Realism in style at the shore this year?

From the NY Times:

In Jersey Shore Subset, Top-Heavy With Pricey Homes

WHEN a newly built house beside the beach in Sea Girt went into contract for $3.6 million last month, it was sort of a good news-bad news occurrence, in the eyes of real estate brokers and agents.

The good news — obviously — was the handsome price, fetched in a market overflowing with expensive homes in this part of Monmouth County. The not-so-good news was that the sale had taken three years. And the really bad news was that the sale price amounted to only 68 percent of the original asking price of $5.288 million for the house, at 9 the Terrace.

In the first four months of this year 138 houses were put on the market in the three towns Mr. Wight mentioned, which are considered a submarket by the county’s multiple listing service. There were 28 closed sales during those months, with an average sale price of $1.2 million, according to listing data. The year before, 29 homes were sold, for an average of $1.36 million.

In the first quarter of this year the median sale price was also down, to $774,550 from $975,000 in early 2010. (The median represents a midpoint, with half the sales for more and half for less; statisticians prefer it to the average, because it tends to be less affected by one or two very high-priced or low-priced sales.)

And as prices sank, the time that a typical house spent on the market increased, to 144 days, from 119 last year.

“On the positive side,” said Keith Kernan, an agent in Ward Wight’s office in Sea Girt, “most sellers have become more realistic about prices, and the average home is now selling for 92 percent of its list price.”

“There are buyers out there for these exceptional homes, with some percentage of them being second-home buyers, since this is a resort area,” said Mr. Kernan, estimating that about 30 percent of buyers in the area pay cash, and do not take out a mortgage.

“This type of buyer is acutely aware of market conditions,” he said. “If a house is priced right, it will move right away, no matter what price range you are talking about.”

But the price range does make a difference.

Recently a house in Wall Township, just inland of Spring Lake, was sold in a single day; it had not found a buyer when priced in the mid-$500,000s, but as soon as the price fell below $500,000, it was snapped up — with multiple offers still pending should that deal fall through, according to Mr. Wight.

Manasquan, the most southerly of the three towns, typically has a somewhat larger sale inventory than Spring Lake. At the beginning of April, according to the Otteau Valuation Group, a New Brunswick company that compiles monthly real estate reports, 118 properties in Manasquan had not sold after at least a month on the market.

Spring Lake had 96 houses sitting on the market. Sea Girt had 37. Most of the highest-price houses for sale are in these two towns.

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22 Responses to Realism in style at the shore this year?

  1. Kettle1^2 says:

    Happy mothers day to all the moms on the blog!

  2. Confused In NJ says:

    Health care costs a hefty price tag for Pentagon

    AP – Secretary of Defense Robert Gates addresses airmen at Seymour Johnson Air Force Base, in Goldsboro, N.C., … .By DONNA CASSATA, Associated Press Donna Cassata, Associated Press – 29 mins ago

    WASHINGTON – A military built for fighting wars is looking more and more like a health care entitlement program.

    Costs of the program that provides health coverage to some 10 million active duty personnel, retirees, reservists and their families have jumped from $19 billion in 2001 to $53 billion in the Pentagon’s latest budget request.

    Desperate to cut spending in Washington’s time of fiscally austerity, President Barack Obama has proposed increasing the fees for working-age retirees in the decades-old health program, known as TRICARE. After years of resisting proposed increases for the military men and women who sacrificed for a nation, budget-conscious lawmakers suddenly are poised to make them pay a bit more for their health care, though not on the president’s terms.

    The current fees, unchanged in 11 years, are $230 a year for an individual and $460 for a family. That’s far less than what civilian federal workers pay for health care, about $5,000 a year, and what most other people in the U.S. pay.

    Obama is seeking a fee increase of $2.50 per month for an individual and $5 per month for families, which approaches the current price of a gallon of gasoline. Future increases starting in 2013 would be pegged to rising costs as measured by the national health care expenditure index produced by the Centers for Medicare and Medicaid Services, which projects 6.2 percent growth.

    “Health care is eating the department alive,” Defense Secretary Robert Gates said bluntly — two years ago.

    The explosive expense of health care rivals what the Pentagon shells out to buy fighter aircraft, submarines and high-tech weapons, and is about half of the $118 billion that the Obama administration wants in the next budget to fight the wars in Iraq and Afghanistan.

    Rep. Howard “Buck” McKeon, chairman of the House Armed Services Committee, backs Gates’ proposal to raise fees for working-age retirees in the next budget, and he has the support of the committee’s top Democrat, Rep. Adam Smith of Washington state.

    But McKeon, R-Calif., rejects the plan to link increases in 2013 and beyond to the health care expenditure index. He wants to tie any future increases to military retirees’ cost-of-living adjustment, which this year was zero.

    McKeon planned to release his version of the defense bill Monday. The legislation says members of the military face “unique and extraordinary demands and make extra sacrifices over the course of a 20-30 year career in protecting freedom for all Americans. Decades of sacrifices is a significant prepaid premium for health care that is over and above what the member pays in money.”

    The full committee meets Wednesday to pull together an overall defense bill for the budget year beginning Oct. 1. The committee is expected to override members of its personnel subcommittee who last week unanimously approved a one-year prohibition on any increase in health care fees.

    “I strongly believe military retirees have made significant down payments through their dedicated service to the nation,” said the subcommittee chairman, Rep. Joe Wilson, R-S.C. “In view of that service, it is not right for the nation to ask them to pay more for the health care for which they are entitled as all citizens are being personally challenged financially by rising gas prices.”

    Congress repeatedly has resisted Pentagon efforts to increase copayments or fees, arguing that members of the military and their families sacrifice far more than the average American, with a career that includes long and dangerous deployments overseas that overshadow civilian work.

    Even as Washington wrestles with a ballooning deficit estimated at $1.6 trillion and the demands of entitlement programs such as Medicare and Social Security, lawmakers are reluctant to raise health care costs for members of the military and retirees.

    But this year, Gates singled out working-age retirees, such as those in their 40s who retired after some 20 plus years in the military, as individuals who could afford a small increase.

    “Many of these beneficiaries are employed full time while receiving full pensions, often forgoing their employer’s health plan to remain with TRICARE,” Gates told Congress. “This should come as no surprise, given that the current TRICARE enrollment fee was set in 1995 … and has not been raised since.”

    Gates and the administration are up against one of the most powerful constituency, the network of veterans groups and retired generals determined to stop any increase.

    The Military Officers Association of America backs the one-year fee increase, but strongly opposes any increase in 2013 and beyond linked to the health care expenditure index.

    “We agree with those modest increases,” said Kathy Beasley, a retired Navy captain and deputy director of government relations for the officers’ group. The increased fees linked to the index, however, “erodes the retirement benefit package.”

    Members of the House committee have more than 600 amendments to the overall bill that is expected to come close to the administration’s request of $553 billion. The measure will include provisions on keeping open the prison at Guantanamo Bay, Cuba, and reviving the extra engine for the next-generation F-35 jet fighter.

    Rep. Duncan Hunter Jr., R-Calif., will try to delay repeal of the ban on gays in military until all four service chiefs certify that the change won’t hurt readiness or undermine the military. The law, in effect since last December, only requires certification from the president, defense secretary and chairman of the Joint Chiefs of Staff.

    Interesting, the retired soldiers without limbs think they deserve Teacher & Police Type Healthcare?

  3. No one will be spared.

    No one.

    Accept the austerity, or austerity will be shoved down your throat.

  4. 3b says:

    Last Friday’s Unemployment report vs last Thursday’s first time unemployment claims. Friday’s report all say it is a good sign. Thursday’s number basically ignored.

  5. chicagofinance says:

    Seth Meyers kills Trump…with Trump in the audience…
    http://www.youtube.com/watch?v=tjGS6lHYu3Q&feature=related

  6. Farmer Jim says:

    Grim, did you find all the heirloom tomato varieties you were looking for at the plant sale yesterday? I could email you a list of what I have if you like. Plants are free, since they are overplanted surplus and are soon destined for the compost pile. Please send me Hobo’s email address, looks like he is considering beating his shotgun into a plowshare.

  7. Kettle1^2 says:

    Farmer Jim

    I’ll take a few if it’s an open offer. 1elttek at G mail

  8. Kettle1^2 says:

    Jim

    Don’t worry, no firearms will be harmed in the growing of said tomatoes

  9. Mikeinwaiting says:

    In mod , wonder which word did it.

  10. Confused In NJ says:

    Anyone remember the Commodore SX64 Portable Computer from 1984. My son came across his, along with his 1981 Atari Game Player, while cleaning out his junk. I had forgotten how game and computerized I had made him, in his High School years. Wikipedia actually has articles and pictures of such, as they use to be state of the art.

  11. farmer jim (6)-

    reeveshughes@yahoo.com

    The black helicopter guys have my e-mail address, so I don’t care if the rest of the world does at this point.

    I can pick up at your convenience.

  12. vodka (8)-

    I only raise tomatoes in order to use them as targets. :)

    I’m sorta like Gallagher, except with high velocity ammo.

  13. They shoot tomatoes, don’t they?

  14. Shore Guy says:

    Shore reae estate is like The Emperor’s New Clothes. The guy is stark naked and at some point everyone will realize it.

  15. Shore Guy says:

    real estate, too

  16. Shore Guy says:

    I hope all the muthas here had a good day.

  17. Lone Ranger says:

    Jim Rogers: I have not sold any commodity. I own all my commodities. We are in a flexible bull market. I hope I am smart enough in the entire 15 years to realize when the commodity bull market is finally coming to an end, I am probably smart enough to sell. This commodity bull market will probably end in a bubble. Most bull markets and most sectors, whether it is stocks, real estate, whatever it happens to me, lands in a bubble. We are far-far-far from a bubble so far.

    http://articles.economictimes.indiatimes.com/2011-05-06/news/29517110_1_jim-rogers-crude-oil-commodities

  18. Neanderthal Economist says:

    Lone, time to double down soon.

  19. I don’t need Jim Rogers (or Bill Gross, for that matter) pissing on my foot and telling me it’s raining.

    Place your bets, and STFU.

  20. Aaron says:

    Sometimes life becomes a waiting game. How big of effect dows the television show have on the perception of your area, and impact on sales? Probably the wrong demographic for buying homes is into the show Jersey Shore, I would suppose.

  21. prtraders2000 says:

    Anyone know how to find out how many section 8 rentals a town has? Local blogger was blaming our town’s decline on the influx of section 8 tennants and I think he/she may have a point. The subsidy for section 8 looks substantial and allows a completely different type of resident to take up in town upsetting stability.

  22. .In ordinary usage price is the quantity of payment or compensation given by one party to another in return for goods or services..In all modern economies the overwhelming majority of prices are quoted in and the transactions involve units of some form of . Although in theory prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen..In Finance there are a number of pricing units that fall outside the categories of currency and barter. For example a monetary loan can be priced in percentage point units using the formula 100 – Interest Rate .