Designated Realtor® February 2019

DESIGNATED

REALTOR

®

ISSUE 1: February 2019

A STRONG 2018 FORECASTS POSITIVITY FOR 2019 PERCENTAGE OF LIST PRICE RECEIVED

97.7% MEDIAN SALES PRICE AFFORDABILITY INDEX

$290,000

CLOSED SALES

117,004

141 DAYS ON THE MARKET

65

NJREALTOR.COM

2018 NJ Realtors® Circle of Excellence Advertising Packages To help you advertise the achievement of the 2018 NJ Realtors® Circle of Excellence Sales Award®, all award recipients have access to special advertising packages and marketing materials.

2018 ADVERTISING RULES AVAILABLE HERE

MARKETING MATERIALS LOGOS • All levels available • PNG & JPEG FILL-IN-THE-BLANK PRESS RELEASE • Fill in your information and submit to your local media outlets

FACEBOOK PROFILE PICTURE FRAMES • Platinum • Gold • Silver • Bronze *Click here for a helpful guide from Facebook.

SPECIAL ADVERTISING OPPORTUNITIES Click on the name of each publication to view their current advertising offer.

HOMES & LAND Monmouth County Edition Space Reservation: TBD Published: Feb. 8 Ocean County Edition Space Reservation: Feb. 4 Published: Feb. 22 COURIER NEWS Space Reservation: Feb. 9 Published: Feb. 18 ASBURY PARK PRESS Space Reservation: Feb. 9 Published: Feb. 18

DAILY RECORD Space Reservation: Feb. 9 Published: Feb. 18

HOME NEWS TRIBUNE Space Reservation: Feb. 9 Published: Feb. 18

GUNTHER PUBLICATIONS Space Reservation: Feb 20 Published: March 13

NJ ADVANCE MEDIA Space Reservation: Friday, Feb. 1 Published: Feb. 10

$550 Full page $410 Half Page $235 ¼ page

NORTHJERSEY.COM Space Reservation: Depends on package Published: Feb. 6/7, Feb. 13/14, and/or Feb. 20/21

Email: cami@guntherpublications.com Phone: (732) 995-3456

I M P O R TA N T D AT E S & D E A D L I N E S

FEBRUARY

5 Chinese New Year

14

Valentine’s Day

Realtors 18 NJ Closed

®

Presidents Day

Office

MARCH

APRIL

5 Mardi Gras

10

MAY

Realtors 5 NJ Educational

®

Foundation Application Deadline njrealtorsef.com

Daylight Saving Time

17 St. Patrick’s Day

9

Board of Directors Meeting

REALTORS 13 Legislative Meetings ®

|

18

and Trade Expo Washington, D.C. legislative.realtor

Realtors 27 NJ Closed

®

Office

Memorial Day

15 Tax Day

Day of 19 First Passover

21 Easter Sunday 22 Earth Day

WHAT’S BUZZING IN REAL ESTATE?

1

Please be advised that as of January 1, 2019, the state of New Jersey requires that battery powered single station smoke alarms be replaced with a ten year sealed battery powered smoke alarm. While the state of NJ acknowledges that there will be an additional cost for these units, they determined that the increase was warranted to account for safety. These new units are not required to replace AC-powered smoke alarms or multi station alarms. NJ Realtors® submitted comments in opposition on the rule proposal November 21, 2017. However, the State of NJ adopted these rules without notice to the association.

4

Women, millennials, and Hispanics will shape housing in 2019, according to a report done by realtor.com.

“First names associated with women — especially millennial women — saw a significantly faster level of home sales growth in 2018, giving us a sneak peek of homeownership trends in 2019,” said Javier Vivas, director of economics research at realtor.com. “Hispanics and millennials names overall also saw a surge in home purchases last year.” More information here.

5

Mortgage rates are the lowest they have been in 8 months, hopefully giving this winter a boost. “Some real estate professionals say they’re seeing buyers step back into the housing market to take advantage of the savings,” said REALTOR® Magazine.

2

The federal government shutdown is taking a three- week pause and, according to a survey done by NAR, “The most common impact, at 25 percent, was the buyer decided not to buy due to general economic uncertainty, though they were not a federal government employee.” Check out the rest of their findings here.

3

Final regulations regarding the new 20% deduction on qualified business income were issued by the Treasury Department and the Internal Revenue Service.

They clarified real estate agents and brokers who operate as sole proprietors or owners of partnerships are eligible for the new deduction. The new regulations also simplify the process that rental real estate property owners must follow to claim the new deduction. Read more here.

6

Virtual reality is for more than just video games. In 2019 buyers will be looking for interactive listing photos and live tours before attending an open house. Check out NJ Realtor® member perk iStaging and bring new technology in to your business at a discount. Learn more here.

7

This fall NAR announced their new program, Commitment to Excellence (C2EX). A program designed for Realtor® empowerment through professionalism and a commitment to high standards when conducting business. Assess your expertise and check out the program.

Designated REALTOR® | February 2019 | 1

NJ Homeowner’s Guide to Property Taxes Property taxes can be complicated, especially in New Jersey. New Jersey Realtors® teamed up with the New Jersey Society of Certified Public Accountants and the Association of Municipal Assessors to create the New Jersey Homeowner’s Guide to Property Taxes.

We hope members will distribute the guide to their clients — especially potential first-time buyers — as another layer of service in the transaction. See the full guide here — njpropertytaxguide.com

1. ASSESSMENT A Certified Municipal Assessor establishes the value of your property.

6. DISBURSEMENT

2. BUDGET

After bills are paid, the levies are disbursed among your taxing districts.

Each taxing district sets an annual budget that includes the tax levies for the district and any dedicated purposes.

HOW THE PROCESS WORKS IN EACH TOWN This occurs every year. More information about each step in the process can be found on pages 6-12.

5. PAYMENT

3. CALCULATION

The tax bill is divided into four installments, due quarterly in February, May, August and November.

Unpaid property taxes will accrue interest and eventually result in a lien. Please refer to page 15 for more information.

N E W J E R S E Y H O M E®O W N E R ’ S G U I D E T O P R O P E R T Y TA X E S

Designated REALTOR | February 2019 | 2

Following state law, a property tax rate is calculated for each tax levy.

4. BILLING Using your property assessment, your municipal tax collector uses the tax rate to issue a bill for your property’s share of each property tax levy.

N J P R O P E R T Y TA X G U I D E . C O M

5

Assessment A certified Municipal Assessor, a trained employee appointed by the governing body, establishes the value of the property. The value is based on market data, state laws, rules, court decisions and the state constitution. Residential properties are assessed at their market value and are reassessed for a variety of different reasons including: construction, a successful home value appeal, a town-wide reevaluation or there is a state plan put in place for the reassessment process. As computer technology improves the reassessment process is becoming easier to do and is occurring more frequently.

Budget Each district is required by law to have a schedule and process for adopting a budget, and the process usually ends by May. The professional staff in each district are responsible for working with elected officials to work out the annual budget for their district. They determine how much taxes will be raised by subtracting all known revenue from planned spending. The budget then goes through hearings in order to be approved. The final budget is submitted to the County Board of Taxation.

Calculations Each County Board of Taxation determines the rate of property taxes using the following: • Ratables – Using the work done by the municipal assessor, the County Board of Taxtion calculates the total assed value of all taxable property • Tax Levy – How much in property taxes is needed for the budget of the taxing district • Tax Rate – The tax levy divided by ratables Billing Taxes are due in four quarterly installments and the schedule for billing is based on state law. Quarter 1 and 2 amounts are estimates based on the previous half year while quarter 3 and 4 make up the difference between the estimated and final tax amount. Often times, your tax bill will also have budget and tax information enclosed and if you do not receive a tax bill in the mail it means that you do not have to pay.

Payment In many towns you can pay online or mail a check with your payment coupon. However, if a mortgage company pays your taxes you can disregard the payment coupons. It is vital to keep all information updated and to keep your payment coupons, if received, in a safe place.

Homeowner’s Checklist If taxes are paid through your mortgage, confirm any escrow account balances with your lender.

Planning to pay off your mortgage? Make sure that you notify your tax collector of the change and then follow the directions below.

or Make sure that your mailing address is correct with the municipal assessor and the tax collector.

Make note of all due dates and grace periods for all tax bill installments. Keep payment coupons so you pay the correct amount, and include them if you pay in person or by mail.

If you choose to pay through an online service, make sure that your payment information includes your property identification information (block, lot, qualification).

Disbursement Once taxes are paid, they are divided up between counties, municipals, and schools. Generally, your county receives 18 percent, your municipal receives 29 percent and schools receive 53 percent, however these percentages vary depending on where you live.

Designated REALTOR® | February 2019 | 3

Continuing Education Frequently Asked Questions Q A

What are the 2019 Term New Jersey continuing education requirements?

In order to be eligible for renewal or reinstatement of a real estate license, every individual licensed as a broker, broker-salesperson or salesperson must complete 12 hours of continuing education by April 30, 2019. If completed between May 1 and June 30, 2019, a $200 late fee applies. At least six of the 12 credits must be obtained in courses within the core topic area. Of the six credits from the core area, at least two credit hours must be obtained within the ethics topic area. The remainder of the credits can be obtained by taking courses in the core, ethics or elective topic areas.

Q A

What is the 2019 term’s deadline to complete my CE by June 30, 2019?

The deadline to complete your CE and not be charged a $200 late fee by the New Jersey Real Estate Commission is April 30, 2019. The deadline to renew your license is June 30, 2019.

Q A

What happens if I do not complete my CE by June 30, 2019?

You will not be able to renew your license and it will expire.

You must then complete the CE requirements, complete the process for reinstatement, and pay the necessary fees.

Q A

Can I complete all my CE hours on core topics?

Yes. 12 hours of CE on core topics will satisfy the requirement, so long as two of those hours are in the ethics topic area.

Q A

I just received my salesperson’s license; do I need CE in the 2019 licensing cycle?

Any individual licensed after June 30, 2018 does not need to complete CE for the 2019 Term.

Q A

Will I get credit for taking a broker prelicensure education course?

Yes. Any person who completes a broker course within the licensing term is deemed to have fulfilled the CE requirement for the term in which the broker course was completed.

Q A

Do referral agents need to complete CE? No. Licensed referral agents are not required to complete CE. However, they will be required to complete CE in order to change their license type to that of a salesperson, broker-salesperson or individual broker.

Q A

If I take more than 12 CE credits, do they carry over into the next licensing cycle?

No. Credits are only valid for the term in which they are taken.

Q A

Can the same CE course be taken more than once during a CE term?

No. Duplicate course credits will not be applied toward your final credits if taken in the same term.

More questions? Email info@njrealtorsace.com

Use NJ Realtors® Academy of Continuing Education, an internet-based program, to search and register for courses, as well as, manage your continuing education credits. Take self-paced courses online through ACE or register for in person courses offered through your local board/association. After that, NJ Realtors® will report your credits to the New Jersey Real Estate Commission’s online CE tracking system. Visit njrealtorsace.com for more information.

Designated REALTOR® | February 2019 | 4

A Look at Housing Data in 2018 Prices were on the rise in 2018, outpacing closed sales and the number of homes for sale, according to the end-of-year housing data recently released from New Jersey Realtors®.

MARKET OVERVIEW

The median sales price for a single family home for 2018 was $315,000, a 5 percent increase over 2017. Closed sales remained steady year-over-year, showing no statistical increase or decrease with 83,152 single family homes sold in 2018. The days on the market saw a drop over 2017, moving from 72 days to 65 days in 2018, a 9.7 percent decrease. This falls in line with the current inventory situation the market is seeing, which is consistently low. There were just 29,954 single family homes for sale in December 2018, a 10.4 percent decrease over December 2017. While the winter months often see fewer homes for sale due to the season, the year-over-year decrease is a continuation of a trend that has been occurring for several years. Still, market confidence remains reasonable, with new listings for the entire market—single family homes, townhouses and condos, and adult communities—increasing 1.2 percent to 183,156 for 2018. Overall, the numbers for 2018 show consistency.

Median Sales Price 2018: $290,000 2017: $280,000

Days on Market 2018: 65

New Listings 2018: 183,156

For more information and the full reports, visit njrealtor.com/data.

1.2%

2017: 181,007

Pending Sales 2018: 117,192

0.3%

2017: 117,584

Closed Sales 2018: 117,004

“We cautiously forecast prices will continue to rise for 2019 by a few percentage points at most,” said 2019 New Jersey Realtors® President Ilene Horowitz. “But, as always, all markets are local so what we’re seeing in North Jersey for first-time buyers is not necessarily indicative of what’s happening in other areas throughout the state with different buyers and sellers. The best place for specific market knowledge is your local Realtor®.”

8.5%

2017: 71

While New Jersey ranked high for the number of foreclosures in the country again for 2018, there is good news: the number of foreclosures is down 12 percent from 2017, with 18,801 foreclosures starts in 2018 and 21,274 foreclosure starts in 2017, according to ATTOM Data Solutions. Nationally, and in New Jersey, this marks a 13-year low.

Mortgage rates had been consistently on the rise since 2016, coming close to 5 percent, likely due to the four Federal Reserve hikes in 2018. This caused buyer confidence to slow, but the rates have since adjusted lower, with the most recent average 30-year-rate at 4.45 percent, according to Freddie Mac.

3.6%

0.6%

2017: 117,704

%

Percentage of List Price Received 2018: 97.7%

0.3%

2017: 97.4% Affordability Index 2018: 141

8.4%

2017: 154

*Data is year-to-date through December 2018

Designated REALTOR® | February 2019 | 5

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