levels. Better prices should draw more homes onto the market.

“Persistent news of a solid floor in home prices should help the recovery in organic turnover as selling conditions continue to improve,” say economists at Credit Suisse.

Sales are sales, so investor interest helps overall housing demand. But the financial lift to the average U.S. homeowner may be less than the price data suggest.

Since the jump in the NAR median price reflects a change in the mix of homes sold, homeowners in a community with few foreclosures aren’t seeing their home equity rising at nearly double-digit rates. Home price indexes that adjust for housing mix are showing no gain in prices.

Consequently, U.S. homeowners on average won’t see their real-estate wealth increase by much. Weak wealth growth will remain a drag on consumer spending.

However, expectations for only modest gains in consumer spending is why a stable housing market is good news for an economy that needs all the positive trends it can get.

For more information about sea Isle city real estate or Cape May County real estate check us out on line www.LandisCo.com .

Email us at info@LandisCo.com or toll free at (888)SEA-ISLE 

Sea Isle City ~ Last minute rental

This Condo sleeps 6 with 3 bedrooms and 2 baths. Request for 8/18 to 8/25/2012 total $1200.

383 43rd Place 

Search Rentals Here

BEDROOMS	3	TYPE	Condo/Townhome
BATHS	2	KEY #	101430
SLEEPS	6	GOOGLE MAP	Click Here!
DAMAGE DEPOSIT	300.00
COMMENTS Cooling bay breezes and lovely bay views make this nicely appointed lagoon-side condo ideal for a summer getaway. Located near the seafood restaurant area you are only a few blocks from all the downtown attractions and activities. This unit includes a boat slip, and has NO air conditioning.

Washer		Non Smoking-No Guar.		Sofa Bed	1
Dryer		Garage - Tenant Use		Elevator
Dishwasher		Groups (OLDER=O)		Pet Friendly
Ceiling Fan	1	Deck # of	1	DVD - not warranted	1
A/C: X=Central W=# of		Outside Furniture		Boat Slip
Internet Service		King Beds		Microwave
		Queen Beds	1	Heat [G],[E],[O]
VCR - not warranted		Double Beds		Outside Shower
Cable TV - not warranted		Single Beds	2	Telephone - No Guarantee
Parking # Cars	2	Bunk Beds		Grill: C,G,E - not warr

2012 WEEKLY RENTALS

WEEK	DATE BEGIN	AMOUNT
		-
33	8/18/2012	1,200.00
34	8/25/2012	-
35	9/1/2012	1,200.00
36	9/8/2012	900.00
37	9/15/2012	900.00
38	9/22/2012	900.00
39	9/29/2012	900.00
40	10/6/2012	700.00
41	10/13/2012	700.00
42	10/20/2012	700.00
43	10/27/2012	700.00
44	11/3/2012	700.00
45	11/10/2012	700.00
46	11/17/2012	700.00
47	11/24/2012	700.00
48	12/1/2012	700.00
49	12/8/2012	700.00
50	12/15/2012	700.00
51	12/22/2012	700.00

Sea Isle City - 1st Annual Holiday Extravaganza Nov. 23-24

We are proud to announce the Sea Isle City 1st annual Holiday Extravaganza on November 23rd -24th.  This is a 2 day event that kicks off the holiday season, with ice skating rink at Excursion Park, Christmas Parade, Tree Lighting Ceremony, Visit with Santa, and Entertainment.  

Thinking about renting a place in Sea Isle City for the weekend? Let us know! We have properties available!

Click here to view rental properties 

The Landis Co., Realtors

609-263-3400

info@LandisCo.com

6000 Landis Avenue

Sea Isle City, NJ 08243

Do I need to get pre-approved before I look at Sea Isle property?

“Why are you asking me if I have been pre-approved for a mortgage already? We haven’t even looked at homes yet.”

I get this question from buyer clients all the time when I ask them if they are pre-approved in our initial buyer consultation.

Either that or, when I ask a new client for their pre-approval, I receive responses stating that they are sure they are fine for a mortgage and that their credit is good.

So why do I persist and make sure my clients get pre-approved for a mortgage ?  First, try to remember, as your buyer agent, I am on your side!  And one of the first steps in the buying process is receiving a pre-approval letter from a Mortgage Lender.

7 Reasons to Get Pre-Approved for a mortgage before viewing homes

1. I don’t want you to be disappointed when you locate a property and cannot make an offer. Given all the turmoil in the financial markets, there are virtually no sellers who will even look at your offer without a pre-approval - never mind accept it.

2. I want you to understand your buying power. Not only how much you qualify for in a mortgage but how much you are actually comfortable spending.  Getting pre-approved for a mortgage and understanding the costs involved in buying a home helps you discover that.

3. Did you know that the credit used by a mortgage company is different than the credit reports you can get online? Guess which one the mortgage company will want to use? You need to make sure you’re seeing the same credit report the mortgage lenders are.

4. Have you had your credit pulled to make sure there are no errors that could adversely hurt your credit?  Did you know that a good mortgage lender can help you correct any mistakes? They can also work with you to bring your credit score up!

5. I want you to understand how much money you can and should use for a down payment.  Your down payment can seriously affect the type of loan you can get AND the type of property you can buy.  For instance, if you are going the for a low down payment loan (like an FHA 3 ½% down loan), there are some condos you cannot purchase (more to come in another blog…stay tuned).

6. Do you really know the difference between a 30 year fixed and an adjustable (ARM) loan? Depending on your needs, one or the other may be a much better option. And again, there are some condos that you will not be able to buy depending upon which loan you choose.

7. Are you self employed? Or have a short job history? Most banks require a 2 years of income tax returns. But there are lenders who will work with you and make sure you can qualify for a loan that suits your needs.

These are a few of the reasons that I am asking you to get pre-approved. If you have questions, ask them in the comments below or please schedule a buyer consultation  with me.  I am happy to meet with you privately to review your home buying and financing needs!

For more information about Sea Isle City or Jersey Shore real estate contact The Landis Co., Realtors. www.LandisCo.com , info@LandisCo.com or call us at 609-263-3400.

Sea Isle City Last Minute Rental

	BEDROOMS 3 TYPE Condo BATHS 2 KEY # 98018 SLEEPS 8 GOOGLE MAP Click Here! DAMAGE DEPOSIT 200.00 COMMENTS Property is on the top floor on right side when looking from 35th street.
	22 35th Street, Sea Isle City, NJ Sea Isle City Rental Search

PROPERTY AMENITIES

Washer		Non Smoking-No Guar.		Sofa Bed	1
Dryer		Garage - Tenant Use		Elevator
Dishwasher		Groups (OLDER=O)		Pet Friendly
Ceiling Fan	1	Deck # of	2	DVD - not warranted	2
A/C: X=Central W=# of		Outside Furniture		Boat Slip
Internet Service		King Beds		Microwave
		Queen Beds		Heat [G],[E],[O]	E
VCR - not warranted		Double Beds		Outside Shower
Cable TV - not warranted		Single Beds	2	Telephone - No Guarantee
Parking # Cars		Bunk Beds		Grill: C,G,E - not warr

2012 WEEKLY RENTALS

WEEK	DATE BEGIN	AMOUNT
33	8/18/2012	1,700.00
34	8/25/2012	-
35	9/1/2012	1,600.00
36	9/8/2012	1,400.00
37	9/15/2012	1,000.00
38	9/22/2012	1,000.00
39	9/29/2012	1,000.00
40	10/6/2012	1,000.00

Brought to you by The Landis Co., Realtors, #1 Sea Isle City Rental Headquarters

www.LandisCo.com  

info@LandisCo.com  

(609) 263-3400 or (888)SEA-ISLE 

Sea Isle City 2nd Quarter 2012, Property transfers increase year over year.

Sea Isle City 2nd Quarter 2012, Property transfers increase year over year.

                                  2nd Quarter 2011                    2nd Quarter 2012   

Original Price                  $666,035                                   $651,196 

Sold Price                   $596,975                                  $605,505

Price to Sold %                       90%                                          93%

Days on Market                         203                                           191

Total Sales                     53 Total                                     85 Total

$35,299,897                              $55,351,718

$31,639,680                              $51,467,931

When the volume increases by these amounts this confirms the bottom of the market and the end of the seven year price slide. The inventory has become so low on properties that prices should start to increase at a rapid rate. This probably won't continue for long but this has started the recovery process. As long as mortgage rates stay low the market will help mend the market. At some point in the future we will see a quiet period where buyers and sellers will not be able to make deals and that will actually start the next upward market advance. 

With this information at hand 2012 will be the year to buy as long as rates stay below 5% for a 30 year fixed conventional loan and 5.5% for a 30 year fixed jumbo mortgage loan.

Search Jersey Shore and Sea Isle City properties at www.LandisCo.com 

Jim Sofroney

The Landis Co., Realtors

jws@LandisCo.com

609-263-3400 

www.SeaIsleCityRealEstate.com