From the NY Times:
ow a Tunnel Would Help New Jersey Home Values
WHAT is the real estate value of a one-seat train ride to Manhattan from a station close to one’s home in New Jersey? Leave it to statisticians to come up with a figure.
“It has to be a lot,” said Perri K. Feldman of Keller Williams Realty, who has built a client base in towns along a section of the New Jersey Transit Midtown Direct line running from Morristown to South Orange. “It’s the first question so many people ask about a house: ‘How close is it to the train? Can I walk to the station?’ ”
Now, the extra value that comes with proximity to a station with direct service to Manhattan — no transfer required — has been quantified: $19,000, on average, for homes within two miles of a station; $29,000 for houses within half a mile.
Home values would increase by those amounts in neighborhoods surrounding 10 New Jersey Transit lines and 2 Metro-North Railroad lines if a third rail tunnel under the Hudson River was ever built, according to a study by the independent Regional Plan Association.
Statisticians worked backwards, analyzing the impact on real estate value when previous rail-improvement projects were done, to project the impact that a new tunnel would have on home values.
The cumulative increase in property value would be $18 billion, according to the study, which was published two months before Gov. Christopher J. Christie of New Jersey decided to suspend work on the tunnel as of Oct. 7. Senator Frank R. Lautenberg, a tunnel supporter, has worked to publicize the findings.
…
Data from 45,000 area home sales that took place from 1993 through 2008 were analyzed. According to Juliette Michaelson, who performed that section of the research, the analytic process assumes that the price of a house is determined by the value of characteristics like number of bedrooms, quality of the school district and access to train service. By looking at thousands of sales involving houses with differing combinations of those characteristics, it becomes possible to estimate the amount that each individual characteristic adds to the price of the house, Ms. Michaelson explained in the notes accompanying the study.
Interesting.
From Bloomberg:
Hamptons Home Prices Fall as Buyers Seek Lower-Priced Retreats
Home prices in New York’s Hamptons, the beachside resort towns in Long Island swelled by summering Manhattanites, dropped 14 percent in the third quarter from a year earlier as buyers opted for less-expensive properties.
The median price of homes that sold in the quarter fell to $696,000 from $810,000 a year earlier, according to a report today by New York appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate. It was the second-lowest price in the firms’ six years of keeping the data, behind only the $675,000 median in the first quarter of 2009.
“What it suggests to me is not that there was a sharp drop-off in pricing, because there wasn’t,” said Jonathan Miller, the president of Miller Samuel. “It’s a shift in the mix. We had a drop in upper-end sales activity.”
…
Eleven Hamptons homes sold for $5 million or more in the third quarter, compared with 20 a year earlier, Miller said. The median price for luxury properties, defined as the top 10 percent by price, dropped 14 percent in the Hamptons and Long Island’s North Fork to $3.7 million.
“I see the East End as joined at the hip with Wall Street,” Miller said. “Going forward, that’s a concern. The next couple of quarters are not quite clear at the moment.”
Not first!
Still, I don’t see why per-house values matter much if the tunnel is built or not. I suppose there are increased property tax revenues. But otherwise, that wealth belongs to each homeowner. Taxpayers all over the state pay for that benefit, which goes to a relatively small number of households. Yes, I realize that we all pay for highways all over, so that we share the benefits. But this project seems to benefit very few, for a very high price… even if it doesn’t become a Big-Dig boondoggle. (and you know that’d NEVER happen in NJ! right!)
I think the article is butt backwards, the further you are from terrorist target NYC the more your home should be worth.
Time for all NJREReport readers to flood Menendoesnt and Lout’s mailboxes with letters encouraging more federal funding. I will be doing exactly that, on behalf of me and my neighbors, and using as many names as I can.
Texas Eliminates New York in ALCS.
YEAH, BABY.
Not only is it always a good day when the pinstripes lose, I had Texas as my dark horse pick to win the ALCS, so there is some vindication. I have a friend in Mass. who I will be serving some crow to sometime today.
[3] tbiggs
The goal is to get the tunnel under way, so that when it is nearing completion, the house values will rise and then sell and get out of Dodge. I want the tunnel, and the debt. I don’t plan to stick around to pay it, and fully intend to stick some couple from Hoboken with the tab.
Regarding the tunnel:
1 – would it not lure some people to purhcase in NJ vs the city, Brooklyn, LI… makes it that much easier to get to the city and therefore opens up housing options to those who did not consider NJ’s “Train Towns” for various reasons.
2 – if #1 is correct, would more people trying to buy along these new 1-stop NYC direct train towns drive up property values above and beyond the $19k estimate and bring more tax $$ to NJ?
3 – could the cost of the tunnel not be shared in some way with the plan (way early stage I know – if every at all) for the high speed Northeast corridor trains that are currently being kicked around – I had read that this would require many tunnels to bypass a variety of traffic (to include traditional NYC tunnels).
Comrade, I am already out of NJ but agree with and like the way you are thinking. NJ just ain’t a fun place to live.
Regarding the tunnel
1 – would it not lure some people to purhcase in NJ vs the city, Brooklyn, LI… makes it that much easier to get to the city and therefore opens up housing options to those who did not consider NJ’s “Train Towns” for various reasons.
2 – if #1 is correct, would more people trying to buy along these new 1-stop NYC direct train towns drive up property values above and beyond the $19k estimate and bring more tax $$ to NJ?
3 – could the cost of the tunnel not be shared in some way with the plan (way early stage I know – if every at all) for the high speed Northeast corridor trains that are currently being kicked around – I had read that this would require many tunnels to bypass a variety of traffic (to include traditional NYC tunnels).
Comrade, I am already out of NJ but agree with and like the way you are thinking. NJ just ain’t a fun place to live.
On the blckbry sry for typos
Still have no internet … Can someone tell reinvestor to email grim or me for the address- thanks. Anyone interested in helping troubleshoot our connection gets a gift. Please rsvp via grim or me for address.
Have not heard from a few of you- chifi. Wantan. Bairen. Nomad mikeinwtng. Painhrtz. LOSTInNY. Sas JJ. – gotta know cuz I’m shopping soon. I can’t do much via blackberry and my MIL sure-as-shit aint letting me use hers–
Please let me know- I’m a nervous host as it is… Thanks
Grim? Can you troubleshoot if you have time- I’m f*cked w/out a connection
sl
Sl Juggling a lot of balls today, packing, wife ill, 3 kids. Going to try never the less, not to worry if I show I show with a dish. Grim please send me address by my email. Seven pm correct.
Going to cook now.
SL – thx but I am not going to make it – appreciate your generosity though. I am sure it will be fun.
On another note a friend had told me that as a political payback, Reagan appointed the execs to Fannie and Freddie and these folks made huge sums of money as a result. Can anyone comment?
Inasmuch as the economists seem able to pinpoint the citizens who will will directly benefit from the ARC, and it is not so much a “general benefit” to all citizens, Let’s just send a bill to those property owners who will get the benefit and let them fund it.
If my neighbor goes to the movie tonight, I don’t have to help offset the cost.
onthebrink prev 110 – We are staying at one of the Palace Resorts over Christmas. A 5 night or more stay includes $1500 in resort credit for premium items (spa services, tours, room upgrade, limo to/from airport, golf) that are not part of the “all inclusive”. We booked through Delta Vacations because taking a connection in Atlanta saved us about $900 (for 3 people) over the same package with non-stop flights on Continental. I wouldn’t say we got a steal, but it’s Christmas, and airfare/room/transport/tips ran about $4,000 for the 3 of us for 6 days. I think we also got 1% back through Upromise. We’re going to use the extra credit for spa service (me) and taking Lil Gator to swim with the dolphins and to Tulum and XCaret.
If you want more info, get Stu’s email address from Grim.
Thanks Gator! Will try and hunt down that deal. The brink family was thinking of Spain for Christmas, but the fares are around $1000 right now, so figured closer home but warm was the way to go. Muchas gracias
[15] shore
That is why the Fat Man’s political operatives should be stirring the pots with the antitax crowd statewide, and the party faithful in SoJo. The more that the congressional delegation, esp. our two worthless senators, hear from NJ taxpayers about how much they don’t want the project because they don’t want the tab, the more likely it is that they will come up with federal funding.
And if Christie does relent, he should back LaHood into a corner, jab his finger in his chest, and promise him that if the cost starts to drift northward, and it looks like it will be another Big Dig, he will kill it and hang it around Obama’s neck.
Nom,
I am all for high-speed rail on a regional and national basis. Heck, a good mag-lev train moving at 300 mph makes NY to Miami or NY to Chicago, or even NY to Dallas a reasonable alternative to air travel.
I just want the projects to be well planned and within budget. One problem we have with our project budgets is that we underprice them at the start because we know that the real cost would never fly.
How ’bout dem Cyclones, taking it to Texas.
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>>Can someone tell reinvestor to email grim or me for the address- thanks. Anyone interested in helping troubleshoot our connection gets a gift. Please rsvp via grim or me for address.<<
sl,
I had a server crash a couple of days ago at the office (I'm self employed) and I spent a good portion of the day restoring files and won't be able to make it, but I extend my congratulations and best wishes for you and your husband in your new home.
Having acquired a primary residence a few times myself previously, I know that it's always special notwithstanding all the current challenges on the real estate front. Again, my best wishes for you and your spouse.
John, I know your wife doesn’t allow you on the internet on the weekends, but could you give a quick run down on the benefits of working for Bloombg.
Got a friend looking at that DC job.
JB, you’d be good for that one too ;).
Can anyone provide a book/pic link/other involving decorating around specific colors? I’m looking for a gift book recommendation, actually.
A friend is moving into a traditional/colonial style that is completely painted in seven various shades of mint green with parquet floors. Three bedrooms are also various shades of pistachio ice cream green and choco chip mint. She will not be permitted to repaint.
Thanks.
sl, have a great time hanging out and celebrating your new home.
16.
Gator,
Sounds nice. How about throwing a rifle in his hands and taking him to the range. Hes going to need it.
Wall street salaries going up.Fiancial District making 3x more than outside Manhattan.
http://www.nytimes.com/2010/10/23/business/23charts.html?_r=1&ref=business
Oblivion, dead ahead.
“In the nearly two weeks since the rescue of the 33 trapped miners, there has been a collective afterglow in Chile: Everyone feels happy. Everyone feels confident. Everyone feels as if any and every problem—no matter how big—can be taken in hand, and solved successfully. There is none of that feeling in the United States. America hasn’t felt success in a long, long time—at least a decade. Ever since 9/11, Americans have been living in a state of constant panic—constant fear—an irrational fear egged on by the leadership classes. This constant state of panic has exhausted America.” —Gonzalo Lira
http://www.zerohedge.com/article/lira-chiles-triumph-americas-exhaustion
Still remember 9/11 when the people were trapped alive and finally died under the Trade Center in the subway. I know we can’t back down from these people but the whole point here is the price of real estate close to Manhattan. The threat is still real. Economic Terrorist Targets:
Banks
Financial Institutions
Important bridges
New York Harbour
The Lincoln Tunnel
The Holland Tunnel
Post Offices
Empire State Building
The New World Trade Centre (when it is finished being built)
Wall Street
New York Stock Exchange
New York power grid (a Pinch or EMP bomb)
Hope all had a great time at SLs new dig’s. SL sorry, just got to crazy later in the day.
A good hour trip could not make it happen. Now on to RE.
A what 14% reduction on this 463 to 399, watch out propane heat.
http://emailrpt.gsmls.com/public/show_public_report_rpt.do?report=clientfull&Id=59463108_11260
http://www.bbc.co.uk/news/mobile/world-africa-11614957
Witch doctors? Oy!
Thousands of N.J. homeowners in foreclosure ‘limbo land’
New Jersey’s foreclosure rate looks bad – 6.28 percent as of the second quarter of this year. But as bad as that is, it does not include homeowners like the Eiseles.
They are among the additional 4.26 percent of homeowners who were at least 90 days behind on payments but not yet in foreclosure, according to the Mortgage Bankers Association.
Together, the figures make up the state’s rate of “serious delinquency” and provide perspective on just how distressed homeowners are: 10.54 percent in the second quarter, the sixth-highest rate in the country.
http://www.philly.com/philly/news/20101024_Thousands_of_N_J__homeowners_in_foreclosure__limbo_land_.html
Thanks still_looking GTG was lovely!
FYI, I got pulled over on my way home, made a right on red at a no turn on red, and 42 in a 25 – Oh My! No ticket though, so I owe the PBA a donation.
scribe, please send your details to me at eenum9@gmail.com so I can send it to the staff manager for AP election coverage.
33. This is all very hard for me to take anymore. The sense of entitlement that people feel is unreal. You are supposed to save for a rainy day. Well, seems that rainy day has arrived for many of us, but nothing has been saved. Don’t count on me for sympathy anymore- I am done. I lived my while pre-marriage existence in apartments. Somehow, amazingly, I survived! You don’t need to own a home to feel loved and to get a decent education. Some of the folks mentioned in the philly article don’t have a clue.. no common sense at all. I am sorry some of them lost their jobs but so have many of us. That’s where the “saving for a rainy day fund” is supposed to come into play.
35- while = whole
San Diego with the FG attempt to tie the Patriots . . .
DOINK!!!!!!
Phew.
Still looking,
Great GTG, great house! It was so much better because we could all hear one another, unlike a noisy bar.
It was wonderful to see everyone again!
Sorry I couldn’t make it. Today’s is my son’s birthday and we were with family all weekend.
Sl did you give them scotch by the gallons? No ones seems to be able to get to the computer.
Hubby got our internet straightened out — the router needed to be reset or something….
I had such a great time with everyone Sat!!! Even in our ramshackle, still under construction/moving in house we managed to put it together – though I think we needed more regular soda (Sorry All-Hype :)
Thanks, Pat and Nomad, — maybe we can have another GTG in the future… and Reinvestor – I’m sooooo sad. Maybe next time… and you can bring your gasoline soaked skivvies :) Sorry chifi, mike and anyone else who couldn’t make it… Grim wore the shirt that shows off his hairy chest. You missed out :))
Mike, We stuck to beer, wine, water and coffee later on… I was gifted with plenty of additional liquor — and I refuse to open them til the respective gift givers are back again to visit (that includes the scotches, folks – you know who you are :)
I’m soooooo excited!!! We have so much more to do… but the ‘still-lookings’ are a few carloads of boxes away from being completely UNSHACKLED….
My advice to *anyone* who is thinking of living with their in-laws? F*ck, No. You’d be better off in a dirt floor, no electric shack. I won’t bore you with the details…. suffice it to say, it’s a mistake of epic proportions.
I can’t thank grim enough for his hard work and above all, tolerance. We are thankfully unfettered and feel like we’ve come up for air after a way-too-long deep ocean ascent.
sl
The GTG sounds so much nice than being in airports most of the day.
Sorry I missed you guys last night. I did not do well in AC, but the free cruise they gave me more than made up for it. With an upgrade to a balcony room and adding Gator Jr to the itinerary, we are cruising on the NCL/EPIC (megaship…should be interesting) over Spring break for $1600 out of pocket. Voucher ended up being worth $2,000!!! Huzzah. I still can’t believe it.
Shore…You are like REinvestor in that you never seem to make it to these things. What gives man?
Gator said she had a ball and Lil Gator absolutely had a great time. He conked out early this evening, which is the proof.
Stu,
I think that Simon is supposed to be the Cruise Driector, and he is quite good. You will enjoy it. For me, that ship is a bit too large, ice bar or not.
Stu,
Unlike RE I have been seen on the flesh and, as you know, I have tried to connect with you and Gator in person, and not every failure to connect was due to my schedule.
Stu,
As Lil’ Gtor gets older, I suggest that you splurge for one of the Penthouse Suites — two bedrooms, two baths, small living room with dining area, butler service, larger balcony. They arre perfect for families.
We have had them as well as suites on other lines that were over 1,200-1,500 sq. feet and, for a family, the NCL Penthouse Suites are better, even at a fraction of the size.
Actually Shore,I don’t recall personally bailing on any of our potential GTGs. Just saying :)
shore 47 – you have obviously never met Stu :) Re the Epic, our other options were pretty limited. We are tied to Spring Break week, itineraries out of NY suck and we don’t want to fly to LA to go to Mexico. Eastern Caribbean usually bores us, so we opted for Cozumel, Costa Maya and Roatan. Miami wins the tiebreaker for departure port over New Orleans, since we can visit with family and friends. Kills a few birds with one stone.
I will have to get to Montclair one day before the year is out. Things are just bloody busy between now and mid November.
The corrupt TR school Superintendent:
http://www.app.com/article/20101023/NEWS/10230324/Michael-Ritacco-A-man-long-firmly-in-charge
I figured he was dirty when I saw his house and car, learned his income was well below ours, even though he had a nicer home and nicer car.
http://www.app.com/article/99999999/SPECIAL/100425011&template=recurring
His house
Owners Seek to Sell at a Loss, but Bankers Push Foreclosure
By MICHAEL POWELL
HOENIX — Bank of America and GMAC are firing up their formidable foreclosure machines again today, after a brief pause. But hard-pressed homeowners like Lydia Sweetland are asking why lenders often balk at a less disruptive solution: short sales, which allow owners to sell deeply devalued homes for less than what remains on their mortgage.
Ms. Sweetland, 47, tried such a sale this summer out of desperation. She had lost her high-paying job and drained her once-flush retirement savings, and her bank, GMAC, wouldn’t modify her mortgage. After seven months of being unable to pay her mortgage, she decided that a short sale would give her more time to move out of her Phoenix home and damage her credit rating less than a foreclosure.
She owes $206,000 and found a buyer who would pay $200,000. Last Friday, GMAC rejected that offer and said it would foreclose in seven days, even though, according to Ms. Sweetland’s broker, the bank estimates it will make $19,000 less on a foreclosure than on a short sale.
…
http://www.nytimes.com/2010/10/25/business/25short.html?hpw
“Unlike RE I have been seen on the flesh and, as you know, I have tried to connect with you and Gator in person, and not every failure to connect was due to my schedule.”
This is a bunch of crap. I have been seen in the damn flesh. That happens every damn day. Who in the hell do you think is typing these damn posts? A damn ghost?
It’s just that I feel threatened by certain damn real estate terrorists that frequent this damn board. After all, when someone opens every damn morning with references about being “strapped” and about insurrection, then one might not have a warm and fuzzy feeling about being around this sort of person. Also, I can’t stand to be on the same damn board with Pat, let alone being in the same room with her. If there’s anyone worst than Clot, it’s that woman.
I don’t know if you all show Shillings new prediction on more people going underwater. Found it on Zerohedge
http://www.zerohedge.com/article/gary-shilling-why-underwater-homeowners-will-double-23-40-shortly
I can vouch that Shore Guy is not an illusion.
Sounds like fun was had by all at the GTG.
SL best wishes to you and your family in your new home.
Sounds like the residents of those train towns should be willing to pay in for the tunnel without the rest of the state being forced to pick up the tab. Or at least commit to providing for all of the cost overruns that the state faces responsibility for that has Christie legitimately worried.