For Immediate Release:
May 12, 2009

NJAR^® RELEASES STATEMENT REGARDING 1^st QUARTER HOME SALES REPORT

(Edison, NJ) Reacting to the NATIONAL ASSOCIATION OF REALTORS^®' (NAR) 2009 First Quarter Metro Home Prices/State Resales report, New Jersey Association of REALTORS^® (NJAR^®) Executive Vice President Jarrod C. Grasso, RCE, today issued the following statement:

"Steps are being taken to revitalize the industry. According to March 2009 statistics from the NATIONAL ASSOCIATION OF REALTORS^®, the real estate industry accounted for $93 million or 20.1 percent of the Gross State Product for New Jersey in 2007. In order to maintain housing as a strong, contributing factor to improving the economic climate, consumers must recognize the unprecedented opportunities that lie before them in this real estate market.

"Consumers who are first-time home buyers face a remarkable situation right now with an $8,000 tax credit from the federal government, plus the opportunity to obtain up to a $5,000 cash advance of this credit from the New Jersey Housing and Mortgage Finance Agency (NJHMFA) to apply toward closing costs and down payment. Another plus side is NJHMFA borrowers who qualify for the 'Prefund' program can now take advantage of the agency's new lower interest rates. The December 1, 2009 deadline to take advantage of the tax credit for first-time buyers is approaching.

"Affordability is rising, which opens the door for financially capable buyers with stable employment to obtain the dream homes that were out of their price range just a few years ago. With interest rates reaching near record lows, the time to act is now. Taking swift action is especially important considering last week's announcement of a slight rise in the average 30-year mortgage interest rate from Freddie Mac.

"However, a major impediment to affordability in New Jersey is escalating property taxes. It is not enough that property taxes here are among the highest in the nation, but Governor Corzine has proposed to eliminate the property tax deduction on state filings for taxpayers earning more than $150,000. Full restoration of the deduction is crucial during this downturn to get the economy back on track and to afford as many New Jerseyans as possible with the opportunity to achieve the American dream of homeownership."

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The New Jersey Association of REALTORS^® is a non-profit organization serving the professional needs of approximately 50,000 REALTOR^® and REALTOR-ASSOCIATE^® members in the state. REALTOR^® is a registered collective membership mark which may be used only by real estate professionals who subscribe to the REALTOR^® organization's strict Code of Ethics and are members of the national, state and local REALTOR^® organizations. For more information, please visit www.njar.com.

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