BUSINESS BEAT" PROVIDED BY NJCU SCHOOL OF BUSINESS, A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY OR BUSINESS ANNUAL LIT PARTICULARS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY AND MINUTES FROM WALL STREET.

LEARN NOR A AT NJCU.EDU/GAME CHANGER.

>>> THIS WEEK ON "NJ BUSINESS BEAT," WHY NEW JERSEY'S NUMBER CRUNCHERS ARE SOUR ON THE STATE'S ECONOMIC FUTURE.

>>> PLUS, NEW RESEARCH DETAILS THE IMMENSE ECONOMIC AND WORKFORCE IMPACT OF NEW JERSEY'S CLEAN ENERGY PUSH.

>>> AND WE PUT NEW JERSEY'S HOUSING MARKETS BACK IN FOCUS WITH AVAILABLE STOCK DWINDLING AND MORTGAGE RATES RISING, WE TALK TO THE EXPERTS ABOUT HOW TO NAVIGATE THIS MARKET.

THAT'S AHEAD ON "NJ BUSINESS BEAT."

♪ >> Announcer: THIS IS "NJ BUSINESS BEAT" WITH RHONDA SCHAFFLER.

>>> HELLO, I'M RHONDA SCHAFFLER.

THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU ARE WATCHING ON YOUTUBE, MAKE SURE YOU SUBSCRIBE TO OUR "NJ SPOTLIGHT NEWS" YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

WE BEGIN WITH A FORECAST FOR NEW JERSEY'S ECONOMY WHICH SHOWS STORM CLOUDS AHEAD.

ACCOUNTANTS WHO WORK IN THE STATE ARE CONCERNED ABOUT WHERE THE ECONOMY IS GOING.

A SURVEY BY THE NEW JERSEY SOCIETY OF CPAs FINDS NEARLY 65% OF THE MORE THAN 400 ACCOUNTANTS POLLED BELIEVE THE GARDEN STATE'S ECONOMY WILL GET WORSE IN THE SECOND HALF OF THIS YEAR.

THE BIGGEST CHALLENGES INCLUDE HIGH INFLATION, A LACK OF SKILLED LABOR, FISCAL POLICIES AND SUPPLY CHAIN DISRUPTIONS.

NJ CPA CEO AND EXECUTIVE DIRECTOR RALPH ROBERT THOMAS SAYS ACCOUNTANTS ALSO BELIEVE NEW JERSEY NEEDS MORE BUSINESS-FRIENDLY POLICIES.

>> THINGS THAT WERE PROMISED TO BE DONE BY THE ADMINISTRATION HAVE NOT BEEN DONE, FOR EXAMPLE, THE RIGHT-SIZING OF STATE GOVERNMENT IS ONE OF THE BIG ISSUES.

SO THAT'S WHY I THINK MEMBERS HAVE COME BACK SAYING THEY'RE NOT, YOU KNOW, ALL THAT ENTHUSIASTIC ABOUT WHAT THIS YEAR HOLDS.

NEW JERSEY IS A TOUGH STATE TO DO BUSINESS IN.

YOU HAVE TO GO THROUGH A LOT OF MATURATIONS TO BE ABLE TO SET UP SHOP HERE IN NEW JERSEY AND I HEAR THAT FROM MY KRNT PARTS AC ACROSS THE COUNTRY.

>> WHICH INDUSTRY FINDING NEW JERSEY ATTRACTIVE IS CLEAN ENERGY.

GOING GREEN WILL GIVE THE STATE AN ECONOMIC BOOST AND CREATE THOUSANDS OF NEW JOBS.

RESEARCH FROM THE NONPROFIT APPLIED ECONOMICS CLINIC FOUND THAT NEW JERSEY STANDS TO GAIN AN AVERAGE OF $1.3 BILLION IN ECONOMIC ACTIVITY AND 11,000 NEW JOBS ANNUALLY IF THE STATE INCREASES ITS EFFORTS TO TRANSITION TO CLEAN ENERGY BY 2050, WHICH IS A MURPHY ADMINISTRATION GOAL.

NEW JOBS IN CLEAN ENERGY WILL SIGNIFICANTLY OUTWEIGH JOB LOSSES IN THE OIL AND GAS INDUSTRY ACCORDING TO THE REPORT.

ADVOCATES WANT TO MAKE SURE THAT JOB CREATION IS INCLUSIVE, SAYING CLEAN ENERGY CREATES A BIG OPPORTUNITY FOR LOW-INCOME AND MINORITY COMMUNITIES.

DEBRA HOLT IS EXECUTIVE DIRECTOR AT NEW JERSEY WORK ENVIRONMENT COUNCIL.

>> MORE NEEDS TO BE DONE TO MAKE SURE THAT, YOU KNOW, THAT BLACK, BROWN, INDIGENOUS PEOPLE OF COLOR HAVE ACCESS TO THESE JOBS, WOMEN, RIGHT?

AND I THINK THAT'S SOMETHING THAT THIS IS A VERY UNIQUE OPPORTUNITY.

WE'RE LOOKING TO BUILD A WHOLE NEW ENERGY INDUSTRY HERE IN THE STATE.

SO WE ARE AT THE GROUND LEVEL AT THIS.

THIS IS AN OPPORTUNITY TO DO IT RIGHT.

YOU KNOW, WE HAVE TO LOOK AT WORKFORCE DEVELOPMENT, FOR EXAMPLE, WE HAVE TO MAKE SURE THAT THERE'S TRANSPORTATION SO PEOPLE CAN GET TO JOBS, WE HAVE TO MAKE SURE THAT WE HAVE SOFT SKILLS DEVELOPED IN WORKFORCE DEVELOPMENT.

IT'S NOT JUST ONE PIECE, IT'S MULTIPLE THINGS.

>> WELL, YOU MIGHT BE THINKING THOSE HYBRID OR ELECTRIC CARS LOOK A LITTLE MORE ATTRACTIVE THESE DAYS.

FILLING UP THE TANK HAS GOTTEN EVEN MORE EXPENSIVE AS THIS WEEK THE AVERAGE PRICE FOR A GALLON OF GAS IN NEW JERSEY TOPPED $5.

AT THE TIME OF THIS RECORDING PRICES WERE AT $5.04 A GALLON.

SO WHEN ARE JERSEY DRIVERS GOING TO GET A BREAK?

I POSED THAT QUESTION TO TRACY NOBLE WITH AAA, YOU'RE PROBABLY NOT GOING TO WANT TO HEAR HER ANSWER.

>> IT'S NOT SURPRISING AT THE RATE AT WHICH THE PRICES HAD BEEN INCREASING, BUT IT'S STILL A SHOCK TO SEE THAT $5 PRICE TAG ON THE PUMP.

RIGHT NOW FROM WHAT WE'RE HEARING IS IT POSSIBLE TO HIT $6?

BY MID SUMMER?

I HATE TO SAY THAT AND PREDICT IT, BUT IT'S CERTAINLY NOT OUT OF THE REALM OF POSSIBILITY.

YOU KNOW, AT THE BEGINNING OF THE YEAR IF YOU WOULD HAVE ASKED US IF WE WOULD SEE $5 WE WOULD HAVE LIKELY SAID NO, BUT HERE WE ARE.

>> NEW JERSEY'S BUSINESS CLIMATE GETS HIGH MARKS FROM OUT LEADERSHIP WHICH IS A GLOBAL NETWORK OF LGBTQ BUSINESS LEADERS AND COMPANIES.

TO MARK PRIDE MONTH THE GROUP PUT OUT ITS ANNUAL LGBTQ PLUS BUSINESS CLIMATE INDEX AND NEW JERSEY IS ONE OF THE HIGHEST RANKED STATES IN THE NATION, COMING IN FOURTH.

THE ECONOMIC INFLUENCE OF THE LGBTQ PLUS COMMUNITY CONTINUES TO GROW IN THE U.S.

ACCORDING TO A NEW REPORT FROM WELLS FARGO.

HERE IS A LOOK AT LGBTQ HOUSEHOLD INCOME COMPARED TO STRAIGHT HOUSEHOLDS AND LGBTQ HOUSEHOLDS SPEND 51% OF THEIR INCOME ON NECESSITIES, COMPARED TO JUST 47% FOR STRAIGHT HOUSEHOLDS.

THEY ALSO SPEND ABOUT 20% OF THEIR INCOME ON SAVINGS AND RETIREMENT.

WE CAUGHT UP WITH ONE NEW JERSEY ENTREPRENEUR WHO IS CELEBRATING PRIDE MONTH, AMITA META IS THE FOUNDING OF HER OWN CONSULTING FIRM.

SHE SUCCESSFULLY SBROEK INTO A MALE-DOMINATED INDUSTRY AND BUILT A BUSINESS BY IN HER WORDS BEING TRUE TO WHO SHE IS.

>> AMITA, THANKS FOR JOINING ME, IT'S NICE TO MEET YOU.

>> SUCH A PLEASURE TO MEET YOU.

>> SO TELL ME ABOUT HOW YOU GOT INTO THIS CONSULTING BUSINESS THAT YOU ARE IN.

WHAT LED YOU TO THIS PARTICULAR PATH?

>> OH, GOSH, RHONDA, I'VE BEEN IN FINANCIAL SERVICES FOR OVER 25 YEARS AND, GOSH, THROUGH MY OWN PERSONAL EXPERIENCES IN TERMS OF BEING ABLE TO SERVE PEOPLE IN THE COMMUNITY AND THEN DEVELOP A RELATIONSHIP WITH ORGANIZATIONS AND CLIENTS THROUGHOUT FINANCIAL SERVICES, IT JUST REALLY SET ME UP IN TERMS OF AN ENTREPRENEURIAL MINDSET AND THEN I WOULD SAY BACK IN 2018 IT WAS TIME FOR ME TO REALLY BET ON MYSELF BECAUSE I WAS GIVING SO MANY PEOPLE ADVICE ABOUT, HEY, IT'S TIME FOR YOU TO THINK ABOUT WHAT YOU WANT TO DO WITH YOUR CAREER AND WHAT YOU WANT TO DO NEXT SO I DECIDED TO LAUNCH MY OWN CONSULTING BUSINESS AROUND COACHING PEOPLE AROUND LEADERSHIP DEVELOPMENT, CAREER TRANSITION AND EVEN OUT THERE KEYNOTE SPEAKING ON BEHALF OF LGBTQ INITIATIVES AND AUTHENTIC LEADERSHIP AND WHAT IT MEANS TO BE A LEADER OUT HERE IN THIS SPACE.

>> WHY IS IT IMPORTANT FOR YOU TO FOCUS ON LGBTQ INITIATIVES?

I SHOULD POINT OUT ON YOUR WEBSITE, I MEAN, YOU SAY YOU ARE AN OUT LESBIAN IN A MALE-DOMINATED INDUSTRY.

SO IT'S IMPORTANT TO YOU.

HOW DOES IT PLAY OUT IN THE BUSINESS SENSE?

>> WELL, YOU KNOW, I THOUGHT IT WAS GOING TO BE A DETRIMENT FOR ME IN MY CAREER, BUT ONCE I STARTED LEANING INTO THE FACT OF BEING AUTHENTIC AND TRUE TO WHO I WAS PEOPLE REALLY FELT THAT I WAS PROMOTING A CULTURE OF TRUST AND WHERE PEOPLE COULD BRING THEIR WHOLE SELVES TO WORK, AND TO BE QUITE HONEST A LOT OF MY MALE ALLIES REALLY APPRECIATED THE FACT THAT I WAS BEING TRUE TO WHO I WAS.

AND SO THAT, I THINK, IS LIKE THE UNIQUE VALUE PROPOSITION IN TERMS OF BE TRUE TO WHO YOU ARE AND WHY IT MAKES GOOD BUSINESS SENSE, BECAUSE, AGAIN, YOU DON'T SEE VERY MANY OUT LESBIAN INDIANS THAT EMBRACE THEIR CULTURE AND SO I THINK THERE'S A LOT TO BE SAID AROUND THE TRUTH BEHIND THAT AND THAT PEOPLE RESPECT WHO YOU ARE AND THAT YOU CAN BRING ALL FACETS OF YOUR INTERSECTIONALITY TO WORK AND I THINK THAT'S WHAT MAKES ME SO RELATABLE TO -- TO BUSINESS AND TO PEOPLE.

>> A LOT HAS CHANGED AND ON THIS SUBJECT OF BEING RELATABLE YOU HAVE SOME REALLY FUN PHOTOS ON YOUR WEBSITE, RIGHT?

YOU ARE NOT BUTTONED UP BEHIND A DESK.

WHAT ARE YOU TRYING TO CAPTURE WITH THAT?

SHOULD PEOPLE KIND OF RETHINK, I GUESS, STEREOTYPES ABOUT BUSINESS AND CONSULTING AND STRATEGY?

I MEAN, YOU LOOK LIKE YOU'RE HAVING FUN.

>> I THINK, RHONDA, THE BIGGEST PIECE OR TAKE AWAY FOR ME IS THE FACT THAT, YEAH, MY PHONE STOPPED RINGING AFTER A WHILE ONCE I LEFT CORPORATE BECAUSE I DIDN'T HAVE MAJOR BRANDS BEHIND MY BACK, BUT IT'S MY OWN BRAND AND NOW MY PHONE IS RINGING BECAUSE OF THE FACT THAT I'M EMBRACING WHO I AM AND THE FACT THAT I CAN HELP PROMOTE OTHERS TO BE THEIR BEST AUTHENTIC SELVES.

>> IT'S BEEN GREAT TALKING TO YOU AND HEARING YOUR STORY.

I REALLY APPRECIATE IT, AMITA.

THANKS.

>> RHONDA, THANK YOU SO MUCH.

I REALLY APPRECIATE IT.

AND HAPPY PRIDE!

>>> PROPERTY TAXES ARE ALWAYS A BIG ISSUE IN NEW JERSEY AND STATE LAWMAKERS HAVE BEEN SAYING THEY'RE FOCUSED ON AFFORDABILITY THIS YEAR.

SO THAT EXPLAINS WHY THEY ARE NOW LOOKING AT MAKING CHANGES TO A PROPERTY TAX RELIEF PROGRAM THAT BENEFITS SENIORS AND DISABLED RESIDENTS.

IT'S KNOWN AS THE SENIOR FREEZE PROGRAM.

THE STATE PROVIDES CHECKS TO THOSE WHO QUALIFY TO ESSENTIALLY FREEZE THEIR PROPERTY TAXES AT A CERTAIN LEVEL.

NEARLY 160,000 HOMEOWNERS RECEIVED SENIOR FREEZE REIMBURSEMENTS IN THE LAST FISCAL YEAR, BUT HERE IS THE ISSUE, IF THEY DOWNSIZE AND MOVE TO A NEW HOME THEY HAVE TO WAIT AS LONG AS THREE YEARS TO ONCE AGAIN BECOME ELIGIBLE FOR REIMBURSEMENTS.

NJ SPOTLIGHT'S JOHN REITMEYER SAYS LAWMAKERS WANT TO CHANGE THAT.

>> THIS LEGISLATION WOULD ALLOW A SENIOR TO IMMEDIATELY BE ELIGIBLE TO REMAIN IN SENIOR FREEZE RATHER THAN WAITING AND THAT COULD BE A KEY DIFFERENCE, YOU KNOW, IF YOU ARE MOVING TO A SMALLER HOME, YOU MIGHT THINK YOU WOULD HAVE A SMALLER PROPERTY TAX BILL BUT IF YOU'VE BEEN IN THE SENIOR FREEZE PROGRAM FOR QUITE A NUMBER OF YEARS THOSE REIMBURSEMENT CHECKS CAN GET PRETTY HEFTY SO IT COULD ACTUALLY DRIVE UP YOUR PROPERTY TAXES IN THE LONG RUN EVEN AS YOU ARE SEEKING TO GET SOME RELIEF BY MOVING INTO A, SAY, SMALLER DWELLING.

>> WHETHER OR NOT TO MOVE SEEMS TO BE A BIG CONVERSATION AMONG NEW JERSEY HOMEOWNERS THESE DAYS, WHETHER IT'S TO ESCAPE HIGH PROPERTY TAXES OR TO CASH IN ON RISING HOME PRICES PUTTING A FOR SALE SIGN ON THE LAWN SOUNDS APPEALING.

MEANTIME POTENTIAL HOME BUYERS DEBATE WHEN THE TIME IS RIGHT TO PURCHASE A HOME AND WHETHER OR NOT THEY CAN AFFORD T WE HAVE INSIGHT FOR YOU AS WE PUT THE STATE OF NEW JERSEY'S HOUSING MARKET IN FOCUS THIS WEEK.

HOME BUYERS CONTINUE TO FIND A LIMITED STOCK OF AVAILABLE HOUSING TO BUY IN NEW JERSEY.

ACCORDING TO THE MOST RECENT DATA FROM THE TRADE GROUP NEW JERSEY REALTORS, IN APRIL NEW LISTINGS WERE DOWN MORE THAN 15% COMPARED TO A YEAR AGO.

THE NUMBER OF HOMES FOR SALE WAS DOWN MORE THAN 22% COMPARED TO LAST YEAR AND THIS HAS LED TO FEWER CLOSINGS, CLOSINGS ARE DOWN CLOSE TO 16%.

LOW SUPPLY AND STRONG DEMAND IS A RECIPE FOR HIGHER PRICES.

THE AVERAGE PRICE FOR A SINGLE-FAMILY HOME IN THE STATE WAS MORE THAN $583,000 IN APRIL, 10% HIGHER THAN LAST YEAR'S PRICE.

HERE IS A STORY THAT CAUGHT OUR ATTENTION THIS WEEK, NJ.COM REPORTED THAT THIS HOUSE IN MONTCLAIR SOLD FOR $301,000 ABOVE ITS LISTING PRICE.

FOUR BIDS WERE MADE ON THE PROPERTY AND IT SOLD FOR OVER A MILLION DOLLARS.

NOW, IT MIGHT SOUND SHOCKING, BUT THIS IS THE NORM IN MONTCLAIR.

WE SPOKE WITH A REALTOR WHO LISTED THE HOME, PAULA IS AN AGENT WITH SIGNATURE REALTY.

PAULA, WELCOME TO "NJ BUSINESS BEAT."

>> THANK YOU.

HOW ARE YOU?

>> DOING PRETTY WELL.

YOU MUST BE DOING BETTER WHEN WE SAW THIS STORY ABOUT A HOUSE IN MONTCLAIR GOING FOR MORE THAN $300,000 ABOVE THE ASKING PRICE WE HAD TO REACH OUT TO YOU TO TRY TO UNDERSTAND WHAT'S GOING ON.

>> MONTCLAIR IS JUST SOMETHING ELSE.

DOESN'T COMPARE TO ANY OTHER TOWN IN NEW JERSEY THAT I'VE WORKED BEFORE AND THERE WAS A LOT OF COMPETITION IN THE HOUSE, THE BUYERS NEED A HOUSE, THEY ARE -- SOME NEW YORK BUYERS ARE LEAVING NEW YORK AND IT'S EVEN MORE EXPENSIVE TO RENT THERE THAN TO PURCHASE SOMETHING RIGHT NOW.

>> HOW MANY HOMES IN MONTCLAIR ARE GOING ABOVE THE LISTING PRICE WHEN IT COMES TO THE SALE?

>> OUT OF THE 15 HOUSES THAT ARE ALREADY FOR SALE, THREE OR FOUR ALREADY ARE IN REVIEW AND LAST MONTH ONLY TWO PROPERTIES SOLD ON THE LIST PRICE, THE REST SOLD FOR 30 TO 27% OVER ASKINGED ON MY LISTING WHICH WAS 40% OVER ASKING PRICE.

>> THIS BIDDING WAR FOR HOUSES, HAVE YOU EVER SEEN ANYTHING LIKE IT SINCE YOU'VE BEEN A REALTOR?

>> THE FIRST TIME WHEN I SAW THIS HAPPENING WAS IN 2019 IN A MULTIFAMILY HOME I WAS SELLING WHERE I HAD OVER 20 OFFERS AND PEOPLE STARTED TO OFFER MORE THAN THE ASKING PRICE AND AFTER COVID IT JUST GOT WORSE.

SO IT'S GOOD FOR SELLER BUT IT'S VERY TOUGH FOR BUYERS.

>> ABSOLUTELY.

AND ARE YOU SEEING A LOT OF BUYERS COME UP WITH CASH, ALL CASH OFFERS FOR SOME OF THESE HOUSES?

>> YES, I'VE SEEN PEOPLE WITH CASH AND I'VE SEEN BUYERS JUST WAIVING THE APPRAISAL CONTINGENCY.

THEY'RE WILLING TO PAY OUT OF THE POCKET WHATEVER THE PRICE DIFFERENCE IS BETWEEN THE LISTING PRICE -- THE OFFER PRICE AND WHATEVER THE LENDER IS GOING TO LEND THE BUYER.

>> ARE WE TO EXPECT THAT MILLION DOLLAR HOUSES BECOME A NORM IN PARTS OF NEW JERSEY WHERE THEY ARE NOT ALREADY THE NORM?

>> IT'S VERY -- I WILL SAY THAT YOU CAN BUY UNDER A $700,000 MARK, THEY PRETTY MUCH GO VERY CLOSE TO A MILLION.

ON THAT YOU ARE LOOKING AT A FIXED OFFER.

>> IT CERTAINLY SEEMS THAT IN MONTCLAIR RISING INTEREST RATES FOR THOSE WHO SEEK A MORTGAGE AND BUY A HOME HAVE NOT KEPT THE BUYERS AWAY AT ALL.

>> NO, THEY HAVE NOT.

NOT AT ALL.

WE STILL SEE BIDDING WARS, MAYBE WE ARE NOT SEEING 40 OFFERS OR 20 OFFERS IN A HOUSE, BUT WE'RE SEEING FIVE, SIX, EVEN TEN OFFERS SO THAT IS NOT KEEPING AWAY THE BUYERS FROM STILL HUNTING FOR A HOUSE.

>> REALLY CRAZY TIMES IN THE MARKET.

PAULA, THANK YOU SO MUCH FOR SHARING WHAT'S GOING ON WITH YOU AS AN AGENT IN A VERY BUSY OFFICE.

THANK YOU.

>> THANK YOU.

THANK YOU FOR YOUR TIME.

>>> MILLION DOLLAR HOMES ARE OUT OF THE QUESTION FOR, WELL, MOST OF US, EVEN MODESTLY-PRICED HOMES ARE STILL TOO EXPENSIVE FOR MANY, BUT THE STATE DOES HAVE VARIOUS PROGRAMS TO HELP HOME BUYERS.

THE NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY HAS A DOWN PAYMENT ASSISTANCE PROGRAM TO HELP RESIDENTS LOOKING TO BUY A HOME AND THE AGENCY ALSO HELPS CERTAIN HOME BUYERS NAVIGATE THE MORTGAGE MARKET.

I SPOKE WITH JORDAN, A MANAGING DIRECTOR AT THE AGENCY ABOUT THAT.

>> WE DO THIS BY SUPPLYING READY ACCESS TO MORTGAGES AND FUNDING FOR BOTH DOWN PAYMENT AND CLOSING COSTS SO THAT MANY BUYERS CAN USE OUR PROGRAMS TO BUY A HOME WITH AN INITIAL CASH OUTLAY THAT'S COMPARABLE TO RENTING A HOME.

THE MORTGAGE PROGRAMS ARE AVAILABLE THROUGH OUR NETWORK OF ABOUT 60 PARTICIPATING LENDERS STATEWIDE.

WE USE THE PARTICIPATING LENDER NETWORK BECAUSE WE FEEL THAT THAT REALLY HELPS HOMEOWNERS GETTING THEIR FIRST HOME THAT MAY HAVE DIFFICULTY OR MAY BE CONFUSING FOR THEM WORK WITH SOMEBODY REALLY LOCAL.

BY HAVING THIS NETWORK WE'RE REALLY IN EVERY CORNER OF THE STATE WITH A LENDER THAT CAN HELP THEM LOCALLY AND THOSE LENDERS WILL DO EVERYTHING WITH THEM FROM ORIGINATING THE LOAN, TAKING THEM ALL THE WAY THROUGH CLOSING.

>> HOW MANY NEW JERSEYANS HAVE SOME OF THESE PROGRAMS HELPED?

>> EACH YEAR WE'VE BEEN GROWING THE PROGRAM.

IT'S BEEN GROWING BY ABOUT 10% TO 20% EACH OF THE LAST FEW YEARS AND THIS YEAR WE'RE ACTUALLY STILL UP, WE'RE GROWING -- RIGHT NOW WE'RE OUTPACING LAST YEAR'S PRODUCTION YEAR TO DATE BY ABOUT 20%.

LAST YEAR WE HELPED ABOUT 1,550 HOME BUYERS AND WE'RE EXPECTING THAT THIS YEAR WE SHOULD HELP CLOSE TO 2,000 OR POSSIBLY MORE, WE WILL SEE HOW THINGS GO THE SECOND HALF OF THE YEAR, BUT OUR VOLUME HAS BEEN VERY STRONG EVEN IN A TIME WHEN THE NEW JERSEY PURCHASE MARKET HAS ACTUALLY BEEN CONTRACTING A LITTLE BIT.

SO FAR REAL TO DATE ACCORDING TO NEW JERSEY REAM TORSE THE PURCHASE MARKET IS DOWN 15% YET WE ARE UP 15% TO 20%.

WE HAVE REALLY BECOME A RESOURCE OF CHOICE FOR MANY HOME BUYERS ESPECIALLY IN THIS CHALLENGING MARKET.

>> THE NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY ALSO HAS PROGRAMS THAT INCLUDE EMERGENCY RESCUE MORTGAGE ASSISTANCE AND COUNSELING FOR THOSE FACING FORECLOSURE.

IT IS DEFINITELY MORE EXPENSIVE NOW TO FINANCE A HOME PURCHASE, MORTGAGE RATES HAVE BEEN CLIMBING STEADILY WITH 30-YEAR CONVENTIONAL RATES NOW AT 5.5% AT THE TIME OF THIS RECORDING, ACCORDING TO U.S. BANK.

THE MORTGAGE BANKERS ASSOCIATION SAID THIS WEEK THAT DEMAND FOR HOME LOANS HAS FALLEN TO THE LOWEST LEVEL IN 22 YEARS.

IT COULD BE ONE OF THE STRONGEST SIGNS THAT THE HOUSING MARKET IS STARTING TO COOL OFF.

TO FIND OUT HOW HIGHER LOAN RATES ARE IMPACTING BUYERS IN NEW JERSEY, I SPOKE WITH A BRANCH MANAGER FOR ALTERRA HOME LOANS IN HOME BRIDGE.

>> GREAT TO TALK TO YOU, THANKS FOR JOINING ME TODAY.

>> THANKS FOR INVITING ME.

>> WE LEARNED THIS WEEK FROM THE MORTGAGE BANKERS ASSOCIATION THAT MORTGAGE DEMAND NATIONALLY HAS FALLEN AS RATES HAVE RISEN.

HAVE YOU SEEN THE SAME THING HERE IN NEW JERSEY?

>> WE HAVE.

IT HAS REDUCED SLIGHTLY.

WE HAVE FILTERED OUT THOSE BUYERS THAT WERE BALANCING BETWEEN WHETHER THIS IS THE RIGHT TIME OR NOT THE RIGHT TIME FOR THEM TO PURCHASE.

THEY'VE KIND OF SCALED BACK A LITTLE BIT, BUT IT'S STILL ACTIVE.

>> IN TERMS OF PEOPLE THAT ARE OUT PURCHASING MORTGAGES, TRYING TO QUALIFY FOR A MORTGAGE THERE'S ALWAYS THAT ISSUE OF TIMING AND IT'S VERY HARD FOR PEOPLE TO COMMIT AND DECIDE THIS IS THE RATE I WANT IF THEY THINK THERE'S GOING TO BE A CHANGE.

WE KNOW WE'RE IN A RISING INTEREST RATE MARKET, ARE YOU ADVISING MOST PEOPLE TO KIND OF LOCK IN RATES WHEN THEY MOVE FORWARD.

>> DEFINITELY.

THE SECOND THAT WE HAVE THE OPPORTUNITY TO LOCK IN LET'S LOCK IN.

A LOT OF LENDERS PROVIDE THE OPPORTUNITY TO LOAD BACK DOWN TO THE BETTER RATE IF THE MARKET ALLOWS IT TO HAPPEN.

>> WHAT ELSE ARE YOU SEEING IN TERMS OF TRENDS THAT MIGHT BE CHANGING WHETHER IT'S THE TYPES OF LOANS THAT PEOPLE ARE ASKING ABOUT OR QUALIFYING FOR.

>> A LOT OF PEOPLE HAVE TAKEN A STEP BACK AND INSTEAD OF PUTTING A LARGER DOWN PAYMENT IF THEY CAN AFFORD A HIGHER -- ROUGHLY HIGHER OR SLIGHTLY HIGHER MONTHLY PAYMENT THEY'RE TAKING THAT STEP BACK AND SAYING, OKAY, LET ME KEEP MONEY, FINANCIALLY STAY STABLE WITH MY BANK ACCOUNT, MY ASSETS AT HOME AND PAY THAT MONTHLY PAYMENT EVEN IF IT'S A COUPLE OF HUNDRED DOLLARS MORE THAN WHAT I ANTICIPATED BECAUSE OF THE RISE IN RATES OR ANYTHING LIKE THAT.

>> I WAS GOING TO ASK YOU ABOUT THAT BECAUSE SO MANY PEOPLE MIGHT GET PRICED OUT OF THE MARKET WHEN RATES RISE AN OF COURSE WE KNOW NEW JERSEY THE HOUSING IS ALREADY EXPENSIVE.

HOW DIFFICULT IS IT FOR SOME FIRST-TIME HOME BUYERS, HOW FRUSTRATING CAN IT BE FOR PEOPLE WHO REALLY WANT TO GET INTO A HOME BUT THE MARKET WORKS AGAINST THEM?

I MEAN, THEY DON'T HAVE A LOT OF OPTIONS.

>> THEY DO HAVE OPTIONS AND THAT'S THE FIRST THING THAT I TELL A LOT OF CLIENTS.

YOU HAVE OPTIONS, RIGHT?

THERE'S DIFFERENT PROGRAMS OUT THERE.

YOU WOULD BE SURPRISED HOW MANY PEOPLE COME TO ME AND SAY I HAVE TO PUT 20% DOWN.

NO, YOU DON'T.

SOMETIMES THERE'S STUFF IN THAT WAY OF, YOU KNOW, THE MENTALITY OF PREVIOUS WHETHER IT'S PARENTS, UNCLES, FAMILY MEMBERS OR FRIENDS WHO HAVE PURCHASED WITH A LARGER DOWN PAYMENT.

THEY HAVE THE OPPORTUNITY TO DO THAT.

EVERY FILE IS SLIGHTLY DIFFERENT, EVERY SCENARIO, EVERY FAMILY PURCHASING A HOME IS DIFFERENT.

>> THAT'S DEFINITELY GOOD TO HEAR FOR A LOT OF PEOPLE.

WHAT ABOUT ADJUSTABLE RATE MORTGAGES, ARE YOU SEEING MUCH DEMAND FOR THAT AT ALL GIVEN WHAT'S HAPPENING IN THE MARKET?

>> WE'RE BACK TO NORM, RIGHT?

ESSENTIALLY MAYBE IT'S SLIGHTLY HIGHER THAN WHAT NORM WAS PRIOR TO THE PANDEMIC, BUT BECAUSE OF THAT ADJUSTABLE RATES ARE BACK AND NOW WE'RE SEEING A LOT OF CLIENTS COME BACK TO ENTERTAINING THE THOUGHT OF GOING INTO AN ADJUSTABLE RATE FOR NOW BASED ON THEIR -- ON THEIR TIMELINE WITH THIS PROPERTY THEY'RE LOOKING TO PURCHASE.

>> IT'S GREAT TO TALK TO YOU TO GET THE VERY LATEST ON THE MARKET.

IT'S ALWAYS A COMPLICATED BUSINESS SO WE'RE GLAD THAT YOU WERE ABLE TO SHED SOME LIGHT ON IT FOR US.

THANK YOU.

>> ALWAYS HERE.

THANK YOU FOR HAVING ME AGAIN.

>>> THE MARKED FOR SECOND HOMES HAS BEEN STRONG SINCE THE PANDEMIC WITH MANY OWNERS RENTING OUT THEIR PROPERTIES FOR EXTRA CASH.

ACCORDING TO THE REAL ESTATE BROKERAGE RED FIN AVERAGE RENTAL PRICES ROSE MORE THAN 17% YEAR OVER YEAR NATIONWIDE IN POPULAR SECOND HOME MARKETS IN APRIL.

WE DECIDED TO SEE WHAT'S HAPPENING WITH REAL ESTATE AROUND LAKE HAPACONG.

FOR THAT WE TURN TO LISA PLEASE SO HE A REALTOR.

>> THANKS FOR BEING ON "NJ BUSINESS BEAT."

>> GOOD TO BE HERE.

>> WE KNOW THE HOUSE MARKET HAS BEEN EXPLOSIVE IN TERMS OF DEMAND.

WHAT ARE WE SEEING FOR THOSE PEOPLE FORTUNATE ENOUGH TO HAVE SECOND HOMES AND VACATION HOMES?

WHAT IS GOING ON IN THAT MARKET RIGHT NOW?

>> I'M HERE TODAY IN LAKE HAPACONG.

SO THE LAKE HAS BEEN LOW INVENTORY NOW FOR A GOOD FOUR YEARS, BUT THE LAKEFRONT MARKET IS A LITTLE SOFTER MARKET THAN THE REST OF THE MARKET.

WE DON'T SEE NECESSARILY THE CRAZY MULTIPLE OFFERS THAT WE DO ON A LOT OF THE PROPERTIES UNLESS THEY'RE ON THE LOW END ON THE LAKE, THEN OF COURSE WE DO HAVE THE NORMAL RUSH FOR THEM FOR MULTIPLE OFFERS.

THE THING IS YOU DON'T HAVE A LOT OF PROPERTIES ON THE WATER THAT ARE 500 OR UNDER, MOST OF THEM ARE 7 TO A MILLION OR A LITTLE ABOVE A MILLION AND WHEN YOU GET THAT PRICE RANGE IT'S A LITTLE DIFFERENT.

WATERFRONT PROPERTIES ARE A SPECIAL PROPERTY, NOT A LOT OF PEOPLE ARE NECESSARILY SAYING THEY WANT TO LIVE HERE YEAR-ROUND, ALLOW WE DO HAVE A LOT OF YEAR-ROUND PEOPLE THAT LIVE HERE, BUT IT IS DEFINITELY A LOWER INVENTORY MARKET.

>> AND, LISA, WHEN YOU SEE WHAT'S HAPPENING IN THAT SECOND-HOME MARKET, ARE PEOPLE USING THEIR HOMES OR BUYING HOMES WITH THE IDEA THAT THEY CAN RENT THEM OUT AND MAKE SOME EXTRA INCOME?

>> YES.

ABSOLUTELY.

WE HAVE -- I HAVE SEVERAL CLIENTS THAT HAVE PURCHASED PROPERTY TO DO AIRBNB OR VRBO.

IN BOROUGH I THINK THEY'VE PUT SOME RESTRICTIONS LATELY ON THE FACT THAT YOU HAVE TO RENT THEM FOR 30 DAYS OR MORE, AT LEAST A MINIMUM OF 30 DAYS, BECAUSE THEY DON'T WANT THE TRANSIENT SORT OF PARTY PEOPLE.

IT IS A MORE RESIDENTIAL COMMUNITY.

>> WHAT'S YOUR OUTLOOK FOR BOTH THE SECOND-HOME MARKET AND THIS OPPORTUNITY FOR A RENTAL MARKET IN THE AREA AS WE LOOK OUT THE REST OF SUMMER AND BEYOND?

>> WELL, YOU HAVE TO UNDERSTAND I'VE BEEN DOING WATERFRONT PROPERTIES FOR 20 YEARS AND THE SECOND HOME MARKET IS A COMPLETELY DIFFERENT MARKET.

THOSE PEOPLE GENERALLY HAVE A LITTLE EXTRA MONEY TO SPEND, CASH IN MANY CASES, SO THE SECOND HOME MARKET ISN'T NECESSARILY AS AFFECTED BY THE REGULAR MARKET AS HOMES THAT ARE NOT ON THE LAKE.

>> LISA, REALLY GOOD TO TALK TO YOU.

THANKS FOR SHARING WHAT'S GOING ON UP THERE WITH US.

APPRECIATE IT.

>> THANK YOU SO MUCH.

>>> AND THAT'S OUR SHOW FOR THIS WEEK.

THANK YOU FOR JOINING US FOR "NJ BUSINESS BEAT."

NEXT WEEK WE WILL EXPLORE A TOPIC THAT IMPACTS MILLIONS ACROSS THE STATE, THE BUSINESS BEHIND YOUR DEBT.

I'M RHONDA SCHAFFLER, THANKS FOR WATCHING AND ENJOY THE REST OF YOUR WEEKEND.

>> Announcer: FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NJCU SCHOOL OF BUSINESS, A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY OR BUSINESS ANALYTICS AND DATA SCIENCE.

WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY AND MINUTES FROM WALL STREET.

LEARN MORE AT NJCU.EDU/GAME CHANGER.

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