DESIGNATED
REALTOR
®
ISSUE 6: December 2023
EMBRACE THE WINTER CHILL NJREALTOR.COM
I M P O R TA N T D AT E S & D E A D L I N E S
DECEMBER
4-7
Triple Play Realtor Convention & Trade Expo ®
7-15
Hannukah
24
Christmas Eve
25
NJ Realtors® Office Closed—Christmas Day
JANUARY
FEBRUARY
MARCH
1
Black History Month
Women’s History Month
2
10
13
17
14
24-25
14
25
19
29
NJ Realtors Office Closed— New Year’s Day ®
8
NJ Realtors® Circle of Excellence Sales Award® Applications Due
9
Board of Directors Meeting
15
Martin Luther King Jr. Day
26
Kwanzaa Begins
Groundhog Day
Daylight Saving Time Begins
Mardi Gras
St. Patrick’s Day
Ash Wednesday
Purim
Valentine’s Day
Holi
NJ Realtors® Office Closed—Presidents’ Day
31
Good Friday
31
Easter Sunday
New Year’s Eve
WHAT’S BUZZING IN REAL ESTATE?
1
To help answer your questions regarding the antitrust lawsuit of Burnett v., the National Association of Realtors®, et al, NJ Realtors® launched a new webpage featuring frequently asked questions, a recording of our recent webinar, and additional resources. Click here to visit the resource webpage.
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4 5
New Jersey ranked fifth in WalletHub’s recent survey of the happiest states in the U.S. Click here to read more.
According to the National Association of Realtors® newly released 2023 Profile of Home Buyers and Sellers, buyers typically purchased their homes for 100% of the asking price, with 25% purchasing for more than the asking price. Click here to learn more about the report.
See how your New Jersey Realtors® membership translates into savings, covering everything from legal support to transaction management. Dive into the breakdown here. Wrap up the year and complete your 2023 New Jersey Realtors® Circle of Excellence Sales Award® application before Jan. 8, 2024, at 5 p.m. EST. Click here to finish your application.
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You won’t want to miss these special networking events at this year’s Realtors® Triple Play.
Discover your leadership potential and join the 2024 inaugural class of New Jersey Realtors® Leadership Academy. Click here to apply.
Challenges Persist in the New Jersey Housing Market BY LISA FANT
I
n October, the New Jersey housing market continued to grapple with the persistent challenges of high interest rates and escalating home prices, leading to a continued decline in sales. According to the data from New Jersey Realtors®, single-family closed sales saw a 16.3% decrease in October, totaling 4,704 transactions. Townhouse-condo closed sales followed suit, dropping by 17.8% to 1,607, while adult communities experienced a 3.4% decline, amounting to 650 closed sales. Despite the challenges posed by rising interest rates, there’s a positive shift in the New Jersey real estate landscape. New first-time buyer programs are opening doors for prospective homeowners, creating opportunities despite the current market conditions. These initiatives aim to make homeownership more accessible, providing a silver lining for those aspiring to own a home in the Garden State. Learn more about these programs at nj.gov/dca/hmfa/roadhome. The National Association of Realtors® reported a 2.0% month-over-month and a significant 15.4% year-over-year decrease in U.S. sales of existing homes, emphasizing the national impact of this trend. The combination of elevated sales prices and rising interest rates has led to a substantial reduction in purchase activity compared to the same period last year.
The median sales prices in the New Jersey housing market also witnessed noteworthy changes. Single-family median sales prices surged by 10.6% in October, reaching $519,950, while townhousecondo median sales prices increased by 14.0% to $387,500. Adult communities experienced a median sales price growth of 7.7%, reaching $349,999. According to New Jersey Realtors® recent market conditions member poll, the fall market is proving more competitive than the previous year due to low housing inventory. Inventory of homes for sale in October 2023 dropped to 13,859 from 19,316 in October 2022,
according to New Jersey Realtors® housing market data report. However, Realtors® are finding opportunities in the midst of the fall market’s heightened competition. Sellers’ agents report an average of 5.4 offers for their most recent sale, showcasing increased activity compared to last year. The average number of days on the market dropped from 29.1 last November to 25.6 now, with 43% of homes selling within seven days. Six-in-10 homes sold for over asking price—a significant jump from November 2022. For the full reports, visit njrealtor.com/data.
Single Family Market Overview Key metrics for Single Family Properties Only, excluding Manufactured Housing, for the report month and for year-to-date (YTD) starting from the first of the year.
Key Metrics
Historical Sparklines
New Listings 10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
Pending Sales
Closed Sales
Median Sales Price
Avg. Sales Price
Pct. of List Price Received
Days on Market
Affordability Index
Homes for Sale
Months Supply
10-2022
10-2023
Percent Change
YTD 2022 YTD 2023
6,463
6,064
- 6.2%
83,378
63,715
- 23.6%
4,869
4,619
- 5.1%
61,989
49,914
- 19.5%
5,623
4,704
- 16.3%
63,418
47,685
- 24.8%
$470,000
$519,950
+ 10.6%
$475,000
$500,000
+ 5.3%
$591,787
$650,867
+ 10.0%
$594,382
$634,586
+ 6.8%
100.5%
102.4%
+ 1.9%
102.9%
102.3%
- 0.6%
38
34
- 10.5%
33
37
+ 12.1%
85
73
- 14.1%
85
76
- 10.6%
19,316
13,859
- 28.3%
--
--
--
3.1
2.9
- 6.5%
--
--
--
Percent Change
Data as of November 20, 2023. All data from the multiple listing services in the state of New Jersey. Margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®. Report © 2023 ShowingTime. | 2
Designated REALTOR® | December 2023 | 1
TRIPLE PLAY FEATURED SESSIONS Get ready to Bring Success Home at Realtors® Triple Play with sessions designed to set your business on the right path for 2024. Visit realtorstripleplay.com and add these featured sessions to your schedule or click here to download the Realtors® Triple Play app.
MONDAY, DEC. 4, 2023 1-2:30 p.m. Bill Fields, Speaker
Every Market is Good For Somebody! Every real estate market presents unique opportunities to help clients buy, sell, and invest in properties. This course will show you how you can help them identify the best markets and capitalize on those opportunities by understanding their needs and goals. You’ll learn how to leverage technology and data to find the best market opportunities and stay ahead of the competition.
2-3 p.m. Ashley Harwood, CEO & Founder, Move Over Extroverts
35 Ways to Avoid Burnout We’ve all heard of burnout, but why is it detrimental? And, more importantly, how can we avoid it without simply being on vacation all the time? In this session, you’ll learn the dangers of burning out, both to your business and to your overall health. The session consists of 35 simple, tangible ways to avoid burnout, ending with a selection process, so you’ll leave with three to five strategies to implement immediately.
TUESDAY, DEC. 5, 2023 9-10 a.m., 2-3 p.m. Ifoma Pierre, National Speaker
Adapt or Evaporate: Reinvent Your Lead Generation & Marketing If you’re feeling stuck and need inspiration and direction in these challenging times, fasten your seat belt and get ready for a firehose of ideas in this fast-paced, energetic session. Key Takeaways: • List the three steps you need to take today to adapt to this market. • Create informative videos daily without worrying about what to say. • Conduct a seller webinar to build a list of ready-to-sell homeowners.
10 a.m.-12 p.m. Zoe Liston, Owner/Appraiser, ZCL Appraisals
How to Read an Appraisal This course includes in-depth instruction on the entire appraisal 1004 form so Realtors® can interpret it for their clients, going through every line, discussing where the information comes from, and reviewing the definitions you need to understand. Learn what to look for in the comments, sketch, and photos, and where to find the key to the abbreviations in the report. New Jersey Real Estate 2 Elective Credits
Designated REALTOR® | December 2023 | 2
New Jersey Appraisal 2 Credits
WEDNESDAY, DEC. 6, 2023 10-11:30 a.m. Barry Goodman, Chief Counsel, New Jersey Realtors®
New Jersey Legal Update Join New Jersey Realtors® Chief Counsel for an update on the top 10 New Jersey legal issues affecting all licensees, including an update on the NAR Anti-Trust Lawsuit. The session will be followed by a brief question-and-answer period. If you’re not attending Triple Play, tune in to the session live-stream here. New Jersey Real Estate 1 Core Credit
2-3 p.m. Shay Hata, Realtor®
Your First Year as a Realtor®: How to Build Your Business Quickly Are you a newer Realtor® struggling to get your business off the ground? Are you confused about how to get clients? Not sure about the tools and systems you need? Top-producing Realtor® Shay Hata will show you exactly what you should be doing as a new agent to increase your business. Discover the systems you should be putting into place so you can work smarter, not harder.
THURSDAY, DEC. 7, 2023 9 a.m.-12 p.m. Robert Oppenheimer, New Jersey Realtors® Past President, Broker/Owner, RE/MAX Fortune Properties
Nillions to Millions Designed for Realtors®, this course covers essential topics in financial planning, including business and personal budgeting, goal setting, the planning process, and managing debt and retirement planning. New Jersey Real Estate 3 Core Credits
9 a.m.-12 p.m. Lakesha White, Manager of Business Development, The New Jersey Housing and Mortgage Finance Agency
Succeeding in a Shifting Market with First-Time Home Buyers This course will equip industry professionals with the knowledge to succeed in this shifting market by working with first-time home buyers. You will have a strategy to increase your productivity and propel your business forward and be empowered with the tools to brand yourself as someone equipped to help first-time home buyers and the underserved with down payment and closing costs, including but not limited to an overview of N.J., N.Y. & Pa. home buyer programs. New Jersey Real Estate 2 Elective Credits
Designated REALTOR® | December 2023 | 3
How to Spruce Up Your Listings in the Winter:
4 Winter Open House Tips BY LISA FANT
W
inter open houses present both challenges and unique opportunities. Dreary winter days can deter potential buyers, prompting many to opt for virtual tours and postpone property transactions until spring. However, the winter landscape provides a chance to showcase a property’s features in a different light, and embracing these challenges can transform winter showings into a warm and appealing experience. Share these tips with your agents to warm up potential buyers and make winter open houses as appealing as those in warmer months.
Create a Warm Welcome
Making a strong first impression matters, especially during winter open houses. Buyers might be hesitant to attend due to the cold or inclement weather, and foot traffic tends to slow down during the holidays. Many potential buyers are busy with family and friends, putting their home search on hold. Getting potential buyers to visit becomes a challenge, so it’s crucial to make the environment as inviting as possible. Incorporate comfy throws and cushions to create ambiance, and strategically place winter-scented candles, potpourri, or fresh pinecones for a homey feel. These simple touches help visitors feel comfortable and connected, breaking down initial barriers and forming a positive connection with the home.
Designated REALTOR® | December 2023 | 4
Showcase Winter Curb Appeal
Although a snow-covered landscape enhances a property’s visual appeal, it’s important to highlight the home’s well-groomed exterior. Keep driveways and walkways clear of snow and ice to ensure safe access for visitors. Adding winter seasonal decor, such as pine garlands, potted plants, and seasonal foliage, can create a visual contrast against the winter backdrop, but remember to balance these additions with appropriate staging practices. Potential buyers need to envision themselves in the home. Steer clear of holiday-specific decor, as it might not align with the buyer’s preferences. Instead, opt for tasteful and subtle choices, like a green plaid throw blanket or simple pine garlands, to add a festive touch without overwhelming the space.
Provide Comfort for Visitors
Create a designated space for guests to comfortably remove their shoes and offer disposable shoe covers to keep floors dry. Maintain a comfortably warm temperature, taking advantage of the opportunity to highlight cold-weather features such as fireplaces, woodburning stoves, or heated floors. Cultivating a warm and welcoming atmosphere for guests is key, as it may encourage them to linger and explore the property, showcasing its cozy and winter-ready amenities.
Emphasize Key Selling Points
The winter season can bring out the best in certain property features. Remind your clients of those standout points during the colder months, like a wellinsulated home, energy-efficient heating systems, or cold-weather-friendly landscaping. Don’t miss the chance to flaunt outdoor spaces even in winter; consider setting up a comfy outdoor seating area with cushions and throw blankets to help buyers envision themselves in the home in every season. Designated REALTOR® | December 2023 | 5
NJ Realtors® Broker Review Portal
What’s New for 2023? RENTAL CALCULATIONS The calculations of rentals to units were changed for both long-term rentals and shortterm rentals (residential and commercial): Long Term Rentals 1 Long Term Rental = 1 Unit Short Term Rentals 10 Short Term Rentals = 1 Unit These new rental calculations apply to both dollar and unit methods and strictly unit methods. Non-MLS Rental Date For non-MLS rental transactions, the date used for transaction eligibility is now the lease start date. Rental transactions listed in the MLS remain as a close date.
The 2023 New Jersey Realtors® Circle of Excellence Sales Award® application deadline is Jan. 8, 2024, at 5 p.m. EST. All applications must be submitted online and approved by the broker/office manager prior to the application deadline. Need help getting started with the broker review portal? Click here to watch a step-by-step guide.
THE 2023 AWARD LEVELS ARE: Platinum: $20 million and 30 units minimum, or 125 units Gold: $12 million and 25 units minimum, or 90 units Silver: $6.5 million and 20 units minimum, or 70 units Bronze: $2.5 million and 15 units minimum, or 30 units