From Jeff Otteau:
NJ Home Prices Have Largest Quarterly Price Increase Since the Recovery Began
The combined effects of increased home purchase demand and tight inventory levels is causing continuing home price increases in New Jersey. Median home prices in the state rose by 6.4% in Q3 compared to one year ago. This marks the largest rise since the housing recovery began and is the 4th consecutive quarterly increase. The median home price in New Jersey increased to $315,693 in Q3 up from $296,679 one year earlier. At the same time, the available supply of homes being offered for sale remains low with a decline of 5,000 homes (-9%) over the past year and 16,000 (-31%) over the past 2 years.
The higher home prices coupled with a rise in mortgage interest rates over the past 6 months has reduced the affordability of home ownership for the 3rd consecutive quarter. The affordability index in New Jersey declined to 114% in Q3, its lowest level since Q2 2011. This means that a home buyer today earning the state’s median income of $66,692 is able to afford a home that is priced 14% higher than the state’s median home value of $315,693. Another effect of the higher level of home buying is that the homeownership rate in New Jersey increased slightly to 65.2% in Q3.
Friskies
You could say the second fired the first. I’m here all week, try the fish!
http://www.slate.com/blogs/the_slatest/2013/11/07/guns_ammo_editor_jim_bequette_resigns_fires_dick_metcalf_after_outcry_over.html
I’m searching through the GSMLS and NJMLS for the last 90 minutes. The range in price is all over the place and every house I see has at least two severe personality disorders. I mean painful disorders, not something easily over-looked. Oodles of pictures of the “updated” kitchen (cough…) and only a glimpse of the ever-shrinking bedrooms. Single beds? Really? Nice staging. Not! And let’s hide the property taxes or not list them at all. Perhaps no one will notice. And look past the décor, because if you don’t, you’ll burn your retinas.
The combined effects of increased home purchase demand and tight inventory levels is causing continuing home price increases in New Jersey.
So, what are the sellers waiting for? It’s a seller’s market; why the hold-up? List the house and get your price!
A f.ucking mess. These sellers need to wh0re-slapped into submission. If you’re not going to update anything, at least de-clutter the joint and buy a bottle of Windex. Multiply this by 1000 listings and this is the sh1t on a plate being served:
http://new.gsmls.com/publicsite/propsearch.do?method=moredetails&sysid=2987781
Obviously, the link above is just as allusive as the taxes. Before this mess started in the around year 2000, you were able to leisurely tour 4 or 5 houses and make a reasonable plus and minus list. Anyone that states this is a normal housing market or approaching a normal housing market is full of sh1t or blind or inexperienced or all of the above. Property taxes are f.ucking horrible… insane… a ripoff and a heist of epic proportion. You’re being pounded into submission into believing that this is the new normal on top of the prices for theses p1ss-smelling, dank sh1tholes . If I was a first time buyer, I would be outraged beyond belief. You’re being swindled to death on top of an economy that is on a respirator.
gary (7)-
It is a swindle, a pyramid game now targeted at the few, final latecomers…the dumbest of the dumb money. They will be sucked in…then, the doors will swing shut, the padlock will be applied, and the whole thing will be set alight.
Alas, all exits will be barred, and the whole mess will go up in smoke.
Stop torturing yourself and trying to do a thing that can’t be done. There is no room in the swindle for someone who understands the mechanics of the three card monty.
Meat,
The con is so obvious I can’t see how anyone with a pulse could miss it! Evidently, the shysters could smell a con through a forest fire. I keep trying to divide by zero and wonder why it doesn’t compute. Either I’m the insane one or so far ahead of the wreck that I’m viewing it from behind.
Sold for 725K in 01/12, currently asking 789K. Not a f.ucking thing was upgraded since the house was built and these fat b@stards have the b@lls to try and flip it? Either that or yet another bag-holder gets rooked and is looking for a bailout. It’s 200K over-priced and that’s being generous. People are out of their f.ucking minds.
http://www.trulia.com/property/3128566346-274-Purdue-Ct-Paramus-NJ-07652#photo-1
Sold two years ago for over $1,000,000 and is currently being trolled for $1,250,000. These people are smoking dryer lint. A f.ucking disaster. This one is screaming for a gallon of super unleaded and a book of matches:
http://www.trulia.com/property/3054840268-144-Fairway-Ter-Paramus-NJ-07652#photo-1
No explanation required:
http://www.trulia.com/property/3132852286-290-Dunkerhook-Rd-Paramus-NJ-07652#photo-1
Hurry! Bring your checkbook… along with a bottle of vodka and a p1stol to bl0w your f.ucking brains out:
http://www.trulia.com/property/3130396960-181-Midwood-Rd-Paramus-NJ-07652
11 – Glad to see I have better taste than a “designer”
13 – Imagine coming home from the most aggravating day at work and pulling up to that disaster? Then again, one could have a good day and then have it turn ugly after seeing that horror show. Getting snookered isn’t bad enough; someone has to look at that every day!
7 and 9- it’s no f’n con. It’s called a market. Guess what guys, 90’s pricing is never coming back. If it did, you would see a buying bonanza that would bring us right back to current pricing. Why? Because the market supports the current pricing. If it wasn’t being supported, it would drop. I’m sorry to ruin your little party of doom and gloom. If you lived in NYC, you would have been complaining the past 15 years that these prices are crazy and don’t make sense because you guys have trouble wrapping your head around the idea that there are a lot of people out there making a shit load of money. There are a lot more people in our area making 6 figures than there were in 1999. Yes, a ton of people dropped out of the middle due to job losses, but also a ton moved up. Why is this so hard to understand? Why?
Gary – you’re having a rough day. I recommend a skittle-smoothie followed by a ride a unicorn ride through Brig-upon-Hackensack on this brisk fall day.
14- half of the houses you are looking at will never be sold. It’s a free market, they can list their prices at whatever they want. It doesn’t mean it will get sold. Also, property taxes are not that crazy. You think services are cheap? If you think property taxes are expensive, it’s because you can’t afford it. I feel like property taxes have leveled off (large increases of 2002-2009 that coincided with a boom in real estate prices are gone) and they are at a fair price compared to other parts of the country with the services you are receiving. Do I wish they were 2,000 or didn’t exist? Of course. But that’s a dream. Someone has to pay to for the services around here whether or not you use them.
Take a ride on Margo Way and Timberline/Esplanade in Alpine and check out what a couple (dozen) million gets you.
Happy [16],
Yes, embrace the madness! I’ll have a rainbow slushy and a bag of gold dust to go, please!
12- you do realize that you are paying for the acre of land and it’s location right? Who gives a crap about the house.
Michael,
I’m solvent. But thanks for playing.
#12 – That is some ballsy pricing, that property is full of overgrown weeds. The early 90s convertable Benz? A boomer trying to cah out and go to Florida?
21- all I’m saying is that your negativity is blocking you from separating reality with fantasy. The market crashed already. Switch your mindset from negative to positive. Then and only then will you see that this is a great time to buy. If you think it’s expensive now, what do you think it will be in 7 years? Keep on waiting for the prices to fall to levels that you think are acceptable.
22- indeed on the high side due to the creation of a monster. The stats do matchup though. 6800 sq ft house on almost an acre of land backing up to protected park land. If they didn’t get all crazy with the design and just built a colonial, this would be sold.
22- with those stats the price is right. With the terrible design, it will be a hard sell.
20 – An acre in Paramus ain’t worth $800k. You’d need to put up a new house worth near $2.25 million to justify that land price. If it was large enough to subdivide into two lots, that’d be another matter entirely
Fast Eddie and spine- go rent if you think pricing is going to fall and the market is one big scam. Sell high on your real estate and go rent.
Waiting. Still waiting. Yes, didn’t think so. Didn’t think you actually believed the sh*t you were pushing.
26- I agree, but it still has a house on it, which jumps the price up on that acre. Acre on a good street will def go for min 500,000 in that area.
9 – It’s priced at purchase price + sales overhead, this is always a red flag. They need to get their number, could be psychological, could be financial, either way, these properties should largely be ignored as their owners are almost always psychotically irrational.
28 – Please stop talking crap, a shitty teardown house on a good buildable lot is a liability, not an asset, the house is worthless. The scrap cost wouldn’t even cover demolition and disposal. You’d need to go so big on that lot that trying to retain the existing foundation or structure would likely cost more in the long-run than just building from scratch.
Grim, all I’m trying to do is get this guy to see the light. You obviously changed your mindset and realize the crash is over. These guys still think it’s 2006. He is trying to tell me he can’t find one good house for sale in all of northern jersey!?!? I call bs. It’s due to his mindset. He already convinced himself that everything is overpriced and crap, which is far from the truth.
Like I said, if you think the market is a scam, only being propped up by the fed, and has nowhere to go but down….then sell at these high prices and go rent. You know since owning a home is such a bad idea because of taxes. He will be able to get out of the scam and also not have to worry about property taxes.
28 – The difference between $500k and $800k is that $800k is 60% higher than $500k.
2 Lots on what is probably the best street in town (the above mentioned Dunkerhook) went for $549k and $599k. Take the average of $575k and that is your high water mark.
A 1.1 acre lot on what is a very nice street in a comparable neighborhood sold for $400k in the last year, which would be a much better comp than the Dunkerhook properties.
So they want $800k for what should be closer to $400k.
Grim, all I’m trying to do is get this guy to see the light.
Michael sweetie, I have seen the light. Love the entertainment. :)
These guys still think it’s 2006.
The sellers? Agree!
The house on Midwood in Paramus is worth around $400,000. Tried listing that one about 6 months ago and gave up due to their detachment from reality.
The house on Midwood in Paramus is worth around $400,000. Tried listing that one about 6 months ago and gave up due to their detachment from reality.
Michael, any questions?
33- I don’t know the owners and I don’t know the property. I hate zillow because they are usually off but here we go anyway. The following was the zestimate range. You put that house on the market at 400,000 and you will create one of the biggest bidding wars of all time.
Charts and Data
Zestimate®: $737,227
Range: $597,154 – $877,300
30-day change: $29,512
Last updated: 11/07/2013
400,000?? Can zillow really be that off? Not even in the zillow range? I hate zillow but I have to agree with them. 400,000 is a joke for an acre of land with a house and 3 car garage sitting on it. You would be able to flip it no problem at that price. Put 100,000 into it and sell for 600,000.
#38 Michael – I lived around the corner from that house for nearly 20 years. The lot cannot be subdivided. The maximum value for what can be built there is around 1.2 million and that is an ambitious price range for the area. Land is typically worth about a third of the projected value of the home to be built on it. Do the math.
40- you live there and are the expert. Def not going to go against your opinion. Just think 400,000 would be a great deal on that house. Houses in crappier areas on a 1/3 of an acre are worth 400,000.
State of the market currently is that there is a disconnect between asking price and value for 75% of the homes on the market. I currently have an inventory of 21 homes. Of the 21 only 4 are currently under contract. Three of the under contract homes are REOs and the other is a realistic seller. The balance of the sellers have been clearly advised of the current value of their home and refuse to reduce the price to a price which would draw market value offers.
Michael-the homes in inferior locations on a third of an acre are in average condition with typical floor plans. This home has an unusual floor plan and is in need of substantial updating and repair. The seller is marketing for land value which should be a clear indication of the quality of the structure.
gary (11)-
The only buyer for that house should be the Church of Scientology.
Stop feeding the troll.
42- problem is, there are a bunch of fast eddie’s looking for a house out there. If they are not getting 50,000 to 100,000 off of listing price, they are not buying. I think a lot of sellers have this in mind. So they list the house higher than it’s worth to compensate the people that will low ball them in price. People like fast Eddie never ever pay asking price, even if the asking price is below market value, they still feel the need to talk down the price.
People like fast Eddie never ever pay asking price, even if the asking price is below market value.
Show me the list of homes in sought after towns asking below comps.
Meat,
Here’s your Church of Scientology house:
http://www.trulia.com/property/3093330956-70-Clinton-Ave-Hillsdale-NJ-07642
30 year [42],
Those words should be lined in Gold!
47- this quote from fast Eddie is hilarious and sums up his dilemma. He wants the best areas but then complains about pricing and taxes. He just doesn’t get it. He wants the Cadillac but questions why it is not the same price as a Chevy. He’s the guy in NYC still scratching his head and claiming these prices can’t last…meanwhile Brooklyn has passed up what he considers fair pricing.
“Show me the list of homes in sought after towns asking below comps.”
I have no further questions, your honor. I rest my case.
49- grim posts more than enough factual #s on this blog to support the idea that houses are selling and going up in price. Stop looking at the sh*t houses that will never sell.
Fast Eddie- if you were serious about buying, pick an area. Get in touch with a real estate agent with great connections in that area, and get on the list for the next best house that comes up meeting your qualifications. It’s really not that difficult.
47- better yet, you summed up the argument for me.
“Show me the list of homes in sought after towns asking below comps.”
So the prices are on pt based on comps. Thank you governor!! Case closed!!
For an agent listing a house the length of the listing is more important than the price. Typically the seller is going to insist on a price which is far enough above market value that it will not attract offers. If the seller has any real motive to sell time will eventually win out and the price will come down to reality.
925724 78564This internet site is my aspiration , quite amazing pattern and perfect articles . 955481
88076 372020Thank you for the sensible critique. Me and my neighbor were just preparing to do some research about this. We got a grab a book from our local library but I think I learned more from this post. Im very glad to see such wonderful info being shared freely out there. 312617
I guess they heard you because the listing is gone…
Fast Eddie says:
November 9, 2013 at 8:24 am
A f.ucking mess. These sellers need to wh0re-slapped into submission. If you’re not going to update anything, at least de-clutter the joint and buy a bottle of Windex. Multiply this by 1000 listings and this is the sh1t on a plate being served:
http://new.gsmls.com/publicsite/propsearch.do?method=moredetails&sysid=2987781
Sung to the tune of God Bless America
God Bless fracking
In the land that I love
Frack inside her and guide her
To the trapped gas and oil released to up above
From the mountains, to the prairies, to the oceans
Black with gunk
Go fcuk the Europeans and the Elite 140
For their arrogant backward a%%es will be left spanking their pud$……
“It is absolutely certain that [fossil energy] demand will go up a lot faster than supply. It’s just a fact,” President Obama explained in 2011. The U.S. “cannot afford to bet our long-term prosperity on a resource that will eventually run out.” Mr. Obama mentioned shale exactly once in his speech—and only to say shale would run out too.”
BUSINESS WORLD
Germany Reinvents the Energy Crisis
A love affair with renewables brings high prices, potential blackouts and worries about ‘deindustrialization.’
By HOLMAN W. JENKINS, JR.
Nov. 8, 2013 6:28 p.m. ET
ObamaCare isn’t the only policy train wreck in progress. Like Mao urging peasants to melt down their pots, pans and farm tools to turn China into a steel-producing superpower overnight, Germany dished out subsidies to encourage homeowners and farmers to install solar panels and windmills and sell energy back to the power company at inflated prices. Success—Germany now gets 25% of its power from renewables—has turned out to be a disaster.
As Germans rush to grab this easy money, carbon dioxide output has risen, not fallen, because money-strapped utilities have switched to burning cheap American coal to provide the necessary standby power when wind and sun fail.
Because the sun and wind are intermittent and the power grid is poorly arranged to accommodate them, brownouts and blackouts threaten this winter.
Because the bills are paid by households and businesses, electricity rates are triple those in the United States. An immediate panic is jobs, as prized industries head to the U.S. for cheaper energy unleashed by the shale revolution. Europe’s top energy official now speaks frankly of the “deindustrialization in Germany.”
In Britain, where policy has been nearly as generous to renewables, “It’s fine being very, very green, but not if you’re interested in manufacturing,” complains a prominent CEO.
Wind turbines stand behind a solar power park near Werder, Germany. Getty Images
Democracy’s great virtue is that it doesn’t follow schemes off a cliff, but the normal adjustment mechanisms are hampered by the fact that Europe’s energy disaster implicates the entire political spectrum.
An unw0nted glimmer of reason has actually come from her likely Soc!al Democrat coalition partner, author of Germany’s original green energy law, whose spokesman now says: “We need to ensure that renewable energy is affordable. And we need to put an end to the idea that we can pull out of nuclear and coal simultaneously. This won’t work.”
It’s tempting to assume Europe’s politicians were praying in the church of global warming. But more important is their subscription to resource-depletion ideology, which convinced them they’d picked a political winner because rising fossil fuel prices were guaranteed to make green energy look cheap in comparison.
“When more people consume oil and coal, the price will go up, but when more people consume renewable energy, the price of it will go down,” explained Ms. Merkel’s top energy adviser.
We have here an idea seemingly impervious to experience and part of the mental baggage of every politician likely to get elected in our world. “It is absolutely certain that [fossil energy] demand will go up a lot faster than supply. It’s just a fact,” President Obama explained in 2011. The U.S. “cannot afford to bet our long-term prosperity on a resource that will eventually run out.”
Mr. Obama mentioned shale exactly once in his speech—and only to say shale would run out too.
If all this were true, Europe wouldn’t be in its present fix. Here’s the real truth: The shale revolution is less revolutionary than it seems. It has shocked settled misconceptions only because it happened under the noses of Americans, in populated areas where the casual assumption was that “resources” would long ago have been dug out and carted away.
In fact, the world’s store of fossil hydrocarbons is truly vast, including almost unimaginable quantities of methane hydrates. The challenge is the technological and economic one of getting access to a given resource at an affordable price—a challenge ever since men used rags to soak up oil from natural seeps. For 150 years, the price of a barrel of oil has fluctuated between $10 and $100 (in 2011 dollars), a range that has been sufficient to call forth new reserves and feedstocks when needed to maintain hydrocarbons as a source of competitively priced energy.
Europe’s energy crisis is a lot like ours of 40 years ago—self-inflicted. Europe’s dream was untenable the minute energy prices began falling in a major trade competitor like the United States. The big question now is how far will the political upheaval go when an entire elite is implicated in an unsatisfactory energy experiment, which inevitably has become wrapped up in public disappointment with another failed elite project, the European Union itself.
Fascinating too will be the fate of Europe’s shale. In Europe, government, not landowners, controls and benefits from mineral resources, creating the zero-sum resource politics that have made the Mideast a paragon of stability and civil progress. What about global warming? At least that answer is easier. European voters are coming out where Americans have, realizing that foreswearing cheap energy will do nothing for CO2 levels (and even less for climate) as long as others aren’t foreswearing cheap energy too.
Hospitalization is terribly expensive. False — it is only expensive because you are being ripped off. In general hospitals are paid 1/4 or less of what they bill. That is, most so-called “terribly expensive” health care — the worst kind — costs one quarter of what you’re told. Could you afford that, if you had to pay cash? Probably — but you are charged 4x as much if you try to pay cash. Isn’t threatening you with bankruptcy if you don’t buy something by jacking up the price for cash .vs. so-called “insurance” better described as extortion?Drugs are terribly expensive, especially for chronic conditions. False — for a whole plethora of common chronic conditions you can today buy a year’s supply of drugs for a couple hundred bucks. Literally. You’re led to believe otherwise, so you sign up for “insurance” that then winds up costing you more for your drugs (in co-pays), usually double or more, than if you paid cash! The insurance companies love this. How do you feel about being systematically robbed?Medicare supplement insurance coverage is a good idea. Generally false, for the same reason. What it costs exceeds what it pays in nearly every instance. Now you know why there are ads all over the TV for it — it is, for most people, a zero-value rip-off.Malpractice insurance is terribly expensive and thus drives up the cost of care. False — it is a vanishingly-small part of the cost of operation for a doctor, hospital or other facility.”Uncompensated” (or “charity”) care is a big cost of operation and is responsible for the cost problem. False — this is a raw lie. Most hospitals spend far less than 10% of their revenues on “uncompensated care.”Tests are expensive. False — most tests are very cheap, with many under $20. They’re only expensive because you allow “insurance” to pay for them, and the providers mark them up for so-called “list prices” by as much as 1,000%. The real problem is monopoly and other unfair practices, all of which in other industries would lead to immediate felony indictment under consumer protection statutes or The Sherman and Clayton Acts, with the latter carrying 10 year criminal felony penalties and $1 million fines per occurrence. TRUE.
http://market-ticker.org/akcs-www?post=225859
http://truecostofhealthcare.org/
62- it makes me sick. Been saying that insurance creates an artificial market that leads to runaway pricing.
Mike,
Go take your meds..actually please try to OD. 30yr explained the current state of market. Bubble 2.0 is here if you fall for it. We will not.
@johncusack: I really recommend @TheOliverStone untold history series for a great contextual view of history beyond narrow US business narratives&myths
@BillMoyersHQ: Food Stamp Myths: #2 Cutting SNAP will make people get jobs bc able-bodied people are using them instead of working http://t.co/786yYkb5wX
“In the middle of the worst economy and job situation in decades Republicans in the House voted to cut $40 billion from food stamps. This will kick 3.8 million people out of the program by 2014, then 3 million more each year after.
Republicans in Congress have blocked every effort to help the economy. They block bills to create jobs by fixing our crumbling infrastructure because it’s “government spending.” At the same time, right-wing outlets (accurately) complain that the economy is so weak that millions are hurting. And then the same Republicans who blocked efforts to help the economy cut assistance to the people who are hurting, claiming they don’t really need the help. No shame. In the months leading up to this vote, right-wing outlets such as Fox News, Rush Limbaugh, RedState and the rest of the far-right propaganda machine invented a number of justifications for cutting the program. Here is a take-down of some of those myths and lies.”
Thoughts and prayers in support to our brothers and sisters in the Philippines.
@TWCBreaking: Tragic news continues to pour in the aftermath of #Typhoon #Haiyan (#Yolanda). Our hearts go out to those in recovery http://t.co/DXdMT9L0zk
Michael [32];
Like I said, if you think the market is a scam, only being propped up by the fed, and has nowhere to go but down….then sell at these high prices and go rent. You know since owning a home is such a bad idea because of taxes. He will be able to get out of the scam and also not have to worry about property taxes.
There was a phenomenon on the internet called “Eternal September”; you’re our own little version. This conversation has played out before, including here.
If I think a house is overpriced and want to put my money where my mouth is, exactly how does one go about selling short? You can’t which is one of the reasons that home prices are ‘sticky’ going down.
[69] anon,
I’m taking bets on the over/under for when someone in a pundit or official capacity blames the typhoon on Bush, the GOP, and/or the tea party.
Con’t . . .
Well that didn’t take long. . .
Comment thread on Time’s coverage of the typhoon blames it on the GOP. Not sure that counts.
grim: check this out….
https://www.starwoodhotels.com/luxury/property/overview/index.html?language=en_US&propertyID=1863#BVRRWidgetID
#13 grim
As Mrs Fab said, “That place shows the difference between a Designer and an Architect!”
Been a long time since I was up in Warsaw – that place is pretty swank. Really wish the restaurant scene out there would improve, that’s probably my biggest complaint.
Can we please stop feeding the bitch underwater troll, Michael?
75- spine , suck it!
@WSJ: “This is a monumental disaster. As of now, there’s no time to count the bodies.” Typhoon Haiyan death toll rises: http://t.co/PFteJO5QyP