Welcome to another edition of Price Reduced!
For all the newcomers to the site, Price Reduced! takes a look at a handful of significant price reductions across Northern NJ. The purpose of this exercise is to serve as evidence 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, nor do I believe they are a bargain or a value. Even reduced, I still believe these homes are still grossly overpriced.
These listings are from GSMLS and consist of Single Family Homes, Condos, and Coops. Reductions of 19% and greater are displayed here, all other price changes can be found in the Excel file below. With that, the listings please!
| MLS | Town | OLP | LP | % Reduced | $ Reduced |
| 2282353 | Wayne Twp | $33,900 | $16,000 | 52.8% | $17,900 |
| 2323221 | Moonachie Boro | $13,500 | $8,500 | 37.0% | $5,000 |
| 2295061 | Hopatcong Boro | $249,900 | $179,000 | 28.4% | $70,900 |
| 2270364 | Roselle Boro | $480,000 | $345,000 | 28.1% | $135,000 |
| 2279379 | West Milford Twp | $875,000 | $629,900 | 28.0% | $245,100 |
| 2328324 | West Orange Twp | $369,900 | $269,900 | 27.0% | $100,000 |
| 2293209 | Paterson City | $205,000 | $149,900 | 26.9% | $55,100 |
| 2278542 | Roseland Boro | $1,489,900 | $1,100,000 | 26.2% | $389,900 |
| 2325537 | Plainfield City | $389,900 | $289,900 | 25.6% | $100,000 |
| 2278161 | Morristown Town | $799,000 | $599,000 | 25.0% | $200,000 |
| 2270544 | Berkeley Heights Twp | $599,900 | $449,999 | 25.0% | $149,901 |
| 2283640 | Washington Boro | $329,000 | $249,000 | 24.3% | $80,000 |
| 2304689 | Andover Twp | $624,900 | $475,000 | 24.0% | $149,900 |
| 2297945 | Mountain Lakes Boro | $1,599,900 | $1,228,900 | 23.2% | $371,000 |
| 2242383 | Roselle Boro | $324,900 | $249,900 | 23.1% | $75,000 |
| 2282170 | Washington Twp | $324,000 | $250,000 | 22.8% | $74,000 |
| 2302233 | Parsippany-Troy Hills Twp | $399,900 | $309,000 | 22.7% | $90,900 |
| 2260978 | Belvidere Twp | $374,900 | $292,500 | 22.0% | $82,400 |
| 2310123 | Wayne Twp. | $549,000 | $429,000 | 21.9% | $120,000 |
| 2311014 | West Milford Twp. | $242,205 | $189,900 | 21.6% | $52,305 |
| 2260492 | Roxbury Twp. | $419,900 | $329,900 | 21.4% | $90,000 |
| 2299633 | Bridgewater Twp | $699,000 | $550,000 | 21.3% | $149,000 |
| 2292075 | Essex Fells Twp | $1,199,000 | $949,000 | 20.9% | $250,000 |
| 2286426 | Clifton City | $499,000 | $395,000 | 20.8% | $104,000 |
| 2294489 | Bridgewater Twp | $378,876 | $299,999 | 20.8% | $78,877 |
| 2291217 | Mansfield Twp | $41,000 | $32,500 | 20.7% | $8,500 |
| 2224128 | Union Twp. | $580,000 | $460,000 | 20.7% | $120,000 |
| 2281383 | Mount Arlington Boro | $629,900 | $499,900 | 20.6% | $130,000 |
| 2223440 | Hardyston Twp. | $179,900 | $143,000 | 20.5% | $36,900 |
| 2284589 | Washington Twp | $439,900 | $349,900 | 20.5% | $90,000 |
| 2296018 | Passaic City | $450,000 | $359,000 | 20.2% | $91,000 |
| 2273474 | Springfield Twp | $549,000 | $439,000 | 20.0% | $110,000 |
| 2298583 | Elizabeth City | $375,000 | $299,900 | 20.0% | $75,100 |
| 2277487 | Mount Olive Twp. | $299,900 | $239,900 | 20.0% | $60,000 |
| 2270570 | Mendham Twp | $749,900 | $599,900 | 20.0% | $150,000 |
| 2269872 | Wayne Twp | $599,000 | $479,900 | 19.9% | $119,100 |
| 2248967 | Linden City | $279,900 | $224,500 | 19.8% | $55,400 |
| 2282328 | Montclair Twp | $995,000 | $799,000 | 19.7% | $196,000 |
| 2300872 | Rockaway Boro | $489,900 | $394,900 | 19.4% | $95,000 |
| 2291265 | Boonton Twp | $2,975,000 | $2,400,000 | 19.3% | $575,000 |
| 2067079 | Elizabeth City | $799,000 | $645,000 | 19.3% | $154,000 |
| 2309610 | Rockaway Boro | $650,000 | $525,000 | 19.2% | $125,000 |
| 2299938 | Newark City | $154,500 | $125,000 | 19.1% | $29,500 |
A full listing of price change history over this time period can be found here:
Price Changes 10/1 – 10/15 (Large XLS Warning)
Caveat Emptor!
jb (aka Grim)
From the njmls realtor message board:
Isn’t anyone looking for a fabulous, updated young 4 BR Colonial in great Oradell neighborhood? Price was recently cut to $839K and yet only one showing. Check out 750 Martin Ave (listing #2637922) Yes it’s a corner property,but it’s completely fenced in for privacy and the yard is larger than it appears once you are looking at it from the rear of the house. Please don’t let your prospective buyers just drive by!!! If you are not available to take them inside, I will accompany on your behalf, as I live a block away… House is vacant and ready for immediate occupancy. Tell all your colonial homebuyers to come to tbe Open House this Sunday, Oct 22 from 1-4; I will honor all your customers!!!
Perhaps it is the $12,000 annual property taxes???…
oh, and those first two MLS#’s in Wayne and Moonachie are most likely trailers
These are all Active listings, you should be able to look them up using the advanced search options at Realtor.com.
Anybody:
Why would a home be listed on craigslist with an agent contact/phone.
However, the home is not listed on mls, or on the agent’s company’s exclusive list.
Does this mean the agent is moonlighting for a friend? The sellers don’t want to pay commission? The agent owns the home?
Other ideas? Thanks.
bigwindow,
the wayne house is a single room shack of 400 sq ft.
here is the description: RIVER FRONT HOME SELLING AS IS. THE HOUSE WAS A SUMMER BUNGALOW WITH NO HEAT, WELL, SEPTIC OR BATH – BUYER RESPONSIBLE FOR C.O. AND ALL INSPECTIONS REQUIRED. PROOF OF FUNDS REQUIRED WITH ALL OFFERS
geez…so they want 16k for a shed?
Is the Excel download working for anyone?
The xls is fixed, sorry about that.
grim,
could you please include middlesex county also. It is so close to NYC. I think it should be included as there is still lot of value in middlesex county.
2297945 Mountain Lakes $1,599,900 $1,228,900
This property was originally listed at over $2M before it expired and was relisted. It seems the owner ran out of funds for completion and has been trying to sell it for over 2 years.
It was reassessed last year and now 2006 taxes are a ridiculous $45,573 p/year, or $3,800 per month. Nobody seems to want it, I wonder why?
“Perhaps it is the $12,000 annual property taxes?”
Or the $839K price.
Great spreadsheet. Some towns are listed twice, one with and one without an asterisk. What is the difference?
The portion of Middlesex covered by GSMLS is included in the spreadsheet.
From Bloomberg:
California Home-Loan Defaults Rise to Highest in 4 1/2 Years
California home-loan defaults rose to their highest level in four and a half years in the third quarter as lower sales of houses and condominiums and slowing price gains made it harder for homeowners to sell and pay off mortgages.
Banks and other lenders sent 26,705 default notices to California homeowners in the third quarter, more than double the 12,606 sent a year earlier and up 28.3 percent from the second quarter, La Jolla, California-based DataQuick Information Systems said today in a statement. More default notices were sent in the third quarter than any time since the first quarter of 2002, when 30,225 default notices were sent, the research company said.
Homeowners are having a harder time getting out of debt by selling, DataQuick said. Home prices in Southern California last month had their smallest increase in almost a decade, and San Francisco Bay Area prices dropped for the first time in four and a half years.
“When prices are flat, or going down, fewer homeowners in financial distress are able to use their homes to bail themselves out of trouble,” DataQuick President Marshall Prentice said in the statement.
get this – I made a $425,000 offer on a 699,000 house last month that was flat-out rejected with no counter offer. Now, one month later i get an e-mail from the broker/owner (not the realtor I was working with) encouraging me to make a more reasonable offer because the owner of the house is eager to sell.
Zac –
resubmitt the same offer,and either let them counter offer or let them not accept it again.
Jim, dude, the XLS file is really outstanding. Thanks for empowering us with timely and relevant info. The info on your blog is the perfect counterpoint to the realtors tight control and spin of RE market information.
A interesting http://www.forsalebyowner.com listing #20497664.
The tax records indicate this house bought on 05/22/06 at 600K. Currently it on sale for 599K and the seller is willing to negotiate. But the previous year tax records show the same person who is selling the house as the owner.
I don’t get the story.
Is this some kind of scam, where the person sells it to his relative (or someone he knows) at a very high price and then puts it for sale again after 3 months.
Can any gurus here throw light?
“Even reduced, I still believe these homes are still grossly overpriced.”
I am going to huff buff and blow your house down!
From Reuters:
Ryland 3rd-qtr profit falls 25 pct; orders tumble
Ryland Group Inc., the eighth-largest U.S. home builder, said on Wednesday its earnings in the latest quarter fell 25 percent, and new orders plummeted nearly 46 percent, as the slowdown in the U.S. housing market continued.
The company reported a third-quarter net profit of $87.9 million, or $1.97 a diluted share, compared with $117.9, or $2.39 a share, last year.
Thanks grim
Washington Mutual results out. Provision for loan losses tripled and loss from their mortgage operation. Opps.
THis site is the best time pass. Better than finance.yahoo.com. I could not wait to read this everyday.
Zac,
Go back lower than your original bid, if you love the place stick where you are at now. They’ll say it’s insulting and then they’ll call you back in 2-3 weeks. Who the hell else is knocking their door down???
Apparently no one. It’s been for sale since May.
Zac
Feel sorry for these silly sellers. They have got no better offers and they try to get lowballers to come up close to their ridiculous asking price.
I plan to lowball only after DOM hits 100 days. Hopefully by then the seller would have woken up and coffee. Either that or they are not serious about the selling.
but there are still some dopeheads out there chasing the last few homes availabe before we run out of homes in NJ and one of them may still buy it for or above the asking price.
Grim… awesome. Just awesome. The excel spreadsheet is a great idea. Thanks for all the hard work.
Zac,
I agree with your strategy. I have tried lowballing for a vacation home. I have been laughed at by sellers for one reason..they are mortgaged out almost or in some cases 100%. They are stuck between a rock and a hard place. They cant sell for what they bought for but yet they cant afford to make or carry the payments any more. They will either have to have the bank o.k. a short sale or eventually hand them the keys and walk away. My new strategy is to look up the mortgage BEFORE making my offer so I dont waste so much time.
Excellent idea -I do that too, but this house was a divorce sale; the husband bought out his ex-wife for one dollar. The online county records only go back 4 years. The sale occured before that.
Bottomfeeder,
You are right. How many sellers are holding out because it’s either their price or the keys go back?? They are trapped, no room to maneuver. They have to hold out, it’s their only chance. Hell, between re commissions, closing costs and the realty transfer fees it cost it will cost approx 40k to the seller, on a 500k sale.(By the way, it won’t be long before the state will hit us with another tax, claiming they are not receiving the income they expected because of the re bust) How much equity do sellers have if they bought within the past few years or if they used their house as an atm??? It may be time to go right to the lending institutions, non performing loans. The realtors, as we know them, will become extinct. There will be no business for realtors, 70-75% back to their previous career. Hope they socked it away!!
BottomFeeder –
How do you look up the mortgage?
Thanks for posting the spreadsheet JB, it’s such a pain in the arse to track this info manually.
Hope this is a recurring feature!
Buyer: You are dead wrong. The reason I didn’t buy last few years is that I know it is going to come down, crashing hard. This is just the start of the long process. I am sure it will send grandma-turned “realtor” back to where they were, mopping their house floors, and it will sweep away the pants of those greedy flipper. It will take a fool to believe those lies from salesman, “real estate always go up”,”there is not enough land and price will keep going up”. I am patient and I know what I am doing. You can say I am a hard rock not yielding to all the bullsh*t out there.
As I said, $280 is a very good price for the house. I am not sure I will waste my time on your $280K listing….I offer $280K for that house because I think that house is worth $280k. you know the house is worth only the numbers somebody offer.
Realtor:
Your way obviously isn’t working since you are still looking for a home. I can email you over some $280 listings and see if you like them…………
buyer:
too bad you don’t pass the verbal offer. My way of working is realtors passing the info first, we then put things in writing if all parties agreed to some numbers. It is good to be in seller’s market.
Realtor:
Wake up and smell the coffee? I like to wake up and smell the roses, actually.
If you are really interested, why not come into my office and make a written offer, or is it too far for you? Probably would be a good idea to see the house too, huh? I do not forward verbal offers to sellers only written offers.
Buyer:
It is unfortunate a lot of realtors and buyer still walk around with blinders on,
living in their denial. Time to wake up.
Realtor:
Perhaps I can refer you to an agent in Iowa, I’m sure they will have something nice for you at that price!
Buyer:
Hi, I am dead serious about purchasing the property. The asking price is laughable and irrelevant. People need to stop floating in space and come down to earth.
There is no typo on my offering price, $280K is a lot of money and it is a very reasonable price for the house. you know the market is dropping like a stone.
Realtor:
Hi David, I received your inquiry and offer for $280 on my listing that is listed for $619 in ****. You must have typed in the wrong number because I can’t possible believe you would offer $280. Please advise. Thank you.
it should “It is good to be in buyer’s market.” in buyer’s comment
Buyer: You are dead wrong. The reason I didn’t buy last few years is that I know it is going to come down, crashing hard. This is just the start of the long process. I am sure it will send grandma-turned “realtor” back to where they were, mopping their house floors, and it will sweep away the pants of those greedy flipper. It will take a fool to believe those lies from salesman, “real estate always go up”,”there is not enough land and price will keep going up”. I am patient and I know what I am doing. You can say I am a hard rock not yielding to all the bullsh*t out there.
As I said, $280 is a very good price for the house. I am not sure I will waste my time on your $280K listing….I offer $280K for that house because I think that house is worth $280k. you know the house is worth only the numbers somebody offer.
Realtor:
Your way obviously isn’t working since you are still looking for a home. I can email you over some $280 listings and see if you like them…………
buyer:
too bad you don’t pass the verbal offer. My way of working is realtors passing the info first, we then put things in writing if all parties agreed to some numbers. It is good to be in buyers’s market.
Realtor:
Wake up and smell the coffee? I like to wake up and smell the roses, actually.
If you are really interested, why not come into my office and make a written offer, or is it too far for you? Probably would be a good idea to see the house too, huh? I do not forward verbal offers to sellers only written offers.
Buyer:
It is unfortunate a lot of realtors and sellers still walk around with blinders on,
living in their denial. Time to wake up.
Realtor:
Perhaps I can refer you to an agent in Iowa, I’m sure they will have something nice for you at that price!
Buyer:
Hi, I am dead serious about purchasing the property. The asking price is laughable and irrelevant. People need to stop floating in space and come down to earth.
There is no typo on my offering price, $280K is a lot of money and it is a very reasonable price for the house. you know the market is dropping like a stone.
Realtor:
Hi David, I received your inquiry and offer for $280 on my listing that is listed for $619 in ****. You must have typed in the wrong number because I can’t possible believe you would offer $280. Please advise. Thank you.
California home-loan defaults rose to their highest level in four and a half years in the third quarter as lower sales of houses and condominiums and slowing price gains made it harder for homeowners to sell and pay off mortgages.
Great post, James. This is not surprising though to anyone who has also been following SoCalMtgGuy’s blog (“anotherf@uckedborrower”) over the past year. His blog is a great complement to yours and I encourge everyone who has not checked his blog out to do so. He speaks very frankly about what he has seen/experienced in the mortgage industry, as a former mortgage broker.
dead-man-walking
Good for you I am glad to see more people lowballing.
I have to laugh at realtors, I inquired about a property that was listed at 244K and in need of TLC, I asked the agent if they will negotiate becuase that price is too high. I than sent in her nasty email after a few days since I did not recieve a response, she than claims my email got stuck in her junk mail(another btilliant realtor)
She said its priced fairly and about how other ones sold for more a few months ago. Well needless to say its been on the market for 150 days and will continue to sit.
I also had the pleasure of a realtor from Cold Gutter Stankers real estate tell me that I have to come in and meet with her, cause she does not check her email that often.
I advised her thats not how I work, she is supposed to make it convient for me, as I work through email none of the phone or comming in crap. I pick a property you either send me info and take me to see it or I go see it with another realtor.
Hence she never contacted me again.
I recently considered going border hopping over to Penciltucky. Well needless to say the realtor we were working with advised that the market was only going up and that the market never drops. Plus my wife and I would spend about 400.00 on commuting, so staying in NJ is not too bad. We had met with her 2 weekends in a row to see some places. Its been over about 2 months since we went to see properties. We get listing automatically sent to us, but of course she has not contacted us since to say hey how are you have you seen anything you liked, maybe I can check other areas. The HELL with Keller Williams. Pathetic.
The only thing realtors to is Lie and charge lots of money. In Jerzy I shall stay :)
And please anyone out there, when you go to an open house, does the realtor give you a sales pitch other than reading word for word on the listing or saying it has nice size rooms??? And why cant realtors answer questions
Me: What do the association fees cover
Realtor: Um uhhh let me check the listing. It doenst say, I am not sure uhh I can find out for you.
Me: Why should I pay 299K for this townhouse when there is an identical one for 50K less with lots of upgrades.
Realtor: Uhhh Uhhh well this seller is willing to negotiate.
Ever go to a car dealership and ask the salesmen if the car has power windows and the salesmen say Uhhh gee I dunno let me go ask.
Last story
I went to an open house last sunday. Went throguh townhouse adivsed realtor that it needs a good amount of work and it extremly overpriced and we prefer a 3 bedroom not 2. Plus the kitchen cabinent doors were all hung crookedly. The realtor said ohhh I didnt even notice that. LIAR. I think the homeowners must have been sipping some of grandma’s juice before haning them. And they want 299K I told her I was not interested becuase it was extrmely over priced and it needs like of work. She was trying to keep me there. I walked out.
Dum Da dum dum what a joke
http://money.cnn.com/2006/10/18/news/economy/housingstarts/index.htm?postversion=2006101813
Yes, Everette. “They” forgot to tell me that Open Houses are a waste of time, too. I saw a statistic out there somewhere irretrievable that showed open houses rarely sell to a looker esp. in a down market. But you might find a new real estate agent. They are a pretty good opportunity to interview agents if you are new to an area.
V,
I’m looking in Cape May county. All of their public records are available online. I log onto the county clerk site and access the public records using the owners name or street address. The mortgage(s) and deeds are just a point and click away. Have fun!
Add this one to Price Reduced.
MLS 2300885
Large Lot at 117 x 300 but the taxes are enormous at 13,195.
OLP in July = 889
Reduced in September = 869
Reduced in October = 839
6% so far, 24% more to go.
Interesting that in NYC, condos with higher maintenance/taxes sell for less than similar condos with lower maint/tax. This rule doesn’t apply in single family homes.
Had a realtor e-mail asking about when I’m going to purchase a house. Told her that there’s no rush with prices dropping every week and inventory exploding.
Her reply was classic, there must be a talking points pamphlet handed out at monthly realtor meetings. She said, buy now because:
* Interest rates are low
* Prices will go up in the spring
* It’s different here
* Wall Street bonus money
Desperation.
UnRealtor – Your realtor isn’t wrong about interest rates going up or that different areas will feel the effect of the “burst” differently.
I’ve been looking for a house in Essex County (Montclair/Bloomfield/Verona/West Orange) for only a few weeks, but have been watching the market for the last year. Recently, I’ve seen $50k drops on homes in a matter of weeks, and nicer homes in nicer neighborhood sit on the market for over 6 months or go well under asking. That said, I’m not underestimating the power of rising interest rates and the weather, and think it’s worth the gamble to close on soemthing in the next 3 months. No every area will have price reductions (West Orange has just about bottomed out — Montclair will drop more in the next six months), and every quarter point on interest rates makes a difference.
My point — don’t ignore your realtor completely, even if you know what you’re doing.
“No every area will have price reductions (West Orange has just about bottomed out — Montclair will drop more in the next six months), and every quarter point on interest rates makes a difference.”
What data do you have to make the conclusion that WO has bottomed??? Regarding rates, let them go up, what the hell do you think that will do to prices. You can always refinance later, unless you took out an I/O and are floored by your new payment. What happens if you buy now and the market drops over the next few years, can you go back to the lending institution and refinance your purchase price???
Making, probably the biggest investment of your life is not worth a gamble. What the hell does weather have to do with a glut of inventory. How was the weather this past spring/summer/and now fall??? My point, ignore your realtor completely and your lender more than that.If you know what the hell you are doing, why in the world do you need a realtor, other than mls??? Watch out for your own ass!!!
Too all the lowballers, how long have you been paying rent? Make sure you add that amount to the buy price of that great bargain you snap up! If there is a home that you like and you can afford it, do your homework and make a decent offer (within 10%)and buy it, but don’t offer rediculously low offers that waste everyone’s time. Like 280K for a 700K home. That’s just a cheapskate trying to get something for nothing. I’ve bought homes in every market cycle and have never lost money. Of course I keep the properties that I buy for at least 5-10 years. If you’re not staying that long you should rent.
I can tell you that all these price reductions are from people listing their homes at high prices and then reducing them a month later.
And for all the people late to the party selling their home, just take your home off the market to clear up the glut and let the market get back to equilibrium so people aren’t so afraid to buy. Or get realistic about the price. If you think you’re doubling your money in 2 years then you’re being unrealistic.
Pat, I found that out about open houses the hard way. They are only there to generate leads for RE agents.
JCinNJ
Please post MLS #s for examples of reasonably priced homes in Springfield, Westfield, Cranford, Clark and Scotch Plains(Union County). I am ready to buy.
And, if I find a home that is priced 35% over the price current owner paid two years ago, do I have to stick to your “within 10%” of asking price guideline?
Finally, you have bought homes in every market cycle and made money since when? Let us know what years you got in and out with each occurrence. I would like to subscribe to your investing in real estate newsletter. I tried the Carlton Sheets method but you must know something he didn’t.
BC Bob-
I’ve been watching the prices here for over a year and WO has been stable compared to Montclair, for example. There is less inventory, current, upscale development in the area, and simply less room to fall. Montclair’s middle class neighborhoods with crazy-high taxes are way overpriced, even for junk. Those prices will fall because they can.
As far as rates, they matter if they go up signficantly. You say that you can refinance later, but if you bought in six months at 7%, it may take several years for rates to come down again. Rates may not come down this low again, at least not while you’re in the house.
I also think you’re overestimating how far prices will drop when rates go up. It won’t hit every area the same way — certainly not younger, trendier neighborhoods full of 30- and 40- somethings and their families. They’ve only been in the market for a few years and won’t sell a house for half of what they paid for it because they can’t.
Also, it’s not the weather that matters — it’s the school year.
Yes, we should watch out for our own ass, but you also shouldn’t pay rent indefinitely waiting for a $700k house to come down to $200k. It won’t happen.
JCinNJ,
Renting for the last year. Owned for the prior 20. I will take your analysis one step further. I will calculate how much I saved from the market top until I buy. I will also calculate what I saved in property tax. I will then figure that I have lived rent free, int pays it. My analysis will show a huge advantage in the favor of renting than owning at this time. I would not have felt this way in the 90’s. Not even close now. How do you calculate that a decent offer is something within 10% of asking?? I can come up with two very similar properties, bedrooms/baths/extras. There is a huge difference in the asking price. 10% off which one??? Sellers/realtors don’t even know how to price it. The market has turned that fast.
I determine what a decent offer is, not a certain % off asking. If I take your suggestion I can be paying 20-30% over market. No thanks!!
If interest rates go up – HOUSE PRICES WILL BUST EVEN WORTH.
Higher rates – lower affordability.
We are already seeing double digits foreclosure rates this year compare with the last in CA, california was first to the bubble and fueled the whole country.
NJ will be a year behing – so NJ foreclosure will start in 2007, skyrocket in 2008 – however keep in mind that people who go to Foreclosure in 2008 bought their house in 2003-2004, so it even won’t reflect crazy people who bought in 2005/2006 – so the pain will be felt for at leats 4 more years.
Now if you add rasing interest rates to it – hmm, I say that will kill everything inNJ.
Coming back to my question – can the state go bunkrupt and what happens than???
“Rates may not come down this low again, at least not while you’re in the house.”
First Time,
You are right about this, and if rates go up substantially the bust will be more severe. Who’s waiting to buy a 700k house for 200k. That’s a 70% drop!! I don’ think it will be disaster like that. Doesn’t matter what time of the year toxic loans adjust/new tax bills come. It’s a price/affordability/migration out of the state issue, not a school time issue. By the way, what happens when those 30-40 something’s decide that that once trendy area is now the pits , one wage earner decides to stay at home to care for a child, job transfer, move into a beter schoool district, divorce, etc… The average homeowner stays put for approx 7-8 years. Many households have to sell earlier than they originally thought for various reasons.
JcinInNj
Dont make me laugh you are the biggest jidiot out there.
Artifical inflation ever hear of it? Fantasy loans? Rising taxes?
65-100 percent increase is not absurd to u?
So why is that ok but asking that much under is as u put it an insult?
Sure people can afford these prices thats why forclosures r on the rise, and why houses are just sitting collecting dust.
Read articles and b back up ur jidiotic babble
I can tell you that all these price reductions are from people listing their homes at high prices and then reducing them a month later.
Are you sure about that?
MLS DOM
2282353 145
2323221 24
2295061 114
2270364 144
2279379 154
2328324 11
2293209 114
2278542 157
2325537 21
2278161 156
2270544 178
2283640 141
2304689 79
2297945 100
2242383 263
2282170 146
2302233 89
2260978 204
2310123 63
2311014 61
2260492 205
2299633 96
2292075 118
Yeah u IDIOT!!
JcinNJ,
JB has facts not rhetoric.
You bought in every market cycle??? Well,if you bought in 1988, you only broke even in 1997. You didn’t make money in 5-10 years during this cycle. Go ahead, keep buying now, can you please buy multiple properties in my town??
“it’s worth the gamble to close on soemthing in the next 3 months”
Interesting. Have a look at this chart and let me know if the next 3 months looks like a good time to buy, or the road to financial ruin:
http://graphics10.nytimes.com/images/2006/08/26/weekinreview/27leon_graph2.large.gif
“West Orange has just about bottomed out”
A 5-year insane runup in prices, “bottomed out” in a few months? You’re either a realtor, or very gullible.
“Too all the lowballers, how long have you been paying rent? Make sure you add that amount to the buy price of that great bargain you snap up!”
Don’t pay rent, as the interest earned from not buying a bubble-priced house offsets rent. Make sure you add opportunity costs when “owning” a house.
The market is crashing and this spring is going to be the BUST!
Cruddy realtors will be going to the poor house.
Take 30% off of 2005 prices and bid if you want nothing more.
I made a bid on a house about 3 months ago. I priced it at what I felt was a fair price. It was roughly about 20% lower than asking. The seller was insulted so i walked away silently telling my wife if they ever come back to me i will bid 5% (From OLP)lower than my bid price so it was roughly 25% off of list. The seller did not get back yet, but no more insult comments. They better get back soon or i will walk away and wait for even a lower price. Then they can beg on their hands and knees with another discount.
JCinNJ,Offer decent price within “10%” of the asking price? advise sellers to delay listing to make the inventory come to “equilibrium”? go now if you can afford, not to worry about the market condition? Why do I smell something fishy? sounds like a covert realtor. The real estate industry has been corrupted by people like you. Those poor clueless poor guys taking the bullsh*t from you(like “land is fixed and you can’t make it any more”,”buy now before it is too late”,”real estate always go up”) will soon have an upside down mortgage like a rope under their necks. You guys are the ones that cheer and slowly put the ropes there. I am not sure how many pills you take at night. don’t tell me none. That says you have no conscience any more. Anybody is entitled to offer any price to any property. In my opinion, 280K for a lot of 700K houses is a very decent offer. You and you cohorts need to stop lying! Get a decent job, that is my advice for you.
I always start offer at 30% of asking price and it is normally valid for 1 month. After that, it get 5% less every month. Guys, keep offering the real price, not the ridiculous inflated ones. You don’t want to be the last one dancing when music stops.
Realtor trolls –
I have nothing to lose at all by offering a fair bid (what you call a lowball). I can wait for a year or two. My worst case scenario is that in a few years, real estate values remain stagnant. If that really pans out (and I seriously doubt thats the most likely case) then I will pay the going rates and be done with it. Until then, I am renting and I have a 20 min. commute into the city via subway. I am saving a fortune by not having (1) a car (2) car insurance (3) train pass (4) daily parking expense at train station. Now multiply that by two to account for my husband who also works in NYC.
I won’t even work with a realtor. They bring negative value to the table as far as I am concerned.
If your selling clients can wait to sell for two years, then they win. Enjoy having no commissions for two years. If you really want to help out your clients and yourselves at the same time, stop your nonsense re-listing practices and get your clients to price realistically.
Tough crowd.
UnRealtor: You said, “A 5-year insane runup in prices, “bottomed out” in a few months? You’re either a realtor, or very gullible.”
Five year run up in prices, but not every community has seen the same runup, at the same rate, and certainly not every community will experience the same rundown. WO prices never got that high, so they don’t have as far to fall for what I would consider a “fair” market value.
I’m not a realtor, I just don’t believe that you’re going to get the across-the-board price reductions many of you seem to be waiting on. I also don’t think it’s right to condemn all realtors for rising housing prices. I think you should blame every jackass who was willing to pay $500k for a starter home with a granite countertop. Sadly, the market, not the realtor alone, decided such crap was worth that much.
I want to agree with the poster that said that realtors don’t even know how to list homes anymore because of the falling market. We’ve seen absolute crap in marginal areas on the market for the same price as much nicer, remodeled homes. And there doesn’t seem to be an logic about what sells and what sits anymore.
HELP!! I am a first time buyer. Been doing lots of research, saving, and viewing. Although, i am totally confused. Do you think it is a good move to buy a town home in NJ, live afew years, then list it for rent as I move into a single family home. I am having a hard time dropping 500k on a starter home…can someone give me some good guidence.