2022 beach tag designs have been revealed!
SECOND HOME INTEREST RATES TO RISE: In a recent statement the Federal Housing Finance Agency announced increased costs for high balance loans and second homes financed through Fannie Mae and Freddie Mac. The FHFA went on to emphasize its mission of “facilitating equitable and sustainable access to homeownership…and to ensure access to credit for first-time home buyers and low- and moderate-income borrowers.”
Mike Mento of Prosperity Mortgage offered an example of how the future cost increase could affect a hypothetical $560,000 second home loan with a rate of 3.375%. Today that loan would have a monthly principal and interest payment of $2,476. In the future, in order to keep the same monthly payment, borrowers would pay an additional 3.375% in upfront discount points (each point is 1% of the loan amount), or without paying discount points, the rate would increase to 4.375%, pushing the payment up by $320 per month to $2,796. Mento said the Fannie Mae and Freddie Mac increases will take effect on April 1st, but also said it takes lenders roughly 30 days after settlement to facilitate loan sales to Fannie or Freddie, therefore, loans through Prosperity must settle by February 28th to avoid the rate increase. Prosperity is actively looking at alternatives for second home loans, and we’ll have a further update shortly. Meanwhile:
FOR BUYERS: If you’re in the process or purchasing now (or negotiating a purchase), it may make sense to plan to close by February 28th.
FOR SELLERS: Although it may not directly affect sellers, be aware of the increased costs to buyers, and how it may influence them. Again, for negotiations in progress, offering to close before February 28th may be beneficial.
We’ll provide more information–and alternatives–moving forward.
MARKET STATS: The tight inventory situation has continued, limiting sales even though purchase demand has remained strong. The November 2021 median sale price was $2,300,000, up from November 2020. For a detailed look at the market see the latest Long & Foster Market Minute report below.
THE WETLANDS INSTITUTE will be featured on TV as part of a “Samantha Brown’s Places to Love” episode. In addition to the Wetlands Institute, the show will include Beach Plum Farm and Cape May’s Harriet Tubman Museum. Season 5, Episode #502 will air this week on PBS. If watching from Avalon or Stone Harbor, catch it Saturday morning, January 15th, at 10:30am on WHYY, channel 12. If watching in another area, find the air date, time, and channel here: https://samantha-brown.com/how-to-watch/
TIME TO RENEW YOUR RENTAL LICENSE: It’s time for the annual renewal of your property’s rental license, and of course the annual inspection. Avalon and Stone Harbor property owners will receive advanced notice of their inspection date, and fire inspectors will pick up keys from our offices, then inspect the property including your smoke detectors, CO detectors, and fire extinguisher. Avalon property owners should note that the borough is no longer allowing fire extinguishers to be mounted inside a closet or cabinet, even if the door is labelled with a “fire extinguisher” sticker. Instead, extinguishers must be unobstructed from view (such as on a wall or countertop), and mounted using the supplied hardware or bracket. Questions about your Avalon rental inspection? Contact the Avalon Fire Inspection office at (609) 967-5918. For questions about Stone Harbor rental inspections, contact the Stone Harbor Fire Prevention Bureau at (609) 368-5102.
IT WON’T BE LONG! Dreaming of sunny days, laying on the beach, as a gentle seabreeze blows? It won’t be long before the snow, ice, and cold temperatures we’re talking about will be behind us! Make your 2022 plans now! Plan a week at the beach–or plan to make it permanent! Either way, call or email me today!
216 90th, Stone Harbor, $725,000, ACTIVE MLS#: 220039
128 21st Street, Avalon, $2,799,000, ACTIVE MLS#: 220015
Properties Under Contract:
684 Sunrise Drive, Avalon, $1,569,000, UNDER CONTRACT MLS#: 214199
8823 2nd Avenue, Stone Harbor, $2,495,000, UNDER CONTRACT MLS#: 213273
2688 Dune Drive, Avalon, $3,100,000, SOLD MLS#: 200824
335 6th Street, Avalon, $4,000,000, SOLD MLS#: 212947
109 115th Street, Stone Harbor, $5,400,000, SOLD MLS#: 214289
11 Heron Drive, Avalon, $6,300,000, SOLD MLS#: 213470