New Jersey Real Estate Report

So much traffic…

From ABC 7:

Home prices on Long Island skyrocket due to high demand, low inventory

The median home selling price on Long Island rose by at least $73,000 throughout the last year, according to broker listing database OneKey MLS, due to high buyer demand and low inventory of homes.

“It’s a great time to be a seller,” said real estate agent Christine Tabacco-Weber, with Cold Spring Harbor-based Lucky to Live Here Realty. “It’s a really tough time to be a buyer.”

According to OneKey MLS, the median home sale price in Suffolk County in February 2020 was $402,444, compared to $475,000 in February 2021.

In Nassau County, the median home sale price in February 2020 was $525,000, compared to $600,000 in February 2021, an increase of $75,000.

At the same time, inventory has dropped significantly since this time last year, creating all-out bidding wars between buyers.

…

She said buyers are paying for seller’s moving costs, closing costs, and even are offering sellers to live in the house by paying rent or staying there completely free for a certain period of time.

“If you want to leave New York, this is the time,” she said. “Your house will probably sell in a weekend.”

From the Star Ledger:

‘Now is the time’ for schools to reopen, Murphy says as pressure mounts 

Gov. Phil Murphy urged more New Jersey schools to return to in-person learning Wednesday, just days after rallying parents placed blame for lingering closures squarely at the governor’s feet.

“Now is the time for all of our schools to meaningfully move forward with a return to in-person instruction, whether it be full-time or with a hybrid schedule,” Murphy said during his regular coronavirus briefing in Trenton.

The governor pointed to billions in federal funding headed to schools from the American Rescue Plan and said his administration is doing everything in its power “to get as many kids back safely and responsibly into a classroom.”

Murphy’s comments come as the number of students with the opportunity to attend classes in person continues to grow. The governor reported 142 school districts, serving 107,498 kids, are now providing full in-person instruction. Another 534 districts, representing 843,394 students, are operating under hybrid schedules.

However, 317,044 students across 98 districts remain in all-remote instruction a full year after most schools initially closed due to the coronavirus pandemic. Parent frustration in many of those communities has long since boiled over, leading to parent rallies, legal battles and even a police investigation into the suggestion of “physical violence” against those keeping schools closed.

From the Star Ledger:

N.J. could soon face a historic housing crisis. A city devastated by COVID-19 might be the epicenter.

Thousands of families forced from their homes. Homelessness at historic levels. A city already devastated by COVID-19 facing yet another crisis.

Newark is on the brink of a housing emergency — hastened by the coronavirus — that could have cascading effects across New Jersey.

More than 14,000 eviction cases are pending in Essex County court — most of them thought to involve Newark tenants — delayed because evictions have been suspended during the pandemic under Gov. Phil Murphy’s emergency order.

But as more people get vaccinated and the state climbs out of the devastation wrought by the pandemic, Newark and other cities could be plunged into an eviction crisis they’re not prepared to face.

“Unless there is something systemically done to address this overwhelming backlog and imminent avalanche (of evictions), I do not think things are going to be back to normal,” said Khabirah Myers, a lawyer in Newark’s Office of Tenant Legal Services. “We’re going to see potential homelessness at historic levels.”

The problem is not confined to Newark. A staggering number of New Jersey residents could be thrown out of their housing unless substantial funding is earmarked for rental assistance for tenants who have fallen behind on rent and evictions are further delayed, experts say.

Around 60,000 evictions are pending across the state, data from the state judiciary shows. Matt Shapiro, president of the New Jersey Tenants Association, said those likely represent only a fraction of evictions that will be filed once the moratorium ends.

“Most landlords haven’t filed evictions because of the lockout moratorium,” Shapiro said. “If we don’t do something, you’re going to see 200,000, 300,000 pending evictions.”

From Politico:

Soaring home prices are starting to alarm policymakers 

The booming housing market helped stave off economic collapse in 2020. But soaring prices are starting to worry policymakers, who fear the market could lock a generation of would-be buyers out of homeownership.

Home prices in January — typically a slow month for the market — were up 14 percent over the same month the previous year, while sales jumped 24 percent, despite an unemployment rate that was almost twice as high. Demand for existing homes is so strong that the average residence is on the market for just three weeks, and inventory is at a record low after seeing its steepest drop last year since the data was first tracked in 1999.

It all threatens to freeze broad swaths of the population out of the market, leaving millions of Americans in a less secure financial position, widening the racial wealth gap and forcing millennials, already lagging previous generations in building wealth and forming families, to fall even further behind.

“The dream of homeownership is out of reach for so many working people,” said Senate Banking Chair Sherrod Brown (D-Ohio). “Rising home prices and flat wages means that many families, especially families of color, may never be able to afford their first home.”

Brown, who insists on calling his panel the “Senate Banking and Housing Committee,” vowed that these issues will be a top priority in the months ahead as the country struggles to recover from the pandemic-induced recession. Among other things, he said he plans to work with the Biden administration to address the rising cost of housing and expand access to homeownership “so that more families can rent and own homes in inclusive communities.”

The last time the U.S. saw such skyrocketing home prices, the ensuing crash brought down the global economy. Most industry analysts say the current boom is not a “bubble” akin to that frenzy of more than a decade ago, which led to the financial crisis.

From NJ Best:

Trendy N.J. suburbs urbanites have their eye on thanks to the pandemic

New Jersey is hot. 

New Jersey real estate, that is. 

Close observers of the housing market in the Garden State eagerly pointed out areas and towns that are really smoking. 

All of Bergen and Essex counties for their proximity to New York, but especially Wykoff in Bergen County and Montclair and Glen Ridge in Essex County. 

All of Monmouth and Ocean counties — the Jersey Shore — but especially waterfront and water view properties. 

The heat wave extends west, to Morris County, especially Madison; to Hunterdon County, especially Tewksbury and Clinton; and even as far west as Sparta. In Union County, Westfield is in high demand. 

In the Trenton area, it’s West Windsor. 

In the Philadelphia suburbs, Cherry Hill — with a sale price up over 14% — and Willingboro — up 10.5% — are exceptional. 

“In Montclair and Glen Ridge, homes are selling for $100,000 to $200,000 above the asking price — big, older houses,” said Angela Sicoli, a Century 21 broker-owner and president of the New Jersey Association of Realtors. 

Recent sales statistics for Montclair show the median home price at $975,000, up almost 30% year over year, and buyers were paying 116% of the asking price. Montclair had 57 new home listings last August, considered an 18-month supply of inventory in normal times. 

From NJ Spotlight:

NJ’s housing market is booming. How long will that last?

The pandemic brought with it a number of unexpected economic surprises, among them a booming housing market in much of New Jersey, with low inventory and intense competition among buyers often leading to bidding wars; average home prices are at the highest level in state history.

Contributing to the competitive real estate market, says Morris Davis, the Paul V. Profeta Chair at the Rutgers Business School, is that millennials are reaching the age when they’re starting families and looking for homes. Correspondent Joanna Gagis reports.

Wow.

From the NYT:

F.D.A. Clears Johnson & Johnson’s Shot, the Third Vaccine for U.S.

 The Food and Drug Administration on Saturday authorized Johnson & Johnson’s single-shot Covid-19 vaccine for emergency use, beginning the rollout of millions of doses of a third effective vaccine that could reach Americans by early next week.

The announcement arrived at a critical moment, as the steep decline in coronavirus cases seems to have plateaued and millions of Americans are on waiting lists for shots.

Johnson & Johnson has pledged to provide the United States with 100 million doses by the end of June. When combined with the 600 million doses from the two-shot vaccines made by Pfizer-BioNTech and Moderna slated to arrive by the end of July, there will be more than enough shots to cover any American adult who wants one.

But federal and state health officials are concerned that even with strong data to support it, some people may perceive Johnson & Johnson’s shot as an inferior option.

The new vaccine’s 72 percent efficacy rate in the U.S. clinical trial site — a number scientists have celebrated — falls short of the roughly 95 percent rate found in studies testing the Moderna and Pfizer-BioNTech vaccines. Across all trial sites, the Johnson & Johnson vaccine also showed 85 percent efficacy against severe forms of Covid-19 and 100 percent efficacy against hospitalization and death.

From ABC News:

U.S. home prices rise 10.1% in December, fastest since 2014

U.S. home prices surged at the fastest pace in nearly seven years in December, fueled by low mortgage rates and Americans moving from crowded urban areas to houses in the suburbs.

The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, climbed 10.1% in December from a year earlier. The year-end jump was the biggest since April 2014 and follows a strong 9.2% year-over-year gain in November.

Home prices climbed 14.4% in Phoenix , 13.6% in Seattle and 13% in Seattle in December. But prices rose all over. Chicago, which recorded the slowest price gain, saw a 7.7% uptick. Detroit was not included in the year-over-year figures because of record-keeping delays caused by the coronavirus pandemic.

“These data are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, global head of index investment strategy at S&P DJI.XX. But he said it was unclear whether the trend would last.

Prices have also been pushed up by the limited supply of homes on the market. “With mortgage rates remaining relatively low and the wave of eager buyers continuing to swell, it’s unlikely that this competition for housing, and subsequent strong price appreciation, will meaningfully abate in the near future,” said Matthew Speakman, economist at the real estate firm Zillow.

Homebound consumers are also sprucing up their living quarters. Commenting on a year-end surge of revenue and earnings at Home Depot, Neil Saunders of GlobalData calculated that Americans each spent the equivalent of $402 last year at the home-improvement giant.

From Barrons:

Four Things to Know About the Housing Market in 2021

Last year was an exceptional one for the housing market, which boomed in the second half. The National Association of Realtors’ January existing-home-sales data show the continuation of some of the same trends this year—as well as some key changes and rising challenges. 

Existing-home sales in January reached a seasonally adjusted annual rate of 6.69 million, faster than the 6.61 million FactSet consensus expected, and an increase of 0.6% from December’s revised rate. Sales were up 23.7% compared with last January, the release said.

That high rate shows the resale market is still hot after home sales shot up in the second half of the year. January’s seasonally adjusted rate is one of the highest since April 2006, second only to the rate reported in October 2020, Lawrence Yun, chief economist at the National Association of Realtors, said on a conference call with reporters.

While single-family sales remained strong at a rate of 5.93 million, condo and co-op sales made a greater leap. Sales of condos and co-ops increased 4.1% month over month and 28.8% year over year, compared with a single-family sales increase of 0.2% month over month and 23% year over year.

Single-family-home sales jumped 23% compared with last January—but the picture varies by price point. 

Homes priced between $250,000 and $500,000 comprised the greatest share of homes sold at 40.1%. Sales in this category grew 27% year-over-year.

A historically tight supply of existing homes for sale could have cut into transactions in 2020—a trend that shows little sign of slowing in 2021. Housing inventory set another record low in the first month of the new year, Yun said on the call, falling to 1.04 million units. Months’ supply, or how long it would take at the current sales pace to sell every home listed, remained at 1.9 months, flat with December but down from 3.1 months last year. “Sales could be even higher, but just inventory is simply not there,” Yun said.

From CBS:

Biden extends foreclosure ban for federally backed mortgages until June 30

President Joe Biden is extending a ban on housing foreclosures to June 30 to help homeowners struggling during the coronavirus pandemic.

The moratorium on foreclosures of federally guaranteed mortgages had been set to expire on March 31. On his first day in office, Mr. Biden had extended the moratorium from January 31. Census Bureau figures show that almost 12% of homeowners with mortgages were late on their payments.

The White House says the coordinated actions announced Tuesday by the Departments of Housing and Urban Development, Veterans Affairs and Agriculture also will extend to June 30 the enrollment window for borrowers who want to request mortgage payment forbearance — a pause or reduction in payments — and will provide up to six additional months of forbearance for borrowers who entered forbearance on or before June 30 of last year.

The White House says more than 10 million homeowners are behind on mortgage payments and Mr. Biden’s actions are to help keep people in their homes amid “a housing affordability crisis” triggered by the pandemic. It says “homeowners will receive urgently needed relief as we face this unprecedented national emergency.”

From the Star Ledger:

Finding a summer rental at the Jersey Shore might be harder than ever this year 

If you’re thinking about renting a house at the Jersey Shore this summer, brokers have one piece of advice for you: Don’t wait.

The increased demand that was seen last summer is continuing into the summer of 2021 as more people have discovered this close-to-home getaway and those who didn’t book in time last season who locked in earlier this time around.

“We saw a tremendous surge in May of last year once (Gov. Phil) Murphy said the shore would be open,” said Matthew Schlosser, vice president of Schlosser Real Estate in Lavallette.

The company booked 800 rentals between May and June, up 35 percent from the previous year.

And people who rented last summer began booking their stays for this summer even earlier than normal. By fall, Schlosser said, he had 30 percent more rentals booked for Summer 2021 than he normally does. And from Jan. 1 until now he’s done another 500 or so reservations.

“The problem is now, we’ve pretty much run out of inventory for late July/early August,” he said. Typically the inventory isn’t this low until April or May.

Real Estate, Liquor, and the Grim Reaper … Damn I’m good.

Pandemic Tax Windfall for NJ: Receipts from House Sales and Liquor Boost State Revenues

At first the coronavirus pandemic slowed New Jersey’s real estate market, but a huge rebound followed, even as many other industries struggled.

“It’s COVID-19, that’s probably one of the main reasons,” said Robert White, a Monmouth County realtor who noted buyers fleeing New York City have driven demand in his region.

The surge in home sales means a boost for New Jersey’s bottom line since it generates more revenue from a tax on real-estate transactions.

And real estate is not the only industry seeing a rise in sales during the pandemic and with it a corresponding lift in state revenues.

Taxes from alcohol sales have been surging in New Jersey during the pandemic, as have state Lottery revenues.

State tax data shows that transfer-inheritance tax receipts have also increased significantly amid the health crisis. But there may be more to that than just the grim reflection of the deadly pandemic.

From the Star Ledger:

N.J. hotline tells callers they can’t book a COVID vaccine appointment over the phone, residents say 

You can’t book an appointment.

That’s what some callers say they are being told when they call the state’s vaccine hotline, even though state officials said Monday the system was set up to help to them secure a slot.

The representatives did not say the appointments were unavailable because they were all booked, frustrated people told NJ Advance Media. But instead, callers said they were told the workers didn’t have the capability to make appointments at all.

The confusion comes after Health Department commissioner Judy Persichilli said at the governor’s Monday coronavirus briefing that the hotline had started making appointments.

She said more than 600 appointments had been booked through the hotline since Wednesday. Over the weekend, she said, the call center took more than 16,000 calls, registered 514 people with the New Jersey Vaccine Scheduling System (NJVSS) and made appointments for 286 people.

“They started making first dose appointments last Wednesday,” Persichilli said, noting she wasn’t sure if second dose appointments were being made.

Faisel Muhammad of South Brunswick said he called the hotline on Tuesday and was turned away.

“The person told me to wait for the second email after registering with NJVSS, that it will have a link for setting up an appointment,” Muhammad said. “No phone appointments.”

Carol Rayside said when she called, a representative said “they can only register people and could not make appointments.”

Vincent Tamburro said his mother, who is over age 65, called the hotline and a representative told her “they don’t know why they aren’t able to schedule anything.” And when he tried the hotline himself, the representative said she couldn’t even get into the scheduling system.

From the Star Ledger:

600 to lose jobs when N.J. Nabisco plant closes by end of summer

As many as 600 people could lose their jobs late this summer when the Nabisco plant in Fair Lawn closes, the borough’s mayor and the company said Thursday.

The North American division of Nabisco’s parent company, Mondelez International, said in November it was considering closing the 63-year-old plant and informed officials Thursday that its doors will shut in late August or early September, Mayor Kurt Peluso said in a Facebook Live on Thursday.

“It’s really sad news,” Peluso said. “It’s really sad news. Nabisco has been a big part of Fair Lawn. We’re disappointed to see it go and we feel horrible for all the employees.”

The plant produces baked goods under the Nabisco brand, including staples such as Oreo, Lorna Doone and Teddy Grahams.

Peluso said he was a part of a group of officials that included Gov. Phil Murphy and Rep. Josh Gottheimer (D-5) who were unsuccessful in talking Nabisco into staying in Bergen County. “It just sucks that through no fault of their own they’re losing their positions. We tried to persuade them to stay (but) we knew it was an uphill battle,” the mayor said.

The Fair Lawn facility is one of two on the East Coast slated to close — a factory in Atlanta will be shuttered while a Richmond, Virginia plant will stay open.

“Both Fair Lawn and Atlanta are no longer strategic assets from a geographic footprint perspective and both face significant operational challenges, including aging infrastructure and outdated production capabilities, which would have required significant investment to bring them to the modernized state required for the future,” the company said in a statement.