More Interest Rate Cuts – What Does It All Mean?

When the Fed lowers interest rates, as it continued to do this week, everyone gets excited and there is a lot of buzz about the real estate market.  But – when it comes to you and me – what do these lower interest rates really mean? Here are some examples:

Homeowners: If you already have an adjustable-rate mortgage (ARM) on a home, you could save hundreds of dollars a month if your loan is pegged to Treasury rates, which have fallen considerably thanks to the Fed’s recent cuts.  The catch is that many buyers in more expensive areas resort to “jumbo loans,” which are typically pegged to slower-moving indexes that remain elevated.  If you have a fixed-rate mortgage (not a jumbo loan), you could consider the cost of re-financing (think origination fees, appraisal fees, closing costs) against the savings of a lower interest rate for your monthly payment.

Borrowers: Several banks lowered their prime rate, which forms the foundation for car loans, home equity lines and other loans.  But you must carry a whopping $5,000 credit card balance to save just $12.50 annually from a quarter-point rate cut.

Consumers: Lower rates threaten to boost inflation and the price of imports.  So far, inflation has been held in check, and foreign companies generally are holding the line on prices.

Savers: Falling interest rates normally would whack rates on CDs and other savings.  But the cash crunch has spurred many banks to prop up such rates.

Travelers: International vacations and business trips cost more because the dollar has sagged in the wake of the Fed’s cuts.  But it could be buoyed if other central banks trim rates.

In short, unless you are about to purchase a new home and can take advantage of the new lower interest rates by locking in a fixed-rate mortgage now, you may not end up seeing a whole lot of benefit to the interest rate cuts.

To learn more about owning a Bradley Beach vacation home or Jersey Shore real estate, please call me at 732-775-2774 or visit PatrickParkerHomes.com.  You may also begin searching the MLS here!

Getting Ready for 2008 Tax Season

It’s official – tax time is upon us.  If you are like many Americans, just the thought of getting organized enough to start the paperwork can be overwhelming. 

This article from BankRate.com details 7 steps to help get you ready to file your 2007 taxes.  I’ve listed the steps below, but please check out the article for more helpful hints! 

• Prepare for the arrival of your records (designate an envelope or folder to store all of the records you’ll receive in the mail)
• Track down social security numbers (make sure you have the correct SSN’s for everyone in your family)
• Find your forms (if you are not filing electronically, download the necessary forms or pick them up at a post office)
• Decide how you want to do your taxes (Do-it-yourself or hire a pro?  Paper and pen or computer software?)
• Consider electronic filing (find out if you qualify for Free File!)
• Use direct deposit (it may not be as exciting as receiving that refund check in the mail, but it’ll save you a trip to the bank!)
• Don’t panic!

I’d like to add my own advice: if you bought or sold a home in 2007, pull out those closing documents and start making copies!  You will need to provide proof of your purchase or sale (usually a closing statement will suffice), along with any loans that were taken out or paid off in 2007.  If you have lost any of these important documents, contact your Realtor who can help you track them down. 

If 2008 is going to be the year for you to invest in a home of your own, please visit PatrickParkerHomes.com and begin searching Bradley Beach NJ real estate here.  You may also call me at 732-775-2774.

Home Improvement Projects: Fix It or Forget It?

Did you make a new year’s resolution to finally tackle the list of fix-up projects around your home?  According to this article in the Real Estate Journal, it may be best to take a step back and re-consider those projects, as they may not add as much value as you think to your home. Here are some of the highlights of the article: 

1. Ask for advice.  Talk with a local, experienced Realtor who can help you gauge your home’s current value.  Before you go pouring money into a remodeling project, it is valuable to know where your home currently stands and what you stand to gain by making improvements.  To request a complimentary market analysis of your Bradley Beach NJ home, please click here. 
2. Dig deeper.  Considering getting a home inspection before you remodel or put your home on the market.  This will give you a very clear idea of where you need to focus your fix-up efforts.
3. Look outside.  Pay attention to the condition of the exterior of your home – including the siding and windows.  Sure, you may want to put all of your money into those new hardwood floors, but structural repairs should always be the first priority.
4. Spend time in the bathroom.  Even small upgrades to a bathroom – new hardware or fixtures – can give it a whole new feel.  If you are thinking of selling your home this year, remember that buyers want to see a bathroom that can be used right away and is not in need of major repair.
5. Keep it small in the kitchen.  We’ve all heard that “the kitchen sells the home,” but remember that, if you are planning on selling your house, every buyer has their own taste in the kitchen, so it is best to keep things neutral and let the buyer customize it as they wish. 

If you are planning to buy or sell a home in 2008, please call me at 732-775-2774 or visit PatrickParkerHomes.com to learn more about Bradley Beach NJ real estate.

Bradley Beach, NJ Year-End Home Sales Updated

Here is a list of the home sales for the year 2007. Contact me with any questions.

1. 705 3rd Ave.                        $297,000

2. 601 Lareine Ave.                 $330,000

3. 513 Newark Ave                  $ 340,000

4. 604 Burlington Ave             $ 350,000

5. 607 Central Ave                   $ 350,000

6. 601 Brinley Ave                    $360,000

7. 620 Third Ave                      $ 381,000

8. 515 Newark Ave                 $ 404,000

9. 413 Newark Ave                  $ 425,000

10. 125 Lake Terrace              $ 452,000

11.  23 Pacific Ave                     $ 455,250

12. 215 Lake Terrace                 $ 460, 000

13. 320 Ocean Park Ave            $ 475,000

14. 1102 Madison Ave                 $ 480,000

15. 707 Fletcher Lake Ave           $ 495,000

16. 402 Park place                         $ 500,000

17. 107 Fletcher lake ave              $ 507,500

18. 502 Lake Terrace                     $ 520,000

19. 218 Lareine ave                         $ 525,000

20. 410 Lake Terrace                      $ 535,000

21.  404 Brinley Ave                         $548,000

22. 603 Fletcher Lake Ave               $550,000

23. 310 McCabe Ave                          $555,000

24. 400 Brinley Ave                           $555,000

25. 504 McCabe Ave                          $567,700

26. 501 Newark Ave                           $655,000

27. 211 Fifth Ave                                  $655,000

28. 707 Madison Ave                           $659,900

29. 301 Fourth Ave                              $710,000

30. 317 McCabe Ave                            $725,000

31. 400 Fourth Ave                              $735,000

32. 32 Madison Ave                              $735,000

33. 302 Lareine Ave                              $770,000

34. 207 Lareine Ave                              $770,182

35. 302 Fifth Ave                                   $817,500

36. 310 Monmouth Ave                         $845,000

37. 115 Fifth Ave                                     $865,000

38. 311 McCabe Ave                                $865,000

39.104 Ocean Park Ave                          $960,000

40. 512 Bradley Blvd                                $960,100

41. 106 Ocean Park Ave                           $1,048,660

42. 503 Fourth Ave                                    $1,075,000

43. 400 Third Ave                                      $1,150,000

44. 402 Third Ave                                       $1,150,000

2008 Bradley Beach NJ Real Estate Predictions

The National Association of Realtors has published its predictions for the 2008 housing market, and the data looks positive so far.  Most noteworthy is the trend toward improving existing home sales.   

Lawrence Yun, senior NAR economist, said “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.”   Existing home sales are expected to rise to $5.7 million in 2008 – making it the fifth highest year on record.  Existing home prices, which declined 1.9% to a median of $217,600 in 2007, are expected to go back up about .3% in 2008. 

As Yun noted late in 2007 “even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the US are showing price increases … the apparent disparity results from fewer sales in high-cost areas, so a change in the mix is dragging down the national median home price.” 

To find out the latest trends in Bradley Beach NJ real estate, please call me at 732-775-2774 or visit PatrickParkerHomes.com.  To begin searching for Jersey Shore homes, please use my complimentary MLS search.

Jersey Shore Real Estate Resolutions

Happy New Year, Bradley Beach!  I hope that 2008 is off to a good start for you and that you enjoyed a fantastic holiday season.  With the new year always comes a few resolutions that we hope to keep.  If you have yet to make your resolutions – it’s not too late!  Below are some real estate resolutions that are easy to keep – and they’ll pay off! 

• Know your credit!  Make a resolution to stay on top of your credit in 2008.  Begin by getting a detailed credit report so that you know where you stand as the year begins.  Check again at the end of the year to see how much your credit has improved!
• Keep a budget.  This can be a difficult one to stick to.  Many people start the year with an idealistic budget, but soon let it go out the window – oftentimes, along with any hopes of saving for real estate investment!  Begin with a goal of either setting aside a certain amount for a down payment on a real estate investment or putting away enough to make one extra mortgage payment in 2008.
• Research real estate web sites.  Be a snoop in 2008!  Use web sites like mine to keep tabs on what homes in your neighborhood are selling for, where the foreclosures near you are, and what the general market is like in your area.  When you are ready to make a real estate investment, you will already have a good feel for the local market.
• Out with the old!  Even if you are not planning to move in 2008, it never hurts to clean out your closets, garage, or attic and donate to charity.  You’ll make your home more appealing to prospective buyers if you are selling, and you’ll feel more organized if you are staying put.

 Best wishes for a happy and prosperous 2008! 

For more information about Bradley Beach NJ real estate, please visit PatrickParkerHomes.com or call me at 732-775-2774.  To begin searching for Jersey Shore homes, please use my complimentary MLS search!