From the Record:
New Jersey home prices will drop another 6 percent in 2011, an East Brunswick real estate appraiser predicted Monday.
“This is not a pretty picture, and it’s not what you would prefer to hear, but it’s what’s going on out there,” Jeffrey Otteau, who tracks the housing market statewide, told a seminar for real estate agents in East Hanover.
Home values stabilized during late 2009 and early 2010, as an $8,000 federal tax credit lured first-time buyers into the market. But once the credit expired earlier this year, the number of home sales plummeted in the state and nationwide. As a result, there’s a one-year-plus supply of homes on the market in Bergen and Passaic counties, and even more elsewhere in the state. That means that at the current pace of sales, it would take more than a year to clear all the inventory
“We’re just not able to create jobs yet, so this huge supply of housing is going to stay for a while,” Otteau said. And at those inventory levels, prices typically drop by about one percent a month, he said.
The housing downturn has fallen unevenly on New Jersey, with some towns being affected more than others. Rural markets, such as Sussex County, and vacation-home markets, such as the shore, have seen larger price drops than towns within commuting distance of New York. And towns that have rail lines into New York have held their value better than other towns, Otteau said.