Designated Realtor®—August 2022

DESIGNATED

REALTOR

®

ISSUE 4: August 2022

NEW REGULATIONS MAKE WAVES

NJREALTOR.COM

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

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

7 Purple Heart Day

5 NJ Realtors

4 Yom Kippur

6 Daylight Saving Time Ends

8-9 National Association of

11 Grandparents’ Day

7 Realtor -Palooza

8 Election Day

Office Closed—Labor Day ®

Realtors® Leadership Summit

®

9 National Womens’ Day

10 13 Indigenous Peoples’ Day Board of Directors Meeting

15-17 C5 Summit

22 Realtors

®

Care Day

21 Topgolf Major Investor Event 25 Rosh Hashanah Begins

10 Columbus Day

11-14 National Association of

Realtors® Realtor® Conference & Expo

11 NJ Realtors

® Office Closed—Veterans Day

16 Boss’ Day 24 Diwali

24 NJ Realtors

31 Halloween

25 Native American Heritage Day

® Office Closed—Thanksgiving

25 NJ Realtors

® Office Closed—Black Friday

WHAT’S BUZZING IN REAL ESTATE?

1

The Real Estate Commission recently issued Bulletin 22-07, which clarifies how real estate teams can conduct business under existing REC statutes and rules. Read more on page one and click here to read the bulletin.

4

5

While some believe staying upto-date with trends can help boost the value of a home, according to Apartment Therapy, “buyers want to be able to see themselves—and their things—in your home, and nothing helps inspire their memory more than a neutral palette.” Click here to learn more.

2

New Jersey is the second most popular place for foreign buyers from Brazil and India to purchase residential properties. Learn more in the 2022 International Transactions in the U.S. Residential Real Estate Report from the National Association of Realtors®.

3

Realtor.com adjusted its 2022 market forecast to account for the rising mortgage interest rates. Click here for the inside scoop and what you can expect for the rest of the year. ®

If you’re looking for a fun team-building event for your office, save the date for Oct. 7 for NJ Realtors® fourth annual Realtor®-Palooza.

6

The 2022 New Jersey Realtors® Good Neighbor Award is out now. Click here for the application and encourage your agents to apply or nominate a star volunteer.

Real Estate Commission Adopts Bulletin on Real Estate Teams

BY BRUCE SHAPIRO

O

ver the years, there have been many questions about the operation of real estate teams in New Jersey as they become more popular within the real estate profession.

While these are not new regulations, the NJ Real Estate Commission has adopted Bulletin 22-07 to provide guidance and clarification as to how real estate teams should operate.

Bulletin 22-07 includes important guidance on how real estate teams can conduct business in New Jersey under the existing statutes and regulations of the REC. It includes information on broker supervision requirements, how members of a real estate team can be paid commission payments through their broker, the office location requirements where teams can conduct business, and the obligation to comply with the advertising rules.

New Jersey Realtors® urges members of real estate teams, brokers who have teams operating within their offices, or those Realtors® interested in forming or joining a real estate team to review the contents of Bulletin 22-07 to ensure they’re in compliance with all relevant statutes and rules.

Vital Items Discussed in Bulletin 22-07 • Brokers of record are responsible for supervising all licensees within their office, regardless of whether they are a member of a team or have a separate team leader.

• Licensees can only accept commission payments through their broker of record, not from their team leader or a member of their team.

• Teams cannot operate out of separate, satellite offices unless properly licensed with the REC in line with applicable statutes and regulations. Teams must be supervised by a broker of record or broker-salesperson, and they must maintain normal business hours.

• All applicable advertising regulations must be complied with by real estate teams including the name of the broker on record with the REC. • Team webpages are permitted, as long as they comply with the Real Estate Licensing Act and REC regulations.

Click here to read the Bulletin in full.

Designated REALTOR® | August 2022 | 1

Top Asked Lead Paint Law Questions One- and two-family rentals are now required to be inspected and, if necessary, remediated for lead, as of July 22, 2022. The inspection is required upon tenant turnover or by July 24, 2024, if there is no tenant turnover.

This new law is not currently tied to time-of-sale requirements. Multiple dwelling units have long been regulated for lead.

New Jersey Realtors® hosted a member webinar with the Department of Community Affairs and the Department of Health to better understand the new lead paint inspection and remediation law. Below are the top asked questions during the webinar.

For more information on the new law and a full list of testing requirements visit njrealtor.com/lead.

Q A

Who is responsible for conducting the inspections?

In a municipality that maintains a permanent local agency for the purpose of conducting inspections and enforcing laws, ordinances, and regulations concerning buildings and structures, such agency is responsible for performing the required inspections. If the municipality does not maintain a permanent local agency, the municipality must hire a lead evaluation contractor to perform the required inspections.

Designated REALTOR® | August 2022 | 2

Q A

Q A

Can a landlord or owner hire a lead evaluation contractor?

Regardless of whether the municipality has a permanent local agency, if the landlord or owner so chooses, all municipalities must allow the dwelling owner or landlord to directly hire a certified lead evaluation contractor to perform the required inspection.

Are there different types of lead-based paint inspections?

There are two types: visual inspections and dust wipe sampling inspections. The type of inspection required varies from municipality to municipality and is determined by the blood level of children six years of age or younger. Click here to see which tests are required.

Q

How often are inspections required?

Q

What qualifies as lead-safe?

A

For non-exempt units, after the initial inspection is conducted, units shall be inspected for lead-based paint hazards every three years, or upon tenant turnover, whichever is earlier.

A

Q

What happens when lead-based paint hazards are found?

Lead-safe is determined upon inspection that no lead-based paint hazards exist in a dwelling, the lead evaluation contractor or local enforcing agency shall certify the dwelling unit as lead-safe. The lead-safe certification is valid for a period of two years.

Q

What qualifies as lead-free?

A

If a dwelling has been remediated using abatement, and a lead abatement clearance certification has been issued by the local enforcing agency, then the lead-free certification issued at the final clearance inspection shall exempt the dwelling from future inspections.

A

The owner of the dwelling unit must remediate the lead-based paint hazard by using lead-based paint hazard control methods (interim controls) or abatement.

Designated REALTOR® | August 2022 | 3

Q2 MARKET UPDATE

BY ERIN McFEETERS

S

ales prices and mortgage interest rates are on the rise.

Freddie Mac reported the average 30-year mortgage interest rate rising 2.50%, and reaching 5.3%, as of July 28.

There were 11,085 total closed sales in New Jersey in June, bringing the Q2 closed sales total to 53,129, a 12.9% decrease over last year. New listings declined in June, with just 15,263 new units available.

The limited inventory across the state continues to make for a more competitive market. In all market segments, the median sales price is $425,000 year to date, a 10.4% increase over last year.

Homes are selling higher as buyers continue to offer more than asking price. The percentage of list price received is 102.9% year-to-date, and homes sold in 14.6% less time than last year, which amounts to an average of just 35 days.

The atmosphere of the current market could be squeezing firsttime buyers and the older generation of home buyers the most.

First-time buyers don’t have the leverage from a sale and tend to be strapped for cash, while the older generation no longer has the steady income to increase their monthly mortgage payment.

For the full reports and to read the market reports for your area, visit njrealtor.com/data.

Total Market Overview Key metrics for single-family properties, townhouses, condominiums and properties in adult communities combined, for the report month and for year-to-date (YTD) starting from the first of the year.

Key Metrics

Historical Sparklines

New Listings 6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

Pending Sales

Closed Sales

Median Sales Price

Avg. Sales Price

Pct. of List Price Received

Days on Market

Affordability Index 6-2019

6-2020

6-2021

6-2021

6-2022

Percent Change

YTD 2021 YTD 2022

17,136

15,263

- 10.9%

84,996

75,846

- 10.8%

12,297

10,283

- 16.4%

65,929

56,269

- 14.7%

13,067

11,085

- 15.2%

60,967

53,129

- 12.9%

$415,000

$460,000

+ 10.8%

$385,000

$425,000

+ 10.4%

$523,227

$574,058

+ 9.7%

$483,502

$531,422

+ 9.9%

102.6%

104.4%

+ 1.8%

101.0%

102.9%

+ 1.9%

31

26

- 16.1%

41

35

- 14.6%

133

94

- 29.3%

144

101

- 29.9%

31,881

26,358

- 17.3%

--

--

--

2.7

2.7

0.0%

--

--

--

Percent Change

6-2022

Homes for Sale 6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

Months Supply

Data as of July 20, 2022. All data from the multiple listing services in the state of New Jersey. Margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®. Report © 2022 ShowingTime. | 15

Designated REALTOR® | August 2022 | 4

NEW JERSEY’S TOP FIVE SELLING TOWNS

BY ERIN McFEETERS

Data provided represents June 2022 year-to-date housing market statistics for single family homes from New Jersey Realtors®.

Toms River Township

Brick Township

This unique beach town has everything you need whether you’re a land lover or enjoy a day by the sea.

A coastal community dating back to the 1850s with easy access to the bay and the beach.

787 Closed Sales

• • • •

Ocean County Median Sales Price: $450,000 Days on the Market: 29 Percentage of List Price Received: 104.3%

445 Closed Sales

• • • •

Ocean County Median Sales Price: $467,500 Days on the Market: 31 Percentage of List Price Received: 103.9% Brick Township photo courtesy of Brick Recreation Department Staff

Woodbridge Township

Cherry Hill Township

Trenton City

This town is a major commuter hub and one of the largest municipalities in New Jersey.

This southern NJ town has a close commute to the City of Philadelphia and Camden. It’s filled with shopping and has plentiful access to community pools.

The capital city of New Jersey boasts beautiful views of the Delaware River, an abundance of job opportunities with the State of New Jersey, and deep roots in history.

• • • •

• • • •

444 Closed Sales

• • • •

Middlesex County Median Sales Price: $430,000 Days on the Market: 40 Percentage of List Price Received: 103.5%

429 Closed Sales

Camden County Median Sales Price: $423,000 Days on the Market: 20 Percentage of List Price Received: 105.2%

405 Closed Sales

Mercer County Median Sales Price: $191,250 Days on the Market: 36 Percentage of List Price Received: 100.8%

Designated REALTOR® | August 2022 | 5

APPLY FOR A 2023 COMMITTEE

Volunteers are the foundation of the New Jersey Realtors®’ survival, strength, and continued success. The committees listed below each oversee a different aspect of New Jersey Realtors® and assist in the decision-making process.

All members are invited to submit a committee selection form which will be available on August 15.

Bylaws Committee:

Conducts a continuing inquiry into the provisions of NJ Realtors® bylaws. Evaluates the document’s ability to provide direction to NJ Realtors® work.

Circle of Excellence Sales Award® Committee:

Member Perks Committee:

Identifies, evaluates and approves affinity partnerships with NJ Realtors® to provide member benefits.

Political Affairs Committee:

Develops NJ Realtors Circle of Excellence Sales Award® rules and monitors their implementation.

Facilitates grassroots political involvement among Realtors® by conducting seminars and promoting the Realtor® Legislative Network.

Communications Committee:

Professional Standards Committee**:

®

Helps oversee the direction and planning of member communications including the association’s presence at the Triple Play Realtor® Convention & Trade Expo, member-focused emails, magazine content, and more.

Continuing Education Committee:

Provides NJ Realtors® with recommendations for continuing education courses and instructors.

Provides assistance to local boards/associations in administering professional standards/procedures.

Educates the membership on, and promotes adherence to, the Realtor® Code of Ethics. **Experience in either grievance, professional standards and/or mediation required.

Public Relations & Marketing Committee:

Provides input on educational topics, special events and scheduling of convention activities.

Plays a key role in determining consumer communications including the annual advertising campaign, which includes digital, print, social media, and search engine marketing.

Equal Opportunity/Cultural Diversity Committee:

Risk Management Committee:

Legal Affairs Committee:

Strategic Planning Committee:

Convention Committee:

Plans events to provide information about equal opportunity and freedom of choice in housing.

Develops guidelines and reviews requests for financial and legal aid. Monitors legal issues and ensures the Legal Action Fund is adequate to meet NJ Realtors® needs.

Legislative Committee:

Screens all legislation and recommends, in writing, appropriate action to the Board of Directors.

Develops educational materials and programs minimizing member risk exposure.

Conducts research on member needs, business trends, and economic conditions, and coordinates findings into a plan projecting the association’s long-range plan.

Young Professionals Network (YPN) Committee: Offers networking and professional development opportunities to emerging leaders in the real estate industry from across the state.