January 2010 Home Sale Prices and Market Statistics 

N.J. sees 29 percent, year-end jump in residential foreclosure filings

By Sean Sposito/The Star-Ledger

JENNIFER BROWN/THE STAR-LEDGERA vacant, foreclosed property on Carolina Ave in Newark. As the real estate market struggles to gain its footing back, the state's number of residential foreclosure fillings jumped 29 percent at year's end from 2008, according to data from the state judiciary.

Homeowners saw a record number of foreclosure filings in 2009. The housing crisis as well as the jobless rate -- of 10.1 percent, which recently eclipsed the national rate in December -- wreaked havoc on New Jerseyans who were forced into loan modifications, short sales, and even foreclosure.

Last year, banks filled 62,775 filings, up from 48, 698 in 2008.That's a far cry from 2006, when only about 23,000 notices were filled.

The parts of the state with the widest margins of fillings increase were Atlantic and Bergen counties -- 55 percent and 48 percent, respectively.

And the counties that saw the smallest jumps were Cumberland and Essex Counties -- 11 percent and 12 percent increases, each.

Not all homeowners who receive foreclosure notices eventually lose their homes, and state and federal programs have helped thousands renegotiate loans to avoid foreclosure.

The New Jersey's Foreclosure Mediation Program has completed more than 1,300 cases, according to the latest statistics from the state judiciary. About half of the homeowners were able to stay in their homes.

And more than 28,000 New Jerseyans have enrolled in the Obama administration's $75 billion plan to hedge against residential foreclosures, according to a U.S. Treasury report released earlier this month.

But, as of last month, only 2,027 struggling state borrowers have received permanent modifications.

And across the country, New Jersey is among the top 10 states with the highest foreclosure rates, according to RealtyTrac.

More than 2.8 million properties received foreclosure filings across the country in 2009, according to RealtyTrac, a 21 percent increase in total properties from the previous year.

That number represents both commercial and residential filings, though -- the Irvine-Calif.-based firm does not make a distinction between the two.

Trying for a comeback: New Jersey's housing market in 2010

By Lisa Fleisher/Statehouse Bureau

After putting the nation's economy through the spin cycle, the real estate market this year could take a break.

Home prices look as if they’ve reached their lowest points, and people are starting to take deep breaths and buy again. It’s beneficial, too, that the federal government has helped keep mortgage rates down, in the 5 percent range, and Congress extended and expanded tax credits so they reach almost all potential buyers — not just first-timers anymore. Together, this means houses remain more affordable than they were for decades.

However, it’s tough to pay your mortgage without a job, and New Jersey’s labor market is key to a recovery in home prices.

“The worst is behind us, but the labor market is the big cloud going forward,” says Rutgers economist Joseph Seneca. If the economy does what’s being called a “double dip” or a “W,” more people could lose their jobs, and eventually their homes. But for now, most local markets have already stopped their price slide, and some markets are even coming back.

Overbuilt Hudson County will continue to struggle. Manhattan’s weak market is sapping  demand from Hudson County, and deep South Jersey is hurt by being far from major job centers — Philadelphia and New York — and by Atlantic City’s losing streak.

On the positive side, prime houses along the Jersey Shore and on lakes or other bodies of water could be a bright spot this spring, says Jeffrey Otteau, an appraiser who tracks New Jersey home prices. Those gems on the water will start getting snatched up as people who can afford million dollar homes feel more comfortable in the new economy. Perhaps their companies won’t fold, after all. They’ll need some place to celebrate this summer.

Good news for home sellers is that while they don’t exactly have the upper hand, they may not feel as desperate to sell before prices fall any further. “It gets better from here,” Otteau says. “Some markets will be experiencing modest, gentle price increases.”

Plus, more New Jerseyans are eligible this year for government checks rewarding them for buying homes. The tax credit, with some income restrictions, gives up to $8,000 to people (spouses included) who have not owned a home in three years.

Many current homeowners, left out of the last round, now are eligible for a credit of up ton $6,500 if they purchase a new home, as long as they have lived in their current the last eight years. Buyers must close on the property by the end of June, provided they have a contract by May 1.

Still, sellers will be up against more competition from the “shadow market” — something that’s not quite as spooky as it sounds. This market is composed of sellers who had been waiting on the sidelines, because they figured it wasn’t worth putting their homes on the market when buyers were scarce. They’ll come out, adding to the supply.

Confidence, key to the residential market, is also important for the commercial market, especially in retail. Chuck Lanyard of retail real estate company the Goldstein Group says vacancy rates will stay about the same at 8 percent to 9 percent, though mom-and-pop stores in downtowns could decide to pack it in.

New home builders had it rough last year, selling a third of what had been moving. Sales of new homes have been slower to pick up pace than existing homes.

“We don’t really have a lot of down to go,” says Joseph Riggs, group president in charge of New Jersey and other areas for K. Hovnanian Homes. “We think we really only have one way to go, and that’s up.”

BEST THING THAT COULD HAPPEN:
Home prices rise slowly. It could take years to get back to the highs of 2005 and 2006. Jeffrey Otteau, who tracks home prices, predicts no change in 2010 prices. However, New Jersey should see a 3 percent rise in 2011.

WORST THING THAT COULD HAPPEN:
The economy retreats, consumers and employers get scared, and more people lose their jobs. The government pulls back support, mortgage rates rise and sales fall. Foreclosures and fear send prices down again.

THREE DATES TO PUT ON YOUR CALENDAR:

Jan. 30
A good time to look at home buying. There should be a lot of sales as buyers come back.

April 1
A federal program to buy mortgage backed securities is set to expire. The government has piled cash into the market, keeping rates down, but who knows where they will go after the tether is cut.

July 1
Barring further extensions, this is the first day the real estate market has to support itself without government tax credits. The credits to buyers expire June 30, though homes must have been under contract by May 1.

FROM THE DAILY RECORD:

1 in 7 N.J. homeowners owe more than property is worth

But negative equity a bigger problem in many other states

ROB JENNINGS • STAFF WRITER • December 6, 2009

Ring in the New Year with Westfield Symphony!
By Westfield Symphony
12/4/2009

On Thursday, December 31st, at 7 p.m., under the baton of Maestro David Wroe, the fully professional Westfield Symphony Orchestra again presents one of New Jersey ’s most popular New Year’s Eve musical celebrations. This year’s performance, THE GREAT AMERICAN SONGBOOK, promises a superb revue of American musical theater classics presented in glorious symphonic splendor.

The concert has become a music event eagerly anticipated by much of central New Jersey . This year’s line up reads like a Who’s Who of the best of American musical theater - Irving Berlin, Jerome Kern, Richard Rodgers and Oscar Hammerstein, Stephen Sondheim and John Kander and Fred Ebb are just some of the superb composers celebrated in the show, which also features international guest vocalists direct from the Broadway stage.

THE GREAT AMERICAN SONGBOOK gives insight into the wacky, the tender, the comic, and the tragic elements of musical theater. An event for the whole family, this is a friendly cabaret–style concert for adults to reminisce to songs they all know, for kids to enjoy some of the more peculiar characters to grace Broadway’s stage, and for us all to revel in the musical genius of some of America’s finest musical theater composers and professional performers.

The concert will take place in the newly refurbished Westfield High School auditorium, 550 Dorian Road in Westfield, and will finish at approximately 9pm.

TICKET INFORMATION

The WSO recommends making reservations as soon as possible as tickets are selling fast and last year’s concert was a sell-out. Tickets in advance are $35 for general admission and $65 for preferred seating ($40 and $70 at the door, if available.) Tickets may be purchased directly from the WSO by calling (908) 232-9400 or visiting the office at 224 E. Broad Street , Westfield. Tickets are also available from The Town Bookstore in Westfield, Martin Jewelers in Cranford and Paperfolio in Summit.

About Westfield Symphony Orchestra

The Westfield Symphony Orchestra is a premiere, fully professional, symphony orchestra. Founded in 1983, WSO has grown to become New Jersey ’s second largest professional orchestra, having a presence throughout the cultural communities of New Jersey, and appearing as far afield as Carnegie Hall on a regular basis.

Now in its 27th season, with multiple performances each year, WSO, lead by renowned Music Director David Wroe, is viewed as one of the cultural jewels of the metropolitan area. Cited by the Star Ledger as "the leading professional freelance orchestra in NJ", WSO is recognized by the NJ State Council on the Arts as a Distinguished Arts Organization and is the resident orchestra of Union County. In 2007, 2008 and 2009, the WSO was further honored with Citations of Excellence from NJSCA.

In addition to an adventurous subscription season, popular concerts near and far, and a rousing New Year’s Eve celebration, the WSO sponsors educational programs for school students throughout the state of New Jersey.

Westfield Students Named Top One Percent in Nation
By Westfield Public Schools
11/21/2009

Six Westfield High School seniors have been named semifinalists in the National Merit Scholarship program. Westfield High School Principal Peter Renwick gave his personal congratulations to: (l-r) Abigail Burton, Andrew Gates, Jessica Margolies, Andrew Marino and Yixiao Wang. (Sophie Greene was missing from the photo).

According to the National Merit Scholarship Corporation, more than 1.5 million juniors in over 21,000 high schools entered the National Merit Program by taking the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT®), which served as an initial screen of program entrants. The nationwide pool of semifinalists represents less than one percent of U.S. high school seniors. Westfield’s current seniors have an opportunity to continue in the competition to become a finalist for Merit Scholarship awards that will be offered next spring.

Westfield Area Y Kicks Off Annual 7th Grade Initiative Program
By Westfield Area Y
11/19/2009

The Westfield Area Y recently hosted a kick off of its Annual 7th Grade Initiative Program in the Gym at the Main Y facility, 220 Clark Street in Westfield. Students were able to Rock Climb, use the interactive Sports Wall and participate in fitness testing. Healthy refreshments were also served.

This program is available to all 7th graders in the service areas of Cranford, Garwood, Mountainside and Westfield and is intended to heighten awareness and combat the epidemic of youth obesity that our community/nation is currently facing. All participants who do not currently have an active Y membership will receive a complimentary limited pre-teen program plus membership to the Westfield Area Y that will last through June 2010. Cranford 7th Graders can use the Main Y facility as well as the NEW Y Teen & Family Wellness Center conveniently located at the Cranford Community Center.

Please contact Greg Hatzisavvas at (908) 233-2700 x251 or e-mail ghatzisavvas@westfieldynj.org if you are interested in participating or if you have any questions regarding this program.

A Cozy Town That Appeals to All Generations

Juan Arredondo for The New York Times

SMALL-TOWN AMERICA A wide range of housing styles can be found throughout Westfield. Values have held up better in the middle and lower ranges, including areas like Lamberts Mill Road on the south end. More Photos >

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MATT LOUGHLIN and his wife, Maggie, were raising two sons in Middlesex. But Mr. Loughlin’s broadcasting career was on the rise, so they looked to move near the Newark airport, because he traveled for work. They ended up in Westfield.

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Nearly 13 years ago, just before the birth of their third son, Liam, they paid $279,000 for a five-bedroom Dutch colonial. Mr. Loughlin’s career has advanced — he became the radio voice of the New Jersey Devils hockey team three years ago — but the family remains firmly ensconced in Westfield.

“This sounds so pie in the sky, but it really is small-town America,” Mr. Loughlin said recently. “It’s too big of a town to say you know everybody, but you see enough people you know.”

As families like the Loughlins have moved into Westfield, a Union County municipality of about 30,000, it has slowly lost some of its mom-and-pop ambience and morphed into a suburb of restaurants and boutiques.

But many of the attributes that drew the Loughlins still hold sway. The town has a coziness that stems from an intergenerational appeal. People who grew up here often choose to move back as adults — to be near parents and to be parents themselves. It’s the kind of community where children ride their bicycles and skateboards downtown, gathering at delis and Italian-ice stands.

“It’s just a very welcoming place,” said Brian Granstrand, a lawyer who moved to Westfield 24 years ago with his wife, Suzanne. They have four children, 21 to 16.

A corollary: Because it is relatively safe and has a well-regarded school district, Westfield has also become more expensive. A recent look at the Garden State Multiple Listing Service (gsmls.com) revealed 133 homes on the market. The median price was $714,000.

“When I retire, I think I’m going to have to move, because property taxes are very high,” Mr. Granstrand said.

Westfield is likely to undergo still more changes. Today, it lacks direct train service to New York City; commuters must make a connection at Pennsylvania Station in Newark. But according to Andrew Skibitsky, the mayor of Westfield, construction is under way on a railroad tunnel that will provide direct service to Midtown Manhattan by 2016.

Mr. Skibitsky sees this as a “major, major benefit for Westfield.”

Even in this economy, the town has not had to trim its municipal services. Staff reductions have been made through attrition, he said. There are only a few empty storefronts downtown.

As the town has become more popular, traffic flow and parking have become an issue. As Keith Gibbons, a 50-year resident, put it, “Everybody’s going to circle through town three times to look for a parking spot right in front of the place where they want to go.”

Mr. Gibbons remembers when more blue-collar workers and municipal employees like police officers and firefighters lived in town. But in the late 1990s, he said, smaller homes were demolished so “McMansions” could be built.

“When you can walk through town and remember who used to own a store and knew those people,” he said, “you have a different take.”

But he, too, is planning to stay. Westfield has become much more exclusive than it was when he bought his first home in 1983, for $72,000. “And I felt at the time, did we overpay?” Mr. Gibbons said. But like the Loughlins, he is comfortable with his decision.

WHAT YOU’LL FIND

Westfield is about 25 miles southwest of New York, roughly in the middle of built-up Union County, west of Elizabeth and Newark Liberty International Airport. Springfield, Kenilworth, Cranford and Garwood are to the north and east, and Mountainside, Scotch Plains and Clark to the south and west.

The Garden State Parkway is accessible from Route 28, or North Avenue, which slices through Westfield, then Garwood and Cranford. Westfield is described as having two parts — the north side and the somewhat newer south side — though residents say they don’t see a lot of difference.

Broad Street, a wide and leafy boulevard lined with homes in a mix of styles, runs through the north end of the town, near Echo Lake Country Club and the rolling Fairview Cemetery. Chestnut Street, which leads to the complex of youth baseball fields known as Gumbert Park, is stately, with speed bumps slowing cars through the area.

“The sense of community is very powerful,” said Scott Gleason, an agent for Re/Max Properties Unlimited who has been a resident since 2003. “There are a terrific number of people who grew up in Westfield in the 1950s and 1960s, move away, but come back because they want to recapture what it was like growing up.”

America in Bloom® Awards Westfield a Four Bloom Rating
By Downtown Westfield Corporation
10/6/2009

Westfield recently competed for the first time in the national America in Bloom® competition and was recognized at the eighth annual America in Bloom (AIB) Symposium and Awards Program on Saturday, October 3, 2009 at the Hershey Lodge in Hershey, Pennsylvania. Westfield was the only town in the state of New Jersey to compete in the 2009 competition.

AIB is a national campaign and contest that promotes enhancing communities through beautification. In the friendly competition, communities are matched by population and evaluated on their efforts related to floral displays, urban forestry, landscaped areas, turf and groundcover, tidiness, environmental awareness, heritage conservation, and community involvement.

Judges visited Westfield in early July. Among 25 towns in the United States, Westfield was one of three finalists in two of the eight criteria: Floral Displays and Urban Forestry with the winning towns being Greendale, Indiana and Milwaukee, Wisconsin respectively. Westfield also received a four-bloom rating out of a possible five-bloom rating in recognition of its floral displays. Westfield followed second in the population category with Collierville, Tennessee winning the top prize in the 20,001 to 50,000 population category. In addition, Westfield’s efforts were mentioned many times in a new edition of America in Bloom’s Best Ideas book published in September 2009.

"Westfield in Bloom" was the name of the local program during the America in Bloom competition held during the spring and summer. Through this effort co-lead by Sherry Cronin, Executive Director, Downtown Westfield Corporation and Dave Williams of Williams Nursery, many town departments, organizations, businesses and residents joined the committee and continue to be part of an ongoing effort. A WestfieldinBloom.com blog was created by Dave Williams to garner support for the Westfield in Bloom program.

"We were pleased to receive this recognition. America in Bloom officials and judges said that Westfield scored extremely well especially for a first year community." stated Sherry Cronin. Dave Williams added "We are looking forward to sharing the detailed report and judge’s recommendations with the Town and committee and to garner support to compete again next year."

Westfield received a total of 859 points of the possible 1000 points across the eight criteria.

America in Bloom is an independent, non-profit 501(c)(3) organization encouraging nationwide beautification programs, personal and community involvement, educational programs and the challenge of a friendly competition among participating communities across the country. To date, more than 170 communities in 38 states have participated in the AIB program.

One of the many dire predictions done these past few months by many New Jersey  ‘bubbleologists’ out there -

That is all those who indulge in the contemplation of bubbles in the New Jersey real estate market of all sizes and colors, whether real or imaginary, coming our way - was that by now real estate markets everywhere would be inundated and swept away by a tsunami of foreclosures of apocalyptic proportions.

The general rationale among those specializing in the fine art of staring at crystal balls (or perhaps at several empty bottles of rum) was that the steady increase in interest rates, the consequence of a tightening monetary policy implemented by the Fed since mid-2004, would have led by now to a collapse of the adjustable-rate mortgages (ARMs) market, since consumers could not possibly cope with the increased monthly payments. This, in turn, would dramatically increase mortgage defaults and foreclosures, with the end result that real estate markets everywhere would be flooded with excess inventory at deflated prices, thus causing markets to crash - the tsunami I was talking about.