More Housing Numbers: Confusion or Clarity?

A new set of numbers recently released says home prices in our area are stabilizing, but still need to adjust a bit. The problem is that numbers never tell the whole story.

The same study shows that across Morris County, home sales are up a bit and inventory is down, all good signs for our economy and for the housing market. The figures come from a monthly tally distributed by Jeffrey Otteau of Otteau Valuation Group, a highly respected property appraiser who is a recognized expert on New Jersey real estate.

Closer to home, Otteau reported that October home sales were up from September in the Chesters and inventory is down. Both communities report about a six-month supply of inventory, which puts them in the stable category. Home sales in Mount Olive and Long Valley were down in October, compared to September, but so was inventory. Mount Olive reports an 11.8-month inventory during October, which means prices there may continue to fall as the market stabilizes. Washington Township has a seven-month inventory supply, which means it has a shorter way to go to stability than Mount Olive.

Figures like these are ways of looking at the real estate market which, by all accounts is improving. If you put this information with longer term information and you begin to get a better picture. For instance, across Morris County, 299 homes were sold in October 2011, 383 homes were sold in October 2012.
But these figures are general. If you are interested in buying or selling a home, you have to look at what’s happening in your neighborhood or in the neighborhood where you’re buying. A town may report slow sales yet the street you’re interested may be selling well. And your house, if properly priced, staged and marketed, may create a bidding war…or not.

National news stories may be interesting, but every home, home seller and homebuyer is different. The best action is contacting a professional. Realtors can get information about each neighborhood. They can help determine a competitive price for your home, discuss its staging and marketing, and help you survive the challenge of selling it. Similarly, a Realtor can help you set an aggressive but fair offer for a home you’re interested in.

Numbers are always interesting, especially since they’ve become so encouraging. But reading the signals that will help sell a specific home takes more than reading a few articles. It’s a job for a professional. If you don’t have a Realtor, but have questions, feel free to give us a call. There’s never an obligation.

A Dozen Morris County People Talk With Realtor Kelly Holmquist, Attorney Marty Eagan About Avoiding Foreclosures

(We just issued the following release:)

The Holmquist Team, Kelly Holmquist, Morris County Realtor, houses for sale in Long Valley, houses for sale in Chester, houses for sale in Mount OliveCHESTER – The headlines may be shouting about an improving housing market, but for a dozen people at a workshop in Chester earlier this month, the topic of a quieter discussion is avoiding foreclosure. They heard two experts – Kelly Holmquist of The Holmquist Team, part of Keller Williams-Towne Square Realtors and Morristown Real Estate Attorney Martin Eagan – talk about ways to do that.

Ms.Kelly Holmquist, the Holmquist Team; Morris County Realtor, Long Valley Realtor, Chester Realtor; short sales, foreclosures Holmquist and Mr. Eagan work together to help people sell homes short, meaning the bank agrees to allow a house to be sold for market value, even when that sum is less than what is owed to the bank.

“It’s a traditional sale,” explained Eagan. “You’re selling to a buyer. It’s not a foreclosure. It’s just the bank agrees to take less than you owe.”

As they have at several previous workshops, the duo explained to those around the table how a short sale works and the role of the attorney and the Realtor in the sale. The bank agrees to accept the lower price, but it does want market value. It’s a tight rope, said Eagan.

“We want to upsell it to the buyer and downsell it to the bank,” said Eagan. “Kelly’s great at that.”

Ms. Holmquist explained that the home will be appraised by the bank, which will set a target asking price. The house is then aggressively marketed like any other home. It must be listed on the MLS, for instance. And home sellers are encouraged to properly stage their homes so it sells quickly. When an offer is received, the bank has to approve the offer.  In fact, said Ms. Holmquist, the only difference between a short sale and regular sale is the negotiations are done by the attorney with the bank and others owed money from the proceeds of the sale.

“On the front side, everything appears to be a traditional sale,” said Ms. Holmquist. “It’s on the back side that it’s different.”

While past workshops have been attended by an array of people, many of them have been younger homeowners who can no longer afford their mortgages or who need to move for a better job, but can’t sell their depreciated homes. This group was a different, said Ms. Holmquist and Mr. Eagan. One couple, for instance, was collecting information for their daughter who is going through a divorce. Another couple is trying without success to sell a home owned by the woman’s mother, now in her 80s in assisted living and with no income. A third woman, in her 70s, had taken multiple mortgages to pay medical expenses. Although she’s never missed a mortgage payment, the failure of the real estate market and the devaluation of her savings now has created financial problems.

“All sorts of people are facing foreclosure or are so far underwater that they may never recover, even though they’re making their payments,” said Ms. Holmquist. “It’s not at all uncommon.”

In fact, she said, about 29 percent of the homes being sold in Long Valley and Mount Olive are short sales. In the Chesters, that number is about 9 percent.

“Working with an established team of an attorney and a Realtor to sell short offers a good way out for many people,” said Ms. Holmquist. “The improving real estate market improves their chances of selling short, but it’s still the best answer for some people.”

Ms. Holmquist said people with questions about short sales or any other facet of buying or selling real estate can call her office at (908) 867-7109 or by sending her an email at kholmquist@comcast.net.

Ms. Holmquist is the team leader for the Holmquist Team, part of Keller Williams Towne Square Realty, and one of the top-producing real estate teams in Morris County, N.J.  She has been in real estate since 1997, specializing in residential home sales. After working at other agencies, she founded The Holmquist Team in 2008. A Certified Residential Specialist (CRS), she holds a bachelor of science from PennStateUniversity. More information is at http://www.kellysellshouses.com or by calling (908) 867-7109.

Eagan heads an office that focuses on real estate and is one of New Jersey’s fastest growing specialty law firms. The firm has successfully represented thousands of individuals and business clients across the state in residential and commercial real estate transactions. More information is available at (973) 898-7300 or www.martyeagan.com.