The NJAR^® Circle of Excellence Sales Award^® recognizes those members who have demonstrated excellence in the field of salesmanship.

Congratulations Nancy Cagno, Sales Associate, Toms River Office!

Nancy Cagno

This makes 6 years in a row for Nancy, which, coincidentally, is exactly how long she has been in the real estate business.

What makes Nancy Cagno so special?  She understands people and she understands real estate is a people business.  It also doesn’t hurt that she is one of the nicest people you will ever have the pleasure to work with!

Congratulations Ellen Paolillo, Sales Associate, Toms River Office!

Ellen Paolillo

Ellen worked hard to achieve this award.  As a matter of fact, she works hard all the time!

EllenPaolillo literally lives and breathes real estate.  When you work with Ellen, you are working with one of the most dedicated, passionate and fiery sales associates in the real estate business today.

Congratulations Michael Harbord, Broker-Salesperson, Toms River Office!

Michael Harbord

Michael is no stranger to this award.  As a true professional, and perfectionist, he constantly hones his skills to provide the ultimate real estate service.

Michael Harbord is the Tiger Woods of real estate.  He is constantly practicing and sharpening his real estate skills in his determination to be the best of the best!

Obviously, if you are looking for someone special to represent you in the purchase or sale of a home in Toms River, or any other town in northern Ocean County, each one of these exceptional real estate professionals would be an excellent decision.

What does it mean for Ocean County?

What is the National Mortgage Settlement and how will it affect the Ocean County real estate market?

Basically, the National Mortgage Settlement is an agreement between the 5 largest banks in the country, our Federal Government and 49 states (Oklahoma did not settle) regarding the “Robo-Signing Foreclosure Scandal“.

According to our federal government’s website, www.nationalmortgagesettlement.com, it is supposed to mean “Roughly $25 billion in relief for distressed borrowers, states and federal government.”

What does the National Mortgage Settlement mean for Ocean County?

Not too much in the form of “relief” as stated on the government’s website.  Here is how our friends at Keeping Current Matters broke it down:

The Basics

The $25 billion in funds will be dispersed as follows:

$17 Billion National Commitment to Foreclosure Relief Efforts
The servicers collectively agree to commit a minimum of $17 billion directly to borrowers through foreclosure relief effort options, including principal reduction for qualifying borrowers, short sales, anti-blight measures, and enhanced homeowner transition programs.

$3 Billion National Commitment to Underwater Mortgage Refinancing Program
The servicers collectively agree to commit $3 billion to refinance “underwater” homes (when a homeowner owes more on a mortgage than a home’s current market value). To qualify, borrowers must be current on their mortgage payments on a mortgage owned by one of the five banks.

$5 Billion Payment to States and Federal Government
The servicers’ $4.25 billion payment to the states includes $1.5 billion for payments to borrowers who lost their home to foreclosure by one of the five servicers…$750 million of the state-federal payment will go to the federal government to resolve federal claims.

Unfortunately, far fewer of us in Ocean County will benefit from this “settlement” than intended,  can we say, HARP?

What will we more likely see here in Ocean County?

MORE foreclosures!

These banks have been “holding back” these foreclosed homes pending this settlement.  Now that there is an agreement in place, these 5 big banks are free to “unload” their bad debt upon the nation and Ocean County.

Just how much of this “Shadow Inventory” should we expect here in Ocean County and when?

We’ll do our best to figure out how much and keep you informed but EXPECT to see the first wave of foreclosures arrive with the Spring Selling Season.  So, if you NEED to sell your home in Ocean County, don’t wait too long!

"Going Mobile"?

Are you in the market to buy a home in Toms River, Manchester or northern Ocean County?

When was the last time you bought a home or is this your first time?

Which tools are you using to assist you with your home search?  Are you using mobile apps on your Ipad and/or Iphone?  Do you use an app to find Open Houses on the weekends?

In her recent post on Trulia, The facts of a modern homebuyer like me, Ginger Wilcox describes herself as:

I am preapproved, prepped and positioned to buy a house. I hate to admit it, but I have turned into one of those obsessed homebuyers. You know the kind; I look for homes at the office, at home, even in line at the grocery store. And no, I’m not looking at the advertising on the shopping cart, I’m looking on my phone.

Do you look for homes in Toms River, Manchester and Ocean County on your phone?

According to our analytics, more and more of you are searching our website from your phones and tablets ever day!

Here are the Top 3 “Mobile Devices” used by visitors to FlanaganRealty.com:

1. Ipad
2. Iphone
3. Motorola DroidX

Which “apps” do you use when searching for homes in Toms River, Manchester and Ocean County?

A few of the more popular “mobile apps” for home-buyers include:

• Realtor.com
• Trulia
• Zillow
• Coldwell Banker

Which one(s) do you use in your your home search?  Why?

Which “app” is the BEST for finding Open Houses?  Why?

If you understood everything we just posted and have used all or most of these “mobile apps”, you are as Ginger states, “a modern home-buyer”.  If not, what sources do you use to search for homes for sale in Toms River, Manchester and Ocean County?

Many believe that very few houses are selling and that almost no one can get a mortgage. We want to let everyone know that neither of these assumptions is true. Recently, the National Association of Realtors (NAR) released their Existing Homes Sales Report. According to the report there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means that approximately 12,000 houses sold yesterday, approximately 12,000 will sell today and approximately 12,000 will sell tomorrow. So the thinking that homes aren’t selling just isn’t true.

Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.

There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe.

John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.

Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:

“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”

He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:

• Home Prices Relative to Peak Prices During the Bubble
• Home Prices Relative to Construction Costs or Replacement Costs
• Home Prices Relative to Incomes and Rents
• Home Prices in Real Terms, Not US Dollar Terms

Bottom Line

If the person who called the real estate bubble and its bust says now is the time to buy, we believe it is time to buy.

We have reported that almost six million adults between the ages of 25 to 34 are currently living with their parents. That number reflects an almost 50% increase since 2003. These young adults are now being advised to jump into homeownership.

Who are the people selling them on the American Dream? Their parents! It seems that parents of some adult children are strongly suggesting that their children take advantage of the low cost of homeownership available today. Some moms and dads are helping financially and are even co-signing for the mortgage. Middle age parents who have owned a home understand its true value. A home has always been a good long term financial investment. However, homeownership also has many other benefits.

In Fannie Mae’s most recent National Housing Survey, they asked the question directly: Is this a major reason to buy a home?

The study broke up the answers into financial and non-financial reasons. The top four reasons and six of the top ten reasons were NON-FINANCIAL. The top four are below:

1. It means having a good place to raise children and provide a good education.
2. You have a physical structure where you and your family feel safe.
3. It allows you to have more space for your family.
4. It gives you control over what you do with your living space (renovations & updates).

Should this surprise us? Aren’t these the same reasons our parents bought their home? Aren’t these the same reasons we purchased our home? These are the same reasons parents have suggested their children buy a home. They want the same things for their grandchildren that they believed to be important for their children.

And today, the cost of homeownership is at all time lows:

J.P. Morgan

“The numbers on housing have an important message for American families today, and particularly younger families setting out on life’s great adventure: Five years ago, at the peak of the home-buying euphoria, it was emphatically a time to rent. Today, when home ownership is depreciated more than ever before, the numbers tell us it is a time to buy.”

MSNBC.com

“[S]omeone who plans on staying put for seven years would come out ahead by about $9,000 if they bought a median-priced home rather than being a tenant in a median-priced rental.”

HUD

“Homes today are more affordable for average families than they have been since 1971. Median-income families today have nearly double the funds needed to purchase the average home.”

Bottom Line

Now that the economy is beginning to show signs of stabilizing, people are getting back to the core values that families have always embraced. Homeownership is definitely high on that list. And today, from a financial standpoint, it may be the opportunity of a lifetime.

The Ocean County Real Estate Market in Under 4 Minutes:

Click here to view the embedded video.

Let’s review:

• The “Median” Sales Price of a Single Family Home, in Ocean County, FELL from $350,000 to $310,000 in the last year!
• Mortgage Interest Rates, for a 30 year fixed rate mortgage, FELL from 5.75%  at the peak in 2005 to 3.875% today (for qualified buyers)!

Is it “Time to Buy” a home in Ocean County, NJ?

We know you are skeptical about the NAR‘s, “It’s a great time to buy” sales pitch.  We also know some of you may not trust us, yet.

Here’s the TRAP:

By the time OPRAH, ELLEN and Dr. PHIL begin telling you, “It’s time to buy“, it’s too late!

Yes, home prices in Ocean County will probably continue to fall this year.  But, as the economy slowly recovers, mortgage interest rates will begin to RISE.

So, the small amount you may “save” on price will be washed away by the increased rate and the same home may actually COST you more (in the form of a monthly payment)!

We know we probably won’t sell you on buying a home in Ocean County with one blog post.  So, all this week, we’re going to SHARE what “others” are saying about the housing market!

All we ask is that if you find anything we say or post plausible and/or like-able, you SHARE it with your friends and family.  Oh, and please LIKE our Facebook Page too!  Thank you.

"What is that?"

At first, I didn’t know what it could be either as the kids’ words echoed in stereo.  But there it was, wrapped in a plastic bag, sitting on the front porch, looking out of place yet strangely familiar.

I approached it cautiously, as if there were something sinister inside that plastic bag, all the while overcome by a feeling of “deja vu”.  Finally, acceptance permeated the fog of my denial as I answered the kids, “it is a phone book.”

Yes, and not just any phone book; the Ocean County edition of the…Yellowbook!

It still feels strange, as if I were in a lost episode of the Twilight Zone.

I removed the yellow mummy from its’ plastic sarcophagus and, as if guided by some ancient spell, placed the relic on a shelf in the dining room.  Quickly, I dismissed the bizarre episode as I resumed my modern life.

The story would have ended there if it were not for my girlfriend’s keen eyesight.  For alas, she spotted the artifact on the shelf not 2 hours later and gasped out in amazement, “what’s THAT?”

Immediately, I was catapulted deep into the juxtaposition that was my reality.  Here I was, sitting at the dining room table, in 2012, surrounded by laptops, tablets and smart phones; when an invader from the past comes uninvited to dinner and disrupts our space/time continuum.

As if propelled by the same desire to document the existence of BIG FOOT or the LOCHNESS MONSTER, I grabbed my DROID and “snapped” a picture of the mythical creature!

To prove to the world its’ existence, I hastily “uploaded” the photo to FACEBOOK.  Fear not, I remembered to “label” the title so my contemporaries could gaze in wonder, awe and admiration of my discovery.

After receiving the appropriate acknowledgements (comments) of my peers, I was emboldened enough to open the ancient scroll and dissect its’ preserved anatomy.  I immediately, if not instinctively, “turned” to the real estate section.

“What could possibly happen if I found my company listed here?”, I asked myself, half expecting the answer to be “spontaneous combustion”.  Alas, my fears were assuaged by the “classified ad” for our Manchester Office.

Unfortunately, fate was not so kind to a few of my contemporaries, whose “display ads” screamed out in the horror that was the nightmare of an existence in a time capsule.

The end?

by The KCM Crew on January 10, 2012

There is too much misinformation being spread about today’s real estate market. Studies are being misinterpreted. Prominent names are being used to foster a point even if their quote is from years ago.

As an example, we want to look at a story published last week by The Fiscal Times titled The New American Dream: Rent, Don’t Buy. In the article, they claim:

“Call it the Big Selloff—America is headed toward a future in which fewer people own the spaces they call home… Those trends are just the beginning.”

We are not arguing that the homeownership rate is under downward pressure in this country. We are disputing some of the ‘evidence’ used in the article. Here are three points we want to refute:

The Homeownership Rate IS NOT in a Freefall

The article quotes a Morgan Stanley study from July 2011 which did make the argument that the homeownership rate was trending downward. Many others made the same point at that time.  What the article failed to mention is that the homeownership rate unexpectedly increased in the third quarter of 2011! As DSNews reported in early November:

“After falling to a 13-year low during the second quarter, the homeownership rate posted a highly unexpected rise in the third quarter, according to a Census Bureau report.”

The jury is still out as to whether the homeownership rate will continue to fall or whether it has already bottomed out.

The Founders of Case-Shiller ARE NOT Saying Renting is Better

In the article mentioned above, they claim that the team that founded the prestigious Case-Shiller Pricing Index believes that buying makes little sense. The article explains that back in 2006 Robert Shiller presented a study based on data collected prior to 2005 showing that, over time, it made more sense to rent than buy. They use this information to conclude:

 “Another skeptic is Yale economist Robert Shiller, co-creator of the Case-Shiller Home Price Index.”

They claim Shiller is a skeptic today based on what he said six years ago!

The major challenge we have with this is that Karl Case, the other founder of the Case Shiller Index, came out ten days ago saying that now is the time to buy. The New York Times in a story published on 12/30/2011 quotes Professor Case as saying:

“If you’re buying a house or apartment to live in and pay for over time, and can afford the payments, then it’s a terrific time to buy.”

Beracha and Johnson DID NOT Conclude That You Shouldn’t Buy

The Fiscal Times article went on to say:

“And in a paper this June in the journal Real Estate Economics, two researchers calculated that over the past 30 years, most often it would have been better to rent than buy.”

They were referring to the great study done by Beracha and Johnson titled Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? We are very familiar with this study as we posted on it back in May of last year. The paper does explain that over the last thirty years the financial benefits of buying vs. renting could be debated.

However, the conclusion of the paper left no room for argument. According to professors Beracha and Johnson, NOW IS THE TIME TO BUY!

“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…

“[This] might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:

“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Dr. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research, is now a guest blogger on this site and in November shared with us his current presentation on this issue. To download the presentation, go to http://realestate.fiu.edu/buyer-or-renter-nation.html.

Bottom Line

We attempt to keep our readers current on this very rapidly evolving housing market with this blog, our tweets, our facebook posts and our subscription service. The letters K-C-M preface each offering. They actually stand for ‘keeping current matters’. We believe that helping our followers stay on top of the latest information available will help correct the housing market.