Greater Princeton, NJ is a region located in central New Jersey, encompassing the town of Princeton and surrounding areas. It is home to prestigious universities such as Princeton University and Rider University, as well as several research institutions, including the Institute for Advanced Study and the Princeton Plasma Physics Laboratory. The region offers a diverse range of cultural, recreational, and culinary experiences, including museums, parks, theaters, and restaurants. It is also conveniently located within easy access to major metropolitan areas such as New York City and Philadelphia.
WASHINGTON, DC — Breaking an eight-year trend, there have been more single-family homes under construction in recent months than multifamily units, according to the National Association of Home Builders, which predicted additional gains in single-family construction in 2022.
Despite some cooling earlier this year, the continued strength of single-family construction in 2021 means that there are now 28% more single-family homes under construction than a year ago, said Robert Dietz, chief economist for the Washington, DC-based NAHB.
“These gains mean single-family completions will increase in 2022, bringing more inventory to market despite a 19% year-over-year rise in construction material costs and longer construction times,” Dietz said.
Ongoing single-family and multifamily housing production accelerated in November, due to strong demand, with overall housing starts increasing 11.8% to a seasonally adjusted annual rate of 1.68 million units, according to U.S. government figures.
Despite inflation concerns and ongoing production bottlenecks, builder confidence in the market for newly built single-family homes also edged higher for the fourth consecutive month on strong consumer demand and limited existing inventory, the NAHB added.
“While demand remains strong, finding workers, predicting pricing and dealing with material delays remains a challenge,” said Dietz. “Building has increased but the industry faces constraints, namely cost/availability of materials, labor and lots. And while 2021 single-family starts are expected to end the year 24% higher than the pre-COVID 2019 level, we expect that higher interest rates in 2022 will put a damper on housing affordability.”
Residential real estate has been in a frenzied boom since the pandemic began. Buyers have been grappling over homes by waging bidding wars and running prices up tens of thousands of dollars above asking.
But, has the market finally peaked?
Industry experts are saying, it depends from which angle you measure the peak.
“Yes, it has peaked, in terms of the number of home sales,” said Jeffrey Otteau, a real estate economist and president of the Otteau Group. “From this point forward, we’re seeing fewer home sales occur, which will continue into next year.”
Home sales were down for each of the last five months of 2021, according to data from the Otteau Group. It started in June with a 12% decline in contract sales and continued with a 22% decline in July, 16% in August, 20% in September, 16% in October and 7% in November.
But we haven’t seen the peak yet for prices. Although, Otteau said, it is coming.
“In terms of prices we believe the peak won’t occur until late summer 2022,” he said. “The reason is that the economy will continue to get stronger and that millennial generation will continue to transition from renter to homeownership, which will bring demand. The interest rates will drift higher, but they’re still historically low.”
Prices increased 12% statewide in 2020 and 15% statewide in 2021. They will likely gain another 5% in 2022, Otteau said.
The cooling off has to do with homes becoming unaffordable, despite the low interest rates.
Incomes only rise about 4 percent per year. “House prices have risen faster than salaries,” Otteau said, adding that there comes a point when the banks say, the house may be worth that much but you don’t have the income for the mortgage to be approved.
Realtors are already seeing the frenzy subside.
“The summer was a big long stretch of craziness,” said Beth Kimmick of ERA Central Realty in Cream Ridge. “As soon as a house went on the market people would jump on it and over-bid. Then people were afraid to make an offer because they were afraid it wasn’t going to be enough.”
“That frenzy is done,” she said. “But I do think we’re going to see specific houses get a lot of activity and good offers on them continue to happen.”
In Montclair, one of the state’s hottest markets, the “tsunami” is over, said Karin Diana of Compass. But she already has clients lined up for the spring. And she closed two homes this month that each sold for $60,000 over asking.
“Montclair is its own island,” Diana said. “It’s always going to have a pretty intense demand.”
The sense of urgency is slowing as more houses hit the market than there was a year ago.
“It’s going to take a while to get back where it was four or five years ago,” said Robert White of Coldwell Banker in Spring Lake and president of New Jersey Realtors. “That takes pressure off buyers fighting for a property.”
Kimmick said some of those houses that are being listed now are people who bought during the most chaotic time.
“I’ve had agents tell me a person who bought a house since the pandemic is re-listing it,” she said. “They bought it because they felt the pressure of needing a place and now they’re a little worried they overpaid and if they stay there they’re going to lose on on it.”
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SEATTLE, WA — Bathroom remodels are the most popular project for homeowners to tackle, with consumers seemingly willing to pay a premium for “spa-inspired” bathroom features, a major new research study has found.
According to the study, conducted by the real estate website Zillow, more than half of the homeowners surveyed would consider a bathroom renovation in 2022. Buyers also are willing to pay a premium for spa-inspired bathroom features such as curb-less showers (3.6% price premium), heated floors (3.2%) and free-standing bathtubs (2.6%), Zillow said.
Kitchen remodels are also widely popular, with Zillow’s research finding that 46% of homeowners would consider that project in 2022.
“Luxury kitchen amenities were must-haves over the past year, and that will likely continue as people spend more time cooking and eating at home,” Zillow said, adding that 72% of the homeowners surveyed will consider at least one home improvement project in the coming year.
“Most homeowners say they plan to stay in their current home for at least the next three years, and while uncertainty, pandemic precautions and affordability concerns keep many homeowners in place, most are willing to consider improving their current home,” said Manny Garcia, a population scientist at the Seattle-based Zillow. “From adding a backyard cottage to improving a bathroom or renovating the kitchen, most homeowners say they would consider at least one home improvement,” Garcia observed.
Creating more livable space is a consideration for many homeowners, Zillow survey data shows. Projects that are highest on their wish lists for 2022 include adding or improving an office space (31%), finishing a basement or attic (23%), and adding an accessory dwelling unit or guest house (21%), company researchers said.
The federal government levied taxes on aluminum imports in 2018 to protect domestic manufacturers under the guise of national security. However, these “protections” have inhibited trade and raised the price of raw goods, damaging the very economy that the policy intended to help.
Aluminum prices have spiked from $1,600 (pre-tariff rate) to $2,800 per ton, hurting all stakeholders, from manufacturers to consumers. Additionally, recent supply chain shortages constrain everyday market transactions as inflation continues to climb, further imperiling the country. These harmful tariffs have made a bad situation worse.
While President Biden was working to resolve this issue at the recent U.S.–E.U. conference, large quantities of aluminum still faced harmful levies. Eliminating these Section 232 tariffs, as U.S. Senators Pat Toomey (R-Pa.) and Mark Warner (D-Va.) have proposed in their bipartisan legislation, would help ensure our national security interests and strengthen our economy.
No doubt, America’s security is built by aluminum, a crucial raw material for military manufacturing and infrastructure. Yet these Section 232 tariffs have increased the price of aluminum and threatened our safety. Such tariffs restrict our defense capacity and hurt our economy.
Many are unaware that aluminum is a crucial metal for military-grade armor plating, a strong metal that can be shaped while maintaining structural integrity. Troop transports, aircraft components and small arms are built with aluminum. Section 232 has made arming and protecting our military more difficult. With a sparser and more expensive supply of this common metal, weapons and armor are more difficult to develop and deploy.
Section 232 also harms our homeland security by complicating our infrastructure improvements. Our national security depends upon strong infrastructure; Section 232 threatens to undermine improvement efforts by spiking the price of aluminum. Its lightweight strength under tension makes it an ideal option for modern buildings. Of all aluminum produced worldwide, 25% is used in construction. Affordable aluminum is all the more important in light of Congress’ approved infrastructure package and would ensure that our nation’s roads, bridges, tunnels and waterways can meet modern demands.
Repealing Section 232 will also boost our economy and expedite our recovery. In New Jersey, the aluminum industry contributed $2.59 billion to the state and generated $136.9 million in state and local revenue. A weak economy compromises our national security. Expanding such a critical sector could spur general growth across the market, helping to counter the fiscal stagnation we have endured the past few years.
Free trade is not just good business, but also an important means to protect this state and country.
Senators Toomey and Warner are actively pushing for a bipartisan solution to our trade problems. Their bill, the Bicameral Congressional Trade Authority Act, would reign in executive authority in passing tariffs. Congress would be able to review all presidentially proposed national security tariffs. This bill would ensure that the Senate and House could protect our national economy, expand our international trade relations and strengthen homeland security.
While these tariffs were intended to protect American interests, there’s no doubt that Section 232 has instead hurt domestic manufacturers and workers. Greater access to affordable aluminum supports defense manufacturing, infrastructure improvements and drives our fiscal recovery. Supporting free trade will help secure America as we move forward.
Assemblyman Jamel C. Holley is vice-chair of the Assembly Homeland Security and State Preparedness Committee. He represents the 20th Legislative District, which includes parts of Union County.
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Two Am Law 200 firms have become early movers in the 2022 expansion stakes with combinations that grow the firms in key markets.
Michael Best & Friedrich, ranked 169 in the Am Law 200, has added 23 lawyers and 13 professionals from Forrest Firm in a strategic combination to expand the firm’s presence in North Carolina. Meanwhile, Baltimore-based firm Offit Kurman, ranked 191, has continued its expansion in the New York area by combining with Dahan & Nowick, a firm in Westchester’s White Plains, a satellite city 30 miles north of Manhattan, New York.
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With an increasingly seller-friendly real estate market, the practice of wholesaling has become more prevalent and resulted in more complaints before the Oklahoma Real Estate Commission. A law that went into effect Nov. 1 requires wholesalers to obtain a license and abide by the same laws and regulations as other real estate professionals. (Photo by Daniel Tuttle via Unsplash)
No-fuss offers to buy your house that arrive in the mail and are posted along busy streets have become common in the current sellers’ market.
These enticements come from real estate wholesalers who want to sign a purchase contract and then sell it to a third party for a profit. Until recently, the practice was unregulated in Oklahoma.
Wholesaling has generated a growing number of complaints filed at the Oklahoma Real Estate Commission about misleading sales tactics, predatory contracts and clouding titles.
“Many Oklahomans who agree to sell their homes to a wholesaler are upset when they learn that the person who offered to purchase their home is actually assigning the purchase contract to a third party for a profit instead of purchasing it themselves,” said Grant Cody, executive director of the OREC.
“They’re upset to find out they could have made another $30,000 or $40,000,” he said. “It’s taking their equity in the home.”
Issues raised by both sellers and licensed real estate agents are addressed in a state law that went into effect Nov. 1.
The Predatory Real Estate Wholesaler Act requires wholesalers to obtain a real estate license and abide by the same laws and regulations as other real estate professionals in Oklahoma.
“There are people who do this correctly. They act ethically and openly to help people move distressed properties,” Cody said. “But unfortunately, an increasing number of individuals are doing it in a most predatory manner.”
Angelena Harris, the managing broker at Spearhead Realty, said wholesaling can help homeowners who prefer a quick transaction.
Perhaps the property is in bad shape and needs extensive repairs or someone must be hired to clean up liens on the property before it can be sold. The seller might not have the money or time to take care of those issues.
“I see both sides of it. I give people both sides of it,” said Harris, a real estate investor and president-elect of MLSOK, the state’s multiple listing service.
When she makes an offer, she explains that it is based on the estimated cost to fix up the house and the profit she needs to make when she sells it.
Harris said the new law gives the Real Estate Commission some teeth to go after the bad actors.
“There’s a lot of unlicensed activity going on right now that they are investigating,” she said. “The local market is definitely aware of the law. The ones that took it seriously went out and got their license.”
Harris and Cody said the majority of complaints involved out-of-state wholesalers who put the property under contract and hold it hostage while searching for an investor to buy it.
After signing a contract with an unlicensed wholesaler in California or New Jersey, the seller may not hear anything for months and cannot get in touch with the person, Cody said. Meanwhile, the wholesaler might file an interest on the property with the county assessor, clouding the title, he said.
These instances have increased during the pandemic with predators often preying on the elderly and people in financial distress, Cody said. It can be difficult for investigators to find these wholesalers, especially if they are out of state, he said.
Oklahoma is one of the first states to take action to address the issues created by this growing trend, Harris said.
Cody said officials from 14 states have contacted him in the past six months, asking about Oklahoma’s approach.
Wholesalers now are required to comply with the Oklahoma Real Estate License Code and Administrative Rules, which mandate a number of duties and responsibilities that cannot be waived, Cody said.
Sellers considering signing a purchase contract with someone, can check to see if the person is licensed at oklahoma.gov/orec.
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Woodrow Wilson’s Devin Kargman (2) looks for a receiver down field during the first quarter of the Timber Creek vs. Woodrow Wilson football game, Saturday, Oct. 9, 2021.Al Amrhein | For NJ Advance Medi
If you want to know who New Jersey’s top high school football recruits are, regardless of grade, then you’ve come to the right place. Presenting the NJ.com Top 50 countdown of the state’s top football talents, highlighting 10 recruits each day, and culminating in a top 10 and crowning of New Jersey’s top high school football recruit on Friday.
We will also debut “the Next 30″ list of up-and-coming Power Five stars (including various bigs with bright futures), new class rankings, and N.J. recruiting trends once all of the picks are revealed. Without further ado, let’s begin with one of the most prolific quarterbacks in South Jersey history.
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Things are about to get worse — but after that, they should steadily get better. That’s roughly how economists envisage the path of U.S. inflation in the year ahead.
Data on Wednesday may show that consumer prices climbed 7.1% in December from a year earlier — the fastest annual pace in four decades, according to the Bloomberg survey median forecast. That may prove to be the high-water mark, or close to it, as the forces that have driven inflation up during the pandemic are expected to weaken.
Supply networks are seen becoming somewhat more orderly by later in the year. There’s unlikely to be a repeat of the lockdown-era splurge on big-ticket goods, which sent those prices soaring. Some key commodities including oil are already off pandemic highs, the Federal Reserve is hitting the monetary-policy brakes, and statistical quirks will tip the scales toward lower inflation prints.
Add all those things together and it explains why most economists project inflation will slow to less than 3% by the end of 2022. Then again, they expected price pressures to have been more contained last year, too — largely failing to anticipate the pandemic price spike.
They could be overly optimistic now as well. Rents are poised to accelerate, according to real-estate industry measures that typically prefigure the official data. Wages are gaining momentum too, especially at the lower end of the pay scale, and could keep rising given the appetite for labor. Omicron or subsequent coronavirus variants risk prompting further rounds of factory shutdowns and supply-chain snafus.
Following is a roundup of some key factors that will determine whether red-hot inflation simmers down or lingers for longer.
It Should Fade Because: Goods crunch will ease…
Covid led people to spend less money on services, such as travel and entertainment, and more on merchandise like computers or sofas. That’s put enormous strain on the world’s ability to make stuff and move it around.
There are some signs that supply-chain problems may be beginning to ease. A gauge of prices paid by U.S. manufacturers for materials fell last month, while a new Fed index of global supply-chain disruptions suggests the worst may soon be over.
Slower demand growth may be in store: the government has ended the pandemic aid programs that shored up consumer finances, though households still have some of the cash saved up. The upshot could be that supply-constrained products like used cars and furniture, big contributors to inflation in 2021, have the opposite effect this year.
“Declines in durable goods prices are likely to drive inflation lower by end-2022, more than offsetting a sharp acceleration in shelter,” Goldman Sachs economists wrote last week.
The Fed is tightening…
The past few weeks have seen a sharp change of course by Fed officials, who’ve spent most of the pandemic promising to hold off on tighter policy so that employment can recover. Now they’re signaling that interest-rate increases are coming, maybe as early as March, in order to cool prices.
It takes time for the impact of higher rates to feed through into the economy, so the effect on prices this year will be limited. But the Fed’s pivot may ensure that households and businesses don’t become resigned to more inflation — the kind of expectation that can be self-fulfilling. Since around mid-November, when the central bank began hinting at early hikes, gauges of expected inflation in the bond market have declined.
… and base effects help
Part of the past year’s surge in headline inflation came from what is known in the jargon as the base effect. When calculating the year-over-year change in prices, the point of comparison was 2020 — when the onset of the pandemic had caused the cost of all kinds of goods and services to slump.
That made 2021 inflation readings appear larger. But this year, base effects will work in the opposite direction. Starting around spring, economists expect them to start pulling down the annual inflation figures.
It May Linger Because: Rents are climbing…
The real-estate boom that gathered steam and pushed housing prices to record highs is leading to a surge in rents, according to measures compiled by industry groups like Zillow and Yardi.
Because of a built-in lag due to measurement methods, that hasn’t yet shown up to the same extent in the official consumer-price indexes. But it likely will. And because shelter accounts for a big chunk of household budgets, it looms large in measures of inflation too.
By this summer, “housing costs could be running in the 6%-7% range — faster than at any time in the past 30 years,” according to David Wilcox at Bloomberg Economics.
Labor has leverage…
With Americans slow to re-engage in the workforce or dropping out altogether for various reasons, most of them pandemic-related, workers are finding they have more leverage to demand better pay because companies are so desperate to hire.
Average hourly earnings increased 4.7% in December from a year earlier. That’s almost twice the average of the previous expansion.
Americans lower down the income ladder — who tend to spend a bigger chunk of their paychecks on necessities — have been getting larger raises. Some analysts see a risk that wages and prices could chase each other higher, like they did the 1970s, even though U.S. labor has less bargaining power today.
“Workers have a newfound militance for wage increases, as evidenced by a number of strikes in recent months,” Stephen Stanley, chief economist at Amherst Pierpont Securities, said in a recent note. “A wage/price spiral has not set in fully yet, but it is fair to say that inflation expectations are in danger of becoming unanchored.”
… and supply is still sketchy
Supply disruptions have already lasted longer than most analysts expected, making it risky to call a peak. Semiconductor shortages, for example, have caused havoc in the auto market since early in the pandemic — and last month the wait time for deliveries increased yet again.
Perhaps above all, there’s a risk of new viral twists. Right now, in one of the world’s most important ports — Ningbo, in China — a fresh outbreak has led to strict controls on trucks moving goods in and out, illustrating how nobody knows what’s coming next from Covid-19.
