Price Reduced! 12/12-12/19

Welcome to another edition of Price Reduced!

For all the newcomers to this blog, Price Reduced! takes a look at a handful of significant price reductions across Northern NJ. The purpose of this exercise is to serve as proof that the Northern New Jersey real estate market has long since been overvalued and has started the long hard decline back to the mean. These listings are in no way an endorsement by myself, nor do I believe they are a bargain or a value. Even reduced, I still believe these homes are still grossly overpriced. With that, the listings please!

MLS# 2225267 – Franklin, NJ
Asking Price $379,900
Reduced Price $259,900 (31.6% Reduction)

MLS# 2094887 – Washington, NJ
Asking Price $380,000
Reduced Price $299,999 (21.1% Reduction)

MLS# 2205767 – Roselle, NJ
Asking Price $339,900
Reduced Price $289000 (15.0% Reduction)

MLS# 2075967 – Hopatcong, NJ
Asking Price $1,175,000 (Originally $1,295,000)
Reduced Price $999,999 (14.9% Reduction, 22.8% from OLP)

MLS# 2220194 – Roxbury, NJ
Asking Price $995,000
Reduced Price $880,000 (11.6% Reduction)

MLS# 2213716 – Roseland, NJ
Asking Price $484,900
Reduced Price $429,900 (11.3% Reduction)

MLS# 2107696 – Kinnelon, NJ
Asking Price $2,195,000
Reduced Price $1,950,000 (11.2% Reduction)

MLS# 2209082 – Glen Rock, NJ
Asking Price $459,900
Reduced Price $409,900 (10.9% Reduction)

MLS# 2203247 – Bloomfield, NJ
Asking Price $399,000
Reduced Price $360,000 (10.0% Reduction)

Now, to all the potential buyers reading this blog, I am not posting this information for you to drool over thinking these are great deals. These are not great deals. These are the first price reductions along a very long road downward. If I threw a knife up into the air, would you try to catch it on the way down? No, you’d wait until it hit the ground and then pick it up. The same rule applies here. Alot of people lost alot of money buying on the downside of the stock market after the Nasdaq crash in hopes of a fast recovery. There will be no fast recovery here. Sit tight, grab some popcorn and enjoy the ride.

Caveat Emptor!

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60 Responses to Price Reduced! 12/12-12/19

  1. Richard says:

    Grim, remember that house in Verona we were tracking not too long back that you visited? Well they pulled the listing that was reduced to $599k and re-listed at $650k and it’s in contract (currently pending). I’m on the edge of my seat to see what the buyer paid for it. If it’s above $599k I’m going to personally send a letter to the address when the new buyers move in with a printout of the old offer and write across it SUCKER!

  2. Anonymous says:

    A good RE agent can generally tell you when people relist. Of course, watching the market for some time also tells you that.

    I’ve seen houses pulled and relisted at lower prices, but relisting at higher prices .. well.

    Grim — are reductions rate at this time (with most people figuring on waiting till Jan at least, if not spring).

  3. Anonymous says:

    I meant — are reductions rare at this time ?

  4. Anonymous says:

    Crash in progress. Speculators are starting to panic.

  5. skep-tic says:

    in the towns I monitor in westchester, there basically hasn’t been a sale in 2 months. the same houses are all still on the market, and they’re all drastically overpriced. seems like only the newly built houses have reduced prices at all.

    I would think the fact that literally nothing is selling would be a bigger news item, but I can’t find it anywhere in the local press.

  6. therumba says:

    Skeptic, you are right on the money. I have been monitering Westchester also. A lot more houses are on the market but they are not moving. One person that frequents the housebubble2 blot advised me to look further north, i.e. Putnum for there is a lot of old money here. I don’t think I want to communte so much everyday.
    My realestate agent is still sending me potential houses via e-mail but they are still very overpriced.

  7. Richie says:

    Think of a realtor like a headhunter; they’re mainly looking out for their bottom line, not yours.

    When you get a headhunter that just passes a manager resumes upon resumes, they call them ‘paper pushers’. Basically, just pulling crap out of their database and sending it to the manager in the hopes that he/she is going to look at the databases and make the right choice.

    Realtor’s can be the same; they are just pulling out all the crap that’s for sale without actually looking at what you want for a bottom line.

    But then again, that’s just my opinion…

  8. RentinginNJ says:

    “I would think the fact that literally nothing is selling would be a bigger news item, but I can’t find it anywhere in the local press.”

    I have found the local press to be bias on this issue almost universally. While the national media might openly discuss the possibility of a housing bubble, most stories in local papers go something like “No Bubble Here Says Local Agents”. Just go to Yahoo news and search for “Housing Bubble” and you can see a difference between national and local coverage on the topic.
    Local papers derive a substantial portion of their advertising revenue from real estate ads. I guess you don’t bite the hand that feeds you.

  9. Metroplexual says:


    Which Franklin and Washington are those in the price reduced? As you are aware there are alot of town names that are repeated throughout the state for example Washington in Warren County of which there are 2 and Washington in Bergen Cty, Morris Cty. and Mercer Cty.

  10. xSparta says:

    As a xNJ resident I have been following the NJ real Estate market since moving to Florida 10 years ago, and read this BLOG daily. Does anyone know what’s happening to the market in Sparta, NJ. I see surrounding towns prices are trending down rapidly, but can’t find out information on Sparta.

  11. skep-tic says:

    “I have been monitering Westchester also. A lot more houses are on the market but they are not moving.”

    once inventory starts to really increase around Feb, I wonder if some of these sellers will start to make cuts. It just seems bizarre to me: if I were a seller and my house hadn’t sold after a few months I would cut the price until it did. If I wasn’t willing to cut, I’d take it off the market. I don’t understand this waiting and praying for a white knight to come to the rescue. these people are probably getting really bad advice from their realtors

  12. Anonymous says:

    Alot of homeowners in deep S%$# trouble. A friend of a friend has a condo he purchased 2 years ago. Going to have a baby so wife had to take time off. He has been borrowingon his so called expanded home equity line to pay the bills since his salary alone will not cover expenses.
    Thinking long and hard about selling to lock in his profit if any now with equity line. Better move fast.

    Lots of sleepless nights for many.

  13. Anonymous says:

    This List should be referred to FOOLS LIST.
    Paying anywhere near the going rate is absolutely stupid with the ridiculous prices being asked. It’s such a joke that most of the homeowners probably couldn’t afford their own homes.

  14. Richard says:

    most homeowners can’t afford their own homes. some really bubbly places have single digit affordability. sellers think they’re entitled to these nosebleed prices because of the recent hot market and they know people who’ve made similar deals. those with listings sitting for a few months are not motivated to sell. they figure if some sucker will give them the asking price or something close they’ll be motivated to sell and take it. watch the spring. if inventory balloons and the buyers don’t come out in proportion, you’ll see price drops. the best case scenario is a flat market for 2-3 years before a gradual increase. i just can’t see current prices going much higher considering the affordability is at historic lows.

  15. Anonymous says:

    Best case scenario is a flat market for 3 years?
    You must be kidding?
    The best scenario I see is that these fools that bought in last 2 years will be “Lucky” to breakeven in 10 years.

    The prices are so out of wack compared to incomes which have been stagnate for last 5 years that I do not think these people will ever breakeven.
    China and India are putting massive pressure on incomes at the high level mgt positions. Outsourcing accoutants lawyers analyst research scientist.

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