From Patch:
NJ Housing Market Troubles Loom As Foreclosures Surge: Reports
With inflation still high, foreclosures nearing pre-pandemic levels and a recession potentially looming, new analysis warns that New Jersey has some of the nation’s most vulnerable housing markets. Meanwhile, the Garden State has one of the highest foreclosure rates in the United States, according to new reports from ATTOM.
New Jersey had the nation’s fourth-highest rate of properties entering foreclosure filings in August — 1 out of 2,441 housing units, according to the real estate data curator. Only Illinois (1 in every 1,926), Delaware (1 of every 2,387) and South Carolina (1 in every 2,417) had higher rates.
Based on gaps in home affordability, underwater mortgages, foreclosures and unemployment, many of New Jersey’s housing markets show among the highest risks of decline in the nation, according to ATTOM.
…
Many of New Jersey’s most vulnerable markets include suburbs of New York and Philadelphia. Bergen, Essex, Ocean, Passaic, Sussex, Union, Camden and Gloucester Counties are among the nation’s 50 most vulnerable housing markets based on data from the second quarter of 2022, according to ATTOM.
Out of the top 50 most vulnerable counties, three in New Jersey had among the highest rates of homes with a foreclosure action during the second quarter. Cumberland County (1 in 373 homes), Warren County (1 in 373) and Camden County (1 in 462). Only Cuyahoga County (Cleveland), Ohio, had a higher foreclosure rate (1 in 365 homes) on the list of vulnerable markets.
From the Star Ledger:
N.J. minimum wage to increase to more than $14 an hour next year thanks to inflation
The minimum wage in New Jersey will increase more than previously planned next year, going up to $14.13 per hour for most workers, the state Labor Department announced this week.
The current statewide minimum wage was scheduled to rise from $13 to $14 on Jan. 1, 2023 under a state law Gov. Phil Murphy signed in 2019 that gradually increases the wage to $15 an hour by 2024.
But the law allows for a larger bump if there’s a significant increase in the Consumer Price Index, the most widely used measure of inflation in the U.S. An increase in the CPI this year triggered the extra 13 cents per hour, officials said.
With inflation still high, foreclosures nearing pre-pandemic levels and a recession potentially looming…
Potently looming, potential recession and new analysis warns… all what-ifs and not definite. We can all make predictions. The muppets who are ultra vulnerable are those who bought during the peak of this recent runup. Even worse are those who are locked in with 6% 30-year fixed in addition to the silly prices. I’ll be curious to see the inventory numbers and price tags in our area a year from now. And do we have a mild recession or a more painful slog for a few years? That’s the X factor.
I feel like we were beating this drum far longer than anyone.
From the WSJ:
After Years of Low Mortgage Rates, Home Sellers Are Scarce
Homeowners wearing the ‘golden handcuffs’ of low mortgage costs are reluctant to sell their homes now that rates are much higher
Homeowners with low mortgage rates are balking at the prospect of selling their homes to borrow at much higher rates for their next homes, a development that could limit the supply of houses for sale for years to come.
Was on track to pay off the house 10-15 years early.
Now… Why bother?
crushedmillenial,
https://www.nj.com/news/2022/09/nj-might-require-stores-sanitize-reusable-bags-refund-shoppers-after-bag-ban-goes-awry.html
When lawmakers were writing the plastic bag ban, the grocery store industry lobbied for paper bags to be banned in large stores. Paper bags take more energy to produce than plastic bags, industry experts have said, and they also cost stores more money to stock.
Yup.
Telling you, most of the inventory that goes on sale during these bad conditions will be POS’s. People in quality homes are going to be the owners in strong positions. Good luck getting them to sell and move.
grim says:
September 25, 2022 at 8:26 am
I feel like we were beating this drum far longer than anyone
Yup, same here. Have 7 years left, and asking myself why I paid it off so fast?! Should have locked in a long-term 30 year low rate that paid me. Oh well….lost this one. Lesson learned.
grim says:
September 25, 2022 at 8:28 am
Was on track to pay off the house 10-15 years early.
Now… Why bother?
Grim: There is a lot of truth in that. But, there are also a lot of people who bought years ago, who are 50/s 60s now who will be looking to sell. I know two friends of mine who were waiting for prices to go higher, and have now missed out. Then there are the people that have been in their houses for 50 years or more, those houses will eventually be on the market.
Even for the golden handcuff owners, divorce, job loss, especially with a recession will impact. Plus I would imagine a lot of renovations that were financed by home equity loans, and credit lines, and some people using them to pay for their childrens college.
My point is during the housing mania, the line was this is not a manis this is demand driven by Millenials starting families, who have high paying jobs and can afford the prices. And now rates have risen and the demand has dried up? What about the Millenials starting families and their high paying jobs? This golden hand cuff line may be the next thing peddled as why prices won’t fall here. Will it impact of course, but not to the degree some expect. In my town inventory is light right now, and from what I can tell none of them are POS, although a few are on busy streets.
Phoenix – Your hero…
https://www.dailymail.co.uk/news/article-11247055/Man-caught-PEEING-grave-ex-wife-divorced-48-years-ago-womans-stunned-children.html
There are always people with life situations that cause properties to be sold. The elective buying and selling will slow to a crawl
Pandemic put me out of business. Sheriff sales stopped. There was nothing to buy and no REO to be sold. That has been my entire 40+ year career. I have done nothing else. Not motivated to take much risk on new endeavors outside of my field of expertise.
The new wave of foreclosures will start hitting the sheriff sales gradually beginning in a few months. It will be followed a year later by the people losing homes because of the coming recession. By then the courts will begin to back up and it will take 18 months or more from foreclosure filing to sheriff sale. Wash rinse repeat. Somethings don’t change.
No more easy money to be made as an REO listing agent. Looking forward to bidding at sheriff sales again when everyone else is afraid to buy.
Sorry to hear it, but I suppose we all have a business model.
My new one? “Guest” Teacher. No tenure chasing it ass kidding.
No long term plans. If it sucks, then I can move on!
Currently making bank (for a teacher) on a one year temp deal.
Couldn’t be happier!
The difference in cost for me to move into a different home is staggering due to the price point and interest rate spread.
Car thieves just tried to steal an Audi parked up the street an hour ago, my neighbor did not lock the doors but keys were not in it. They ran and escaped in a BMW most likely stolen today too.
There’s a lot of this in Edgewater and the rt5 clifs section of Fort Lee. We had a carjacking and foot chase that ended in a crash just a few yards down the block. It’s crazy with car theft. Nobody wants to steal a Hyundai EV. Who knew my $147 sign and drive would become an even stupider deal as the world descended into car supply madness.
https://nypost.com/2021/09/30/naked-meat-mogul-evan-wexler-grabbed-gun-after-getting-fed-up-thieves/
God is watching you now, on an app called Covenant Eyes.
Anyone on here know how to do app development? I want to make an app called Naughty or Nice so that Santa can watch and find out if you deserve a present on Christmas. Haha. I could use the money.
“Churches are using invasive phone-monitoring tech to discourage “sinful” behavior. Some software is seeing more than congregants realize.”
Or you can put this one on your spouses phone. Install this before you say “I do.” Seems like the churches like this one as well. I wonder if any Catholic priests have this installed on their phones?
“Guard against digital temptations
Find peace of mind and rebuild trust with detailed, real-time accountability software.”
https://accountable2you.com/
Seeing some price drops on Facebook AD spam now around here as there are no bites. Example of a homeowner who is there since 1994…they waited a year too long to list, they might have gotten closer to a million bucks but now they keep dropping the price…
Listed 08/13/2022 $999,500
09/07/2022 Price Changed $974,900
09/16/2022 Price Changed $939,000
Other Facebook spam about looking for smaller 2-3 br ranch homes in town. There are a bunch of them in town built around 1953. All tiny homes on big lots with only $5k in taxes, almost none for sale. My son’s friends live in one, there have a nice yard, pool and even a chicken coop since the lots are bigger with low taxes and expenses.