In the News

 

Is commercial real estate on a rebound?
phillyBurbs.com
February 3, 2012

Is a commercial real-estate recovery under way?

Interviews and reports during the past four weeks indicate guarded optimism about the outlook for industrial and office properties in the new year.

 

Feeding the Rental Appetite
The New York Times
February 2, 2012

HUDSON COUNTY indisputably rules the rental housing market in New Jersey: It has the largest supply of Class A units — around 13,000, according to industry experts — and commands the highest average rental rates of any part of the state. This year and next, that rental kingdom is projected to grow rapidly.

Developers are already at work on, or have recently announced, projects that will add several thousand more units in waterfront communities like Hoboken, Jersey City and Weehawken, and hundreds of other units elsewhere.

 

Obama presses Congress to step up aid for homeowners
REUTERS
February 1, 2012

(Reuters) - President Barack Obama on Wednesday proposed a multi-billion-dollar package to help U.S. homeowners refinance and stave off foreclosure, part of an election-year push that is likely to face an uphill battle by the Republican opposition in Congress.

Obama moved to counter Republican criticism that the proposal would use taxpayer money to bail out irresponsible borrowers by stressing that only homeowners current on their payments could benefit. The president had sketched out the plan in his State of the Union address last week.

 

Are real estate commissions standard or negotiable?
NorthJersey.com
February 1, 2012

"Ask the Realtor" is a weekly column from the 3,000+ member RealSource Association of Realtors, serving Northern New Jersey. Whether looking to buy, sell or rent, those who need advice from a professional Realtor may e-mail their question to realestatepr@northjersey.com and key "Ask the Realtor" in the subject line. Every effort will be made to answer the question in a subsequent issue.

Q: What is the standard commission rate that the seller pays when selling their home and is this rate negotiable?

 

N.J. office, industrial market vacancies expected to fall, but lag behind national pace
NJ BIZ
February 1, 2012

Vacancy rates in New Jersey’s office and industrial real estate markets are expected to fall this year, but the pace will be slow as the state’s employment growth lags behind the national pace, executives with Cushman & Wakefield said Wednesday.

A slowdown in layoffs and rising corporate profits have laid the groundwork for an economic recovery, said Ken McCarthy, the firm’s managing director for New York-area research. But he said companies are still reluctant to hire because of government and political uncertainty in the United States and abroad.

 

In South Jersey, some optimism in commercial real estate market
Courier Post Online
February 1, 2012

VOORHEES — After four tough years, the commercial real estate market in South Jersey is beginning to rebound or “bounce from the bottom,” a panel of experts said Tuesday.

But don’t look for the crop of “For Lease” signs that dot highways and neighborhoods like weeds to disappear without a substantial drop in the unemployment rate, now hovering around 9 percent in New Jersey.

 

Fort Monmouth land transfer to redevelopment authority could begin as early as spring
Asbury Park Press
January 31, 2012

The authority charged with redeveloping the former Fort Monmouth property hopes to have all the necessary agreements allowing it to acquire the land in place by the end of March.

Once those agreements are ratified, the more than 1,100 acres in Oceanport, Eatontown and Tinton Falls can begin to be transferred to that agency, the Fort Monmouth Economic Redevelopment Authority.

 

Smart Moves: Fix house before you try to sell it
Press of Atlantic City
January 29, 2012

Do you sense a revival of the real estate market in your area? Has good news on recent home sales convinced you to put your home on the market this spring?

If so, housing experts urge you to begin soon to prepare your place for the big show. Besides the core improvements you can do yourself — such as purging clutter and in-depth cleaning — real estate experts say you should identify all the tasks that need to be done by contractors.

 

Low mortgage interest rates are for people who have a fifth of the home’s cost in cash and a great credit score
Press of Atlantic City
January 29, 2012

Homeowners or people looking to buy a house have the chance to take advantage of some of the lowest mortgage rates in history.

But because of the different factors that banks and other lending institutions take into consideration, these rates may be out of reach to many people.

 

Big box retailers think small
nj.com
January 29, 2012

As shoppers do more of their buying online and brick-and-mortar stores look to cut costs, big box retailers are starting to open stores that, well, aren’t so big.

Companies like Office Depot, Walmart and Best Buy are reworking their merchandise mix and shrinking their stores, while other companies are creating new concept brands and squeezing into denser, urban settings to save on overhead expenses and boost sales per square foot.

 

NJs economy picks up as NYCs slows
NJ BIZ
January 29, 2012

As New York State's economic activity has leveled off, New Jersey's has picked up — and the state job market is stronger than the unemployment rate of 9 percent suggests, according to the Federal Reserve Bank of New York.

New Jersey's economy has generally been less healthy than that of New York City and state since the recession ended. In July, the city's jobless rate was 8.6 percent, and New York State's was 8 percent, compared with 9.5 percent in New Jersey.

 

Home Economics: Here's how to find out who holds your mortgage
philly.com
January 27, 2012

Who owns my mortgage? That's a question I have been asked almost two dozen times in the four weeks since Christmas, and the reason is always the same:

A change is needed. Someone is trying to refinance the mortgage or trying to save a house from foreclosure, among possible scenarios.

 

Your Place: Things to consider in replacing a furnace
philly.com
January 27, 2012

The winter has been virtually snowless, but the temperatures haven't been high enough to give your furnace a three-month vacation.

How well has your heat source been performing? Although replacing the furnace now - unless it has conked out and been beyond repair - is not considered wise, you might consider doing so when winter has vacated the premises.

 

Solid fourth quarter helps boost 2011 industrial market performance
NJ BIZ
January 27, 2012

Propelled by a strong fourth quarter, leasing in New Jersey's industrial real estate market reached its highest mark in seven years in 2011, according to a new CB Richard Ellis market report.

The momentum could be a sign that industrial tenants and prospective buyers are "getting off the fence" after about two years, realizing that the market is "heading toward equilibrium," said William Waxman, CBRE executive vice president.

 

2011 worst year ever for new home sales, Commerce Department says
The Associated Press
January 26, 2012

Fewer people bought new homes in December, making 2011 the worst sales year on record.

The Commerce Department said Thursday new-home sales fell last month to a seasonally adjusted annual pace of 307,000. The pace is less than half the 700,000 that economists say must be sold in a healthy economy.

 

Home Prices Fell 1.8% in November From Prior Year, FHFA Says
Bloomberg Businessweek
January 26, 2012

Jan. 25 (Bloomberg) -- U.S. home prices fell 1.8 percent in November from a year earlier, as foreclosures held back a recovery in property values.

The decline was led by a 4.2 percent decrease in the region that includes California and Hawaii, the Federal Housing Finance Agency said today in a report from Washington. The second- largest drop was 3.7 percent in the area that includes New York and New Jersey.

 

Monmouth homeless survey records greater numbers
Asbury Park Press
January 26, 2012

Mild temperatures and the promise of free breakfast, clothing and medical checkups may have helped bump up the numbers for this year’s annual surveys to count the Shore area’s homeless and potentially homeless population.

Jeffrey Schwartz, who oversees Project Homeless Count for the Monmouth County Department of Human Services, said 527 people were counted at four sites, up from 291 last year counted at three snow-covered sites. The numbers include counts taken by volunteers who traveled to potential homeless hangouts throughout the county.

 

How to keep the recovery moving forward in N.J.
NorthJersey.com
January 25, 2012

"Ask the Realtor," is a weekly column from the 3,000+ member RealSource Association of Realtors, serving Northern New Jersey. Whether looking to buy, sell or rent or just need advice from a professional, e-mail question to realestatepr@northjersey.com and key "Ask the Realtor," in the subject line. Every effort will be made to answer the question in a subsequent issue.

Q: I just read a report that foreclosures in New Jersey are on the rise. Is there anything we can do to ensure the slow and steady recovery here in New Jersey continues moving forward?

 

Commercial property foreclosures up in 2011
NorthJersey.com
January 25, 2012

* Foreclosures on commercial real estate are not expected to ease up this year.

Foreclosures involving commercial properties in New Jersey rose 10 percent last year, another sign that many office buildings, shopping centers and warehouses still have a way to go to recover.

 

One in 12 N.J. home sales was a foreclosure in third quarter
NorthJersey.com
January 25, 2012

About one in every 12 New Jersey home sales in the third quarter of 2011 involved foreclosed properties — a steep drop from the previous year, according to RealtyTrac, a California company that follows the foreclosure market.

Nationally, foreclosure sales made up 20 percent of sales in the third quarter, down from 30 percent in the same period a year earlier.

 

NJ businesses face nation's biggest tax burden, according to report
MyCentralJersey.com
January 25, 2012

New Jersey’s businesses have the nation’s heaviest tax burden, according to a survey released Wednesday, a week after Gov. Chris Christie proposed cutting income taxes by 10 percent.

The survey didn’t take into account recent tax changes that have been lauded by the business community. Even so, the state ranked near the bottom in three of five categories.

 

Obama makes new push to aid troubled homeowners
REUTERS
January 25, 2012

(Reuters) - President Barack Obama launched on Tuesday a bid to help more U.S. homeowners get cheaper mortgages, a move that could provide a boost to the struggling economy but is likely to hit stiff opposition from Republicans.

Obama, whose re-election campaign could be hurt by the depressed housing market, said in his annual State of the Union speech that banks should cover the cost of the mortgage refinancing plan because they helped cause the crisis.

 

N.J. colleges take advantage of new law allowing partnerships with private developers
nj.com
January 24, 2012

The aging roof of Ramapo College’s main academic building was in need of repair, and the college needed millions of dollars to fix it.

Instead of borrowing the money, the 6,000-student public college in Mahwah is partnering with a private company on a $23 million re-roofing project.

 

Nationwide mortgage settlement worth $25 billion goes to states for review
nj.com
January 23, 2012

WASHINGTON — The nation's five largest mortgage lenders have agreed to overhaul their industry after deceptive foreclosure practices drove homeowners out of their homes, government officials said Monday.

A draft settlement between the banks and U.S. states has been sent to state officials for review.

 

Eight things that will cost you more this year
Asbury Park Press
January 23, 2012

The new year will bring a dose of sticker shock for New Jersey consumers, who face increased prices for many of life’s necessities, including heating oil, gasoline, health insurance and food.

Nationally, consumer prices rose 3.4 percent for the 12 months ending in November, propelled upward by big increases in energy costs and a smaller uptick in the price of food.

 

This Year to Be Worry-Free for Multifamily
GlobeSt.com
January 23, 2012

BOCA RATON, FL—When it comes to regional markets, the tide will lift all boats this year. In fact, the apartment market will have few worries until 2013 or 2014, when homeownership begins to improve and new deliveries start coming to the market. That was the main takeaway from the discussion on apartment markets across the country, during the National Multi Housing Council’s Apartment Strategies Conference. It was held on Tuesday immediately preceding NMHC’s 2012 Annual Meeting, which drew over 2,000 industry professionals.

Moderator Hessam Nadji, managing director of Marcus & Millichap, kicked off the discussion with a presentation on current conditions. He noted that nearly every apartment market across the country has improved since hitting the bottom in 2009, with the US average vacancy dropping 260 basis points since then. Austin, TX; Jacksonville, FL; Charlotte, NC; Phoenix; and Dallas/Ft. Worth all showed the greatest improvement in vacancy, with declines ranging from 510 to 440 basis points over the past two years. Sacramento, Salt Lake City, San Jose, Chicago and Washington, DC showed the least improvement in vacancy.

 

Industrial real estate reflecting economic growth
NorthJersey.com
January 21, 2012

More companies took over industrial space in New Jersey in 2011 than vacated it, as the economy showed signs of gaining steam.

Central Jersey, with its enormous warehouses — some sitting empty since a pre-recession boom in speculative building — showed the most strength, with companies absorbing 6.1 million square feet of industrial space, according to Cushman & Wakefield, a commercial real estate brokerage.

 

Sales of existing homes ended 2011 on a high note
nj.com
January 20, 2012

Sales of previously owned U.S. homes rose in December to the highest level since January 2011, adding to evidence residential real estate was stabilizing heading into the new year.

Purchases increased for a third month, climbing 5 percent to a 4.61 million annual rate, the National Association of Realtors said today in Washington. The gain helped push the number of houses on the market to a six-year low.

 

Instant View: Existing home sales hit 11-month high in December
REUTERS
January 20, 2012

(Reuters) - Sales of previously owned U.S. homes rose to an 11-month high in December and the supply of properties on the market dropped to a near 7-year low, an industry group said on Friday, pointing to a nascent recovery in the housing market.

 

Rise in Home Sales Signifies Strengthening Market: Economists
DS News
January 20, 2012

The long-awaited housing recovery is beginning to blossom, according to industry experts taking a look at recent existing-home sales.

While admitting home sales “are still very low,” Paul Dales, chief economist at Capital Economics, says “it is clear that housing recovery is now well underway.”

 

Housing May Turn the Corner in 2012: CoreLogic
DS News
January 18, 2012

CoreLogic’s chief economist Mark Fleming says housing statistics and the duration of the downturn to date indicate 2012 may be the year the housing market begins to turn the corner.

In the first release of CoreLogic’s new MarketPulse newsletter Wednesday, Fleming explained his rationale for such an assessment.

 

Confidence Among U.S. Homebuilders Climbs to Highest Since 2007
Bloomberg
January 18, 2012

Confidence among U.S. homebuilders rose in January to the highest level in more than four years as sales and buyer traffic improved.

The National Association of Home Builders/Wells Fargo sentiment gauge increased to 25 this month, exceeding the median forecast of economists surveyed by Bloomberg News and reaching the highest level since June 2007, the Washington-based group said today. Readings lower than 50 mean more respondents still said conditions were poor.

 

Report suggests continuing rebound in N.J. industrial market
NJ BIZ
January 18, 2012

A new market report by Grubb & Ellis suggests continued momentum in New Jersey’s industrial real estate market, with positive absorption of 6.9 million square feet in 2011.

That indicates a second consecutive year of growth, with 9.4 million square feet absorbed in 2010, a slow turnaround from the 22.2 million square feet that opened up the year before.

 

Optimism Builds in Housing Market
National Association of REALTORS^®
January 17, 2012

Several recent indicators for the real estate industry are pointing to a market that is on the mend and entering recovery mode.

Housing experts’ predictions for the new year tend to center around a market stabilizing before entering a gradual, albeit very slow, recovery. However, the tone is more upbeat than it has been in years for the housing market.

 

From Bottom Up, Signs of Housing Recovery
The Wall Street Journal
January 17, 2012

After years of watching home prices slide, Claudia Ruggiero, a teacher in White Plains, was ready to strike.

She and her husband Michael Johnson, also a teacher, had a 14-month-old son at home and needed a shorter commute. They found a three-bedroom Dutch colonial in Armonk, a neighborhood they thought they could never afford, for a bit more than $500,000.

 

Rebuilding Central Jersey's real-estate market
myCentralJersey.com
January 16, 2012

A sign has gone up along Aldrich Road in Howell: “Coming Soon. Coddington Hill.” The sign refers to a new development of 16 single-family homes from TJC Communities, a builder based in Raritan Borough. By late February or early March, a sales office is expected to open.

“We have had an astronomical interest,” said Scott Slagle, project manager at TJC Communities. “We were actually surprised from the amount of interest that we have been getting, just from the sign.”

 

Expert: Uptick in existing home sales may spur new construction next year
NJ BIZ
January 16, 2012

Multifamily home construction will still lead the way in 2012, according to Jeffrey Otteau, president of Otteau Valuation Group, but recent increases in the number of existing home sales may turn into 2013 a new-home construction boom.

"There is a powerful indication there that the entry-level price range is beginning to churn," Otteau said. That's significant, he said, as "for a housing recovery to be sustainable, it must be rooted in first-time buyer purchases, because they in turn trigger trade up sales into higher price ranges."

 

Housing outlook is more upbeat
USA TODAY
January 16, 2012

Optimism is building that the housing industry is nearing a bottom — finally.

Home sales and home building are forecast to rise this year after sliding steeply the past five years in housing's worst downturn since the Great Depression.

 

Experts: Beware a slow cascade of additional foreclosures in 2012
philly.com
January 15, 2012

If the numbers were the only barometer, it would appear that the U.S. foreclosure crisis had eased considerably in 2011. But taken alone, those statistics don't tell the whole story of the pressures on homeowners and how they are affecting the nation's housing market.

Over the last 12 months, the foreclosure rate and the number of filings nationwide reached their lowest point since the current spiral intensified in 2007, RealtyTrac Inc. reported last week.