Otteau Predicts N.J. Housing Market Near Bottom - Set to Recover in 2010
By Mel Fabrikant Tuesday, January 06, 2009, 03:58 PM EST
During American Properties Realty’s Home-buying Workshop
The end of the housing market crunch in New Jersey is in sight. It is likely to bottom out in 2009 as credit restrictions loosen with a full swing recovery forecasted for 2010, according to one of New Jersey’s most highly respected real estate analysts, Jeffrey Otteau of Otteau Valuation Group, an appraisal, consulting and market analysis group.
Otteau recently spoke to an audience of about 40 people at a home-buying workshop sponsored by American Properties Realty.
“Mark my word, 10 years from now, people will look back at the first half of 2009 and say, ‘That was the time to buy’,” Otteau said, citing the near 30-year lows in interest rates as an “opportunity.”
Otteau gave a presentation at the American Properties Realty’s Mill Pond in Eatontown, Monmouth County, while one of his associates, Niels Guldbjerg, vice president of Otteau Valuation Group, was on hand at The Madison Clubhouse in Ewing, Mercer County. They provided insightful analysis of the complex residential real estate market to help buyers make sound decisions. JPMorgan Chase Bank representatives discussed credit availability and scoring, while Northwestern Mutual went over how buyers’ overall financial health will impact buying a home.
“Jeff brings clarity to the real estate market. He’s really the person that everybody looks to for information and we were honored to have him speak at one of our events,” said Paul Csik, senior vice president of American Properties Realty of Iselin, N.J. “We can also bring some of that information to prospective buyers coming in to our sales centers. The facts are the facts. Buyers who are buying today are going to be closing in 2009, so now is a great time to buy. The waiting is over.”
Otteau pointed to the handful of developments being built by American Properties Realty such as the Mill Pond at Eatontown, The Preserve at Matawan, The Heritage at Chesterfield and The Jefferson as examples of homes that help meet the need in the “grossly underserved” market in New Jersey for under $400,000.
New Jersey is no longer creating higher income jobs, which creates a demand for more moderately priced homes, particularly those close to major transportation highway networks and mass transit, he said.
By contrast, there is seven years worth of inventory for homes in the $2.5 million range in New Jersey, he added.
In addition to the long-term investment potential of new construction, whose resale values are expected to rise more than that of older homes, condominiums and townhomes will be in particular demand since they are not being built any more in the Garden State unless they are set for age-restricted housing.
Although the real estate market is still slow, it is improving, Otteau said. During its peak, developers were experiencing an average of seven sales per month. Now, they are experience an average of just one sale per month.
However, American Properties Realty has been an anomaly because its housing product is appropriately priced, in demand because the scarcity of its type in New Jersey and located in highly desirable areas that are ideal for commuters. Mill Pond at Eatontown has had 74 sales in 10-1/2 months, which is on par with the real estate market during its peak.
Other home-buying workshop speakers also referred to today as a “buyers’ market.”
Michael A. Borodinsky, assistant vice president and branch manager for JPMorgan Chase Bank in Woodbridge, stressed that real estate appreciates over time, is not meant for instant gratification and that buyers should buy because the home they are considering is affordable and the location and lifestyle are a good fit for them.
“Don’t sit on the fence too long,” Borodinsky said. “When interest rates go up by 1 percent, it is equivalent to the building raising prices by $30,000.”
Robert G. Chirumbolo, a financial advisor with Northwestern Mutual of Princeton, offered audience members information about the importance of building a solid financial foundation including home ownership and an emergency fund.
“Every 10 to 12 years real estate doubles in value. You could live in it, enjoy it everyday and build equity out of it,” Chirumbolo said.
He also offered some steps to financial security including saving money by taking money out of each pay check and depositing it into a 401k or savings plan, and diversifying investments. He cautioned audience members to stay the course in their savings.
About The Heritage at Chesterfield
Fewer than 10 homes remain in the community in a desirable northern Burlington County locale. The Heritage at Chesterfield consists of 44 luxury townhomes is located just minutes away from quaint downtown Bordentown with easy access to Routes 130, 206, 195, 295 and the New Jersey Turnpike. The community’s three- and four-bedroom town homes each offer full basements, one-car garages and luxuriously appointed features. The three-bedroom Brentwood models are sold out and the four-bedroom Ashton models are going fast.
The Heritage at Chesterfield’s Ashton town home model boasts more than 2,400 square feet of living space and is outfitted with granite countertops in its kitchens and baths as well as wood-planked floors in the living, dining, and family rooms. The two-zone HVAC system and the alarm and sprinkler systems are included in the $359,990 purchase price.
About The Jefferson
The Jefferson, a new premier condominium community in Ewing, recently celebrated its grand opening. Once complete, The Jefferson will be a fabulous community set within 10 minutes of Princeton, making it an ideal residence for young professionals and first-time buyers.
The development is comprised of 10 distinct three-story buildings featuring two bedrooms, two bathrooms and up to 1,635 square feet of living space. All of the condominium homes are equipped with desirable features such as Formica laminate countertops in the kitchen and master bathroom, Mid-Continent 42-inch oak cabinetry, soaring 9-foot ceilings, Dal ceramic tile in both bathrooms, security system with intercom and private balcony or terrace. Amenities also include a pool and a clubhouse with a fitness center.
Prices for the two bedroom residences begin at $209,990, with occupancy expected to begin in late 2008. A $10,000 incentive is also currently being offered. Purchasers should speak with a sales associate for additional details and restrictions.
About Mill Pond at Eatontown
American Properties Realty has sold 60 homes at its luxurious Mill Pond development in Eatontown since the beginning of this year.
The homes at Mill Pond are designed to be energy efficient, with oversized single-hung vinyl windows, high-quality fiberglass insulation, high-efficiency gas furnace and central air. Each residence features up to 1,635 square feet of living space, two bathrooms and available garages, all at prices starting at $252,990. Bathrooms feature Kohler fixtures, oak vanities, ceramic Dal tile floors and walls and oversized mirrors. Kitchens offer 9-foot ceilings, 42-inch Kitchencraft cabinetry, whirlpool gas ovens and ranges; multi-cycle dishwashers and microwaves and Kohler kitchens faucets and sinks.
All homes are wired for multiple phone lines, include centrally wired smoke and carbon monoxide detectors and are outfitted with Ademco home security systems. As a grand opening incentive, Mill Pond is offering a fireplace, Whirlpool washer, dryer and refrigerator to be included with all purchases. Additional details are available through American Property Realty’s professional team of sales associates.
The Preserve at Matawan
American Properties Realty announces three luxurious models are scheduled to open next month at its newest residential community, The Preserve at Matawan, which is named after the lush 10-acre preserve that it will back up to. Thirty percent of Phase I sold in the first 30 days.
The model homes, all two bedrooms and two bathrooms, have been custom designed by Design Environments Inc. (DEI), Atlanta. They will open by the end of the year.
The Preserve at Matawan is comprised of seven distinct three-story buildings and one two-story building with 157 residences featuring two bedrooms, two bathrooms and up to 1,635 square feet of living space. All of the condominium homes are equipped with desirable features such as Formica laminate countertops in the kitchens and master bathrooms, Kitchen Craft 42-inch oak cabinetry, soaring 9-foot ceilings, Dal ceramic tile in the master bathrooms, security systems with intercoms and private balconies or terraces. Pricing starts at $269,990.
Qualified first-time homebuyers are eligible for federal tax credits of up to $7,500 in each of the four new American communities.
About American Properties
American Properties Realty is an award-winning home-building organization based in Iselin, N.J., that is committed to earning the trust of each and every family who calls its communities “home.” American Properties Realty and its affiliated companies have created over 15,000 homes: from luxury single-family estates to master-planned communities of apartments, condominiums and townhomes. These award-winning communities have delivered the dream of affordable and luxury housing to thousands of residents in New Jersey. Its residential communities have an unsurpassed reputation for quality craftsmanship and extraordinary value.
The end of the housing market crunch in New Jersey is in sight. It is likely to bottom out in 2009 as credit restrictions loosen with a full swing recovery forecasted for 2010, according to one of New Jersey’s most highly respected real estate analysts, Jeffrey Otteau of Otteau Valuation Group, an appraisal, consulting and market analysis group.
Otteau recently spoke to an audience of about 40 people at a home-buying workshop sponsored by American Properties Realty.
“Mark my word, 10 years from now, people will look back at the first half of 2009 and say, ‘That was the time to buy’,” Otteau said, citing the near 30-year lows in interest rates as an “opportunity.”
Otteau gave a presentation at the American Properties Realty’s Mill Pond in Eatontown, Monmouth County, while one of his associates, Niels Guldbjerg, vice president of Otteau Valuation Group, was on hand at The Madison Clubhouse in Ewing, Mercer County. They provided insightful analysis of the complex residential real estate market to help buyers make sound decisions. JPMorgan Chase Bank representatives discussed credit availability and scoring, while Northwestern Mutual went over how buyers’ overall financial health will impact buying a home.
“Jeff brings clarity to the real estate market. He’s really the person that everybody looks to for information and we were honored to have him speak at one of our events,” said Paul Csik, senior vice president of American Properties Realty of Iselin, N.J. “We can also bring some of that information to prospective buyers coming in to our sales centers. The facts are the facts. Buyers who are buying today are going to be closing in 2009, so now is a great time to buy. The waiting is over.”
Otteau pointed to the handful of developments being built by American Properties Realty such as the Mill Pond at Eatontown, The Preserve at Matawan, The Heritage at Chesterfield and The Jefferson as examples of homes that help meet the need in the “grossly underserved” market in New Jersey for under $400,000.
New Jersey is no longer creating higher income jobs, which creates a demand for more moderately priced homes, particularly those close to major transportation highway networks and mass transit, he said.
By contrast, there is seven years worth of inventory for homes in the $2.5 million range in New Jersey, he added.
In addition to the long-term investment potential of new construction, whose resale values are expected to rise more than that of older homes, condominiums and townhomes will be in particular demand since they are not being built any more in the Garden State unless they are set for age-restricted housing.
Although the real estate market is still slow, it is improving, Otteau said. During its peak, developers were experiencing an average of seven sales per month. Now, they are experience an average of just one sale per month.
However, American Properties Realty has been an anomaly because its housing product is appropriately priced, in demand because the scarcity of its type in New Jersey and located in highly desirable areas that are ideal for commuters. Mill Pond at Eatontown has had 74 sales in 10-1/2 months, which is on par with the real estate market during its peak.
Other home-buying workshop speakers also referred to today as a “buyers’ market.”
Michael A. Borodinsky, assistant vice president and branch manager for JPMorgan Chase Bank in Woodbridge, stressed that real estate appreciates over time, is not meant for instant gratification and that buyers should buy because the home they are considering is affordable and the location and lifestyle are a good fit for them.
“Don’t sit on the fence too long,” Borodinsky said. “When interest rates go up by 1 percent, it is equivalent to the building raising prices by $30,000.”
Robert G. Chirumbolo, a financial advisor with Northwestern Mutual of Princeton, offered audience members information about the importance of building a solid financial foundation including home ownership and an emergency fund.
“Every 10 to 12 years real estate doubles in value. You could live in it, enjoy it everyday and build equity out of it,” Chirumbolo said.
He also offered some steps to financial security including saving money by taking money out of each pay check and depositing it into a 401k or savings plan, and diversifying investments. He cautioned audience members to stay the course in their savings.
About The Heritage at Chesterfield
Fewer than 10 homes remain in the community in a desirable northern Burlington County locale. The Heritage at Chesterfield consists of 44 luxury townhomes is located just minutes away from quaint downtown Bordentown with easy access to Routes 130, 206, 195, 295 and the New Jersey Turnpike. The community’s three- and four-bedroom town homes each offer full basements, one-car garages and luxuriously appointed features. The three-bedroom Brentwood models are sold out and the four-bedroom Ashton models are going fast.
The Heritage at Chesterfield’s Ashton town home model boasts more than 2,400 square feet of living space and is outfitted with granite countertops in its kitchens and baths as well as wood-planked floors in the living, dining, and family rooms. The two-zone HVAC system and the alarm and sprinkler systems are included in the $359,990 purchase price.
About The Jefferson
The Jefferson, a new premier condominium community in Ewing, recently celebrated its grand opening. Once complete, The Jefferson will be a fabulous community set within 10 minutes of Princeton, making it an ideal residence for young professionals and first-time buyers.
The development is comprised of 10 distinct three-story buildings featuring two bedrooms, two bathrooms and up to 1,635 square feet of living space. All of the condominium homes are equipped with desirable features such as Formica laminate countertops in the kitchen and master bathroom, Mid-Continent 42-inch oak cabinetry, soaring 9-foot ceilings, Dal ceramic tile in both bathrooms, security system with intercom and private balcony or terrace. Amenities also include a pool and a clubhouse with a fitness center.
Prices for the two bedroom residences begin at $209,990, with occupancy expected to begin in late 2008. A $10,000 incentive is also currently being offered. Purchasers should speak with a sales associate for additional details and restrictions.
About Mill Pond at Eatontown
American Properties Realty has sold 60 homes at its luxurious Mill Pond development in Eatontown since the beginning of this year.
The homes at Mill Pond are designed to be energy efficient, with oversized single-hung vinyl windows, high-quality fiberglass insulation, high-efficiency gas furnace and central air. Each residence features up to 1,635 square feet of living space, two bathrooms and available garages, all at prices starting at $252,990. Bathrooms feature Kohler fixtures, oak vanities, ceramic Dal tile floors and walls and oversized mirrors. Kitchens offer 9-foot ceilings, 42-inch Kitchencraft cabinetry, whirlpool gas ovens and ranges; multi-cycle dishwashers and microwaves and Kohler kitchens faucets and sinks.
All homes are wired for multiple phone lines, include centrally wired smoke and carbon monoxide detectors and are outfitted with Ademco home security systems. As a grand opening incentive, Mill Pond is offering a fireplace, Whirlpool washer, dryer and refrigerator to be included with all purchases. Additional details are available through American Property Realty’s professional team of sales associates.
The Preserve at Matawan
American Properties Realty announces three luxurious models are scheduled to open next month at its newest residential community, The Preserve at Matawan, which is named after the lush 10-acre preserve that it will back up to. Thirty percent of Phase I sold in the first 30 days.
The model homes, all two bedrooms and two bathrooms, have been custom designed by Design Environments Inc. (DEI), Atlanta. They will open by the end of the year.
The Preserve at Matawan is comprised of seven distinct three-story buildings and one two-story building with 157 residences featuring two bedrooms, two bathrooms and up to 1,635 square feet of living space. All of the condominium homes are equipped with desirable features such as Formica laminate countertops in the kitchens and master bathrooms, Kitchen Craft 42-inch oak cabinetry, soaring 9-foot ceilings, Dal ceramic tile in the master bathrooms, security systems with intercoms and private balconies or terraces. Pricing starts at $269,990.
Qualified first-time homebuyers are eligible for federal tax credits of up to $7,500 in each of the four new American communities.
About American Properties
American Properties Realty is an award-winning home-building organization based in Iselin, N.J., that is committed to earning the trust of each and every family who calls its communities “home.” American Properties Realty and its affiliated companies have created over 15,000 homes: from luxury single-family estates to master-planned communities of apartments, condominiums and townhomes. These award-winning communities have delivered the dream of affordable and luxury housing to thousands of residents in New Jersey. Its residential communities have an unsurpassed reputation for quality craftsmanship and extraordinary value.
