Gary`s Blog in South Jersey

Happy holidays to everyone! A time of heartfelt thanks...

Wish to thank all my clients, friends, my super co-workers, you are all so awesome!-Everyone rocks! My heartfelt thanks for helping me accomplish my 34th year in the real estate business. I am not that old now ! :) --Remember I have been licensed to sell real estate since 18 years young, and a broker since 23 years old, I have worked through 4 recessions now, our office is still leading the way, with the super help from my co workers and good client cooperation, we found ways to make people happy and get the job done right. -THANK YOU- I appreciate your business and timely thoughtful buyer and seller referrals.

Just have to mention, super time to be a Philadelphia sports fan now--The Eagles, Flyers playing in top form and how bout those Fabulous Phillies getting pitcher Cliff Lee back!-Awesome early holiday gift for us Phillies fans.  Heck- even the 76ers tonight, almost just beat the NBA leading Boston Celtics with their new improved defense of late. They may not make the playoffs like the other Philly teams but they are quickly getting more respectable each week.

Hope everyone`s holiday season is filled with alot of love and happiness that bring alot of fond memories for you and your family. May you have a super 2011, The south Jersey shore area, Atlantic and Cape May counties should show improvement in sales, with an overall slow improving economy. Be safe and keep warm--it`s cold out there!--But remember it`s usually the best time- right now-to get that timely great bargain--smart investment you always wanted. Low bargain interest rates and low prices can`t last like this perfect buying storm forever now.  Here to help! In Appreciation--My Best  Gary Simmens

Fed leaves the rates alone for now.

Fed: Economy better, rates to stay low

By Chris Isidore, senior writerApril 28, 2010: 3:28 PM ET

NEW YORK (CNNMoney.com) -- The Federal Reserve said Wednesday it sees further signs of improvement in the U.S. economy, but not enough to start raising its key interest rate from near 0% anytime soon.

The Fed's statement Wednesday once again spoke of a U.S. economy now in recovery, stating that "economic activity has continued to strengthen and that the labor market is beginning to improve."

But the central bank made little change in its language used to describe the outlook for its policy, saying it expects that economic conditions will "warrant exceptionally low levels of the federal funds rate for an extended period," as it has at every meeting since June of last year.

The fed funds rate, the central bank's key overnight lending rate, is a benchmark used to set interest rates on a wide variety of consumer and business lending.

In December 2008, the Fed cut the rate to near 0% in an effort to spur economic activity, and has left it there ever since.

2010 Galloway Township,NJ 08205 real estate update

The following numbers utilize a month end of 01/31/10.

As of month end the Average Sales Price of a single family home in Galloway Township has decreased 11% from 2009. The Average Sale Price for 2009 was $241,529. The Average Sale Price as of month end was $214,786.
As of month end the Inventory of homes in Galloway Township has decreased 1% from 2009. The Inventory at the end of 2009 was 270. The Inventory as of month end was 268.
As of month end the Number of Sales of homes in Galloway Township has decreased 54% from the same period in 2009. The Number Sold as of month end last year was 13. The Number Sold as of month end this year was 6.

This information is deemed reliable, but not guaranteed
ZIP Code: 08205
Location Characteristics: Galloway Township is a community of young families with the median age just 34.0. It is directly inland from Atlantic City.

Galloway Township is located in the pinelands of South Jersey, just minutes from the Jersey Shore beaches. It is located 50 minutes to 1 hour from Philadelphia, PA;  2.5 hours from New York, NY; and 3.5 hours from Washington, DC.

Economic Highlights for the Week Ending February 5, 2010

Volume 16, Number 4 Economic Highlights for the Week Ending February 5, 2010

MONDAY, February 1st Manufacturing activity expanded for the sixth straight month in January. The ISM index increased to 5.84% from 54.9% in December. The gain last month was led by production increases related to inventory investment. Severe declines in factory activity appear to be over and a moderate recovery from very low levels is underway. Personal income rose 0.4% in December, the fastest pace of growth recorded since stimulus checks were issued last May. Consumer spending rose a modest 0.2% on the month as the savings rate increased to 4.8%. Income growth, although improved, remains modest and consumers remain cautious about spending.

TUESDAY, February 2nd The pending home sales index increased to 96.6% in December from a level of 95.6% in November. The index plunged in November in conjunction with the original expiration of the homebuyer tax credit and has not yet rebounded significantly. Now that the tax credit has been extended and expanded, the pending home sales index and thus existing home sales are expected to increase over the next several months. Motor vehicle sales declined 4.2% in January to an annual rate of 10.8 million. Total vehicle sales are off to a weak start this year, constrained by a weak labor market, still tight credit and at this time the suspension of sales by Toyota. Although very weak, vehicle sales are expected to continue trending mildly higher throughout this year.

WEDNESDAY, February 3rd The MBA mortgage applications index surged 21.0% to 620.7% for the week ending January 29. The purchase index increased 10.3% on the week as the refinance index rose 26.3%. Refinancing activity accounted for slightly less than 70% of new mortgage application activity. Despite this week’s gains, the level of mortgage activity remains quite low indicating stagnation in the housing recovery. The ISM service sector survey increased to 50.5% in January from 49.8% in December. An index level over the key 50% level indicates expansion in the sector. Like many other sectors of the economy, the recovery in service sector activity remains quite subdued.

THURSDAY, February 4th Productivity grew at an annualized pace of 6.2% in Q409 as unit labor costs fell a more-than-expected 4.4%. There was a large increase in output but a smaller increase in the hours worked leading to the growth in productivity. Firms are producing more to meet demand without hiring new workers. Also, the weak labor market combined with productivity increase led to another steep decline in unit labor costs. Jobless claims increased 8k to 480k for the week ending January 30. It may be that some of the holiday induced volatility has yet to work its way through the data, accounting for the elevated weekly reading. Expectations are for claims to decline from here and retake their pre-holiday improved level. If not then, it would indicate a stalled labor market recovery. Chain store sales rose 3.1% in January from January one year ago. Most major retail categories posted gains from last year except for drug store sales which declined 1.4%. Wholesale clubs in particular received a boost from higher gas prices. Because chain store sales were at such a low level last year, the comparisons this year will remain favorable. Sales will continue to increase, modestly, from very low levels going forward.

FRIDAY, February 5th Payroll employment fell another 20k in January compared to expectation for a 10k increase. Employment has declined 3.0% over the past year for a total of 4.02 million jobs. Since the onset of the recession in December 2007, the economy has shed 8.42 million jobs. Jobs have now been lost in 24 of the past 25 months. On a more positive note however, the unemployment rate fell to 9.7% from 10.0% previously even as the workforce increased moderately.

Stock Market Close for the Week

Index Latest A Week Ago Change DJIA 10012.23 10067.33 -55.10 or -0.55% NASDAQ 2141.12 2147.35 -6.23 or -0.29%

WEEK IN ADVANCE

Light data flows in the week ahead provide mostly second-tier indicators with the exception of retail sales for January, due out on Thursday. With consumer spending accounting for two-thirds of all economic activity, retail sales are always on the radar. Other than that, the markets will have a chance to absorb the chronically sluggish employment data while the Treasury auctions another $81 billion in short and long term notes and bonds.

Key Interest Rates Latest 6 Mos Ago 1 Yr Ago Prime Rate 3.25 3.25 3.25 Fed Discount 0.50 0.50 0.50 Fed Funds 0.15 0.18 0.23 11th District COF 1.828 1.599 2.757 10-Year Note 3.56 3.77 2.92 30-Year Treasury Bond 4.52 4.52 3.62 30-Yr Fixed (FHLMC) 5.01 5.22 5.25 15-Yr Fixed (FHLMC) 4.40 4.63 4.92 1-Yr Adj (FHLMC) 4.22 4.78 4.92 6-Mo Libor (FNMA) 0.38438 0.92500 1.6600 Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

February 2010 Real Estate Update

Serving South Jersey. Gary Simmens Broker/Associate February 2010 WELCOME. TIME-SAVING PRESET PROPERTY SEARCH LINKS IN THE LEFT-GREEN COLOR AREA, NEED MORE DETAILS? CALL US. SEE HELPFUL LOCAL MARKET CONDTIONS ON THE LOWER RIGHT. Copyright 2010 Realty Times All Rights Reserved. Mortgage Rates Steady   In Freddie Mac's results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage averaged 4.98 percent for the week ending January 28, 2009 - down from the previous week when it averaged 4.99 percent.   Last year at this time, the 30-year fixed-rate mortgage averaged 5.10 percent.   "Rates held steady this week ahead of the Federal Reserve's (Fed) policy committee meetings," Mortgage Rates Source: Realty Times U.S. averages as of January 28, 2010: 30 yr. fixed:   4.98% 15 yr. fixed:   4.39% 1 yr. adj: 4.29% said Frank Nothaft, Freddie Mac vice president. The Fed announced on January 27th that economic activity has continued to strengthen.

House Hunters Out Early

The springtime spurt in home buying may hit before the snow melts this year as buyers scramble to meet an April 30 tax credit deadline.
The spring buying season typically takes off in March and runs through May. But buyers who want to claim this year’s tax credit—up to $8,000 for first-time buyers and up to $6,500 for repeat buyers -- must have signed purchase contracts by April 30. And they have to complete the deal by June 30.
"I expect the buying season will be moved up," says Vicki Cox Golder, President of the National Association of Reatlors. Sales "are going to take off in February and March and really take off in April. My concern is that the move-up buyer hasn’t thought what they need to do. Their window is really short. They have to coordinate closing dates."

Nearly 11 Million People Now Working from Home

The number of people who worked at home increased by nearly 2 million, from about 9.5 million in 1999 to about 11.3 million in 2005, according to new data released by the U.S. Census Bureau. Nearly half of these home workers had college degrees and nearly half of them earned $75,000 a year or more.
It would seem that with all those people working from home, having a dedicated home office would be a smart move for a renovator. But that’s not the case. According to the 2010 Remodeling Magazine Cost vs. Value report, the average home office costs $28,375 to build and returns $13,648 at resale. That’s a cost vs. value of only 48.1%.
The median monthly earnings of workers who worked at home were about $2,400 in 2005.
Resolve to Take a Look at Refinancing
If you haven't looked into refinancing your mortgage under federal programs, you could be missing an opportunity to save money, keep your home and give the economy a little juice.
Federal mortgage refinance programs have given more than 2 million homeowners a better shot at holding on and the economy a much needed shot in the arm.
What's more, the year began with fixed interest rates hovering slightly below 5%, but still near record lows, according to Erate.com.
First American CoreLogic's "How the U.S. Consumer Has Benefited from Mortgage Finance Programs in 2009," reveals a group of 2.2 million homeowners have saved an average $120 a month on their mortgage payment -- a 10.5% reduction from the previous mortgage payment.
The study says the refinance activity will result in $2.3 billion in mortgage payment savings for borrowers who refinanced in the first six months of 2009. Over the next five years, the total benefit to homeowners who refinanced in 2009 will grow to $11.5 billion.
This summer, HARP gave a hand up to more homeowners suffering mortgages larger than the value of their home. Borrowers current on payments with Fannie Mae or Freddie Mac guaranteed loans could be eligible for refinancing into new loans even if they owe as much as 125% of the home's current value.

Gary Simmens Broker/Associate 609-645-0202 Gwhatshisname@aol.com http://www.GarySimmens.com

Gary Simmens Team at Balsley/Losco Real Estate 609-645-0202 PO BOX 892 Northfield, NJ 08225

Economic Highlights for the Week Ending January 29, 2010

Volume 16, Number 3 Economic Highlights for the Week Ending January 29, 2010

MONDAY, January 25th Existing home sales plunged a record 16.7% in December to an annualized pace of 5.45 million. The large decline followed several months of strong sales gains that were primarily driven by the first time homebuyer tax credit which was originally slated to expire on November 30. The tax credit has since been extended and expanded but not before impacting sales immediately afterward in December. Despite the sharp decline in December, total sales are still 15.0% above their year ago level. For all of 2009, sales increased over 5% from 2008, their first annual gain since 2005.

TUESDAY, January 26th The S&P/Case-Shiller 20-city home price index increased 0.2% in November from October and gained 5.3% from November 2008. 14 of the 20 metro areas tracked gained on a monthly basis, seasonally adjusted, and 4 of the 20 areas posted annual gains. The rate of decline slowed in most all areas which is indicative of some price stabilization. Nationwide, home prices are akin to 2003 levels. Consumer confidence increased to 55.9% in January from a level of 53.6% in December. A solid gain in present situation ratings led the index higher although expectations scores rose slightly as well. Even with a better-than-expected reading this month, confidence levels remain depressed as weak labor and housing markets continue to weigh on consumers' attitudes about the economy.

WEDNESDAY, January 27th The MBA mortgage applications index fell 10.9% to 513.0% for the week ending January 22. The purchase index slipped 3.3% as the refinance index tumbled 15.1%. With this week's decline, mortgage application activity is 29.9% lower than its year ago level which suggests stagnation in what was a modest housing market recovery. New home sales declined by 7.6% in December to an annual pace of 342k after an upwardly revised, but still dismal annual rate of 370k in November. Substantial back-to-back monthly declines have left new home sales near their record low rate of 329k registered in January last year. New home sales are tanking again after many months of recovering at a modest pace. Hopefully, the housing market will rebound once again supported by the extended homebuyer tax credit, high affordability, looser mortgage credit and improving jobs picture. The FOMC voted to keep rates in an exceptionally low range of 0% to 0.25% in order to support ongoing recovery in the economy. The Committee acknowledging moderate economic expansion but with substantial resource slack which is likely to restrain inflation at this time. Policymakers maintained their commitment to buying up to $1.25 trillion of agency mortgage backed securities and up to $175 billion of agency debt. In addition the Fed anticipates that most of their special liquidity programs will expire on February 1, 2010 but are prepared to modify these plans if necessary. The Fed and fiscal and market forces have generated the beginnings of an economic recovery and resolved much of the distress in financial markets. With their mission largely being accomplished, details of the exit strategy are emerging.

THURSDAY, January 28th Jobless claims fell 8k to 470k for the week ending January 23. Expectations were centered on a bigger decline to a level of 450k. Consequently claims remain elevated which may indicate renewed weakness in labor market conditions. It may take several weeks for the data to settle down from the fluctuations caused by the holidays.

FRIDAY, January 29th The economy grew at a 5.7% pace in the fourth quarter according to the advance estimate for GDP. This was the strongest pace of economic growth in more than six years. This follows 2.2% growth in Q3. The Q4 expansion was driven by inventory investment which added 3.4 percentage points to growth. Final demand was positive last quarter but still fairly weak. With inventories being cyclical in nature it is questionable whether the current strong growth pace can be maintained in the near-term.

Stock Market Close for the Week

Index Latest A Week Ago Change DJIA 10067.35 10172.98 -105.65 or -1.04% NASDAQ 2147.35 2205.29 -57.94 or -2.63%

WEEK IN ADVANCE

Robust Q4 growth is not expected to continue in the current quarter. Data in the coming week will provide the first look at the economy's footing in the New Year. The employment report for January, due out on Friday, highlights on the economic calendar.

Key Interest Rates Latest 6 Mos Ago 1 Yr Ago Prime Rate 3.25 3.25 3.25 Fed Discount 0.50 0.50 0.50 Fed Funds 0.13 0.15 0.19 11th District COF 2.094 1.832 3.155 10-Year Note 3.59 3.67 2.75 30-Year Treasury Bond 4.50 4.49 3.45 30-Yr Fixed (FHLMC) 4.98 5.25 5.10 15-Yr Fixed (FHLMC) 4.39 4.69 4.80 1-Yr Adj (FHLMC) 4.29 4.80 4.90 6-Mo Libor (FNMA) 0.42969 1.11125 1.7500 Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Interest rates lowest in many years.

30-Year Fixed-Rate Mortgage Lowest in Four Months, Nearing All-Time Low Set in Survey in March

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.94 percent with an average 0.7 point for the week ending October 1, 2009, down from last week when it averaged 5.04 percent. Last year at this time, the 30-year FRM averaged 6.10 percent. The last time the 30-year FRM was below 5 percent was the week ending May 28, 2009, when it averaged 4.91 percent.

The 15-year FRM this week averaged 4.36 percent with an average 0.6 point, down from last week when it averaged 4.46 percent. A year ago at this time, the 15-year FRM averaged 5.78 percent. This is the lowest the 15-year FRM has been since Freddie Mac started tracking it in 1991.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.42 percent this week, with an average 0.6 point, down from last week when it averaged 4.51 percent. A year ago, the 5-year ARM averaged 6.00 percent.

The one-year Treasury-indexed ARM averaged 4.49 percent this week with an average 0.5 point, down from last week when it averaged 4.52 percent. At this time last year, the 1-year ARM averaged 5.12 percent.

"Low mortgage rates are helping to stabilize home sales," said Frank Nothaft, Freddie Mac vice president and chief economist. "New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983."

Although existing home sales fell somewhat in august, it was still the second strongest showin in 23 months. Furthermore, house prices increased for the second month in a row in July, after adjusting for seasonality, based on the 20-city composite S&P/Case-Shiller Home Price index. Moreover, the increases were more broad-based in July with house prices rising in 17 of these metropolitan areas, compared to 16 in June.

Seasonal Casino job cuts trim 1,000 in Atlantic County,NJ in September 2009

ATLANTIC CITY,NJ - Casinos slashed more than 1,000 jobs in September as pink slips flew as fast as dice on a craps table in the traditional post-Labor Day employment cutback.

New figures released by the New Jersey Casino Control Commission show that 1,067 jobs were lost industrywide in September, reducing the total number of workers at the 11 casino hotels to 37,337.

Casinos historically trim their payroll as business tapers off after Labor Day, but the weak economy and competition from Pennsylvania slot parlors have put additional pressure on Atlantic City's gaming industry to cut even deeper to reduce costs.

"I think they're in line with where the market has been headed," casino analyst Cory H. Morowitz, chairman of Morowitz Gaming Advisors LLC, said of the job losses. "I think this is related to the continuing softness in the Atlantic City market. As the revenue declines, the operators are responding by right-sizing their businesses."

Revenue has plummeted 15 percent for the first eight months this year. Casino customers have been cutting back on their spending in the soft economy or have been taking their business to the slot parlors in Pennsylvania.

Morowitz predicted the downward trend in employment would continue until the $2 billion Revel Entertainment Group casino opens in 2011. Revel will hire about 5,500 workers for its Las Vegas-style megaresort.

More than 3,700 jobs have been lost industrywide in the past 12 months, figures show. Employment is down to a level not seen since the late 1980s and well below the peak of 51,560 jobs in July 1997.

"We're all learning that casinos are not a recession-proof industry," Ellen Mutari, an economics professor at The Richard Stockton College of New Jersey, said at an Atlantic City gaming conference last month.

All of the gaming halls except for Trump Taj Mahal Casino Resort cut jobs in September. The Taj Mahal increased its payroll overall by only four workers. Every casino has a smaller payroll now than it did in September 2008.

Casinos usually make big job cuts in September, reflecting the transition from the peak summer tourism season to the fall and winter slowdown following Labor Day.

This year's round of cuts equals 2.8 percent of the total work force, about the same percentage as the job losses in September 2007 and 2008, figures show. In 2008, the casinos shed nearly 1,000 jobs in both October and November, suggesting that another large cut is on its way this year.