From HousingWire:
New Jersey home affordability drops in 1Q
New Jersey home prices are on the rise for the second consecutive quarter as a result of purchase demand and tight inventory levels.
These two factors tend to make homes less affordable.
Median home prices jumped 2.07% in the first quarter to $262,661, compared to $257,331 a year earlier, according to data from Otteau Valuation Group.
Rising home prices stem from increased demand, tighter inventory levels and continued economic recovery. The for-sale inventory in New Jersey is currently at an eight-year low, while the pace of sales is the highest it’s been in six years.
The number of New Jersey homes considered affordable dropped in the first quarter due to higher home prices coupled with rising mortgage rates. In fact, the state’s affordability index declined for the first time in two years to 130%, an indicator that the median income of today’s homebuyers can afford a home that is priced 30% higher than the state’s median home value.
First!! And…..scene.
From Bloomberg:
How 30-Year Mortgages Saved the Housing Market
In most of the world, homeownership isn’t seen as a natural step in the progress toward responsible adulthood. Outside the U.S., mortgages are for small amounts, for shorter times, and have adjustable interest rates. The popular U.S. 30-year mortgage with a fixed rate, which makes possible low monthly payments and a more certain future, is an oddity.
How did Americans develop such a peculiar financial practice? The New Deal.
In many ways, the mortgages of the 1920s resembled the more exotic ones of today. Balloon loans with terms of just three to five years were common. Homeowners, like those of the 2000s, simply expected to be able to refinance. The money for these mortgages, in an eerie echo of today, came from debt that banks sold to investors, and the bond-repayment periods were equally short.
As investors became skittish after the stock-market crash of 1929, investors stopped buying mortgage bonds. Banks no longer had the capital to refinance homeowners, and no one could refinance their mortgages. The only thing that prevented the collapse of the housing market was the Home Owners’ Loan Corporation, a government-sponsored enterprise, which started swapping bonds of its own for bank mortgages, injecting liquidity into the system.
…
Understandably, when policy makers started to think about how to reform the system, they tried to find ways to make mortgage borrowing and lending have longer terms, so that a crisis wouldn’t be self-perpetuating. In 1934, the Federal Housing Administration introduced an audacious plan to remake the way Americans borrowed.
…
Mortgage amortization, as such a plan was called, eradicated the need for refinancing, which made the balloon mortgages so precarious. A long period made the mortgages independent of short-term fluctuations in the economy. Borrowers wouldn’t have to weather both unemployment and refinancing at the same time.
The FHA preserved private choice while accomplishing a public good. No lenders had to comply with the FHA, but if they did, their business would be much easier to conduct. Risk-free loans with guaranteed buyers provided an incredible -― and noncoercive -― incentive to lend private capital.
…
The FHA’s plan was a revolution in finance. No longer would homeowners borrow on balloon notes for a few years. Instead they could borrow for 15 or 20 years (a length of time that bankers had previously thought was immorally long). The loans could only be used for good housing that would last for decades, and the FHA would inspect all the houses to make sure they met standards. The new thinking was that it was more immoral to create a situation where homeowners would be foreclosed on.
As Time magazine described it, the new system was a departure from the “old-fashioned mortgage that was renewed in good times and foreclosed in bad.” The FHA insured the loans so that private capital sources, such as banks and insurance companies, would invest in them. Moffett authorized pamphlets explaining how the building and banking industries could both profit from the FHA. Animosity toward government spending remained, but support for the FHA increased.
With guaranteed mortgages, the risk fell to nothing, allowing Roosevelt to mandate that the FHA mortgages paid a low fixed rate of 5 percent (compared with the market rate of 12 percent) nationwide. Moral or not, long-term mortgages stabilized the housing market and increased the quality of U.S. housing stock, bringing a new expectation of long-term mortgages to the American borrower.
Again, another article regarding NJ and house affordibility without mentioning property taxes.
Rising home prices stem from increased demand, tighter inventory levels and continued economic recovery.
This is not a cyclical recovery based on past trend and touting “increased demand” is like tossing an ice cube in the ocean and saying the water level rose. The tighter inventory is, once again, because the greater populace lacks qualified sellers.
NYC is different here!
http://www.huffingtonpost.com/2013/05/02/trump-soho-condo-selling-for-19m-in-bitcoin-only_n_3203609.html?ir=New+York
Someone tell me again how exclusive listings don’t exist. Because, as we all know, realtors are the model of ethics and would never try to hoard listings. You know, even if it was a very desirable listing and would sell in a day. After all, they want the seller to get top dollar, even if they aren’t a representative in the sale. Right? Right? I said, f.ucking right?
$700,000 and $20,000 in property taxes and it hurts my eyes. Is this what prestige looks like?
http://www.trulia.com/property/3073357406-15-Welter-Ave-Woodcliff-Lake-NJ-07677#photo-1
6. In sales they call it managing a pipeline. You have X amount of product. You have prospects that you know you can close. Bingo. A Sales Model.
Any Questions?
This one’s an open house, again. Sigh… Here’s a hint for ya, change the first digit from a “6” to a “5” and I bet you get some bids!!
http://www.trulia.com/property/3111129614-22-Natmark-Ct-Woodcliff-Lake-NJ-07677#photo-1
This song is sung for anyone that’s listening
This song is for the broken-spirited man
This song is for anyone left standing
After the strain of a slow, sad end
It seems everybody wants what someone else has
There’s sorrow enough for all
Just go in any bar and ask
With a beer in each hand and a smile in between
All around’s a world grown mean
We’ve all had our ups and downs
It’s been mostly down around here
Now this whole damn mess is becoming quite clear
Looks like we’re all looking for a life worth livin’
That’s why we drink ourselves to sleep
Yeah, we’re all looking for a life worth livin’
That’s why we pray for our souls to keep
There’s nothing left now but broken pieces
Of one man’s broken will to care
And in the end before all is said and done
How many others might follow him there?
This song is sung for anyone that’s listening
This song is for the broken-spirited man
This song is for anyone left standing
After the strain of a slow, sad end
Midnight is comin’ ’round
Still mostly down around here
Now this whole damn mess is becoming quite clear
On the food, topic. We enjoy food in this house and as my father always says he goes to more funerals of think people than fat. I find Whole foods and Kings very expensive for what it its. If I want a jar of Indian sauce, I’ll buy it for a third of the price in Little India.
Fairway meat is very good, but again expensive. I will splurge for their Kobe Beef Burgers and sometime their sausage. Pork, I will go to an Italian Pork store, just down from the Brownstone in Paterson.
Mostly I buy in bulk and freeze. For smoked meats if I don’t want smoke myself, I make a run to Dietrich’s Meats & Country Store Interstate 78 Exit #40.
Not a big fan of Costco meat, but are good for dairy and general veg. I like to buy their Crudité platter and steam each of the veg as a side for dinner and use the dressing with a jumbo bag of carrot sticks as snacks for the kids
I have a Restaurant Depot about 10 mins away and I buy their Grass fed Angus from New Zealand on sale it is about $8 for 10lbs. Their fish is great as well although the minimums can catch you out. De-veining and cooking off 5lb of shrimp is a pain if you only want enough for 2 or 3 people is a pain. Again I’ll buy a box of veg like Potrabellos , a box of fruit (strawberries) and salad and that will do sides for dinner and snacks for the kids all week.
My bulk everyday meat is from Sussex meat packing in Wharton. I buy 200-300lbs at a time and it works out to about $2.40 a lb. The nice part is that it is all separated, wrapped in butchers paper and tape and labeled. 10lb of ground beef will come in 10 1lb portions grab one in the morning and it is defrosted by the time you get home.
Shoprite is for coupon shopping and items I want less of like cheese and canned goods. I will save for their free hams and turkeys. I will also pick up a Pizmo (that big vacuum packed slab of Fillet Mignon) for $5.99/lb. I butcher it down to give me a Chateaubriand, some beef wellingtons and the offcuts go into the gravy.
I bought a load of cedar planks last week and I’m building planers in the garden to start the vegetable plot.
Scroll down to the “Monthly Payment” section of this listing and look at the monthly property tax figure. The taxes are listed at $399/month when it’s actually over $900/month. Gee, perhaps the buyer won’t notice.
http://www.trulia.com/property/3109652476-150-Ashley-Pl-Park-Ridge-NJ-07656
The New Zealand angus filet at RD is very good as well. I’ll just trim it a bit, simple dry rub of salt, pepper, and ground dried wild mushroom, and cook the whole filet. I’ll start it on the grill, high, 600-700 degrees and just quick sear on 3 sides to start the crust. Then into the oven to finish. I’ll monitor the center temp and pull just before rare.
Nice thing is when you slice it, you can get the whole range of temperatures depending on the shape of the filet. Will usually go for a nice 1″ slice and finish with a little mushroom sauce. Really nice to do for a big Sunday family dinner or a BBQ.
Dollar for dollar, if you have a big party you can’t beat it. Cheaper than Costco and you get grass fed.
Sold in 2007 for $930,000; currently asking $850,000. They must be prestigious to shoulder a slight loss like this:
http://www.trulia.com/property/3113005208-53-Fairview-Ave-Park-Ridge-NJ-07656
12 – that is Trulia Gary, not the agent. No agent in NJ would dare misrepresent taxes so egregiously.
I find Zillow and Trulia posted information to be incorrect fairly often.
No agent in NJ would dare misrepresent taxes so egregiously.
Of course not! Nor would any agent tell me to take out a loan to buy a 2nd home and lie to the bank as to the purpose of the loan. Nor would any agent tell me “this town expects a certain buyer.” Nor would any agent tell me that Bergen County doesn’t accept contingencies. ;)
Perhaps we should contact the listing agent on that house and let her know that “her” listing is being misrepresented?
Gary – Went to 5 open houses yesterday before the game. It ranged in 450K worth of slop to 600K worth of slop. Oh, one was really nice but it was the size of the inside of your car and had a 30 foot retaining wall against route 17 for your backyard. The realtor told us, “Well this is Ho Ho Kus, you know.” She was giving us “advice” on how to expand the house. You know, on top of the price tag just to buy the place. I think we’re getting closer to making our decision on moving.
Grim – I didn’t see that property (Assuming 425 Ardmore). Looks great from the pictures, and at $525k is priced right on the mark. As such, it went into Attorney Review yesterday. Less than 3 weeks on the market. If that place was located closer in-town (no wall, no Waldwick border), it could have gotten $100k more.
Low $500s for a totally redone house, nice lot size, sub $10k taxes in HoHoKus? New Windows, Siding, Bathrooms, High-end Kitchen too? Very recent air condition, furnace, hot water heater… Even taking into account the size of the property and the retaining wall/proximity to 17, that’s a good price. I know you don’t want to hear that.
Closed for $536,000, $1,000 above asking. I rest my point. You may not like my opinion of what prices homes will sell at, but I’m generally very close, and typically more right than wrong.
I saw a place in Livingston across from the dog park — Was on the market FOREVER a while ago. Sold apparently and the owner stayed a few years. Just went on the market and then sold again, but this time within weeks. Curious about that one. Will followup with an address.
Grim,
Based on current conditions, comps, location, etc., you’ve always been close on closing price. No argument there. Now, on a totally different plane, we’re not in a normal market. Flat salaries, unqualified sellers by the score, the Bernank factor and property taxes have this whole housing thing here warped and disfigured. At this rate, t’ll be 10 years of what we see currently.
Again, and for those of you viewing at home (lol), if I’m going to drop 600K plus, it won’t be for someone’s personal bailout nor will it be the unwanted “stepchild” house. If I get one of those “pocket” listings to consider, then this blog may have a heart attack when they discover I close on a house.
Talk about over-engineered…….I just want me a fuking sannich…….. I guess I failed my MENSA induction……
Fabius Maximus says:
May 4, 2013 at 8:20 am
On the food, topic. We enjoy food in this house and as my father always says he goes to more funerals of think people than fat. I find Whole foods and Kings very expensive for what it its. If I want a jar of Indian sauce, I’ll buy it for a third of the price in Little India.
Fairway meat is very good, but again expensive. I will splurge for their Kobe Beef Burgers and sometime their sausage. Pork, I will go to an Italian Pork store, just down from the Brownstone in Paterson.
Mostly I buy in bulk and freeze. For smoked meats if I don’t want smoke myself, I make a run to Dietrich’s Meats & Country Store Interstate 78 Exit #40.
Not a big fan of Costco meat, but are good for dairy and general veg. I like to buy their Crudité platter and steam each of the veg as a side for dinner and use the dressing with a jumbo bag of carrot sticks as snacks for the kids
I have a Restaurant Depot about 10 mins away and I buy their Grass fed Angus from New Zealand on sale it is about $8 for 10lbs. Their fish is great as well although the minimums can catch you out. De-veining and cooking off 5lb of shrimp is a pain if you only want enough for 2 or 3 people is a pain. Again I’ll buy a box of veg like Potrabellos , a box of fruit (strawberries) and salad and that will do sides for dinner and snacks for the kids all week.
My bulk everyday meat is from Sussex meat packing in Wharton. I buy 200-300lbs at a time and it works out to about $2.40 a lb. The nice part is that it is all separated, wrapped in butchers paper and tape and labeled. 10lb of ground beef will come in 10 1lb portions grab one in the morning and it is defrosted by the time you get home.
Shoprite is for coupon shopping and items I want less of like cheese and canned goods. I will save for their free hams and turkeys. I will also pick up a Pizmo (that big vacuum packed slab of Fillet Mignon) for $5.99/lb. I butcher it down to give me a Chateaubriand, some beef wellingtons and the offcuts go into the gravy.
I bought a load of cedar planks last week and I’m building planers in the garden to start the vegetable plot.
gary (7)-
Classic NJ “cheese wedge” architecture.
Form follows failure.
And here I was, thinking gluteus just ate millet and dirt sandwiches.
Chifi, stop complaining. 11 was the most sensible post Fabmax has ever offered here.
Ran into another friend in Hoboken tonight, they got full ask on their condo, and where they want to live out in Bedminister they have been outbid twice already.
Crazy times.
Spring selling season a big bust. We just locked in a year lease on a townhouse so we’ll have more time to look. Hate having to move twice but that’s that way it is.
JJ – I’m in your neighborhood, exclusive interview?
#6: Of course exclusive listings exist. Remember that gutted-and-redone foreclosure flip job house on Hickory St. in WT that I told you about? It never hit the MLS but was under contract within a week after the sign was put outside.
Jill [32],
I drove by that house, called and left a message for the listing realtor. He never called back.
I thought the NRA line after national tragedy’s was always “Too soon for a discussion!”
Wayne LaPierre: ‘How Many Bostonians Wished They Had A Gun Two Weeks Ago?’
http://www.huffingtonpost.com/2013/05/04/wayne-lapierre-boston-marathon-bombings-guns-nra_n_3215449.html?utm_hp_ref=politics
Gator is turning into quite the footballer. He’s playing up with the U9s (he’s still 7), but they are hardly a match for his left foot. In 5 games he has 10 of his teams 18 goals. Today, he made mincemeat of Hoboken with 4 of the teams 5 goals. It will be interesting to see if he continues to develop.
Gator Jr., I meant.
Whats the general feeling around here… Are turn-key houses in hot locales being bid over asking just about every time?? From what i have seen at open houses etc, there are multiple bids after the first weekend/open house. There is simply not enough supply of move in ready houses for the demand out there… Not sure what all the reasons are but never thought i’d see this so soon. (Bedminster/Chatham/Westfield/Berkeley Heights)
[34] minimums,
Well, when you get dragged into a debate, finish it.
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