Is the correction over?

Posted on March 18, 2007 by grim

From the Asbury Park Press:

Real estate market shows early signs of a recovery
BY DAVID P. WILLIS

(snipped, will be updated in a few)

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

15 Responses to Is the correction over?

  1. Commercial Real Estate Consultant says:
    March 18, 2007 at 8:09 am

    The answer is no. The housing correction is in the second inning. Jeffrey Otteau needs to spend a bit more time understanding a correction before concluding a recovery. There is a train wreck developing in subprimes, how do you conclude a recovery at a time like this! Furthermore, real estate taxes in NJ will continue to rise, putting additional pressure on all of us. A couple of more home sales, to some impatient side liners doesnt reflect a recovery!

  2. chicagofinance says:
    March 18, 2007 at 8:11 am

    Do you remember when everyone used to complain about auto insurance? Wow that certainly got pushed down the list of overpriced stuff.

  3. chicagofinance says:
    March 18, 2007 at 8:15 am

    Seriously, what is Otteau babbling about? A bunch of double talk. We just shaved a good 5-10% of the actors out of the market, and part of those are people who are in homes and are going to get kicked out.

    Since I assume the Big-O is no moron, his comment might be taken out of full context. Note this articel is published in the Asbury Park Real Estate Press.

  4. James Bednar says:
    March 18, 2007 at 8:17 am

    I agree, I was going to send Jeffrey an email later in the day asking about that quote.

    I don’t believe that he would have stuck his neck out like that.

    jb

  5. sas says:
    March 18, 2007 at 8:43 am

    Mr. Otteau, the more you talk, the more transparent you become.

    Mr. Otteau is bought and paid for by someone to be a mouthpiece.

    SAS

  6. JCSidelines says:
    March 18, 2007 at 9:00 am

    Well, he sounds more and more like David L.

  7. syncmaster says:
    March 18, 2007 at 6:36 pm

    … some sellers are starting to see multiple offers on a home. But unlike two years ago, when bidding wars forced prices up, negotiations are occurring below asking price, Otteau said.

    So people are making lowball offers. Cool, that is better than not making offers at all. Speaking of lowballs, what happened to the February 2007 edition of Lowball?

  8. crossroads says:
    March 18, 2007 at 6:45 pm

    affordability hasn’t changed! the median price is still 5 times median income out of whack compared to historical standards

  9. Lindsey says:
    March 18, 2007 at 9:05 pm

    Crossroads hit the big number on the head. That Monmouth County price is almost exactly 5 times median income.

    Keep in mind of course that vast majority of people already in Monmouth County with that kind of income already are homeowners, so where exactly are all these new buyers coming from?

    If we could just do a little math for a second, it becomes quite clear that there are really no such thing as single family home first-time home buyers in Monmouth County. The first-time home buyer market here is basically 100% condo/townhouse because sfh’s are simply too much money.

    If you have an annual income of $90K or so and you don’t own a home, you couldn’t rationally be seeking an sfh in Monmouth county. You would either go south for more house than you can get here, or you would go north for better nightlife/social opportunities than are available here at least 9 months of the year.

  10. Mike R. says:
    March 19, 2007 at 11:58 am

    I’ve been a reader of this blog for over a year and a devout RE-bubblehead since 2004, when I sold my house and moved into a rental.

    Well, from what I see in my town (Tenafly), the spring market is indeed back in force. Half-decent houses in our price range (1 – 1.5 mm) are being snapped up. We were already outbid on one of them. Perhaps this is a temporary correction, but Mr. Otteau appears to have some basis for his statement, at least from what I’ve seen so far this year.

  11. rob says:
    March 19, 2007 at 1:28 pm

    If your income is only 90k you don’t belong living in a good town in Monmouth co .plain and simple

  12. sally says:
    March 19, 2007 at 3:38 pm

    It looks like bidding wars will be here sooner that I thought ,Otteau’s remarks seem to be justified in all but the weak markets .the demand is just too strong to hold prices in check for much longer …just my thoughts

  13. JIm says:
    March 19, 2007 at 8:44 pm

    Sally,

    You have to be in your own dream world.
    Subprime loans are crashing, there is talk about raising interest rates, and taxes in NJ will skyrocket.

    People are well overextended, this is just the start, wait and see, then you can face reality.

    Read the article about builder sentiment, it may just open your eyes.

    JIM

  14. sally says:
    March 20, 2007 at 8:57 am

    Sub-prime ,y2000k crash, ….it has created great opportunities for people willing to take the risk,not by people complaining about it.stop being such a chickenlittle .

  15. Timothy Schwartz says:
    March 20, 2007 at 6:14 pm

    The statistics definetly show more houses selling than in 2006. There is plenty of inventory for buyers to choose from and the mortgage rates are still low. We are seeing an increase in activity but I only studied the Monmouth County market.

Comments are closed.