It’s time for yet another episode of Price Reduced! For all the newcomers to this blog, Price Reduced! takes a good 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 myself, nor do I believe they are a bargain or a value. Even reduced, I still believe these homes are still grossly overpriced.
With that, the listings please!
Our winner by a longshot this week:
MLS# 2205115 Millburn, N.J.
Prior Asking Price: $1,999,000
Reduced To: $1,199,000 (40% Reduction)
Note: This might have been an error in listing price.
Not too far behind:
Elizabeth, N.J. MLS# 2212184
Prior Asking Price: $285,000
Reduced To: $225,000 (21% Reduction)
South Orange, N.J. MLS# 2096614
Prior Asking Price: $1,314,200
Reduced To: $1,040,175 (20% Reduction)
Listing Link
Why anyone would pay a million for a townhome in SO is beyond me.
Clifton, N.J. MLS# 2083061
Prior Asking Price: $625,000
Reduced To: $499,000 (20% Reduction)
Listing Link
Morris Plains, N.J. MLS# 2077918
Prior Asking Price: $1,200,000
Reduced To: $995,000 (17% Reduction)
Springfield, N.J. MLS# 2097902
Prior Asking Price: $599,000
Reduced To: $499,000 (17% Reduction)
Listing Link
Glen Ridge, N.J. MLS# 2203044
Prior Asking Price: $579,000
Reduced To: $499,000 (14% Reduction)
Listing Link
Livingston, N.J. MLS# 2033421
Prior Asking Price: $2,195,000
Reduced To: $1,900,000 (13% Reduction)
Note: New Construction
Millburn, N.J. MLS# 2094937
Prior Asking Price: $2,295,000
Reduced To: $1,999,000 (13% Reduction)
Listing Link
Upper Saddle River, N.J. MLS# 2069051
Prior Asking Price: $2,090,000
Reduced To: $1,849,900 (11% Reduction)
Listing Link
I’ll cut it off there, the list is spectacular this week, over 823 price reductions on the GSMLS alone. The total price reduction over those listings was came to a bit over $60,000,000, and an average reduction of 4%, just spectacular!
Note to prospective buyers, just relax and hang tight, you are not missing anything, you will not be priced out. In fact, the longer you wait, the longer the chances are that you’ll be priced in.
Caveat Emptor!
Grim
The Millburn change was indeed an error, the original listing price was $1,250,000.
grim
The South Orange place is probably a flipper trying to flip a Pulte homes manor only to find that Pulte is still selling these places at around the same price.
I’ve seen this place (I think) when driving around. The townhouse are actually semi-detached on one side and are apparently quite large 4 bedrooms and the like. SOme may also have views. On the other hand, the location is very crowded on all sides, and these are still townhouses. Busy Roads all around.
As far as the Morris Plains place, I guess the guy wants to subdivide it.
Avg price reduction 4%. HAHAHAHAHA
Add a 3 in front of the 4 and bid. Not before.
It’s all smoke and mirrors now. 4% off of a already insane price means nothing but insane price after token reduction.
i live in south orange in a condo complex. i rent but most are owner occupied. unit next door is on sale still in 1986 original condition including a kitchen and 3 baths. asking is like $410k. everyone i see going in there are 20 something couples looking to start ‘building equity’ before they get further priced out. god can you imagine having to plop down $400k on a 25 year old original appliances 2-bedroom condo to get started on the ownership track? this situation can’t last very long.
The new retirement age is going to be 80..
-Richie
I’d think worse than 80 for some, more like work ’till you die.
grim
I see 30% reduction next Spring.
The price has to get back to 2001 or 2002 level to be “normal”.
30%? highly unlikely. i’d say 10% off this year’s comparable comp highs.
I don’t think 30% is unlikely. Prices are already being reduced 10-15% and people still aren’t biting.
-R
I do not think 30% is unlikely, I am seeing major reductioons, and still nothing. I am seeing houses now that at the end of last year, begining of this year, people would have been all over them, now nothing.
I feel sorry for people who closed at the begining of this year, in quite a few instances, I am seeing similiar houses being listed for 50 to 100K less, than what these other people paid just a few short months ago.
I have always said that if they can go up 20 to 25% a year, they can go down just as quickly, but even I am surprised at how quickly it is happening.
Psychology won’t let the market fall that quickly. Many people look at the listing prices as if they were sticker prices on a car. If they can negotiate a few thousand off, they feel like big winners.
Unfortunately, there are still too many greater fools thinking they can, and hoping to, find a bargain in the market.
Let me tell you one thing though, I’m shocked at the lenders television ads lately…
Cash Out The Home Equity You Earned!
This won’t be pretty.
grim
http://money.cnn.com/2005/11/07/real_estate/buying_selling/housing_affordability/index.htm?cnn=yes
”
Bob Moulton, founder of Americana Mortgage Group, said the higher rates have already had a significant impact on his business. “Monday morning is usually my busiest time,” he said. “I’ve had only a half dozen applications today.”
For homeowners with existing adjustable-rate mortgages, the rise in interest rates comes as especially bad news. When the rates to these loans adjust higher, monthly bills can leap. Homeowners with interest-only ARMs may see an especially large increase.
Moulton says that for some ARMs that have recently come up for adjustment, the adjusted rates were actually higher than the rates for 30-year fixed-rate mortgages.
These trends point to a softening housing market, especially in the especially overheated markets. It also could spell trouble for the overall economy since cash from refinancing has helped fuel consumer spending, which has, in turn, helped prop up the economy.
“
grim: Seeing a lot more than a couple of thousand decrease. I think the Spring will be very ugly.
Grim
What is the source of your data. I have been watching the Morris plains MLS you listed and I dont think the price was reduced. It still is the original price
I’m interested in buying in Whippany. There’s about 34 pieces of property on sale, most of it way overpriced (especially the townhouses). Most of the properties have been on the market for months, but no takers and the price decreases (very few) have only been about 2-4%. These people must not be in a rush to sell!
Your post in price reduced
Morris Plains, N.J. MLS# 2077918
Prior Asking Price: $1,200,000
Reduced To: $995,000 (17% Reduction).
I have been watching this listing but never came across the 1200000 number. Where did you get that number from
Can someone with GSMLS access go out an independently verify this?
All you need to do is run a days back hotsheet for morris county/morris plains from 11/1 to 11/7.
Thanks
I have access to the GSMLS (I won’t reveal the street, but it is on 1.98 acres).
Seems to me that the price on this unit has actually increased.
I see the original listing price as 950K, and it is now 995K.
Anyhow, prices are not decreasing everywhere (I underbid on a place for myself in West Orange just a week ago – the townhome ended up selling above asking).
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