By Briana Vannozzi
Correspondent
A lot has to happen before the deal is done, the keys are in hand and the home is yours. The real estate market in New Jersey is on the rebound.
“The economy has gotten a little bit better, people now are starting to qualify for mortgages who couldn’t qualify before so it’s bringing more buyers into the markets,” said Darren Sautter.
But realtor Sautter explains the state is still facing a number of stumbling blocks to pull out of the slump.
“We’re having a lot of problems with home inspections today. A lot of deals are going under contract and next thing you know they do a home inspection, the buyer does a home inspection and they’re finding a lot of faults with the house. Deals are then dying and the process has to start all over again,” he said.
That prevents a certificate of occupancy, and that creates a headache.
“The township inspections have gotten extremely difficult. As a matter of fact, we have met with a lot of the local mayors to go over their constraints on what they’re doing to prevent sales,” Sautter said.
Items like sidewalks used to be picked up by the municipality. Not anymore.
“This apron failed, not this one because it’s already been replaced. Typical repair for this is about $1,500 that the seller had to absorb,” said Sautter.
For the first half of 2015, there were just under 10,000 closed home sales. That’s up nearly 16.5 percent from the same time last year. The majority came from single-family homes, roughly 6,800.
Does that translate to a healthier market overall? “Well I think that it’s an indicator that we’re in a more stable market, that New Jersey has started to pull out of the economic downturn,” said Jarrod Grasso.
The CEO of NJ Realtor’s Association says we’re one of the last states to do so. It’s normally driven by a robust housing market.
“I’m seeing on average a rate around 96 percent of asking price sellers are receiving from the sale of the property, again another indicator of a more balanced market,” Grasso said.
One indicator changing the real estate market that’s a little difficult to measure is the expectations of home buyers. Realtors say they’re getting more choosy and most want turn key ready.
“The buyers today, the younger generation, they don’t believe in what we used to call sweat equity. You know, you buy a house that needs a little bit of work, maybe carpet and some paint. Buyers today aren’t looking for that,” Sautter said.
So sellers need to have their homes market ready — updated fixtures, new kitchens and bathrooms.
“This home went on the market for $265,000 and it had multiple offers and sold for full price in three days,” said Sautter.
While the total number of homes for sale is down 6.5 percent to just under 66,000, but new listings are up by 8 percent, 17,000 more homes are on the market — a key component to tracking its health.
Another good sign?
“We definitely had about a 10 percent increase this year and to us that’s an indication that the market is changing,” said Diane Streichert, CEO of the Burlington Camden County Association of Realtors.
Another issue not to be overlooked: “Probably up to 20 percent of my sellers in New Jersey have now moved to North or South Carolina because there you can buy the same value house for less money. Their taxes are about 25 percent of what they’re paying in New Jersey,” Sautter said.
That, Sautter says, will take a lot longer to rebound.