Couple of rich people don’t a market make

From the Record:

Multimillion-dollar home sales on the rise in North Jersey

In a sign that wealthy households may be spending more freely, a dozen houses sold for more than $4 million in Bergen County in 2015 — up from eight the previous year.

The priciest sale in North Jersey in 2015 was the $13.9 million sale of an Alpine home to comedian Tracy Morgan, who bought the Rio Vista Drive manor in the name of a trust. The second most expensive sale was another Alpine home, on Buckingham Drive, which sold for $11 million.

By contrast, 2014’s priciest sale was for $7 million.

High-priced homes
Number of home sales over $4 million in North Jersey:

2013: 8
2014: 8
2015: 12

Sources: public records, New Jersey Multiple Listing Service

Annekee Brahver-Keely, a real estate agent with Russo Real Estate in Teaneck and president of the New Jersey Multiple Listing Service, said last year’s bump in high-end sales reflects a more optimistic economic landscape.

“It’s a true sign that the economy is definitely turning around,” she said. And Dennis McCormack, managing partner of Prominent Properties Sotheby’s International Realty in Alpine, an agency that handles a large share of the area’s luxury listings, said that the high-end market is more active than it’s been in a decade.

But high-flying sales like these are still rare, especially considering the supply. There are more than 60 Bergen County homes on the New Jersey Multiple Listing Service with asking prices of $4 million-plus. That adds up to a five-year inventory at the current sales pace.

Marlyn Friedberg of Friedberg Real Estate in Tenafly — who has several multimillion-dollar listings — said that higher-end homes are “taking a long time” to sell.

“There’s always a smaller pool of buyers in the multimillion-dollar range,” she said.

And even when the homes sell, their owners often have to accept a lower price — and a longer wait — than they’d like. For example, the Alpine home bought last year by Morgan for $13.9 million had been on and off the market since 2006, when it was listed for $24.9 million.

This entry was posted in Demographics, Economics, New Jersey Real Estate. Bookmark the permalink.

40 Responses to Couple of rich people don’t a market make

  1. grim says:

    Tracey Morgan purchase is completely irrelevant as an indicator, since he purchased after the Walmart settlement.

  2. the Original NJ ExPat says:

    I’ll sell you my cow for $10 million if you buy my horse for $10 million. It’s win-win. That way we both have $10 million in assets to leverage now that we have price discovery.

  3. Fast Eddie says:

    I can tell you that my purchase wasn’t in Alpine and was a “bit” less than 4 million. I still can’t believe I made this purchase. I wonder how many of you were hedging that I would never move? And prices are still absurd but I guess since I am one of the bag holders now, I might as well join the crowd that wants to keep the riff raff out of reach.

  4. Ben says:

    Ben, fairy tale??
    Hospitals slap liens on houses , so do physicians.
    Look in the foreclosure details.
    Unless you have Cadillac health insurance aka Medicare.

    Or you are renting…

    My father is a physician and I used to do the billing for him. That doesn’t happen. They send them to collection, the collection agency ultimately settles for 10 cents on the dollar at best. If you get a 20k bill from the emergency room, you tell them, you can give them $200 now or $10 a month. They’ll take the $200 as full payment and be happy.

    The people that file bankruptcy and declare it for medical bills usually had a few dozen other issues in terms of their debt. When they check off medical bills, it makes them feel like it wasn’t their fault.

  5. walking bye says:

    Noticed an uptick in home for sale starting to take place in the 50 home development where I live. Development was built in the 60’s and the majority of owners are well into their 80’s at this point. I would venture of the 50 homes there are only 7 homes with kids under 15 (or families with parents in 30-50 year old range). No families under the age of 35 if I had to guess. My wife always called our development a cemetery as you never see anybody outside. Did see some millennial ‘s make an appearance at the open houses but they looked disgusted at the asking price and homes with 50 year old appliances and pink tiled bathrooms. Not to mention yards that have not been cared for in a good 20 years which probably need a dozer to go through and clean up. Im going to assume the 2 ton pickups stopping by were home flippers.

  6. chicagofinance says:

    You want that sh!t fcuking up your FICO & credit for 7 years? You are pretty cavalier…..

    Ben says:
    January 18, 2016 at 10:07 am
    They send them to collection, the collection agency ultimately settles for 10 cents on the dollar at best. If you get a 20k bill from the emergency room, you tell them, you can give them $200 now or $10 a month. They’ll take the $200 as full payment and be happy.

  7. chicagofinance says:

    Monmouth Medical charged $1,080 to draw and test my son’s blood when he had Lyme’s disease…..I have a HDHP…..Aetna paid $265…..I paid $815……retested at Quest 2 months later as a follow-up…..Quest charged $118 for same tests…..I contested and they politely lied to me consistently over and over…..an institutionalized stonewall over 18 months….then unannounced and in conflict with their claims resolution process, they sent my bill to collection…..result? paid….period…I can’t have that crap on my public Broker Check record…..pure unadulterated extortion….

  8. Libturd at home says:

    I’m going through something similar right now. Something they should be paying for and they said they would they are reneging on. I plan to call them again tomorrow, for the 19th time. I’m sure if I call today, they will claim it’s MLK day and that I’ll be on hold forever. Little does it matter that the call is probably being taken from Sri Lanka.

  9. Ben says:

    Monmouth Medical charged $1,080 to draw and test my son’s blood when he had Lyme’s disease…..I have a HDHP…..Aetna paid $265…..I paid $815……retested at Quest 2 months later as a follow-up…..Quest charged $118 for same tests…..I contested and they politely lied to me consistently over and over…..an institutionalized stonewall over 18 months….then unannounced and in conflict with their claims resolution process, they sent my bill to collection…..result? paid….period…I can’t have that crap on my public Broker Check record…..pure unadulterated extortion….

    So what did I say? Outlaw the practice of accepting partial payment as full payment. That’s why they bill so much in the first place. There’s a reason some hospitals bill out $1k and others bill out $90k for the same damn procedure.

    And then, force them to publish their prices.

    Those two things happen, and the racket is sure to be on its way to collapsing.

  10. Ben says:

    You want that sh!t fcuking up your FICO & credit for 7 years? You are pretty cavalier…..

    It doesn’t mess up your score when you reach a settlement before it ever gets to collection. I used to sit on the phone with people all day seeing what I could squeeze out of them on a $10k bill. In the end, I knew what the procedure cost and if I could get $250 out of them, it was a win.

  11. Ben says:

    btw…wtf do you are about a fico score. I have an 815 and I’ve yet to see the advantages.

  12. Ben says:

    are=care

  13. The real question is how much is one willing to pay for a good FICO score?

  14. …especially when financial engineers are working overtime to rig credit scoring to allow those scorched by the financial crisis to get back in the game at close to the same pristine scores guys like ChiFi pay big $$$ maintaining.

  15. “Fair Isaac Corp., the creator of the most widely used consumer credit scores, announced Thursday a new score intended to make millions of people who have had difficulty getting approved for financing creditworthy.

    The Wall Street Journal reported the creation of the new score, currently in a pilot phase, on Wednesday.”

    http://www.wsj.com/articles/fico-announces-new-credit-score-based-on-alternative-data-1427989748

  16. chicagofinance says:

    It is the reverse…..what you take for granted is simply not offered to others….and it has evolved over time…..815 means no one fcuks with you versus getting platinum status somewhere……when you apply for life insurance, a job, open a bank account, go into a store, price compare wireless plans….etc….things happen for you identically to 10-15 years ago…..lots of people deal with surcharges etc….you can go from vendor/provider to competitors and everyone will give you the advertised deal…..with little if any hassle, or whatever your perceived hassle is the equivalent of TSA Fast Pass at the airport…..

    Ben says:
    January 18, 2016 at 11:44 am
    btw…wtf do you are about a fico score. I have an 815 and I’ve yet to see the advantages.

  17. chicagofinance says:

    Costco in Marlboro yesterday….. $1.47 87 gas with a credit card bichez…..

  18. chicagofinance says:

    Whole Foods is feeling the heat……they had a 10% off sale on store branded stuff…..went through the checkout any my receipt looked like one of those Target receipts with the millions of cryptic % off here and there….

  19. chicagofinance says:

    BTW Chase credit cards now offer the best fcuking FICO write up I’ve seen……connects all the dots for you…..it is great….

  20. chicagofinance says:

    Do you know any good French-Canadians selling Xan^X up in Vermont?

    Splat What Was He Thinking says:
    January 18, 2016 at 12:20 pm
    The real question is how much is one willing to pay for a good FICO score?

  21. chicagofinance says:

    I’m feeling like Michael this MLK afternoon…..

  22. Marilyn says:

    #5 Yes your right in some respects. Some towns have very few younger families in them. I was shocked to see that I am grandma at age 49 in Raleigh. I might have to head over to Asheville. Im like the beast of burden down here. In Lake Stockholm, NJ I was the top model. IN fact I felt like Ms. Sussex County !!! Now im Grandma.

  23. walking bye says:

    Chfi – looks like only the slate card overs this expanded credit score reporting. At least that’s what the Chase replied back with.

  24. Comrade Nom Deplume and His Amazing Trick Back says:

    I came across this gem in an unrelated search, and given the extensive debate had here on the subject, I just had to share:

    “Whether or not raising the minimum wage would hurt the economy is a source of much debate — and policy papers — from competing think tanks, industry lobbyists and labor unions. Yet accepting that some change and displacement would occur, raising the minimum wage may actually be a net longer-term positive for the economy, argues New America’s Lind.

    “Obviously, businesses that would be unable to pay a higher minimum, whatever it is, would suffer,” Lind said. “But having a minimum wage that drives low-wage businesses out of existence arguably is a good thing, as it can force businesses to invest in technology rather than labor, which is a good thing from the point of view of overall national productivity.”

  25. [19] chief – Thanks!! I had something like this with some credit card that ended up being Capital One after a while. I used to love watching the monthly charting of FICO score, but then it went away. I guess I don’t have any past history on the Chase chart because I just enrolled. Only one credit inquiry in the last two years, and none in the last 3 months. That surprises me, but I think I even known who it is. Citi, who actually cancelled me because I cause carrying no balance in 2009 or so, actually came back with a hard copy, mailed, true 0% card for 18 months, so I took it. I’ll pay off the balance in full when the 0% runs out, of course. Remember the good old days when you could get 0%, no strings cash? I used to deposit tens of thousands of dollars into my Schwab account and invest it in leveraged US bond closed end funds back in 2005-2008, I guess?

    BTW Chase credit cards now offer the best fcuking FICO write up I’ve seen……connects all the dots for you…..it is great….

  26. chi (20)-

    Yeah, but it might have some rat poison in it.

    “Do you know any good French-Canadians selling Xan^X up in Vermont?”

  27. Comrade Nom Deplume and His Amazing Trick Back says:

    Quelle surprise! Another gem found while surfing.

    https://www.washingtonpost.com/business/french-president-declares-economic-emergency/2016/01/18/70f95be8-bdcf-11e5-98c8-7fab78677d51_story.html?tid=pm_business_pop_b

    Hollande’s policies not working. I’m shocked, shocked . . .

  28. I especially like this part of my “credit dashboard” at chase, I don’t think I’ve seen this before:

    Your Average Length of Credit: 8Y 9M
    Age of Your Newest Account: 1Y 2M
    Age of Your Oldest Account: 15Y 3M

    The 14 month old account is definitely that Citi 0% card, it probably brought my average way down. Not too bad considering I walked on my mortgage and all my credit in ’88. Ironically, 2nd to my mortgage, my biggest default was a pretty big (for back in those days, maybe $15K?) line of credit with…Chase. Does anybody remember those actual check books they used to send you? No credit cards, just actual check books with a 12.5-15% interest rate, back when that was considered usury.

  29. Hey, is anybody thinking shiny again? It’s actually rising in most other currencies. I’m thinking of nibbling at PHYS and PSLV in IRA accounts.

  30. The Original NJ ExPat says:

    You can check out any time you like…

  31. Ben says:

    I especially like this part of my “credit dashboard” at chase, I don’t think I’ve seen this before:

    Your Average Length of Credit: 8Y 9M
    Age of Your Newest Account: 1Y 2M
    Age of Your Oldest Account: 15Y 3M

    The 14 month old account is definitely that Citi 0% card, it probably brought my average way down. Not too bad considering I walked on my mortgage and all my credit in ’88. Ironically, 2nd to my mortgage, my biggest default was a pretty big (for back in those days, maybe $15K?) line of credit with…Chase. Does anybody remember those actual check books they used to send you? No credit cards, just actual check books with a 12.5-15% interest rate, back when that was considered usury.

    The original strategic defaulter.

  32. joyce says:

    6
    Chicago,
    Not meant to be argumentative, but it appears Expat and Condo are doing pretty well even though they trashed their credit at some point. Also, Ben said they’re not pushing someone into bankruptcy (not having the data to agree or disagree), you responded about credit scores and collections… moving the goal posts on him so to speak.

  33. The Original NJ ExPat says:

    [33] Ben – I’m on record here that I did strategically default. I had a 9.25% ARM at the top of the market and lost my job and weighed my choices as a 27 year old unemployed single guy. If this helps you vilify me more, here you go: I made one payment on my mortgage, then never made another. I had a girlfriend who was a paralegal and she helped me write my defense to the foreclosure suit and I lived in my condo for close to three years (see how history rhymes?). The First Bank of Rochester (who never got a chance to resell my mortgage because I defaulted so quick) went after me for a deficiency judgement of $65,000, but they missed a key date milestone by three days and I utilized another legal resource to shoot that down with one letter. I am Spartacus Strategic Defaulter!

  34. The Original NJ ExPat says:

    [34] Joyce – I don’t know if the game has changed, but the key part of success was to never negotiate or speak with your creditors. If you make a single payment or engage in a substantive phone call, that in itself constitutes “last contact” and keeps resetting the clock to keep bad stuff on your credit report. In chifi’s defense, it takes a good long time to right the ship and if you are making your living in financial services, you *screwed*. I lost the opportunity to land a job myself that would have had me in a great consulting gig at JM Morgan had I not defaulted on the Chase line of credit (back when they were separate entities. Interestingly they didn’t seem to care about the mortgage default, as it was not a big bank, maybe?). I actually received a phone call from a guy who sounded like a cop who was investigating my prior transgressions for JPM. Actually I made some money on that deal too because a consulting shop in Hoboken had already put me on salary because they were hot to over-ride my consulting gig, but instead had to pay me salary and benefits for a couple months without me making them any money. Oh well. Anyway, if you want to wade through the defaults and come out the other end just don’t talk to your creditors, get a cash management account at Schwab so you have what looks like a credit card and then just ask all three credit reporting agencies to clear the stuff after you haven’t talked to your creditors for a few years. I was pleasantly surprised that it took me less than 3 months in 1998 to completely clear my credit. I probably could have done it earlier. I didn’t even think to do it until Sears sent me credit car (I had one years before). I never used it. Then they sent me a Mastercard and told me to use that instead and I had a $1000 credit line. I immediately went out and bought a black 1999 Miata $25,000 car for $20,000 (always buy a sports car on a rainy week day, $15,000 down with a $5,000 one year loan), cleaned up my credit online and have been golden ever since.

  35. Ben says:

    I’m on record here that I did strategically default. I had a 9.25% ARM at the top of the market and lost my job and weighed my choices as a 27 year old unemployed single guy. If this helps you vilify me more, here you go: I made one payment on my mortgage, then never made another. I had a girlfriend who was a paralegal and she helped me write my defense to the foreclosure suit and I lived in my condo for close to three years (see how history rhymes?). The First Bank of Rochester (who never got a chance to resell my mortgage because I defaulted so quick) went after me for a deficiency judgement of $65,000, but they missed a key date milestone by three days and I utilized another legal resource to shoot that down with one letter. I am Spartacus Strategic Defaulter!

    You don’t have to explain yourself to me. It was meant in good humor.

  36. The Original NJ ExPat says:

    [37] No offense taken, Ben. I just wanted to bring you up to speed in case you weren’t aware of facts already in evidence.

  37. The Original NJ ExPat says:

    But even though I was in default on my Wayne, NJ condo, I still collected rent from roommates and tenants while I lived at my girlfriend’s slope-side condo in Vernon. We’d both get up around 7:30AM. She commuted, ironically, down to Wayne for her engineering job at Singer-Kearfott while I skiied all day and ran up her liquor tab at the Spa. Good times, good times.

  38. expat (29)-

    PHYS 4 EVA! Decent entry point right now; been just over & under $9 for a few months. I think the holding pattern is about to break.

    “Hey, is anybody thinking shiny again? It’s actually rising in most other currencies. I’m thinking of nibbling at PHYS and PSLV in IRA accounts.”

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