Housing Demand VS Historic Preservation Efforts

New Jersey has the highest population density in the United States at 1,134.4 per square mile according to the 2000 census. (Wikipedia) The land area of New Jersey is just 7,417 square miles so the demand for housing is high. Still New Jersey manages to manages to have about 20% of that area as working farmland which produce fruits, vegetables, and poultry. sea food and dairy products. There are laws that preserve both that Open Spaces and Historic Sites ensuring to that New Jersey will continue to be the Garden State.

At times the preservation efforts comes into direct conflict with the housing demand. New Jersey is uniquely situated because it is an easy commute to both New York and Philadelphia. The attraction in New Jersey is its rural lifestyles. One can get more “house” for investment dollars in New Jersey than in say New York City or Philadelphia. Some towns facing the demand vs preservation dilemmas find themselves re-examining their master plans to decrease the amount of open space which is the very thing that makes New Jersey attractive in the first place.

Preserving the history of towns for posterity is not only the job of each town council member but it is also the responsibility of every town member – or at least it should be. That some towns are knuckling under to the pressure of the short-sighted can only hurt in the long-run. A town’s need for operating capital is a consideration but parceling out open spaces for development would seem to exacerbate the problem by bring more people into an already distressed situation. It’s like when one has family over during the holidays. Everyone must adjust to the larger demand on the finite features of the home.

Since more young people purchase houses as safe investments, when they begin families, education funding will require augmentation. At present in some towns education budgets already have parents footing the bill for program services or watching extensive program cuts. Larger teacher-student ratios will eventual have the predicted effect on test scores so that those who can will look elsewhere when their children become school age. Where is the long-term gain then?

The Hightstown Planning Board faces just such a dilemma. According to a recent story in The Times of Trenton, the town council may have violated its master plan by allowing a large property in an area designated historic to be subdivided. While the matter will probably have to go to Superior Court now to settle the matter it seems best to stick with the well designed master plan and rather than make spontaneous changes.

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Housing Market Recovers After Boom

In central New Jersey the market appears to be adjusting for last year’s sellers market where it was not uncommon to see 15 - 20% increases in property selling prices. The selling pace for 2006 is slower. Sellers must adjust their expectations to accommodate the longer time their home may spend in the Multiple Listing Service (MLS) before it actually sells. While buyers are looking for properties, the asking price and the selling price is generally less than similar properties that sold as recently as just December 2005.

"The real estate markets today across the country are very strong but there are pockets where we are beginning to see signs of trouble that are emerging," Federal Reserve Governor Susan Bies told a bankers group in Coronado, California. (Reuters)

The New Jersey market is steady. Area houses sell– just not as quickly as in 2005. The seller who wants to use the proceeds from the sale of one house to purchase another must compensate for the delay. It is a tricky maneuver to time the sale and purchase so that the funds become available at the time they are needed.

While many people purchased homes simply as a place to house families in the past, today’s buyer is looking for a safe place to invest their money. (Realtor.org Magazine) Housing is still a good investment and has raised the general wealth of Americans in the first quarter of 2006. (Reuters) With the increases in the interest rates over the past two years the housing market is naturally the first area to show the effects. For example a buyer may qualify for a $200,000 loan with a lower interest rate but as the interest rate climbs the amount of house, i.e. the amount of loan the same buyer can afford with the higher interest rate is less. Both the buyer and the seller will have to adjust to the changes various factors have on the real estate market of 2006. Still the outlook is good.

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Tip of the Day:

Cheap + good + fast = Good Investing Practices

When it comes to selling investment properties, getting the best price is essential – just as with a primary residence. Properties generally appreciate over time, which is what makes them good investments. However, maintenance is the key. Keeping the investment property in good condition makes for appreciating value and less hassle (making repairs found during inspection, negoitating with the buyer for repair costs, etc....) when the time comes to sell and invest the capital elsewhere.

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It is a Vicious Cycle

Katrina (8/29/2005)

Courtesy of NOAA Evironmental Visualization Program

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While hurricanes and other natural disasters decimate communities, fear of such disasters is also having a negative effect. According to Stephanie Singer, insurance companies are increasingly refusing to offer homeowners insurance to people in high risk areas. Without insurance there can be no mortgage so housing areas become further depressed and redevelopment efforts slowed.

In the article for Realtor.org Singer reports,

Admiral Loy stated “Fifty-seven percent of the American public lives in areas prone to natural disasters,” he said. “Hurricanes don’t just hit the Gulf states; in the past 100 years, 11 hurricanes have hit New England, and six have made landfall on Long Island.”

Since 2000 there have been 19 Billion-Dollar disasters on the continental United States according to the National Climatic Data Center. The list is pretty varied from drought, wildfires, flooding, hurricanes, and tornadoes. Most communities have difficulty recovering from billion-dollar disasters without homeowner insurance and even then government assistance may still be required.

With the hurricane season beginning next week, Atlantic City and Cape May are the most well-known areas in New Jersey that suffered from the effects of hurricanes travelling up the Atlantic Ocean; however, New Jersey has many smaller shoreline communities that have suffered hurricane effects. Though the coastal region is generally the area most affected by wind, rain, and surging sea, often inland areas can have problems with wind damage and flooding.

As the number of multi-billion dollar disasters rise, the need for swift and substantial federal assistance to the affected regions seems common sense. The need to spread the recovery costs over the entire country rather than expecting disaster affected areas to bear the weight alone is what one would expect from united states in theory, but whether that is what will actually happen is unclear. With Louisiana, Mississippi, Alabama, and Missouri clean-ups and recoveries after Katrina as litmus test areas one must wait and see.

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The Real Estate Professional Will Survive

I surfed the web and found my way to a website called BlogHer. It is a multi-author site that looks interesting. Anyway here's a link to my comments on the question of whether real estate professionals will become extinct.
Will Real Estate Agents go Six Feet Under?

Technorati: NJ Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

New to Blogging

To say I am new to blogging is an understatement though I have some experience writing. The purpose of my blog is to discuss some of the things I see in the New Jersey housing market, offer some tips to homeowners, sellers, buyers and investers. I also want to put out there topics for discussion and to that end I will just jump right in with my first Tip of the Day.

With the rainfall in the Eastern part of the country expected to reach record highs central New Jersey has had a wet few days. The good of that for housing sales is that if there are any problems with water on the roof or in the basement both buyer and seller have a better opportunity to become aware of the problem. Repairs while primarily the responsibility of the seller the buyer may take on the task with some break offered in the asking price.

The bad of the rain is that more people want to stay-in and dry rather than risk getting wet. Rainy day showings means extra work in keeping the entryway dry, easily accomplished with an old bathroom rug.

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