From the WSJ:
While buyers have been fighting over expensive Manhattan apartments and prices rose across the rest of the country, single-family home prices were drifting lower across the New York metropolitan area, according to new data reported by Standard & Poor’s Case-Shiller index.
The index differed significantly from more-upbeat local reports in both New York and New Jersey toward the end of last year. The other reports showed considerable signs of strength and an improvement in median sale prices, amid declining inventory in both states.
Analysts attributed the contrasting results to differences in methodology and timing, as well as a faster pace of foreclosures in New York and New Jersey, at a time when they are slowing elsewhere in the country. Sales delayed by superstorm Sandy may have also had an impact.
The Case-Shiller index found that home prices across the region fell by just over 0.5% in the 12 months through December compared with a year earlier. Prices rose in all of the other 19 metropolitan areas tracked by the index during the same period, signaling a stronger national housing market.
…
Sales in the New York region fared better than much of the country during the downturn, but the area has performed worse in recent months, according to the Case-Shiller report. It showed local prices sliding each month since August, for a total decline of 2.7%.Yet despite the ups and downs of the last decade, prices were up 43% in the New York metropolitan area since 2001, compared with 30% for the 20-city index as a whole during that period.
A few weeks ago, Jeffrey G. Otteau, an appraiser and founder of Otteau Valuation Group, reported that strong job growth had led to a “steady improvement in the home purchase market” in New Jersey over the last 18 months. He said median prices were up 2.9% in the fourth quarter, compared with the same quarter in 2011.
In an interview, Mr. Otteau said that monthly measurements of home prices “are unstable to begin with.” He said that Sandy had triggered a decline in sales both along the damaged shorelines and in many nearby communities as well.
Now, he said, the foreclosure process is accelerating as well, and distress sales often depress housing prices. New Jersey ranks second after Florida for largest percentage of mortgaged homes in the foreclosure process. It had 7% in foreclosure in December. New York ranked third with 5.8%, according to CoreLogic.
Last month, Douglas Elliman reported median sale prices were up 3.2% on Long Island, excluding the Hamptons, in the fourth quarter compared with the same quarter a year earlier, but prices were down from the third quarter.
Jonathan Miller, an appraiser and president of Miller Samuel Inc., who prepared the Elliman report, said that the Case-Shiller data tended to lag behind data available within a local market.
The Case-Shiller index is calculated from changes in prices on individual homes as they are resold during a moving three-month period. Craig Lazzara, a senior director at S&P Dow Jones Indices, said the index includes foreclosure sales conducted on the open market.
He attributed the weak local housing market to New York’s dependence on the financial sector, where the recovery in “its hometown” industry has been slow.
Good Morning New Jersey
What’s so good about it?
Reposting for discussion:
Case Shiller Tiered HPI:
December – YOY change (NY Metro – NSA)
Low Tier (Under $260k) – Down 1.94%
Mid Tier ($260k-$430k) – Down 0.78%
High Tier ($430k+) – Up 0.24%
Aggregate – Down 0.5%
The people that could have afforded the mid and low tier houses are the ones being laid off in the financial sector. The bosses are doing just fine.
3 – those numbers seem reasonable grim, thx gor posting. i think you’d see drastic differences if you broke them out by different buckets of socioecononics. not that high income neighborhoods would be way up, but i certainly dont think they’de be down as much. dunno.
Also young folks are lazier, dont like commuting, having less kids and working longer hours.
Young folks (under 40) I know who are DINKs who have no kids or just one kid all live in NYC>
It is insane to maintain two cars, two commuter passes, pay for lawns and snow service and home upkeep and lose two hours extra of life each day commuting and paying for two extra hours of child care daily.
Folks I work with if they have a second kid and when that second kid hits 1st grade is when they move.
Manhattan costs around 400K extra at purchase, but they all claim between the cost savings of no commute, cars, or maint and fact it rises in value unlike a single family house it is better deal. A young couple as recently as Spring 2005 dreamed of their own little 60 x 100 starter house in the surburbs, flash forward to Spring 2013 and that is not their nightmare.
I always say a two bedroom condo/coop in Manhattan and a nice “salt-box” in Southampton. for the weekends is all we really want. That large overgrown NJ home on an acre with a long commute is good on paper, but it an actual nightmare to own, maintain and commute from.
That report is dated, stale and old. The condo I am bidding on. I like it seller is nice. We are at 1998 comps.
Yet article is saying we are up 30% over last decade. Ha Ha. Problem is parts of the Hamptons, Manhattan, Brooklyn, Long Island City and really close NJ and LI train towns like Ho Ho Kus and Manhasset are all still way up over last ten years.
The rest of towns with so so commutes, no train line, over 30 miles from NYC have got creamed.
To Joyce…..the essence of JJ is the last two posts……too much unvarnished truth
Law Enforcement Hughes Style:
‘Cannibal’ cop had BBQ plans for beauty
http://www.nypost.com/p/news/local/cop_fantasy_she_kebab_W8UEDhvGKVAttP5B39UZVM
In one discussion, Walsh said Valle talked about visiting Sauer in Maryland last year, telling Moody Blues he would be “eyeing her head to toe and licking my lips and longing for the day i cram a chloroform soaked rag in her face.”
7 JJ:
Manhasset is real close but Ho-Ho-Kus not really. Due to the necessary train change in Secaucus it is equivalent time wise to a midtown rail commute from Massapequa, Croton Harmon, Katonah, or Old Greenwich.
Sorry but it is real slow here today and I have nothing better to do than research this.
NJTransit were supposed to build a train station near me. i was sort of gambling they would actually finish construction….They started laying track last summer for a while but then project was stonewalled by usual suspects…environmentalists and NIMBY’s complaining of the noise the train would make as it passed.
Now that millions of dollars of NJTransit equipment was underwater during Sandy, I’m sure building that station in Andover is the last thing on their minds. *sigh*
and/or anecdotes, assumptions, and overgeneralization leading to an incorrect mindset
8.chicagofinance says:
February 27, 2013 at 8:52 am
To Joyce…..the essence of JJ is the last two posts……too much unvarnished truth
13. Joyce, the fifties are a valid mindset! Come on….
THE NEXT STOCK MARKET CRASH: Why Many Pros Think It Has Already Begun
Sam Ro | Feb. 27, 2013, 7:28 AM | 53,998 | 6
Stocks are near all-time highs. And there are plenty of reasons to be terrified…
After coming within points of an all-time high, stocks have begun to stumble, and volatility appears to be returning to the markets.
This has led some market pros to declare that an amazing four-year rally in stocks is over and that we’re on the precipice of a new crash.
And there is certainly no shortage of logic to support that view.
Massive U.S. federal budget cuts are looming, political instability in Europe is returning, and currency values around the world are falling.
Read more: http://www.businessinsider.com/stock-market-crash-2013-2?op=1#ixzz2M71K1SbG
[6] JJ
I hate to say it but, once again, I agree with JJ.
The more I dive into my search and try to justify buying property in Chester County, PA, the more I can’t do it unless I were looking to use it as my “saltbox” country/retirement home. And if that were so, I would want sufficient land to do what my nompounding neighbor (and Morristown refugee) is doing, and use some of the property for agriculture.
To grim’s comment in 4, I reiterate that I see so many headwinds, both now and in the future, that it is hard to see that we are in anything but a dead cat bounce on housing.
Some of these headwinds include:
The “ITI” in PITI is a compressed spring, especially interest rates and taxes. It is going to go up in the future, and will do so significantly and pretty quickly when it does;
Energy prices will make larger and more remote homes increasingly unaffordable;
Infrastructure neglect will have the same effect as higher energy prices;
Demographic shifts mean less family and household formation at the same time that the boomers retire and sell their suburban homes;
Federal tax and fiscal policy will affect negatively the cost of housing, particularly at the upper mid-tier (which disproportionately includes suburban/exburban housing) and “second” homes;
Federal and state policies regarding water will affect negatively exburban properties that are on well/septic systems as they will be forced to replace and upgrade, and negatively affect all homeowners through higher water and sewer rates.
And this list of headwinds, which is not exhaustive, doesn’t even begin to contemplate long term economic stagnation, pension crises, and entitlement reform/dysfunction.
At this point, the only thing I see helping housing long term (and even then it would be a temporary multi-year blip) is another dot-com style bubble.
Grim sent out that link to the neighborhood net worth browswer. My neighborhood was over 1 million average. NJ block group 340350509.031 More than half reported net worth of 1mn or more, virtually none had less than $250k net worth. But this is Census data, right? People answering the census survey in 2010, did they really understand what their houses were worth, and did they really understand that they are supposed to subtract debt, including mortgages, from their net worth? Household income was 300% of the national average, while net worth was 10x national average. There are a lot of 50 year olds in this area. Maybe they really have been saving and not borrowing. A lot of houses were luxury houses built in the early 90s.
http://www.arcgis.com/home/item.html?id=814b785f25e24c9d8fc1a61ea61c0462
The myth of the Great Rotation
http://money.cnn.com/2013/02/27/investing/great-rotation-stocks-bonds/index.html?iid=HP_LN
Looks like people haven’t started dumping their bonds and buying stocks yet.
The more I think about it the more it doesn’t matter. If and when I leave this wonderful state behind….renting my place will be an option. I know it’s been talked to death here, but I still think that owning a solid piece of property within the 12-20 mile loop circle around the NYC metro area is not a terrible investment. Now. If we could just get a tax cut…..Oh Chris Christieeeeee…
Younger folk in general are having less kids, more are dual income households, and work longer hours than their parents did. Also Brooklyn, Manhattan, Queen and Hobken/Jersey City that were Armpits between 1972 and nearly all the way till 2002 are now supernice.
Back in 1993, my apt on 26th and Lex had hookers and Johns out on street, SRO crack houses nearby and old dumpy smoky Irish Bars, Penn station was lined with Bums all over, subway was not airconditioned, and no unlimited ride option.
Long Island looked liked the promised land. Today, 26 and Lex is a bunch of beautiful doorman condos, fancy restaurants and bars all over, the public schools are much better, unlimited metro cards and Madison park is all redone.
lets look at life of a Girl I know who lives near there. Just had second kid. Has a three bedroom condo. Lives a two minute walk to 14 street train station, works on wall street. Starts work at 9am. She has a nanny that works from 830am to 530 pm. She leaves for work 840 gets home 520,. House is spotless, nanny makes kids breakfast, lunch and dinner. She even had nanny prepare her and her husbands dinner during week. Building has a gym. When hubby comes home, around sixish, she can then do some stuff, or go down to gym. Nanny baby sits Saturday night for date night. They have no cars, home maint, no commute, no household chores. Being nearby means wife can continue working. If and when they move, they have a condo that will be worth a fortune.
joyce says:
February 27, 2013 at 9:52 am
and/or anecdotes, assumptions, and overgeneralization leading to an incorrect mindset
8.chicagofinance says:
February 27, 2013 at 8:52 am
To Joyce…..the essence of JJ is the last two posts……too much unvarnished truth
[20] JJ
That dovetails nicely with the idea that home ownership is no longer the attractive proposition it used to be.
One of the headwinds I didn’t include above is a decline in overall home ownership rates, especially among working people who now see that job-hopping (which has become the norm) isn’t going to be limited to one geographic area. Take away the MID from higher earners, who are already pretty mobile, and you hit the upper mid-tier pretty hard. Ellery and Graydon’s parents will decide it makes more sense to rent if they might wind up working in Charlotte or Ogden someday, rather than moving from lower manhattan to mid-town.
3 dead in shooting at Swiss factory…..gunman shot dead….not by police…..
Concealed carry civilian??
http://www.nytimes.com/2013/02/28/world/europe/deadly-shooting-in-swiss-factory.html
[6,7 & 16] JJ, JJ, & Nom – Yes, yes, & yes.
As Nom said:
Demographic shifts mean less family and household formation at the same time that the boomers retire and sell their suburban homes;
I believe this is THE biggest headwind. The well-heeled boomers WILL sell. I’ll go a step further and predict, once again, that they will crush the market from the top down. I think a couple years ago I coined it the prime crisis. A few days ago I illustrated a chain reaction of three nice houses that changed hands and $1 million dollars left the market, not as losses, but as profits of homeowners selling down. Top-down crush, coming to a train town near you.
Finally, I am seeing a great deal of caution in Chester County, PA where there is very little inventory. Some houses that would get multiple offers even in this market are sitting, then if they get an offer, it tanks and goes back on the market. I am seeing houses getting pulled and re-listed. I guess that the home inspections are turning up the issues that I saw when I went through the house the first time.
And all the while, the realtors are telling me that things are moving so quickly, you had better jump in fast!.
[23] expat,
Appreciate the appreciation. Funny thing is that is the one headwind that has looooong been expected, and you would think that it would factor into prices. Maybe it is.
It also makes if you buy, condos, townhouses etc more attractive. For instance I was all set on a beach bungalow. Now I am putting an offer together on a condo.
Given I might one day get old, I might one day live out of state, I might get stick of house right away and RE tanks or get transferred the condo provides a safety net a single family house does not. The unit is all electric for instance. The mechanical, water heater, main water line, main electric box are all outside unit in a heated utility room.
One could get transferred out of state for years on end and keep unit. With a house, you lose that flexibility.
My single family home is a stack of sticks rotting away I am fighting to keep up. Who wants to do it when they are 70
Comrade Nom Deplume says:
February 27, 2013 at 10:54 am
[20] JJ
That dovetails nicely with the idea that home ownership is no longer the attractive proposition it used to be.
One of the headwinds I didn’t include above is a decline in overall home ownership rates, especially among working people who now see that job-hopping (which has become the norm) isn’t going to be limited to one geographic area. Take away the MID from higher earners, who are already pretty mobile, and you hit the upper mid-tier pretty hard. Ellery and Graydon’s parents will decide it makes more sense to rent if they might wind up working in Charlotte or Ogden someday, rather than moving from lower manhattan to mid-town.
[22] brian,
Need more details. Switzerland is actually a pretty heavily armed state. They have a significant militia component to their military and as a result, many of the male citizens own long guns and keep them at home.
Some postulate that this is one of the reasons that Switzerland wasn’t invaded in WW2.
[23 cont’d] A paid off house to a retired, empty-nester is nothing more than a less liquid form of retirement savings, $500k of appreciation even falls into a couple’s pocket untaxed. When the early sellers start moving the price down watch how quickly the late sellers follow en masse.
Wow, feeling the love today.
[25] Nom – I’ve fully expected a sharp housing decline since the late 90’s for purely demographic reasons. I wish I had been smart enough to capitalize on it. My FIL and I used to always muse, “How do you short sell houses?” When we reluctantly bought small and urban in 2002 I was fully expecting negative appreciation even then. We are far from done blaming the Boomers (and Bush) for everything. I have seen the enemy and it is me.
[23] expat,
Appreciate the appreciation. Funny thing is that is the one headwind that has looooong been expected, and you would think that it would factor into prices. Maybe it is.
You act like 500K is of any use. Old folks would just put it in savings at less than 1% taxable. After taxes it is like 3k interest income.
Plus selling primary now you are paying rent. It works better if you own two homes and sell one. Costs do not rise and you get 500K. Most beach places I am bidding on old folks own as a second home. Guy right now is 81, he owns three places. A winter home in florida, a bungalow in Long Island and a primary residence. He is selling the summer bungalow. All three paid off. Guess in a few years will sell florida place and leave primary to his heirs. I saw his florida place on line and it is just a tiny condo not near anything so I doubt it is a good place to keep when you are immobile and his kids are up here.
The Original NJ ExPat says:
February 27, 2013 at 11:08 am
[23 cont’d] A paid off house to a retired, empty-nester is nothing more than a less liquid form of retirement savings, $500k of appreciation even falls into a couple’s pocket untaxed. When the early sellers start moving the price down watch how quickly the late sellers follow en masse.
As an owner of a multi with ever increasing rents and without a single day of vacancy in the past 9 years, I hope people continue to move to renting over owning. Quite frankly, I’m astonished to see what people are willing to pay in rent. I would think at some point, they would consider paying themselves instead of me. I am now approaching $4,600 per month rental income (tenants pay extra for heat too) on a home that is worth between $400,000 and $450,000 (Zillow has us at $455K). Taxes, mortgage and insurance are $3,300 per month combined. At this point, I am actually thinking about letting someone else shovel the snow!
JJ- Wrong answer. 500K at 0% is more useful than 500K at -8% to -15%. That 500K is illusory and costly to keep. 500K appreciation on a 700K house you bought 25 years ago for 200K is only there while the price remains high and the taxes and maintenance are paid annually.
You act like 500K is of any use. Old folks would just put it in savings at less than 1% taxable. After taxes it is like 3k interest income.
Yup, this reason as well as their natural geography were reasons enough to stay away.
27.Comrade Nom Deplume says:
February 27, 2013 at 11:07 am
[22] brian,
Need more details. Switzerland is actually a pretty heavily armed state. They have a significant militia component to their military and as a result, many of the male citizens own long guns and keep them at home.
Some postulate that this is one of the reasons that Switzerland wasn’t invaded in WW2.
[31] JJ – You’re making my point. Money being withdrawn from the market. I’m sure many BC homeowners already have 2nd homes/vacation homes, but I’ll bet you they aren’t in BC. That money will leave the (local) market.
Plus selling primary now you are paying rent. It works better if you own two homes and sell one. Costs do not rise and you get 500K. Most beach places I am bidding on old folks own as a second home. Guy right now is 81, he owns three places. A winter home in florida, a bungalow in Long Island and a primary residence. He is selling the summer bungalow. All three paid off.
Well we’re still in Jersey City. I keep meaning to move out but dont really see the need. Its a good compromise – can park cheap and drive without the tunnels, proper supermarkets, quieter and cheaper than Manhattan, no city tax either. Biggest thing is the schools aren’t good, but they’re getting better.
There are some really nice suburbs that are slums, I’m not sure if the whole city could gentrify but it wouldnt surprise me.
Exactly, some of the rents people I know are paying are astonishing. But as some otheres here elude to, it’s a combination of they lack savings for a downpayment on a purchase; prefer mobility; lack job security; and do not think ‘homeownership’ is worth it (their time, energy, money).
32.Libtard in Union says:
February 27, 2013 at 11:17 am
As an owner of a multi with ever increasing rents and without a single day of vacancy in the past 9 years, I hope people continue to move to renting over owning. Quite frankly, I’m astonished to see what people are willing to pay in rent. I would think at some point, they would consider paying themselves instead of me.
I thought Switzerland wasn’t invaded as they were banking the Third Reich? I know it’s fact that the Jewish gold was sold to Swiss banks for for Swiss Francs.
My only friend who rents rather than owning, is none of that. He rather keep his money in stocks, bonds as they return is higher.
joyce says:
February 27, 2013 at 11:31 am
Exactly, some of the rents people I know are paying are astonishing. But as some otheres here elude to, it’s a combination of they lack savings for a downpayment on a purchase; prefer mobility; lack job security; and do not think ‘homeownership’ is worth it (their time, energy, money).
[38] libtard
Some postulate that as well. Not Swiss or German so I can’t relate.
Richard…I lived in JC for many years. Greenville ain’t ever gentrifying and Dickerson will never be anything more than a juvi prison. Downtown and many parts of the Heights, absolutely. The rest, will continue to be a section eight hell hole until welfare becomes workfare, which is even less likely.
Home sellers are scarce as spring buyers stir
Buy now while there’s still anything left to buy!
The Swiss could have been bombed into surrender. Germany needed them as a trading partner as did the Swiss need Germany for fuel and food. The Swiss were very smart to claim neutrality and provide cover to the allies by bastardizing the Nazis in their press. Personally, the Swiss were about as neutral as Yome. They were simply the financiers of a murderous regime.
Nom, CNN is reporting the assailant killed himself. Everyone else is reporting the police have not released information on how the assailant died.
http://www.cnn.com/2013/02/27/world/europe/switzerland-shooting/index.html?hpt=wo_c2
Think of all the money you’re losing by not following his lead. I thought you were some kind of genius investor?
39.raging bull jj says:
February 27, 2013 at 11:36 am
My only friend who rents rather than owning, is none of that. He rather keep his money in stocks, bonds as they return is higher.
joyce says:
February 27, 2013 at 11:31 am
Exactly, some of the rents people I know are paying are astonishing. But as some otheres here elude to, it’s a combination of they lack savings for a downpayment on a purchase; prefer mobility; lack job security; and do not think ‘homeownership’ is worth it (their time, energy, money).
Lol put in Greenville Jersey City and see what the autocomplete recommends.
How could I forget… follow the money!!
38.Libtard in Union says:
February 27, 2013 at 11:34 am
I thought Switzerland wasn’t invaded as they were banking the Third Reich?
Joyce,
I think the giveaway is that when you google for answers as to why Switz wasn’t invaded, often what is listed is that no one is sure why Hitler didn’t. Follow the money indeed.
From “Guns in American Society” By Gregg Lee Carter Ph.D
Publication Date: May 4, 2012 | ISBN-10: 0313386706 | ISBN-13: 978-0313386701
“In 1939, just before Hitler launched World War II, Switzerland hosted the International Shooting Championships. Swiss president Philipp Etter told the audience, which included representatives from Nazi Germany:
There is probably no other country which, like Switzerland, gives the soldier his weapon to keep in the home…. With this rifle, he is able every hour, if the country calls, to defend his hearth, his home, his family, his birthplace…. The Swiss does not part with his rifle.
Switzerland won the service-rifle team championship. The lesson was not lost, as Nazi invasion plans in the following years warned that the cost in blood to attack Switzerland would be high.”
http://books.google.com/books?id=QeGJH48PT0kC&pg=PT1033&lpg=PT1033&dq=Philipp+Etter+switzerland+shooting+championships&source=bl&ots=HEH1bNwXnr&sig=MfYt2I9s34VGxlbfWjJHXWWBxt0&hl=en&sa=X&ei=S0kuUb3WNoL0igLmkICQDg&ved=0CD8Q6AEwAg
I still don’t like assault rifles. I’d rather have a shotgun.
Libtard, I searched for information that would disprove Nom and Joyce’s point and support yours but that’s what I found.
(50)
Brian,
It is noteworthy that the rifles the swiss had in their homes then, as well as the muskets the individuals had during the revolution period and thereafter… were the military grade/level.
I love it when someone quips (thinking they are clever) ‘you want the 2nd amendment to be interpreted as written, fine you can have all the muskets you want!’ When, again, they don’t realize that the weapons in question were what the military used then.
Brian,
No worries. Everyone is entitled to believe what they want.
Joyce,
So what you are saying is that my support for the second amendment entitles me to an electromagnetic railgun? Awesome!
PBS is considered to be left leaning…
http://www.pbs.org/wgbh/pages/frontline/shows/nazis/readings/halbrook.html
Swiss Cheese was invented by accident during rifle practice in Switzerland.
“There’s an old saw on Wall Street that more money has been lost reaching for yield than at the point of a gun,”
There is one thing that bothers me though Joyce,
The Swiss are issued their rifles by the government after service in the military. In the US, any knuclehead can walk in off the street and by an AR-15 after a backgound check (except in the people’s republic of New Jersey of course).
53.joyce says:
February 27, 2013 at 1:24 pm
(50)
Brian,
It is noteworthy that the rifles the swiss had in their homes then, as well as the muskets the individuals had during the revolution period and thereafter… were the military grade/level.
I love it when someone quips (thinking they are clever) ‘you want the 2nd amendment to be interpreted as written, fine you can have all the muskets you want!’ When, again, they don’t realize that the weapons in question were what the military used then.
Libtard,
I had to google ‘electromagnetic railgun’ ;-)
Left leaning is not a fair gauge. Currently, the left believes the Jews should be evicted from Palestine and Saddam Hussein should be revived. Some would argue that the left kept us out of the big war until it was potentially too late. My opinion is derived mainly from the Swiss’ willingness to knowingly buy Jewish gold (this is proven) pilfered during the ethnic cleansing of Germany. Lots of art and other former Jewish belongings ended up in homes of high ranking political officials in Switzerland. And this is not my Hebrew School dogma speaking. It is fact. Plus, I wouldn’t trust much of what I hear from publicly funded television anyway. Joyce is right. Follow the money.
59
That disturbs me too. If the govt is issuing items, privileges, right… it has the power to deny them as well. That is not a good thing.
Yeah, it was much more complicated than a simple the-Swiss-were-Germany’s-bankers theory. Given the Swiss terrain, the armed population, the possible repercussions on important relationships with other established neutrals, there were a lot of reasons why Germany did not invade Switzerland.
The Swiss, like other neutrals, did business with both the Axis and Allies during the war. That sort of comes with the territory of being neutral . . .
The End Is Nigh (Libtard Edition):
http://www.youtube.com/watch?v=niuTuaeZrFk
Want to get more views on your blog? Check this out :D http://tiny.cc/zsbvsw
Garden State’s newest brewery opens in Bergen County—another sign of Jersey’s beer boom?
RIDGEFIELD PARK — Bergen County sits at the other end of the George Washington Bridge from New York City, which is reveling this week in its vibrant craft beer scene. But until recently, it didn’t have a brewery to call its own.
Bolero Snort, which launches with a series of events this week, will be the county’s first craft brewery, one of several cropping up in New Jersey as the state becomes an increasingly hospitable place for brewers.
Partners Bob Olson and Andrew Maiorana got into craft brewing the way a lot of brewers do: On a propane burner in a backyard, five gallons at a time. The two became friends over pints at various homebrewing events in New York and New Jersey, first collaborating on beers before deciding to go pro.
Budding brewers in Bergen County
Right now, Bolero Snort’s Ridgefield Park facility serves only as a distribution center. The brewing is being done on a contract basis at High Point Brewing Company in Butler, where Greg Zaccardi has been brewing Ramstein Beer since 1994.
“They have a really great reputation, and we kind of look at this as our mentoring phase,” Olson said. “So why not learn from one of the best?”
They’ll start out with two offerings: Ragin’ Bull, an American amber lager, and Blackhorn, an American black lager.
“We kind of decided to cater to the everyday drinker with the amber ale,” Olson said. “It’s a classic style, but we have a couple different malts in there that sets it apart, kind of our own unique spin on the style.
“The American Black Lager is our more creative beer. You don’t see that kind of style as a flagship—a lot of people do it as a seasonal or one-off.”
At events all this week, they’ll be offering special versions of the beer — Blackhorn aged on coffee beans and vanilla, or Ragin’ Bull with hazelnuts, depending on the night and location. The beers are their own take on classic styles, and Olson and Maiorana refined the recipes while collaborating on homebrews.
Maiorana is the company’s brewer, though, moving from homebrewing into a six-month program run by the American Brewers Guild. Olson describes himself as the more experimental brewer, quick to throw anything on the boil, while Maiorana leans more traditional. But they say the two styles meet in the middle.
“You can have a crazy beer, but if there’s not that foundation to build upon, it’s going to fall apart,” Olson said.
“I have to hold him back from throwing something in the first batch,” Maiorana said. “That’s how we work. He has the ideas where he’s like, ‘Let’s to this.’ And I say, ‘I never thought of that. That’d be great.'”
The recipe for beer is simple: Just combine water, malted barley, hops, yeast and a couple hundred feet of red tape. Bolero Snort spent about a year and a half navigating the state’s byzantine permitting process, a “paperwork nightmare” that includes individual permits for various operations of a brewery.
They have not been alone in their plight.
Permitting costs for breweries in New Jersey are among the highest in the nation, and it’s had a chilling effect on their footprint here. A 2011 census one by the Brewers Association ranked the Garden State 42nd in the U.S. for breweries per capita, with just 26 breweries in the state — one per 338,150 residents.
But things have been changing for Jersey brewers.
Until last January, you needed a $15 permit to brew your own beer at home. Until September, craft brewers — defined as those who produce fewer than 6 million barrels a year — faced a host of antiquated regulations limiting their ability to give samples or sell beer on site.
“The laws that got passed back in September really show the state’s commitment to the industry” Olson said. “I think we’re just starting to see the ground break for the craft scene in the state.”
Slowly, the tides for breweries in the Garden State are turning, and New Jersey’s craft beer scene is being buoyed by a nationwide trend toward the consumption of better beer. NewJerseyCraftBeer.com, a website that tracks the state’s beer scene, now lists 32 breweries or brewpubs across the state, with four more in the early stages of development. Breweries like the New Jersey Beer Company in nearby Hudson County and River Horse Brewing Company in Hunterdon County have seen expansion and major investment in the past year.
Bolero Snort hopes to capitalize on the state’s growing thirst.
“As densely populated as the state is, there’s nothing but room for growth,” Olson said. “And I think the industry’s sentiment is that it’s not me trying to take away the tap line from another craft brewer: It’s us trying to educate the consumer and giving them that experience that there’s more to beer than Bud, Miller, Coors.”
Right now, the brewery is juggling the beers between a single 30-barrel fermenter at High Point’s facility, and they expect to crank out around 300 barrels in 2013, starting with draft-only and eventually graduating to bottles.
The brewery is entirely self-financed and they’re keeping their day jobs — Olson is a construction consultant and Maiorana works in the financial industry. But they’ve got their eyes on their own operation.
“We wanted to build the brand on our own and then look for investors when it’s time to build our own facility,” Olson said. “Unless the lottery playing pans out.”
http://www.nj.com/bergen/index.ssf/2013/02/bergen_county_brewery_launches_with_week_of_craft_beer_events.html#incart_river
Happy Renter,
Don’t disagree. But the banking role existed where it didn’t with any other country. And the Swisses handling of the return of accounts that were opened by Holocaust survivors is simply deplorable.
http://articles.baltimoresun.com/1997-05-09/news/1997129036_1_swiss-numbered-bank-accounts-central-banks
Nice find Chi. Gotta love hockey coaches.
The team we are playing tonight in Hackensack pulled a nice stunt at their last game on Sunday. They were formerly undefeated (15 games) and were getting their butts whipped by one of the three other teams in our division who are all equally sh1tty. Well their (admittedly) amazing goalie got so pissed after giving up his 7th goal after having only given up like 20 goals in his first 14 games, threw off his glove, helmet and blocker and attacked the scorer. The opposing goalie then jumped their goalie and the benches cleared. We play this team tonight, sans their star goalie who was evicted for the season. Most of their team is on a single game suspension. Me thinks they are looking at their 2nd loss. Good times and now we have a shot at making the playoffs and potentially returning to Toronto for the championships.
Speaking of beer. Anyone else going to the ACBF in Atlantic City in April? I have a connection there who knows all of the brewers. This gets us full bottles instead of tastings and one need not wait on those insane lines. She is my brother’s girlfriend from college who arranges European brewery tours for beer aficionados with money to burn. I’m also working an angle with my host to get me into the beer festival kickoff dinner at Mia’s on that Friday night.
We are getting a nice stock and bond market bubble going. Housing is next then BOOM
Take some screen snapshots of your 401K balances tomorrow. Might as well enjoy the view while we are up at these heights!!
expat (30)-
Three letters: SRS. Since the big collapse in 08-09, however, it’s been a slow donkey cart to hell.
“My FIL and I used to always muse, “How do you short sell houses?”
I sense a day will be coming soon when I load up on SRS and watch it shoot the moon…just like the good ‘ol days before the banksters, Bernank and Timmay began to transfuse the cadaver of the housing market.
stu (41)-
Agreed. I bet Richard sends his kids to St. Peter’s.
Dickinson, Ferris, Snyder are training grounds for the next generation of Bebo. Greeville is Mogadishu, especially since Sandy.
If stu has a rail gun, I am entitled to an EMP bomb.
Stu: you know I love you man; and I know I need to keep my Albanian, Lithuanian, Russian, Slovenian, Jewish, Muslim, Catholic trap shut, but I think once again you are underappreciating your risk profile. I think you are being undercompensated and need to push hard for every rent increase you can get.
Libtard in Union says:
February 27, 2013 at 11:17 am
As an owner of a multi with ever increasing rents and without a single day of vacancy in the past 9 years, I hope people continue to move to renting over owning. Quite frankly, I’m astonished to see what people are willing to pay in rent. I would think at some point, they would consider paying themselves instead of me. I am now approaching $4,600 per month rental income (tenants pay extra for heat too) on a home that is worth between $400,000 and $450,000 (Zillow has us at $455K). Taxes, mortgage and insurance are $3,300 per month combined. At this point, I am actually thinking about letting someone else shovel the snow!
That is fantastic….I’m going to use that….
JJ says:
February 27, 2013 at 1:35 pm
“There’s an old saw on Wall Street that more money has been lost reaching for yield than at the point of a gun,”
I am mad at myself. At 358pm on Monday I put 20K into stocks. Why didnt I put 200K into stocks. It was just an extra zero.
chicagofinance says:
February 27, 2013 at 3:44 pm
That is fantastic….I’m going to use that….
“but I think once again you are underappreciating your risk profile.”
Are you trying to rob me of my innocence (or perhaps ignorance)?
I have three words to say to you sir “lehman brothers bonds”
I heard they just paid out, are you happy with the payout?
chicagofinance says:
February 27, 2013 at 3:44 pm
That is fantastic….I’m going to use that….
JJ says:
February 27, 2013 at 1:35 pm
“There’s an old saw on Wall Street that more money has been lost reaching for yield than at the point of a gun,”
I’m a jersey city guy, and anything below Communipaw ave isn’t gentrifying anytime soon, downtown is a done deal, JSQ still has building going on(it is the next big thing in JC), the Heights has slowed since the crash not as much development. The schools will never be anything but prisons too much section 8, and project housing which will remain but will be surrounded by gentrification.
As for the Swiss thing, Hitler wanted it but knew he needed the veil of neutrality, who else was to sell them munitions, or take gold and art plundered from Jews and occupied nations. If there wasn’t total war going on the Swiss would have been annexed. I was just in the national museum in Zurich and they are very proud of their “Neutrality”, and also the fact that they provided medical care to Nazis, they were hitlers allies plain and simple.
The New Jersey and Switzerland Real Estate, Guns, and Beer Report.
I grew up in Jersey City; Tippy’s, Cheap Sam’s, Silverman’s, Rosen’s, Woolworth’s, Jupiter, Blimpie (The Original!) Dolph’s, Liss Drug Store, The Canton, Hudson Blvd not Kennedy Blvd., Great Eastern, Two Guys, The State Theater, Brummers, Meyer’s and on and on…
I knew Jersey City before it was Jersey City! lol!
Roger Grimsby (3),
December – YOY change (NY Metro – NSA)
High Tier ($430k+) – Up 0.24%
There is no supply b/c the banks aren’t foreclosing and the deadbeats are getting refinanced under HAMP et al. Researching one Lis Pendens the other day and found the deadbeats ripped off US (i.e., the IRS) and had three years worth of tax returns and their decision online. Well, guess what – YEP, they got refinanced and the property value inflation was maintained – BULL FROG!
Keep it! It’s a bubble and when it pops it’ll be worse than that 7th grade girl’s gum explosion that got in all her friends’ hair.
DDD..Daisy
I call Bull Frog!
I was the one who told Frank Sinatra to invent Penne Alla Vodka.
Fast Eddie says:
February 27, 2013 at 4:27 pm
I grew up in Jersey City; Tippy’s, Cheap Sam’s, Silverman’s, Rosen’s, Woolworth’s, Jupiter, Blimpie (The Original!) Dolph’s, Liss Drug Store, The Canton, Hudson Blvd not Kennedy Blvd., Great Eastern, Two Guys, The State Theater, Brummers, Meyer’s and on and on…
I knew Jersey City before it was Jersey City! lol!
in 1964, three New Jersey friends who had known each other since high school were determined to go into business for themselves. Fueled by this entrepreneurial spirit and inspired by a hearty sandwich known as the submarine, Tony Conza, Peter DeCarlo and Angelo Baldassare opened the first Blimpie sub shop 45 years ago in Hoboken, NJ.
Most surprising is how this historic American sub shop, Blimpie, got its name. The answer is really rather simple; when the three New Jersey friends were trying to decide on a name for their business they didn’t want to use traditional terms like hoagie or submarine. Equipped with a standard dictionary they began flipping through the pages and found the word “blimp” along with an image of a flying blimp. The men thought the image of the blimp mimicked the shape of the bread they were using to build their sandwiches – thus the name Blimpie was established.
JJ,
My Mom and her friends used to walk by Sinatra’s house on the way to high school when he lived on Bergen Avenue.
I trick or treated once at Captain Kangaroos house in Massapequa NY
Fast Eddie says:
February 27, 2013 at 4:35 pm
JJ,
My Mom and her friends used to walk by Sinatra’s house on the way to high school when he lived on Bergen Avenue
JJ,
Faaaaassssccccinnnnaaaating.
(Yawn)
OK, TERRIFIC!
WTF is it with Connecticut and nut jobs????????
http://news.yahoo.com/cops-grandma-shot-self-young-grandsons-car-145334468.html
jj (87)-
Did he give you a pony ride on his lap? That would explain a lot.
“I trick or treated once at Captain Kangaroos house in Massapequa NY”
Why buy when you can get one for free?
Princeton Offers Free Houses; Just Take It With You
Princeton University, in Princeton, N.J., is giving away free houses. What’s the catch? If you become a homeowner, it’s up to you to haul the house away.
http://abcnews.go.com/blogs/headlines/2013/02/princeton-offers-free-houses-just-take-it-with-you/
I rammed that Kellogs train right up Bunny Rabbit, Mr Moose and Mr Green Jeans bung holes!!!
Scrapple Cannon says:
February 27, 2013 at 5:14 pm
jj (87)-
Did he give you a pony ride on his lap? That would explain a lot.
“I trick or treated once at Captain Kangaroos house in Massapequa NY”
Mr. Green Jeans takes it no vas.
I predicted that the WH would take Woodward to the woodshed. But as I was looking for Carney’s comments, I came across this story in Politico.
http://www.politico.com/news/stories/1012/82772.html
I looked at the date and did a double take. Then I read the story and it does not appear to refer to recent dustups. So Woodward called out Obama on the sequester Four Months Ago!!! Read it now before the story “unexpectedly” disappears from the internet.
Another one from the genius (govt) department:
http://townhall.com/columnists/toddstarnes/2013/02/25/louisiana-says-homeless-cant-eat-deer-meat-n1519865
“The Louisiana Dept. of Health and Hospitals would rather the homeless go hungry than let them eat deer steaks provided by generous hunters.
Henry Martin, executive director of the mission, told me they’ve been serving deer meat for years – from deer chili to deer spaghetti.
“This was really good meat,” he said. “It’s high in protein and low in cholesterol. It’s very healthy.”
“The rescue mission serves 200,000 meals a year – without a single dime of assistance from the state or federal governments. As a result of the confiscation, he said as many as 3,200 meals were lost.”
The Health Dept. defended their actions and said they had to pour Clorox on the meat as an “extra precaution so that animals would not eat it from the dumpster and become sick or die.”
I suppose in Louisiana beggars can be choosers.
Once the poor have coughed up their votes to Team Red, they are of no further use to them. Let them eat cake.
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