From the Asbury Park Press:
Sale prices of homes stabilizing at Shore
Home prices in the area that includes Monmouth and Ocean counties were essentially flat in the first quarter of 2008, declining by 0.6 percent from the same period the year before, the National Association of Realtors said Tuesday.
The median sale price for an existing single-family home in Monmouth, Ocean, Middlesex and Somerset counties was $361,200, down $2,300, from $363,500 in the same quarter in 2007, the association said. The median means that half the homes in the area sold for more and half sold for less.
Joel Naroff, chief economist for Commerce Bank, said the decline is “relatively modest, to say the least.”
Other areas of New Jersey saw steeper de-clines. For example, the median price in Essex, Hunterdon, Morris, and Union counties fell 3.4 percent. In Bergen, Hudson and Passaic counties, the median price fell 5.7 percent.
But there were some increases in New Jersey. In the Atlantic City area, the median price rose 4.8 percent. The market in the Trenton-Ewing area rose 1.6 percent.
…
Little Silver resident Bruce Jennings has had his four-bedroom house at 175 Riverview Ave. on the market since December. He started by asking $489,000. He has reduced it several times to its current price: $449,000.Prospective buyers have attended open houses, but, so far, no serious offers have come in, he said.
“There seems to be people going around, kicking the tires, but since the market has been declining, they are offering very, very low numbers to try to “steal’ one as opposed to coming in with comparable sales,” said Jennings, a senior loan officer at Allstate Mortgage in West Long Branch.
The economy may be one reason his home has not sold yet, he said. “My house would be perfect for a young couple, or young couple and a child, but they don’t want to take on the financial obligation of a house right now because they are afraid of the economy.”
Little Silver resident Bruce Jennings has had his four-bedroom house at 175 Riverview Ave. on the market since December. He started by asking $489,000. He has reduced it several times to its current price: $449,000.
Wow. Prices are stabilizing alright. That Kentucky Derby horse’s condition stabilized shortly after it was put down too.
“There seems to be people going around, kicking the tires, but since the market has been declining, they are offering very, very low numbers to try to “steal’ one as opposed to coming in with comparable sales
Should this read… “There seems to be people going around testing the market, but since the market has declined they are asking very, very high numbers to try to “steal” one as opposed to coming in with current market values”
A couple of years ago, I heard radio ads for Realtor(r) XYZ who thought it was oh-so-sophisticated to set prices not just on comps but on market direction (comps plus a % increase).
Now that the trend has reversed, the NAR calls that approach “stealing.” Nice.
Just wondering, does anyone on the board have Little Silver’s recent comparable sales to see what that guy is talking about.
He thinks his house would be “perfect for a couple” or a couple with a kid — Translation: Small POS. And to think it can be yours for $450K.
According to trulia, 9 homes sold between Feb and Apr 08 — the worst 2-month period in the last 8 years (at least).
I’m not an economist, but I would think that prices need to come down so that supply and demand are in equilibrium.
Or, the consumers are just being stubborn and they need to pay more money that they don’t have.
Funny how the “steal” line irked everyone. Couldn’t possibly be that prices were artificially driven up by speculators and people who couldn’t afford these homes in the first place. They just don’t want to admit it.
I looked it up…..It’s a Cape with 4 beds and only 1 bath. The 2 upstairs bedrooms are 12×12. On a slab, sits on a 67 x 117 lot. Here’s the kicker….it looks like it backs up to the Metro Train line. Every morning when the ol’ 4:15 comes rumbling thru everybody wakes up.
He’s claiming a river view. I’m going to have to ride by there to see exactly what the situation is!
In Little Silver…..he just might get that price. They’ve got bungalow ranches selling for $400K
Here is the bigger problem, not only do people not want to pay list price on something that is declining at approximately 1% per month, banks don’t want to lend it either. Next stop 2003 prices. As for stealing it, they aren’t trying to steal it they just don’t want to get fleeced. It is funny how many people, umm companies etc push for free market only when it is in their favor.
Is this guy serious?
“My house would be perfect for a young couple, or young couple and a child, but they don’t want to take on the financial obligation of a house right now because they are afraid of the economy.”
Here’s a newflash for him, $450k is A LOT of money. To these young couples he speaks of, $200k is a lot of money. After seeing the Q1 2008 NAR report, I’m convinced that New Jersey is home to the most stubborn and naive people out there. How is this market not completely crumbing between the high home prices and the astronomical property taxes?
Anyone have any insight on the LBI real estate situation?