Sorry to everyone I put through registration hell. Comments are no longer limited to registered users. I was trying to keep the blog free of spam and other nonsense. Settings were changed to allow for anonymous comments, so first timers and regulars should be able to post without going through the blogger registration process. I did turn word verification on, so just make note.
I’ve been receiving quite a bit of email from blog readers lately, if you are a reader, please leave a comment or two so I can get an idea of the user base.
Thanks for reading..
-grim
A tri-state STi driver says hello, and
I’m blogrolling you.
I’m another renter who “missed the boat” a few years back. Luckily I’m in a rent controlled and well situated (albeit older and dumpier) flat in Hoboken. I’m biding my time, saving half my take-home, and hoping that sanity will return to the house market.
I’ve been reading the other blogs (ben Jones, Jersey shore, etc.), fearing you’re all wrong (seriously, the ben jones reader comments is a bit of an echo-chamber), and hoping you’re right.
I AM tired of renting.
i’m a former NYC renter now renting a 2 bedroom condo in South Orange. make a great income but not enough for even a 3-bedroom starter home in nicer towns like Westfield, Summit, Milburn. what a joke. while i don’t believe we’ll see the price corrections other hot areas like LV, AZ and FL will see, i believe the irrational exhuberance will die down and deals can be found. renting timeline can be from 9-18 months. i keep a close eye on NJ.
As inventories pile up and buyers who can afford at these insane housing prices dry up even with this creative risky new loans, I expect the housing market to really drop hard and fast, expecially for those sellers who need to sell.
Last November put in a bid on a house that was about 40 years old and needed work. The greedy arrogant seller would not reduce for a 20+ year roof 15 year units and old bathrooms. The house next to this one only 2 years before sold for about 38% less.
I am looking forward to stick it to a few sellers when the tide really turns.
Also the BS realtor kept trying to assure me that prices would never go down and usually just level off.
Greedy realtors will be unemployed soon.
I see that NYC high end apartments fell 36% in price the last 3 months and the avg apartment in NYC fell 13% in last 3 months.
Biggest drops in more than 17 years.
Back to 1989 last major peak in market. Beware. This is only the beginning.
If you are looking to buy a house or condo wait until price drops of 50% for condos and 25% for houses. If you want to bid go ahead.
Remember a friend bidding for a house in south jersey in 1993. The seller was asking$129k so he put in a bid at $95k. The realtor says he couldn’t do it. He said if you don’t take the bid I will go through someone else. The bid was accepted about 2 weeks later at $105k.
Also remember a friend that bought a condo in flemington for about $125k in 1988 but by 1990 the price had fallen by 40%. He put it on the market at $120K not one bid or anyone interested. Ended up selling it for $85k.
So do not let a commissioned sales person influence your bid. You make the bid you want. If the sellers does not want to accept it they won’t, but if they have to sell at some point they will have to.
Grim,
Thanks for the NNJ blog. I have been looking for NNJ real estate related blog for a while.
I have a suggestion for the blog admin. How about a topic regarding, “how to prifit before, during, and after the Bubble Bursting?”
If or when the bubble bursts, what’s the most prudent way to behave for an investor? or a potential buyer? or a potential seller?
Rent simply does NOT cover the cost.
For a $450K house, if I put down $250K, and borrow $200K. The tax, mortgage, etc. comes out to be about $2000 a month. And the going rental price for $450K house is about $1700/month.
It just does NOT make any sense.
David,
It doesn’t make sense because your function requires an additional variable: Estimated asset appreciation.
If the buyer believes s/he can count on double digit gains, the short-term holding losses of a few hundred dollars a month are minor in comparison to the windfall they expect upon selling in 5 years.
Unfortunately, their estimation was likely to be way off..
grim
On a side note, I came across a rent versus buy calculator on the web that was incredibly biased. The default rate of appreciation on the web-form was prepopulated with 10%. Of course just about every simulation run through the calculator resulted in a bias toward purchasing. Unfortunately, people are thinking these rates are the norm, not the exception.
The first thing buyers should do to control the sell is to get pre-qualified or pre-approved.The Mortgage Consultant who pre-qualified or helped you get pre-approved should have armed you with enough knowledge so you are not given the run around buy sellers, real estate agents, or other banks. Second is never deal with the sellers realtor because they are never trying to help you just thier client. Third a mortgage doesn’t have to cost you an arm and a leg.
I don’t say this because I am a Mortgage Consultant myself. I say this because a truly like to help people and make their dreams come true. If you have ANY questions about pre-qualifying or mortgage options in general, email or call me. Good luck and I hope to here from you soon.
My name is Karream Sheard.
ksheard@remicapital.com or 201.798.7774 ext 115
Grim — greetings. Just checking in.