Builder Confidence Index Jumps

Builder confidence in the market for newly built, single-family homes improved significantly in April as consumers rushed to take advantage of home buyer tax credits set to expire at the end of the month, according to results of the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), just today. The HMI surged four points to 19 in April, its highest level since September of 2009.

"Home builders reported some real improvement in current sales activity and traffic of prospective buyers through their model homes over the past month," said NAHB Chairman Bob Jones. "While we remain cautious about what future months will bring, it's great to have this positive momentum at the start of the spring home buying season."

"An expected surge in buyer activity leading up to the expiration of the home buyer tax credits and a gradually improving economy helped to brighten builders' view of the marketplace in April," confirmed NAHB Chief Economist David Crowe. "Meanwhile, builders have a more neutral view of what may come in the next six months, and are very aware of the many factors that continue to drag on housing at this time - including the critical shortage of credit for new and existing projects, problems with inaccurate appraisals, and the ongoing flow of foreclosed properties on the market. Greater economic growth, particularly in the job market, and the abatement of these housing issues are needed to help move home building to a more sustained recovery."
 
The Midwest and South each registered substantial HMI gains in April, rising five points to 15 and four points to 21, respectively. Meanwhile, the Northeast posted no change at 22 and the West dipped two points to 13.
 
While the survey indicated no change in the Northeast, I have certainly been contacted by many buyers this past month who are interested in new construction.  To help this trend, builders are becoming aggressive about selling inventory, so they can concentrate on building as the season gets into full swing.
 
You may not have time now to use the tax credit (only 15 more days unless Congress extends it again) but you do have time to look at some new homes in Mercer County.  I know the builders and the developments - let's go preview some construction sites and plans.
 
Joe Giancarli, Sales Associate
619-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/

Kitchen Trends for 2010 in New Jersey New Homes

The National Kitchen & Bath Association surveyed designers to reveal the top design trends for 2010, and has released results you might want to consider in your Mercer County new home.

Trends popular this year include

• Hiding your appliances in kitchen drawers, whether dishwashers-in-a-drawer or undercounter refrigeration (drawers being used as refrigerators). More home owners are opting to tuck their appliances away so they don’t interfere with the kitchen design.
• Dishwashers-in-a-drawer are convenient -you can wash small loads of dishes in each drawer, which saves water and electricity
• Shades of white and off-whites are the most common kitchen colors, followed by brown, beige, and bone hues.
• The most popular wood for kitchen cabinetry remains cherry, followed by maple. Declining in favor are painted cabinets, light natural finishes, and distressed finishes.
• Traditional is the most popular kitchen design with contemporary a close 2nd
• Ceramic and porcelain tile and natural stone remain the most popular kitchen flooring, but hardwoods will dominate kitchens this year in many parts of the country.
• Granite is the most popular option for countertops, but quartz is inching up to it in popularity, both in kitchens and baths.

The overall trends are toward more natural finishes, materials, and definitely toward green energy efficiency.

Interested in buying a new home this year in Mercer County or surrounding areas in central New Jersey?  I know the builders, the developments, and the process.  Give me a call or email for ideas on how to make your dream of owning a new construction home in Hamilton become reality.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/

(photos courtesy of ModernKitchenDesigns.)

New Jersey New Home Buyers - Time is Runnng Out on the Tax Credits

If you want to use your tax credit for a new home, now is the time to get started.  You have to be under contract by April 30, and then the builder has to build and turn over the keys to you by July 31.  Here are some ideas to speed up your process this last month:

1.  Know your market.  You don't have much time to look around, even online, but I know the new home communities here in Mercer County and surrounding counties.  Let's talk - pick my brain about where and what you want.
2.  Narrow your search. As soon as we talk about your best options, take a look online or by car and let me know what suits you best.
3.  Get preapproved.  This is your first job, but I can recommend reputable lenders.  Don't settle for a pre-qualification - you need an approval.
4. Know your needs and know your wants.  This is your 2nd job.  Needs and wants are different and will affect what you buy and how much you can afford. 
5.  Leave some time for contingencies.  The builder may not accept your offer immediately - he or she may counter, you may counter - leave a few days before the April 30 deadline.
6.  It probably is too late for a short sale as banks aren't known for their fast responses, but if you see a new home the builder is trying to "unload," let's give it a try.

Don't lose this opportunity to use your 1st Time Buyer or Trade Up Tax Credit in this 2010 tax year.  Contact me now to get started.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.njhomesource.net/

Weather Impacts New Jersey New Home Sales in February

We knew the weather was pretty bad in Mercer County in February, and elsewhere in the Northeast and many other parts of the country.  If we wanted proof, the Dept. of Commerce today announced that February New-Home sales are the lowest since the department started keeping records in 1963.

As explained by Al Tompkins in Poynter Online, "Even though new homes are only part of the real estate story, the new-home sales figures are important for a variety of reasons. New-home sales can include homes that are still in construction, or maybe not even built yet, and they're counted when people sign contracts, not when sales close. (Existing home sales, on the other hand, are generally reported when sales contracts are closed.) New-home sales, then, are a good indicator of how many people shopped for new homes in a given month.

"New-home sales affect more than just bankers and real estate agents. Home builders, appliance companies, landscapers, contractors, plumbing supply companies, electrical workers, cable and phone companies and insurance agents all count on new home sales for new business."

Fortunately, no New Jersey counties are in the list of the 20 most economically stressed with populations 25,000 or more, according to the Associated Press.  These include, from worst to "least":
Imperial County, CA
Merced County, CA
Lyon County, NV
San Benito County, CA
Yuba County, CA
Stanislaus County, CA
Sutter County, CA
San Joaquin County, CA
Boone County, IL
Marion County, SC
Lapeer County, MI
Iosco County, MI
Nye County, NV
Cheboygan County, MI
Lake County, CA
Taney County, MO
Clark County, NV
Marshall County, TN
Chester County, SC
Union County, SC

Look for Mercer County's new home sales to become more active as Spring brings warmer weather.  Dogwood Meadows is a quality example of a new home development in Hamilton, NJ and I can tell you about many more.  Remember, your 1st Time Buyer tax credit can be used for new construction, but expires April 30. 

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.blogspot.com/

Housing Starts in February down in New Jersey

Even with the wintry weather in much of the country last month, the pace of single-family home production remained virtually unchanged throughout the country, with a 0.6 percent decline to a seasonally adjusted annual rate of 499,000 units, according to figures released today by the U.S. Commerce Department. Meanwhile, a large decline on the more volatile multifamily side brought the overall number of housing starts down 5.9 percent to a seasonally adjusted annual rate of 575,000 units.

"Today's single-family numbers are fairly encouraging, in that the level of building activity held firm even as large portions of the country experienced abnormal weather conditions," noted Bob Jones, chairman of the National Association of Home Builders (NAHB).
 
On a regional basis, combined starts activity declined 9.6 percent in the Northeast and 15.5 percent in the South, where unusually poor weather conditions were a factor in February. Meanwhile, starts activity posted gains of 14.3 percent in the Midwest and 7.9 percent in the West.
 
Look for New Jersey builders to make up for lost time in March when the good weather arrives to stay.  Contact me for information on new home construction in Mercer County.  There are several communities with new homes available and builders who want to move their inventory.
 
Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.blogspot.com/

Yes, the Tax Credit can be use for a New Home in New Jersey!

You still have the opportunity to take advantage of the $8,000 first-time home buyer or $6,500 repeat buyer tax credits, as long as you act quickly--the credits expire on April 30, 2010.  There are plenty of existing homes on the market, and even though the Mercer County move-in ready newly-constructed homes inventory has dwindled, I can recommend builders to you who may still be able finish a home in time but the closing date of June 30.

The National Association of Home Builders (NAHB) estimates that close to 70% of all potential buyers should qualify for some form of a credit.  They are defined by the IRS as those who have not owned a principal residence in the past three years. Repeat buyers may be eligible for a new $6,500 credit, as long as they have owned and lived in their current home at least five consecutive out of the past eight years.  The current credits also increase the income limits, enabling single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 to potentially qualify for a full credit.
 
So, the tax credits are good for new homes in New Jersey, new construction, new developments.  There is such a difference between a resale and a brand new home.  Consider using your tax credit on a new home in Mercer County or the surrounding areas.  Contact me for ideas on developments, builders, and visit Dogwood Meadows to see what a Hamilton new home community in process looks like.
 
Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.net/
http://www.dogwoodmeadowsnewhomes.com/
http://activerain.com/blogs/josephgiancarli

New Jersey New Home Sales Affected by Jobs

The U.S. Commerce Department's housing report released last week announced that sales of newly built, single-family homes declined 11.2% in January to a seasonally adjusted annual rate of 309,000 units, the slowest pace on record.

"This disappointing report highlights just how fragile the economic and housing recovery is right now, and the uncertainties that continue to weigh on consumers, particularly with regard to concerns about job security," said Bob Jones, chairman of the National Association of Home Builders (NAHB).  "Even with today's exceptionally favorable home buying conditions, many consumers simply weren't confident enough to go forward with a new-home purchase in the beginning of this year."

"While the overall economic picture has brightened somewhat, these numbers indicate that the road to a housing and economic recovery remains very uncertain. Many Americans have yet to see much evidence of improvement first-hand, and are therefore reluctant to consider a home purchase," noted NAHB Chief Economist David Crowe. "Meanwhile, competition from below-market-priced foreclosed and short-sale homes poses an additional challenge to the new-homes market right now. Although we continue to expect a boost in overall sales activity prior to the expiration of the $8,000 and $6,500 home buyer tax credits at the end of April, unseasonably poor weather across much of the country may delay the full impact of those incentives until closer to the deadline."

According to the report, the Northeast posted a 35.1% decline in new home sales in January, and certainly the weather here was a big factor.  We expect a surge in interest as soon as the weather improves, because the clock is ticking on that tax credit - you need to be in contract by April 30, for 1st time or move-up buyers.

Call or email about new home construction opportunities in Mercer County, and visit Dogwood Meadows to see what a development under construction offers you.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.net/
http://www.njhomesource.blogspot.com/