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 me, nor do I believe they are a bargain or a value. Even reduced, I still believe these homes are still grossly overpriced.
On to the list!
MLS# 2219533 – Bridgewater, NJ
Previous Price $669,900
Current Price $483,537 (Price Reduced 27.8%)
(New Construction, price reduction might reflect design changes)
MLS# 2308114 – Haledon, NJ
Previous Price $299,900
Current Price $229,900 (Price Reduced 23.3%)
MLS# 2257103 – Franklin Twp, NJ
Previous Price $2,500,000
Current Price $1,999,900 (Price Reduced 20%)
MLS# 2278877 – Wantage, NJ
Previous Price $399,000
Current Price $325,000 (Price Reduced 18.5%)
MLS# 2307369 – Tenafly, NJ
Previous Price $1,200,000
Current Price $999,999 (Price Reduced 16.7%)
MLS# 2265000 – Montgomery, NJ
Previous Price $745,000
Current Price $629,500 (Price Reduced 15.5%)
MLS# 2297795 – Oakland, NJ
Previous Price $349,900
Current Price $299,000 (Price Reduced 14.5%)
MLS# 2281058 – Blairstown, NJ
Previous Price $1,750,000
Current Price $1,499,900 (Price Reduced 14.3%)
MLS# 2281707 – Parsippany, NJ
Original List Price $199,000
Previous Price $174,900
Current Price $149,900 (Price Reduced 14.3%, 24.7% off OLP)
MLS# 2303392 – Frelinghuysen, NJ
Previous Price $575,000
Current Price $495,000 (Price Reduced 13.9%)
MLS# 2292034 – Phillipsburg, NJ
Previous Price $110,000
Current Price $95,000 (Price Reduced 13.6%)
MLS# 2263675 – Parsippany, NJ
Previous Price $449,900
Current Price $389,900 (Price Reduced 13.3%)
MLS# 2261514 – Kinnelon, NJ
Original List Price $1,500,000
Previous Price $1,495,000
Current Price $1,299,000 (Price Reduced 13.1%, 13.4% off OLP)
MLS# 2293197 – Scotch Plains, NJ
Previous Price $1,150,000
Current Price $999,900 (Price Reduced 13.1%)
MLS# 2290765 – Mine Hill, NJ
Original List Price $529,900
Previous Price $515,000
Current Price $449,900 (Price Reduced 12.6%, 15.1% off OLP)
MLS# 2264082 – Bernardsville, NJ
Original List Price $2,950,000
Previous PRice $2,795,000
Current Price $2,450,00 (Price Reduced 12.3%, 16.9% off OLP)
MLS# 2282243 – Wantage, NJ
Previous Price $1,250,000
Current Price $1,100,000 (Price Reduced 12%)
MLS# 2298374 – Delaware Twp, NJ
Previous Price $289,500
Current Price $255,000 (Price Reduced 11.9%)
MLS# 2290487 – Bloomingdale, NJ
Previous Price $595,000
Current Price $524,000 (Price Reduced 11.9%)
MLS# 2261474 – Delaware Twp, NJ
Previous Price $849,900
Current Price $749,900 (Price Reduced 11.8%)
MLS# 2300373 – Wayne, NJ
Previous Price $850,000
Current Price $749,900 (Price Reduced 11.8%)
MLS# 2222350 – Alexandria, NJ
Previous Price $850,000
Current Price $750,000 (Price Reduced 11.8%)
MLS# 2289994 – Montague, NJ
Previous Price $425,000
Current Price $375,000 (Price Reduced 11.8%)
MLS# 2300603 – Passaic, NJ
Previous Price $339,000
Current Price $299,900 (Price Reduced 11.5%)
MLS# 2292687 – Dover, NJ
Original List Price $489,900
Previous Price $449,900
Current Price $399,900 (Price Reduced 11.1%, 18.4% off OLP)
MLS# 2294449 – Knowlton, NJ
Previous Price $899,900
Current Price $799,900 (Price Reduced 11.1%)
MLS# 2265797 – High Bridge, NJ
Original List Price $329,900
Previous Price $319,900
Current Price $284,900 (Price Reduced 10.9%, 13.6% off OLP)
MLS# 2300440 – Bernardsville, NJ
Previous Price $2,430,000
Current Price $2,174,000 (Price Reduced 10.5%)
MLS# 2306162 – West Paterson, NJ
Previous Price $699,000
Current Price $629,000 (Price Reduced 10%)
MLS# 2278473 – New Providence, NJ
Previous Price $499,900
Current Price $449,900 (Price Reduced 10%)
MLS# 2257816 – Frenchtown, NJ
Original List Price $529,000
Previous Price $499,000
Current Price $450,000 (Price Reduced 9.8%, 14.9% off OLP)
MLS# 2275644 – Clark, NJ
Original List Price $799,000
Previous Price $759,000
Current Price $689,000 (Price Reduced 9.2%, 13.8% off OLP)
MLS# 2264096 – Wyckoff, NJ
Original List Price $1,169,900
Previous Price $1,099,000
Current Price $999,900 (Price Reduced 9%, 14.5% off OLP)
Caveat Emptor!
Grim
“FOOL” sale sign all over the place.
Anything in Oakland, NJ under 300k is most likely in a flood zone. Oakland has many flood zones…
I know of 2264096 in Wyckoff, should sell when it hits $750K. About 35% off 2005 peak.
I don’t know what the MLS # is but there’s a house in JC I looked at the started at 385, reduced to 365 now 359 and it’s still not worth it.
I noticed the price reduced list seems overrepreseented by NW Jersey. For sale signs on lawns that will not go away seems to bear out why prices are going down.
I thought real estate only went up?
do you mean i was deceived by a realtor?
it is not even labor day and major reductions have started
let this stew for another 12-18 months
I have been reading this blog for a while, as I will need to sell my house this year, overpaid for it in 2002, then put $$$$ into in renovations. frankly, this blog pretty much scared the pants off me and I’ve long since accepted the idea of deflating value. But, it turns out that I think I’ve been pushed a bit too far in that direction. Specifically I’ve been getting MLS comps by e-mail since about February so I’ve watched the market in my area in NNJ (on the Midtown Direct) very closely for months.
what my personal observations are, as I prepare to list my house and merely debate timing, are that the market was indeed soft through the spring but is definitely picking back up, at least in my area. this blog focuses exclusively on reduced prices on homes, but based on my personal review of market data, you’re just not getting the other side of the story. and the other side of the story is that at least as many homes sell for OVER asking as under, again, in my area, which I don’t think is a good idea to disclose here since I’ll be selling very shortly. and some of them are going for WELL over asking (e.g., $50k).
while spring “under contracts” were slow, late summer “under contracts” are very high, and the high to very-high prices under-contract and sale prices do not mesh at all with the “reduced price” theme seen here.
don’t get me wrong, I like this blog and think it serves a real purpose. I don’t expect any love for my comments, and certainly expect to be treated as a seller with a certain self-interest, but I confess my ability and willingness to be totally realistic about my house and the market generally. my comments are an honest input of an element that I see missing here. having reviewed, very carefully, the market data for my town for months, this blog and comments are starting to seem to me like an echo chamber that frankly just doesn’t resemble the market reality of my town. just my $0.02, fwiw, to present the other side of the story here.
BG
BG,
Wish nothing but the best of luck to you.
I do have a few questions though.
You purchased recently, took the time, effort, and expenses to remodel. Why are you selling?
Secondly, why are you waiting to list? What do you expect to happen to the market in the next few months?
Thanks,
grim
BG, I hope you’re wearing your fire retardant suit given all the flaming you are about to receive. I’ll don mine as well.
I have to agree with you. I’ve been helping a friend figure out what to list her house for in the SF Bay Area and we’ve looked at scads of comps and sold stats which she is privy to due to her job. After carefully going over them all, we concluded that it would just be stupid for her to not list her house for slightly above what things were selling for last year. In her price range ($650K), those houses are still moving quickly and selling for at or above listing price.
So she’s listing it for a higher price than we initially thought was prudent, and we’ll see where it goes from there. If there are no nibbles, the price can always come down (where’s the risk in that other than an increase in DOM and perhaps the associated perception of seller weakness that accompanies it?). But list too low and you leave money on the table…and hey, altruism has its limits.
BG –
thanks for your input. I myself follow this blog regularly but also concerned that the information sometimes could be misleading. I also wish it wasn’t too much of an echo chamber. some good healthy discussions and debates would be great as opposed to the aggression and hostility.
all in all, I’m still very grateful to grim for this highly informative blog.
“late summer “under contracts” are very high, and the high to very-high prices under-contract and sale prices do not mesh at all with the “reduced price” theme seen here.”
Also, keep in mind the late summer thing may have to do with people buying to get in for the school year. So it’s doubtful that this trend will continue into the traditionally slower months.
List for what you want, as long as you are prepared to reduce if need be. I don’t think the market is going to be picking up, and we’re slowly running out of people dumb enough to pay over asking.
Also, with regards to those that went “over ask” are they in the BEST areas of your town and may have been priced low to begin with? You can’t just assume that something selling overask means the market as an entirety supports that.
grim, thanks for your response. we are selling due to a job change – but it only hastened a downsizing decision we felt ever more compelled to make. we are only waiting to list because we have not yet lined up specifics of where we are going next. I was initially planning to list as soon as I finished all little clean-up projects around the house – a week ago – because I was expecting the process to take 3-4 months total. but then, after looking long and hard at comps, and seeing that half of the houses in my town go under contract (which means OUT of attorney review) in under 22 days (!), we got worried about our house selling too quickly (!), and us risking the situation of having nowhere to live while we tried to finalize our next steps. my plan is to be ready to list any day if/when job plans jel (unlikely prior to Labor Day), but the day after Labor Day at the latest.
my understanding from some realtors is that August is a typically very slow month, and that the “second selling season” of the year is mid-September to mid-November. I don’t want my house to grow stale by sitting on a typically slow market – i.e., during August. but the market activity during August is actually bearing out, so far, to be much stronger than “slow”. so the timing is a tough decision, trying to balance a fear of being houseless before we’ve figured out where we’re going, against a fear of market factors and the house not selling.
njgal, you bring up good points, but I think I can speak to those. I have the same instinct as you about late summer under-contracts, but it seems to me very very unlikely that these deals can possibly close by Labor Day, which they’d have to for school-year concerns. and even that is cutting it exceedingly close for registration. today’s under contracts will close in 30-45 days, on average, which is after the school year starts.
also, the over-ask prices are spread out across the price spectrum – and across town. that is, they aren’t just concentrated in the “best” areas. this has really surprised me, as my mindset has been very “grim” (ha ha) after reading this blog for some months, and after watching the spring market closesly.
believe me, I do not want to list my house for more than it’s worth, because I don’t want it to sit. I need to sell it, and will price it accordingly. I’m not greedy, and if I lose money on this deal, I’ve already lost hundreds of hours of sleep on that and am partway to accepting it. but, I don’t want to leave money on the table, either, so the pricing decision (as well as timing) is turning out to be very tough.
BG
In East Hanover the houses just sit and sit. Then the price reductions come, then they sit, then reduction and so on… all these price reductions just make the market look bad.
All,
I have been following the ‘hot’ areas, Millburn/SH/Summit/Chatham/New Providence etc., $400k-$700K mostly (came across some between %$750k-$1.2m), along midtown direct for many months. What I see is steady price declines, climbing inventories, a lot of UC for 15%-25% below original asking, buyers backout of some of the contacts, and around 3% sold at or very slightly above ask (all of them pre-June).
So I guess BG was talking about an entirely different area??
Folks, you can rationalize all you want about an “improving market” or a “stabilizing market” or whatever you want to label it.
The reality is, these prices are simply not sustainable.
I’ve also been watching towns on the Midtown Direct line, and it’s a ghost town. Lots of withdrawals and relistings, lots of price drops, few sales.
Watch the relistings, they tell the real story about how close to asking price homes are selling for (and realtors hide this info).
As for listing a home for sale at prices above last year, when interest rates have gone up, good luck to you.
This site isn’t about an “echo chamber” it’s about monitoring how far home prices have drifted from the fundamentals.
Most here are betting on a return to fundamentals (based on a 100-year trend), while others are betting that a speculative bubble based on a 5-year trend will continue.
I’m glad to be on the 100-year trend side of the trade.
everyone notice the lack of properties in the top towns? they’re still selling close to asking prices. might be an indication of the growing disparity of the well off versus the rest of us.
Just a quick note here:
Please phrase your comments in such a way that makes it clear whether your comment is a statement of fact or simply opinion.
For example, if you say:
“Contracts are very high”
You better be prepared to cite your source as well as provide evidence of that.
If what you mean is:
“I think that contracts are running high based on what my real estate agent has shown me”
Please phrase your comment in such a way that idenfies it as anecdotal or opinion.
Thanks,
The Management
It sounds like the sellers are fighting back, but I just don’t see it. Asking prices are sky high and short-term rates are way up. The speculators who drove prices higher just can’t get bargain basement rates anymore to further justify higher prices. IMO, sellers could claim victory if prices just stay steady for 3-5 years. But no way I’d invest $1m on a house compared to risk-free T-bills at 5.5% or tax-free muni’s as alternatives.
In East Hanover the houses just sit and sit. Then the price reductions come, then they sit, then reduction and so on… all these price reductions just make the market look bad.
Anecdotal — Associate of mine just listed/ sold her sister’s home in East Hanover at a price way over anyone expected – way over- 2 Realtors gave lower asking prices her sister insisted on the high price she came up with– realtor sister aquiesed and ended up selling for a fraction under the inflated asking. Cash!
Yes this is still happening, Yes there are still over asking sales, or close to ridiculusly high asking price…. but …. that will stop. Hard to believe there are people out there totally out of tune with what is actually going on.
KL
Its a stalemate between Bears and Bulls. Wait and see who walks away.
in the town next to mine in westchester, inventory of SFHs is up from 11 last year to 167 now. Despite the massive runup in inventory, sales are down by half. this is a town where the median house price is north of $1.5M– a Wall St. town if there ever was one.
This year’s bonuses aren’t saving the market and next year’s won’t either. Anecdotal– I was just in East Hampton over the weekend and I have never seen so many for sale signs in my life. Everyone thinks some hedge fund manager is going to ride into town on his white horse and make them rich. Most of these guys are too smart to overpay by this much– they are looking for bargains just like everyone else and are willing to wait and watch the listings sit
i should anonymously send this list to the sellers who are balking at my offer.
i just offered 10% under list price for a place in weehawken.
the sellers actually had an emotional fit and their broker told my re agent that they’re shocked and stunned by my low ball offer.
mind you their place has been listed for 2 months and I am the very first offer theyve even had !
instead of giving even a counter offer they want to whine about my very fair offer.
im offering almost three times what they paid 6 years ago and they want kvetch.
Grim
Here is another one for the price reduced list
MLS # 2619302
Town: Oradell
OLP: $659,000
1st cut: $629,000
Last LP: $569,000
Pros: Large expanded B/L (two room addition) in nice town, nice landscapping with wrought iron fence.
Cons: Outdated kitchen, worn out hardwood floors ( need 50k in improvements)
Cliffy
“Realtors deserve a real god slowdown. they are not ethical even with all the phoney pr the industry uses..”
God I hate stereotyping…almost enough to make me want to quit being a realtor even though I just started…ALMOST
Hi, never posted here before. But it seems like there is some serious spin going on here. That “woman” Michelle is the funniest. Why would anyone in the Bay Area with access to comps and everything that the internet has to offer need to confer with someone in NJ in order to sell her house?
I have gone to open houses in Summit, Mendham and Upper Montclair, and the realtors won’t stop calling me….begging me to “just make an offer, any offer, whatever you are comfortable with.” These are the facts. Just my 2 cents and the truth. Spin away.
HONESTMAN
Stonepearl said:
“im offering almost three times what they paid 6 years ago…”
Why?
Does anybody have insight into the Marlboro/Manalapan area? Thx.
MK
Good Post honestman.
The upper scale nose snoot towns are slow very slow.
Realtors are using harassment just like that did in early 1990’s the last period of time these thugs were starving.
BOOOOOOOOYAAAAAAAAAA
Bob
said…
In East Hanover the houses just sit and sit. Then the price reductions come, then they sit, then reduction and so on… all these price reductions just make the market look bad.
Anecdotal — Associate of mine just listed/ sold her sister’s home in East Hanover at a price way over anyone expected – way over- 2 Realtors gave lower asking prices her sister insisted on the high price she came up with– realtor sister aquiesed and ended up selling for a fraction under the inflated asking. Cash!
Yes this is still happening, Yes there are still over asking sales, or close to ridiculusly high asking price…. but …. that will stop. Hard to believe there are people out there totally out of tune with what is actually going on.
_______
What is the MLS# ?
ricahrd: The top towns in Bergen county, such as Franklin Lakes, Wyckoff, Allendale, the two Saddle Rivers, are laoded iwht inventory, and have been for months, it looks like nothing is selling.
As far as Wall St bonuses, here we go agian, but all I will say is these people will not over pay, if it was a couple of years ago, and everyone was doing it, but not now.
Image is everything, and they will not wnat their co-workers saying noce move there on that house purcahse at the top of the market. I will leave it at that.
anon; Regarding that house in Oradell, keep in mind that Oradell is doing its reval this year. The taxes in the town are outrgaeous,and only going to get worse.
Oradell and River Edge have some of the highest taxes in BC, and there are better BC towns with lower taxes, and better schools so keep that in mind.
The taxes the realtors are quoting you in Oradell do not reflect the reval.
More from Lereah:
http://biz.yahoo.com/ap/060815/home_sales.html?.v=4
Oradel, how bad are the taxes?
Grim,
My husband and I have been renting in Northern NJ for years, waiting for a correction. In your opinion, how much longer should we hold out?
The taxes in Oradell are through the roof, in most instances you will be looking at a minimum of 10K or close to it. 12K 13K and more is common.
East of Kinderkamack Rd the taxes are lower, but there are a lot of really old crummy house, and they run parrell to the train tracks, and are near the bus depot, plus your kids will have to cross KKR to get to the grammar school, and if you are driving them to school the traffic on that road is a bear.
Also the grammar school is undergoing a renovation and expansion that will impact taxes, ( I understand there has been major constuction problems and ocst over runs)as well as the high school, and the library.
Furthermore, Oradell shares the high school with River Edge, who sends about 405 more students to the school then Oradell does, yet Oradell pay more in taxes to the middle and high school..
The mayor and council are trying to get this funding mechanism changed, but it will take time, and RIver Edge will fight it, because were Oradell to win, River Edge’s already insane taxes would go even higher.
If youa re looking in Oradell, I would wait until after the reval. personally I would look in the Pascakk Valley towns lower taxes better school, or in Wyckoff.
HONESTMAN,
In response to your accusation, the gal I’m conferring with is my best friend and I just moved out of the SF Bay Area to New Jersey myself. I bought and sold a couple of properties there so she asked for my input. I’ve posted on here a number of times before while I was househunting; I’m not some agent or something using a pseudonym to further my agenda. So sorry if my real-world example doesn’t jive with the way you’d like things to be.
Not sure why you didn’t think I was even a woman though. But whatever.
i should anonymously send this list to the sellers who are balking at my offer.
i just offered 10% under list price for a place in weehawken.
the sellers actually had an emotional fit and their broker told my re agent that they’re shocked and stunned by my low ball offer.
mind you their place has been listed for 2 months and I am the very first offer theyve even had !
instead of giving even a counter offer they want to whine about my very fair offer.
im offering almost three times what they paid 6 years ago and they want kvetch.
Who cares what the seller thinks? If they are offended by your offer, Move on. There just way too much inventory around not to waste your time with emotional sellers that think their property is the greatest thing on the face of this earth.
Go look at something else, and offer what you feel is right in today’s market. Just be ready to not expect price appreciation for a number of years and possible price declines in the near future.
Sorry Should have said River Edge sends about 40% more kids to the RIver Dell school sysytem then Oradell.
Thanks to all who provided input regarding the Oradell property. You are right about the taxes.
Cliffy
Grim,
My husband and I have been renting in Northern NJ for years, waiting for a correction. In your opinion, how much longer should we hold out?
What about getting tougher with sellers?
Why not make an offer with a 24 hour expiration date—if the seller doesn’t respond to the offer within 24 hours, the offer is no longer valid. Any subsequent offers should be less then the original offer. This might curtail entitled sellers’ whining about “lowball” offers and wake them up to the realities of the current market.