Category Archives: Uncategorized

February Housing Starts and Permits

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NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: February Housing Starts and Permits

KEY DATA: Starts: +0.8%; 1-Family: +0.5%; Permits: +4.6%; 1-Family: +2.7%

IN A NUTSHELL: “As goes the housing market, so goes the economy and the signs are looking good for both.”

WHAT IT MEANS: The housing market took away and now seems to be giving back as the recovery in this sector continues. Construction of new homes picked up in February, hitting the second highest since July 2008. Only the December 2012 pace exceeded the February starts rate and that may have been hyped by warmer than normal weather. Both single-family and multi-family construction rose with the single-family component replacing the December rate as the highest number since July 2008. Regionally, the gains were not evenly spread. Starts soared in the Midwest by nearly 40% and by almost 20% in the Northeast where Sandy reconstruction is starting to pick up. But there were moderate declines in the South and West. Still, these data do bounce around and the trend across the nation is up. Looking forward, a spike in housing permits points to greater construction activity in the months to come. Interestingly, the biggest gains in permit requests were in the West and South, implying that the February drop was only a temporary slowdown.

MARKETS AND FED POLICY IMPLICATIONS: Housing crashed the economy and is now leading it forward. The rise in housing starts comes even as the National Association of Home Builders/Wells Fargo index of builder confidence has been moderating lately. Interesting, the falling confidence is not coming from a decline in demand. The opposite is occurring. It is due to the roadblocks to selling new homes, including low appraisals and continued strict credit requirements. There are also complaints about rising material and labor costs as well as supply chain bottlenecks. Those cost issues may be troubling to builders but to me they are sings of a growing sector. Importantly, confidence and construction are not going in the same direction. Not only are starts rising but the number of home permitted but not started is increasing as well. Since developers are not spending money on permits unless they are pretty certain they will be using them soon, the increasing inventory of permits says to me that builders expect activity to accelerate. That bodes well for an economy that will be facing the headwind of sequestration. If it is allowed to continue, and it looks like it will, the impacts will start building as we go through the spring. The softening in activity created by the spending reductions will not be enough to kill the recovery, but it will slow it down. Of course, there will be those who say that since the economy continued to grow, all those arguments about spending cuts hurting growth are false. That will be just as silly as arguing that since the economy continued to grow even after the tax increases were implemented, raising taxes doesn’t hurt the economy. Imagine where we would be if neither took place. Regardless, investors who are concerned about the economy should be buoyed by this report though the crazy decision to tax deposits in Cypress will hang over the markets until it is clear what the impact will be on depositors’ confidence in other weak bank nations.

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RE/MAX Connection Realtors is not a licensed financial advisor and is not providing any financial advice. You should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors only is providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.

Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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RE/MAX CONNECTION WINS MULTIPLE GLOUCESTER-SALEM HONORS

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TWENTY-ONE RE/MAX CONNECTION REALTORS
WIN GLOUCESTER-SALEM COUNTY HONORS

Contact: Kevin Burbage
Phone: (856) 415-1210
Email: kevinburbage@gmail.com

MANTUA (March 13) – Twenty-one Realtors from RE/MAX Connection – the number one RE/MAX operation in New Jersey for two-straight years – received Circle of Excellence Sales Awards from the Gloucester-Salem Board of Realtors for 2012.

The two Gloucester County offices, based in Mantua and Turnersville, along with the RE/MAX Connection office in Marlton, Burlington County, combined to successfully close 1,385 transactions worth more than $230 million – the most of any other multi-office operation in the state in 2012 — as also was the case in 2011.

Among individual office locations statewide, RE/MAX Connection’s Turnersville operation was third in the state in units sold in 2012 and 10th in the state for commissions paid from a single office.

“Our agents work hard every day to produce the best results for our clients and we’re all very proud of these awards,” said RE/MAX Connection CEO Christopher J. Brown. “We always say the best agents in New Jersey work at RE/MAX Connection and, once again, these awards prove that point.”

Realtors Bernadette Augello and John Swartz, both based in the RE/MAX Connection Turnersville office, were two of only nine real estate agents based in Gloucester and Salem counties to receive Gold Awards from the joint-county Board of Realtors.

Nine RE/MAX Connection agents received Silver Award recognition: Four from the Turnersville office (Joseph R. Granato, Kimberly Schempp, Peter Sklikas and Dave Sulvetta), four from the Mantua office (Brent Grigsby, John Kelly, Scott Kompa and Dawn Rapa) and Yvette Veideman from the Marlton office.

Gloucester-Salem Bronze Awards were earned by 10 Realtors from RE/MAX Connection: Seven from Turnersville (Richard Bradford, Donna Breland, Colleen Dorrego, Janet B. Larsen, Heidi Rommel, Michael Walton, and Antoinette Wessel) and three from Mantua (Robert Barnhardt Jr., Michael DeFillippis and Brian Ziegenfuss).

RE/MAX Connection – Mantua is located at 140 Bridgeton Pike, Mantua, NJ 08051. Phone: (856) 415-1210. Fax: (856) 415-1291. RE/MAX Connection – Turnersville is at 5701 Route 42, Turnersville, NJ 08012. Phone: 856-228-7990. Fax: 856-228-4433. RE/MAX Connection – Marlton is located at 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053. Phone: (856) 988-1800. Fax: (856) 988-8020.

All three offices are on the web at www.goconnectionnj.com. RE/MAX Connection is licensed to perform real estate transactions in both New Jersey and Pennsylvania.

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RE/MAX Connection Realtors accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. RE/MAX Connection Realtors is providing this transmission for informational purposes only. Any views or opinions presented in this email/blog do not necessarily represent those of the company.

The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

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July Existing Home Sales

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NAROFF ECONOMIC ADVISORS, Inc.
Joel L. Naroff
President and Chief Economist

INDICATOR: July Existing Home Sales

KEY DATA: Sales: Up 2.3%; 1-Family: Up 2.1%; Condos: Up 4.3%; Median Prices (Year-over-Year): Up 9.4%

IN A NUTSHELL: “With sales and prices rising it is clear that the housing recovery remains on track.”

WHAT IT MEANS: The housing recovery remains intact. The National Association of Realtors reported that housing sales rose in July. Granted, the gain was a little bit less than hoped for and we are still not back to the levels reached earlier in the spring, but up is still good. Modest increases were reported in the South and West but a sharper rise occurred in the Northeast. The problem appears to be in the West where demand was flat. Inventories of distressed homes there are limited and that may be slowing the market down. Indeed, there was a nearly 25% rise in prices in the West over the year and that may have been due more to the dearth of investor properties than a rise in prices. That would skew the purchases more toward non-distressed homes causing the price indices to rise. Of course, a surfeit of distressed homes artificially lowered prices so this may just be some pay back. In comparison, median prices rose between 3.5% and 6.6% in the other regions. Those gains, though, make it clear that home prices are now increasing not falling, a warning to fence-sitting home buyers. Mortgage applications for new purchases were up last week, though those data do bounce around a lot.

MARKETS AND FED POLICY IMPLICATIONS: Progress may be slow, but it is occurring nonetheless and the recovery in the housing market should help future growth. It isn’t just new construction where housing powers economic activity. Within about six to nine months after a gain in home sales retailers start to see rising demand for housing-related products. People buying new or existing units personalize them and that means buying everything from new furniture to window treatments to landscaping. The increasing existing home sales should start leading to more housing-related retail sales though I suspect the lag between the two may be a little longer in this cycle. The Fed is intent on keeping mortgage rates low and that is a help. But a small rise in mortgage rates, when coupled with the rising prices, could help even more as potential buyers are forced to make decisions before their monthly costs get away from them. This is a report that is not strong enough to change anyone’s mind about the state of the economy: It is growing but not rapidly. However, the housing sector has been a key factor in this growth lately and reports like this indicate that should continue.

Note from Christopher J. Brown, CEO:

I feel the market will continue to make great strides. There are five GOOD reasons I see the real estate market making a big comeback:

1) Stock market will suffer losses due to the European debt crisis/situation and China’s reduction in growth;
2) Municipal Bonds will become unattractive as local, county, state and federal governments fail to cut costs and raise taxes;
3) Residential Mortgage-Backed Securities are making a big comeback and offering 7% returns; this will fuel the lenders with new capital and offer better mortgage programs to bring in more buyers;
4) Investors will have nowhere to go but to buy inexpensive houses with low interest rate mortgages to provide a safeguard against tax increases;
5) Employment will increase as the market picks up, bringing in upward mobility and first-time homebuyers.

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RE/MAX Connection Realtors is not a licensed financial advisor and is not providing any financial advice. You should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors only is providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.

Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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Naroff Economic Advisors – June New Home Sales

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NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: June New Home Sales

KEY DATA: Sales: down 8.4%; Median Prices (Year-over-Year): down 3.2%

IN A NUTSHELL: “Home sales are bouncing around but the trend remains up.”

WHAT IT MEANS: I have been touting the housing market as the next leading light in the economy. Well, sometimes you have to take one step back to move two steps forward and that may have happened in June. New Home sales fell sharply. That was not expected. But as usual, the details may not really be as bad as they appear. First of all, sales of the previous three months were revised upward with the May numbers increased by 3.5% while the April numbers were boosted by nearly 4.5%. Those are pretty good sized increases and point to a market that is moving upward. So don’t be surprised if the June numbers also turn out to be a lot higher than initially estimated. Second, much of the fall off in sales came in the Northeast. If you believe the Census Bureau’s first round of guesses, new home purchases fell by a whopping and incomprehensible 60% in that part of the country. If you believe that, contact me immediately as I am selling shares in a bridge and a Broadway musical. Demand was down in the South as well while they rose sharply in the Midwest and more moderately in the West. Basically, the data can be volatile so let’s not get too worked up about one decline. Smoothing things out by looking at quarterly averages, second quarter new home sales were up by nearly three percent from the first quarter and nearly twenty percent from second quarter 2011. That’s solid improvement. Prices, however, did decline over the month and from last year. Sales at the upper end of the market eased and that hurt. Inventory is still minimal so that should keep prices from falling further if, as expected, sales rebound.

MARKETS AND FED POLICY IMPLICATIONS: In a world where the only data that matter are today’s data, this is not a good report. Indeed, most of us expected sales to have risen not fallen. Yet there is no reason to believe the market is weakening. The trend is still up and builders remain quite upbeat. Indeed, it is hard to believe that the market is turning downward when the Home Builders’ Confidence Index jumped in July to its highest level in over five years. Either developers are clueless or the data have yet to catch up with reality. I am on the side of the latter. Still, investors don’t like to be surprised, especially on the downside so this report cannot help build confidence in the economy. But it is earnings season and once again, what businesses did will probably dominate short term movements in the market. On Friday, second quarter GDP will be released and that should bring the discussion back to the economic numbers. Unfortunately, that report will likely be viewed more through a political lens than an economic one.

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RE/MAX Connection Realtors is not a licensed financial advisor and is not providing any financial advice. You should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors only is providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.

Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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REALTOR CLYDE EARNS SHORT SALE CERTIFICATION

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RE/MAX CONNECTION REALTOR CLYDE EARNS
RARE SHORT SALE SPECIALIST CERTIFICATION

Contact: Kevin Bayzath
Phone: (856) 988-1800
Email: kbayzath@aol.com

MARLTON (July 16) – Stephen Clyde, a sales associate with RE/MAX Connection Realtors – the number one-ranked RE/MAX real estate company in New Jersey – is now the only Realtor in South Jersey to earn the Certified HAFA Specialist (CHS) designation.

This certification qualifies Clyde as an expert who is trained to leverage the Home Affordable Foreclosure Alternatives (HAFA) program. Clyde not only is the sole South Jersey Realtor with the CHS designation, but also one of only six in the entire state.

“Stephen’s accomplishment is another example of how hard our Realtors work every day to provide our clients with superior customer service,” said RE/MAX Connection CEO Christopher J. Brown. “When home buyers and sellers contact us, they know they are working with the best team of real estate professionals in the business.”

HAFA is a standardized short sale program created by the federal government and adopted by multiple national lenders and servicers, including Fannie Mae and Freddie Mac. The program includes government-funded financial incentives for borrowers, investors and servicers paid at the completion of a transaction. It also offers mandatory debt forgiveness by all lien holders.

“If you or anyone you know owes more than their home is worth, is having trouble paying their mortgage, or is experiencing a financial hardship, there are programs to help,” said Clyde. “Anyone in a foreclosure or near-foreclosure situation should contact me at RE/MAX Connection right away.”

Clyde can be reached by phone at (856) 988-1800 or (609) 868-2114, by email at Stephen@TeamClyde.com, or through his website at www.njhafaspecialist.com.

With more than 1,300 transactions successfully closed, more than any other multi-office operation in the state, the three RE/MAX Connection offices in Marlton, Mantua and Turnersville were the number one-ranked RE/MAX real estate company in New Jersey in 2011. Those transactions totaled more than $218 million, which led to a third-place statewide ranking for RE/MAX Connection in overall agent commissions.

RE/MAX Connection – Marlton is located at 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053. Phone: (856) 988-1800. Fax: (856) 988-8020. RE/MAX Connection – Mantua is located at 140 Bridgeton Pike, Mantua, NJ 08051. Phone: (856) 415-1210. Fax: (856) 415-1291. RE/MAX Connection – Turnersville is at 5701 Route 42, Turnersville, NJ 08012. Phone: 856-228-7990. Fax: 856-228-4433.

All three offices are on the web at www.goconnectionnj.com.

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RE/MAX Connection Realtors accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. RE/MAX Connection Realtors is providing this transmission for informational purposes only. Any views or opinions presented in this email/blog do not necessarily represent those of the company.

The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

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RE/MAX CONNECTION WINS GLOUCESTER-SALEM HONORS

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SEVENTEEN RE/MAX CONNECTION REALTORS
WIN GLOUCESTER-SALEM COUNTY HONORS

Contact: Kevin Burbage
Phone: (856) 415-1210
Email: kevinburbage@gmail.com

MANTUA (April 9) – Seventeen Realtors from the two RE/MAX Connection offices in Gloucester County received Circle of Excellence Sales Awards from the Gloucester-Salem Board of Realtors for 2011.

Those two Gloucester County offices, based in Mantua and Turnersville, along with the RE/MAX Connection office in Marlton, Burlington County, combined to successfully close 1,417 transactions worth more than $218 million – the most of any other multi-office operation in the state.

The company also ranked third statewide in overall agent commissions and Mantua-based RE/MAX Connection Realtor Mark Petracci earned top honors for the third-straight year as the state’s number one RE/MAX agent.

Petracci and colleagues Joe Granato (#4 in the state) and John Swartz (#6 in the state) lead a list of nine RE/MAX Connection agents who received Gloucester-Salem Silver Awards. The company’s other six Silver Award winners are Robert Barnhardt Jr., Brent Grigsby, Scott Kompa, Kimberly Schempp, Peter Sklikas and Yvette Veideman.

Sklikas, based in the Turnersville office, also received the statewide RE/MAX “First Year Performance Award” as the agent who posted the best sales numbers among those joining the company midyear.

Atop the list of eight RE/MAX Connection Realtors who received Gloucester-Salem Bronze-level awards is Turnersville-based Christopher McKenty, who is the #7 RE/MAX agent in the state. The other seven Bronze award winners were: Bernadette Augello, Donna Breland, Colleen Dorrego, Janet Larsen, Jennifer Pagliarini, David Sulvetta and Michael Walton.

“We have always said the best agents in the state work at RE/MAX Connection, the best real estate agency in the state,” said Christopher J. Brown, CEO of RE/MAX Connection. “These awards, once again, prove that point.

“Our goal is to produce the best results every day for our clients as we help them buy or sell property,” Brown continued, “and we are very proud of this recognition of our collective hard work.”

RE/MAX Connection – Mantua is located at 140 Bridgeton Pike, Mantua, NJ 08051. Phone: (856) 415-1210. Fax: (856) 415-1291. RE/MAX Connection – Turnersville is at 5701 Route 42, Turnersville, NJ 08012. Phone: 856-228-7990. Fax: 856-228-4433. RE/MAX Connection – Marlton is located at 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053. Phone: (856) 988-1800. Fax: (856) 988-8020.

All three offices are on the web at www.goconnectionnj.com.

Atlantic County: Absecon, Atlantic, Brigantine, Buena Vista, Corbin, Egg Harbor, Egg Harbor, Estell Manor, Folsom, Galloway, Hamilton, Hammonton, Linwood, Longport, Margate, Mullica, Northfield, Pleasantville, Port Republic, Somers Point, Ventnor, Weymouth.

Burlington County: Bass River, Beverly, Bordentown, Burlington, Chesterfield, Cinnaminson, Delanco, Delran, Eastampton, Edgewater Park, Evesham, Fieldsboro, Florence, Hainesport, Lumberton, Mansfield, Maple Shade, Medford Lakes, Moorestown, Mount Holly, Mount Laurel, New Hanover, North Hanover, Palmyra, Pemberton, Pemberton, Riverside, Riverton, Shamong, Southampton, Springfield, Tabernacle, Washington, Westampton, Willingboro, Woodland, Wrightstown.

Camden County: Audubon Park, Barrington, Bellmawr, Berlin, Brooklawn, Camden, Cherry Hill, Chesilhurst, Clementon, Collingswood, Gibbsboro, Gloucester, Gloucester, Haddon Heights, Haddonfield, Hi-Nella, Laurel Springs, Lawnside, Lindenwold, Magnolia, Merchantville, Mount Ephraim, Oaklyn, Pennsauken, Pine Hill, Pine Valley, Runnemede, Somerdale, Stratford, Tavistock, Voorhees, Waterford, Winslow, Woodlynne.

Gloucester County: Clayton, Deptford, East Greenwich, Elk, Franklin, Glassboro, Greenwich, Harrison, Logan, Mantua, Monroe, National Park, Newfield, Paulsboro, Pitman, South Harrison, Swedesboro, Washington, Wenonah, West Deptford, Westville, Woodbury, Woodbury Heights, Woolwich.

Salem County: Alloway, Carneys Point, Elmer, Elsinboro, Lower Alloways Creek, Mannington, Oldmans, Penns Grove, Pennsville, Pilesgrove, Pittsgrove, Quinton, Salem, Upper Pittsgrove, Woodstown.

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RE/MAX Connection Realtors accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. RE/MAX Connection Realtors is providing this transmission for informational purposes only. Any views or opinions presented in this email/blog do not necessarily represent those of the company.

The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

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Naroff Economic Advisors — February Spending and Income

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NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff, President and Chief Economist

INDICATOR: February Spending and Income

KEY DATA: Consumption: +0.8%; Inflation Adjusted: +0.5%; Disposable Income: 0.2%; Inflation Adjusted: -0.1%

IN A NUTSHELL: “Households are raiding their piggy banks to support their buying habits.”

WHAT IT MEANS: With gasoline prices near or above the $4.00 a gallon level, worries are that spending will slow.  That happened in 2008 and 2011, the other times we passed that dreaded barrier.  So far, that is not happening. Households are shopping till they’re tired once again, helped along by an improving labor market that is causing confidence to rise.

Consumption rose at a robust pace in February and it was not just for gasoline.  Spending was up across the board but most importantly for services.  This component, which makes up about two-thirds of consumption, had been going nowhere.  Whether the surge posted in February is a one-month wonder or the beginning of a trend is hard to say, but I will take it for now.   With the January spending numbers revised upward, it looks like consumption could be robust during the first quarter of the year.

Whether that will be sustained is a real question.  Incomes are rising at a slower pace than spending.  There were some decent gains in wages and salaries, but nothing near what is needed to sustain the current shopping spree.  Adjusting for inflation, disposable income was actually down, not a good trend.  As a consequence, the savings rate fell to 3.7%, a rate we haven’t seen since August 2009.

MARKETS AND FED POLICY IMPLICATIONS: This was a good report that also contained a warning. While households want to spend and will raid their bank accounts to support that habit, unless income gains start improving consumption will have to slow.  Of course, the need for wages and salaries to rise faster so that demand can improve is an issue I have been discussing for a very long time.  The improving job market may be starting to resolve the tension between controlling labor costs and paying the income needed to generate strong increases in demand.

A better economy allows for rising wages and that triggers growing demand which improves hiring and wages. That leads to further increases in confidence and we did see today that the University of Michigan’s index was up in March.  Consumption during the first two months of this quarter is running well above estimates. I suspect most other forecasters will be joining me out on my limb and revising upward their first quarter forecasts. I have been expecting growth to be closer to 3% while the consensus is about 2.5%.

The prospect that first quarter growth will not be as modest as currently predicted should buoy investor confidence.  As for the Fed, another 3% quarter would raise more questions about its target date for tightening of mid-2014.  I have it happening by the end of next year and this report only adds to that belief. Even if that happens, though, rates would still remain low for a very long time.

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RE/MAX Connection Realtors is not a licensed financial advisor and is not providing any financial advice. You should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors only is providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.

Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

Assemblyman Brown reacts to proposed state budget

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New Jersey Governor Chris Christie has proposed a Fiscal Year 2013 State Budget of $32.1 billion. Here is some information on the budget and reaction to the plan from members of the state Legislature, including Assemblyman Christopher J. Brown.

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    Gov. Chris Christie Proposes State Budget –Millennium News

Yesterday, before a joint session of the State legislature Governor Chris Christie delivered his Fiscal Year 2013 State Budget Address. It includes a modest increase in state aid to schools and the largest ever payment into the public workers’ pension system, but it’s two tax-related proposals that are garnering the most attention and Democrats are bashing both of them.

The $32.1 billion spending plan is more than $2 billion above the current budget. It provides $213 million more for schools over last year. The Christie Administration is projecting revenue growth of 7.3% in the coming year. It is with that revenue that the Administration hopes to fund the first phase of the 10% state income tax cut which is expected to cost $183.3 million in the first year. The legislature would need to approve the tax cut.

Assembly Republican Leader Jon Bramnick says, “Governor Christie outlined a fiscally responsible budget that will advance the New Jersey recovery for taxpayers and businesses. The Governor’s budget increases state educational aid to its highest level in history, makes the required pension payment of $1.1 billion, and cuts income taxes by 10 percent. As a result of Governor Christie’s leadership, we have a budget that funds core priorities and provides tax relief for every New Jerseyan.”

http://nj1015.com/chris-christie-proposes-state-budget-democrats-blast-the-plan/

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    Reaction To Governor’s Budget Address — Millennium News

Assemblyman Christopher J. Brown, R-Burlington
“This budget will cut taxes for every worker in the state and will help property taxpayers with the largest state aid payment to help schools offset the property tax burden in New Jersey history. Sound fiscal policies like these have brought New Jersey back from the brink and this budget will hasten the state’s recovery and ability to add good-paying private-sector jobs.”

Assemblyman Scott Rudder, R-Burlington
“Governor Christie’s first two budgets held the line on taxes and helped create 60,000 private-sector jobs. This budget goes further and will give money back to families and businesses at a time when the states we’re competing with for jobs are considering raising income taxes.This budget will reduce the burden on taxpayers and allow businesses to stay in New Jersey and create the jobs we need.”

Assembly Republican Conference Leader Dave Rible, R-Monmouth and Ocean
“Governor Christie’s budget proposal reflects the priorities that are most important to the people of the state – reducing taxes, creating jobs, and reforming education. The governor’s budget reflects his pledge to fund key programs while maintaining the fiscal discipline he established over the last two years.Because of these fiscal controls, Governor Christie is able to present a pro-growth agenda that will create good-paying jobs and ease the burden on taxpayers. Putting New Jersey’s fiscal house in order is starting to pay dividends. Cutting income taxes by 10 percent, increasing educational aid by over $200 million and targeting $350 million in business tax cuts shows the governor is focused on the core priorities of the state.”

Assembly Republican Budget Officer Declan O’Scanlon, R-Monmouth
“Governor Christie’s first two budgets scored significant victories for taxpayers and fiscal sanity and this is the best New Jersey budget I have ever seen. The 10 percent income-tax cut for every worker in New Jersey combined with increases in state aid to our schools and the continuation of business tax cuts means we haven’t taken our eye off the ball and can deliver a broad and balanced approach to tax relief…

Assembly Republican Anthony M. Bucco, R-Morris and Passaic
“The spending plan proposed by Governor Christie shows that the fiscal priorities established over the last two years are now paying dividends. Residents will benefit from the across-the-board income tax cut as well as from the $213 million increase in educational aid. Businesses will continue to grow and create good-paying jobs because of the $350 million in tax cuts that are contained in the new budget…”

Assemblywoman Donna Simon, R-Hunterdon, Mercer, Middlesex and Somerset
“Today’s announcement underlines Governor Christie’s commitment to provide hardworking taxpayers with the relief they deserve while strengthening the opportunities for students across our state. I am encouraged that fiscal discipline over the last two years has allowed us to increase state funding to our schools by $213 million this year. Education funding now accounts for 36 percent of our total budget. This is the largest amount of state money budgeted for education in New Jersey history…”

http://nj1015.com/reaction-to-governors-budget-address/

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    Analysis: Gov banking on a better economy — Gannett News

In declaring that it is the time to make “better choices,” which includes an income tax cut, Gov. Christie believes now in a much better economy for New Jersey. Experts are not so sure.

Observers and opponents, meanwhile, wonder if Christie’s political agenda is shaping the revenue outlook as the governor turns the corner toward his re-election year. Christie said he believes that state tax revenues are going to increase, in total, by 7.5 percent, which includes a 13.5 percent jump in corporate business taxes and a 6.3 percent hike in income taxes.

Assemblyman Declan O’Scanlon, the Republican budget officer, said he was confident that Christie’s projections are solid, and he noted that in the last two years, Democrats called for more spending and were proven wrong by when revenues came in lower.

“It’s a budget based on the facts on the ground, just as the previous ones were,” said O’Scanlon, of Monmouth County. “The folks who were accurate over the past several years — the administration — ought to get credit for having been right and have the credibility (now). “This governor, I bet you, will not have a year in which he overspends,” O’Scanlon added.

http://www.app.com/apps/pbcs.dll/article?AID=2012302210068

Naroff Economic Advisors — December employment report

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NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: December Employment Report

KEY DATA: Payrolls: 200,000; Private Sector: 212,000; Unemployment Rate: 8.5% (down 0.1 percentage point)

IN A NUTSHELL: “It may not be a lean, mean jobs machine just yet but the labor market is finally starting to pick up steam.”

WHAT IT MEANS: Yes, it is all about jobs. That is not a political comment but a commentary on the missing link in the economic recovery. Job growth affects confidence which in turn affects spending and ultimately the willingness and need of business to add workers.

At least in December, companies began the process of rebuilding their workforces at a decent, though hardly robust pace. The payroll gains were widespread. There were some large increases in seasonal sectors such as retail, warehousing and transportation.

It took a lot of people to meet the strong holiday shopping season and get the gifts to everyone on time. But there were also solid gains in the manufacturing, business services, health care and two of the weakest areas, construction and finance. Declines were posted in the shrinking state and local government sector and strangely in the temporary help industry.

Normally during the holiday shopping season you would expect strong increases in the usage of temps but that didn’t seem to be the case. But the biggest news was the decline in the unemployment rate to its lowest level in nearly three years. It was expected to rise and the continued drop is good news. Some may argue that the downward movement is being driven by a shrinking labor force. Ideally, you want the rate to decline as more people seek work but a much larger number of people find work.

However, the length of the slow recovery is forcing more and more people off the unemployment rolls. They are part of the labor force when they get unemployment compensation but after nearly two years of not finding work, a lot of people simply give up. In essence, they were bloating the labor force while collecting unemployment and now the labor force is better reflecting job search decisions.

Another positive element of the report was a rise in hours worked and hourly wages. That bodes well for income growth, which has to accelerate if demand and economic activity is to pick up steam.

MARKETS AND FED POLICY IMPLICATIONS: This was a better than expected report in all ways: There were more jobs created than most economists thought while the unemployment rate fell instead of the predicted rise.

Unfortunately, we need more like 300,000 jobs to get the unemployment rate coming down consistently and rapidly and that is not likely to happen this year. Also, firms need to grow wages faster if consumption is to accelerate. There is not a lot of appetite to give raises.

So while this is a good report, we need more of them and they need to get a lot better if the economy is to start expanding strongly. Nevertheless, this is another in the long line of positive indications that the economy is starting to come back. Investors should embrace this report but with Iran making threats and Europe a constant worry, who knows where the markets will go.

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RE/MAX Connection Realtors is not a licensed financial advisor and is not providing any financial advice. You should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors only is providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.

Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

Buying A Home With Bad Credit

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Buying A Home With Bad Credit

When it comes to buying a home, having bad credit is not the end of the world. Your future doesn’t have to be defined by your past. Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who specialize in financing for those with less-than-perfect credit. You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you.

Bankruptcy & Foreclosure

If either a bankruptcy or foreclosure is on your credit report, it could take some time before you can qualify for a good interest rate on a mortgage. FHA loans, which are especially desirable for those with past credit problems and first-time home buyers, are backed by the government and offer a low down payment and interest rate option for those who qualify. Although the notation remains for up to 10 years, individuals with a bankruptcy or foreclosure on their credit report may qualify for an FHA loan after two years. Some mortgage lenders may approve a loan sooner, but the interest rates will be higher and the required down payment may be as much as 35 percent of the purchase price of the home.

Cleaning Up Your Credit

Even if you have bad credit, it’s important to check your credit report from each of the three major credit reporting agencies – TransUnion, Equifax and Experian – before applying for a loan. If anything is inaccurate, file a dispute with the reporting agency and request a correction. You can request a free copy of your credit report every 12 months.

In addition to correcting any inaccuracies on your credit report, it’s important that you know what can help or hurt your chances of obtaining a loan. You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application. Multiple inquiries will cause your FICO score to drop, and lenders will rely on this information when deciding whether or not to issue your loan and how to calculate your interest rates. With past credit problems, most lenders will want to see that you have rebuilt your credit history with 1-3 major credit cards and timely payments over a two-year period.

Money Matters

When it comes to obtaining a home loan, a healthy bottom line will help the lender to see you as being creditworthy. It’s important that you have sufficient income, along with the ability to prove steady employment for at least one year (longer is better) preceding your loan application. Most lenders will request a copy of your tax returns for the two most recent years, along with current pay stubs. If you have money for a down payment, this will also work in your favor.

Creative Financing

In some cases, a conventional mortgage loan may not be available no matter how hard you try. Owner financing is one way that individuals, who may not otherwise qualify for a traditional mortgage loan, can purchase a home. This type of financing is offered by the owner and may include interest rates comparable to other loans, flexible down payment options and no credit check. Your REALTOR® can assist you in finding homes that offer alternative financing options.

Re/Max Connection Realtors disclaimer:
Re/Max Connection Realtors are not licensed financial advisors, and are not providing any financial advice, you should consult with a licensed financial advisor prior to making any financial decisions. Re/Max Connection Realtors are only providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.
Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.
Re/Max Connection Realtors, 1000 East Lincoln Drive, Suite 2, Marlton, NJ 08053 www.goconnectionnj.com