Hammers start swinging again

From the Record:

NJ home construction running 45% ahead of 2012 rate

In another sign of a recovery in housing, New Jersey home construction is running 45 percent ahead of last year’s rate, according to the U.S. census.

In the first five months of this year, building permits were issued for 8,912 housing units in the state, up from 6,117 in the same period in 2012.

More than half of the permits were for multifamily construction, which has grown as demand for rentals has increased.

“Multifamily is really the source of the increased momentum,” said Patrick O’Keefe, an economist with CohnReznick, an accounting firm with an office in Roseland.

And the two busiest counties are Bergen and Hudson, which are seeing a spillover of demand from the New York City market. Projects in Bergen include the redevelopment of a long-vacant 16-acre site in downtown Fort Lee; a 57-unit apartment building on the Passaic River in Elmwood Park; apartment buildings in East Rutherford and Fort Lee, built by BNE Real Estate Group of Livingston; and apartments in Hackensack and Wood-Ridge, constructed by AvalonBay of Virginia.

O’Keefe is predicting that about 23,000 homebuilding permits will be issued in New Jersey this year, up from 18,000 last year and an average of only 13,000 a year from 2009 to 2011 — the lowest annual totals since World War II. Even with the recovery, the rate of homebuilding remains below long-term averages above 30,000 units a year.

This entry was posted in Economics, Housing Recovery, New Development, New Jersey Real Estate. Bookmark the permalink.

33 Responses to Hammers start swinging again

  1. grim says:

    Tough to be rich these days, from CNBC:

    Penthouse Shortage?

    You wouldn’t know it from looking at all of the glass towers going up across Manhattan, but the city is running out of penthouses and other ultra-luxury apartments.

    Sales of multi-million-dollar properties in New York City fell dramatically in the second quarter, due in large part to lower inventory, according to real-estate firm Brown Harris Stevens. Sales of properties priced at $5 million or more fell 25 percent to $679.3 million in the second quarter compared to the same quarter in 2012.

    Sales of homes priced at $10 million or more fell by nearly 50 percent to $241.9 million, according to Brown Harris Stevens.

    Granted sales were up over the first quarter. But brokers say the year-on-year decline in sales volume is largely due to a lack of supply. The number of properties priced between $5 million and $10 million in New York fell 15 percent between the second quarter of 2012 and the second quarter of 2013.

    But brokers and real-estate executives said the decline in current inventory is actually much greater since much of the inventory added in the second quarter is made up of apartments in buildings still under construction.

    “It’s the lack of inventory more than anything else,” said Hall. F. Willkie, president of Brown Harris Stevens Residential Sales. “It’s just so tight.”

  2. Juice Box says:

    This guy is a bigger liar than Mark McGuire, only after his lie was
    Outed with the NSA scandal does he come forth and apologize. An apology should not be enough when testfying under oath. What a bananna republic we have become.

    http://security.blogs.cnn.com/2013/07/02/us-intel-chief-admits-giving-erroneous-testimony-apologizes/

  3. Screw rule of law. Bomma’s gonna give me stuff.

  4. anon (the good one) says:

    @MMFlint: I bet if we gave the NSA $11 billion per yr instead of $10 billion they now get they’d be able 2 figure out whether Ed Snowden’s on a plane

  5. Grim says:

    He’s dead in some Russian Gulag, Putin personally decapitated him, with his bare hands.

  6. JJ says:

    Wow a lot of folks on the train to wall street this morning, trying to figure if that is a good sign or bad.

  7. anon (the good one) says:

    couldn’t he be defined as a weapon of mass destruction? then invade Iran looking for him as W did with Iraq?

  8. JJ says:

    WOW, so back when I was house hunting last summer my neighbor told me about a scumbag realtor/flipper on his block who got in way over his head and is in pre-forclosure on three homes on his block, all are rented.

    One house he bought like at the peak and did a huge gut renovation where he financed the whole thing. Anyhow he has dragged it out three years and judgement day is near.

    Like one year ago there was a large fixer upper on block that some single girl got at a good price in Summer 2009, she did some of the ripouts etc, which made it look worse and promptly got killed in Summer of 2010 by a driver who nailed her one block from the house crossing the street. Estate put house on market as is and after one year of price cuts he got it for 330K, right across the street from his masterpiece failed split.

    To amazement of neighbors he bought it 330k in a LLC thing. Over next nine months he renovated the thing and took nearly everything from his peak purchase house, kitchen, baths etc and dragged them across the street installed them in the fixer upper and dragged back the beat up junk and put it back in the old house. He just put it on the market at 660K, 100% marked up and judging from court judgements the old house is on the block in a few months. Guess who will buy old house at auction, bet it is he in another LLC for cash.

  9. The crime that pays is the crime that stays.

  10. Anon E. Moose says:

    Anon [4];

    The people who couldn’t figure out whether Snowden was on the plane to Havana were the sycophant court scribes in the media. A) Did they really think he was going to fly commercial — and under his own name?; B) They were too stupid to wait for him to board before committing themselves; C) they threw caution to the wind and boarded on the spec (with a plane full of other scribes) blinded by the naive hope that they’d be the one to get the “exclusive” and open him up (“I watched him sleep for 10 hours” doesn’t exactly make for compelling news coverage).

    I’d say they each deserved 20-odd hours on Aeroflot as their punishment.

  11. freedy says:

    Is Barry going to stop in Cairo??

  12. Grim says:

    Jobless claims down 5k to 343k, below estimates. 4 week moving average down to 345,500. Good stuff.

  13. Grim says:

    Is the golfing good in Cairo?

  14. Juice Box says:

    Grim a US citizen was murdered Alexandria Egypt last week, reportedly stabbed after he was seen filming a demonstration there.

    Once they run out of currency reserves they will run out of oil completely and then food and then the real ultra violence starts.

    http://worldnews.nbcnews.com/_news/2013/06/28/19192748-american-killed-in-egypt-protests-is-identified-us-embassy-in-cairo-confirms

  15. JJ says:

    A hole in one is a little different meaning in Cairo.

    Grim says:
    July 3, 2013 at 10:29 am

    Is the golfing good in Cairo?

  16. Juice Box says:

    This is more than just getting to Snowden. He has a roommate at the Airport Hotel. Sarah Harrison a Brit who is part if Wikileaks. They are perhaps funding his stay. It is $300 a night USD, I doubt Snowden’s Credit Cards still work.

    http://www.dailymail.co.uk/news/article-2351726/Were-proud-Wikileaks-daughter-say-family-British-blonde-went-run-CIA-whistleblower.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490

  17. JJ says:

    It is official NJ RE bottomed six months ago!!!!

    Asking Home Prices Rose 10.7% in June Amid Higher Interest Rates: Trulia
    Home prices show no signs of cooling off yet, even though rates are beginning to dampen demand.
    By Shanthi Bharatwaj, Staff Reporter
    THESTREET.COM — 28 MINUTES AGO

    NEW YORK (TheStreet (Symbol : TST)) — Higher interest rates are expected to slow the pace of home price gains, but it may be a while before we see evidence of it in home prices.

    Real estate company Trulia (Symbol : TRLA) just released its June Price Monitor, which tracks asking prices — a leading indicator of home prices.

    “Despite rising mortgage rates, prices show no sign of slowdown — yet,” Trulia (
    ) economist Jed Kolko said.

    Asking prices were up 10.7% year-over-year in June and was up in 99 out of the top 100 metros (Philadelphia saw prices dip by a negligible 0.01% year-over-year). Excluding foreclosures, prices were up 11.4%.

    Prices were up 1.5% on a seasonally adjusted basis. Asking prices have risen between 1.2% and 1.5% every month.

    Trulia’s price monitor adjusts for the changing mix of homes sold.

    In Oakland, Sacramento, and Las Vegas, prices rose more than 30% year-over-year.

    Markets that bottomed as late as six months ago are now seeing strong price increases. Edison- New Brunswick, New Jersey, Chicago Illinois and Baltimore, Maryland, for instance, saw asking prices rise more than 7% year-over-year in June.

    The strong rise in home prices coupled with a recent jump in mortgage interest rates has meant that potential first-time homebuyers are now experiencing “sticker shock.” Monthly mortgage payments are likely to be much higher than they anticipated originally and it could deter them from buying a home or at the very least, lead them to buy a smaller home.

    In the past year, buying a home has become 20 percent more expensive,” Kolko said in a statement. “Roughly half of this higher cost comes from soaring home prices, which are up almost 11 percent in the past year. The other half comes from rising mortgage rates, which have added another 10 percent to the overall cost of homeownership. For young first-time homebuyers who don’t remember life during and before the bubble, these rising costs are a rude awakening.”

    Mortgage applications declined 11.7% from a week earlier as mortgage rates hit a two-year high, according to the Mortgage Bankers Association’s weekly Mortgage Applications Survey.

    The 30-year mortgage rate jumped to 4.58% from 4.46% in the previous week and is at its highest level since July 2011.

    Analysts expect home price gains to moderate later this year, as rising interest rates cool buyer demand, while additional inventory will also likely ease the tight supply situation.

  18. chicagofinance says:

    It will be after the tanks blow a bunch of holes in the ground….

    Grim says:
    July 3, 2013 at 10:29 am
    Is the golfing good in Cairo?

  19. anon (the good one) says:

    Brazil, Portugal, Egypt, all burning. In America, real estate is where is at.

    @Gothamist: Couple Spend $1 Million To Live In Bed-Stuy Because It Reminds Them Of Gritty LES http://t.co/htqgGJExiN

  20. Lobotomized Schabadoo says:

    Stealing Clot’s riff here but we’ve become the dumbest, fattest, brokest nation in the world. The boys at Foggy Bottom are wonderning why nobody listens to them anymore. It doesn’t matter whether we walk softly or not, we’ve lost the big stick.

  21. Brian says:

    If you think so then do us all a favor and GTFO.

    20.Lobotomized Schabadoo says:
    July 3, 2013 at 1:31 pm
    Stealing Clot’s riff here but we’ve become the dumbest, fattest, brokest nation in the world. The boys at Foggy Bottom are wonderning why nobody listens to them anymore. It doesn’t matter whether we walk softly or not, we’ve lost the big stick.

  22. Lobotomized Schabadoo says:

    Enjoy the decline.

  23. Brian says:

    Dork.

    22.Lobotomized Schabadoo says:
    July 3, 2013 at 2:01 pm
    Enjoy the decline.

  24. Anon E. Moose says:

    anon (the good one) =,≠ Lobotomized Schabadoo?

    Can’t tell the players without a program.

  25. joyce says:

    Speaking of can’t tell… I can’t tell when Brian is being sarcastic. If not, he’s really a true believer.

  26. Brain and schabadoo lobot are both morons. They should be fused at the head like Siamese twins, then prodded with stun batons until they fight each other.

  27. Egypt is a shit show. Nobody wins there, except oil companies. These are people who cannot begin to handle actual freedom, and the first strongman or military goon who can get his hands on the controls will again drive the whole morass into a 19th century standard of living.

  28. Most dogs want to follow. The alphas are few and far between. Virtually no one in Egypt has any taste for real intellectual or political freedom.

  29. Then again, brain and schabadoo lobot would make a good human centipede.

  30. I smell $4.00+ gas by Labor Day.

    Tricky thing, that Suez Canal.

  31. WickedOrange says:

    Tenafly fireworks, pretty good… better than I expected.

  32. firefall says:

    Awesome firefall. Might advocate for you to many people

  33. YouTube videos are well-known in whole globe, because it is the biggest video sharing web site, and I turn out to be too cheerful by watching YouTube video clips.

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