From the Record:
Winter weather puts a chill on home sales
Avi and Leah Greengart want to sell their four-bedroom Teaneck house, but this winter’s frigid, icy weather hasn’t done them any favors.
“There has not been a warm day since we put it on the market” in early February, says Avi, a technical analyst. “Our thought process was that at this time in the market, there won’t be much competition from other houses.”
But as he’s found himself frantically shoveling snow before open houses, he occasionally wonders: “Why didn’t we just wait?”
…
There’s a reason home sales tend to ramp up in the spring. Buying and selling in the winter can be a challenge — especially with the kind of winters we’ve seen the past two years. Average temperatures through most of February ran more than 10 degrees below normal in North Jersey.Icy walkways, single-digit temperatures and snow-covered decks and yards can lead sellers to hold off on listing their properties and cause buyers to spend Sunday on the couch instead of touring homes.
“The cold, snowy, icy weather doesn’t make for a pleasant showing experience,” said George Rosko, an agent with Coccia Realty in Lyndhurst. “There is no place to park when you get to the house, and you can’t see what the front or rear yards really look like because they are snow-covered.”
The challenges start even before a buyer comes in the front door. Many sellers are otherwise ready to list their homes but don’t want to worry about clearing ice and snow off the driveway and front walks to make way for buyers.
“It’s difficult enough to keep dishes out of the sink and beds made in case of a showing, but the added outdoor cleanup is too much,” said Janine Fraser of Coldwell Banker in Saddle River. “Homeowners are also concerned about the liability if someone slips and falls on ice.”
…
“I have three clients who are waiting for this weather to subside before they list their homes, and I agree with their decision,” said Kate Conover, a Re/Max agent in Saddle River. “Buying a home is an emotional purchase, so making the process as pleasant as possible is important. If you’re slipping and sliding up the walkway, and skidding across the tiled foyer, it just changes your reaction to the home.”“Some people are going to wait [to list their homes] until the snow has melted,” said John Pordon of Century 21 in Totowa. “You try to tell people to list the house now, because with the inventory low, you put yourself at an advantage. But a lot of sellers don’t want people tracking salt and snow through the house.”
…
“There are a lot of unknowns for the buyer,” said Gary Silberstein of Keller Williams Valley Realty in Woodcliff Lake. “I just did a home inspection in Mahwah last week, and the home inspector was only able to inspect what he was able to visually see. The deck, foundation, walkways, and part of the roof were covered with snow. The attorney put a clause in the contract that the buyer can go back and re-inspect after the snow melts.”
From the Record:
NJ mortgage distress easing, but still higher than U.S. rate
Mortgage misery is starting to ease in New Jersey, but the state still has one of the nation’s highest rates of home loans that are late or in foreclosure, according to the latest report from the Mortgage Bankers Association.
In the fourth quarter of 2014, 14.8 percent of New Jersey mortgages were either delinquent or in foreclosure, the MBA said last week. That’s down slightly from a year earlier, but still well above national levels. The state has been slower than the nation as a whole to work through the foreclosure crisis, in part because New Jersey is one of about two-dozen states where foreclosures go through the courts, which slows down the process.
In addition, distressed properties piled up when foreclosure activity in New Jersey slowed to a trickle in 2011, after questions were raised about whether the mortgage industry was running roughshod over borrowers’ rights. Lenders in the state are still dealing with that backlog of troubled loans.
New Jersey ranked 13th in delinquencies and second in foreclosures started among the 50 states and the District of Columbia, the MBA said.
NEW YORK (MarketWatch) — Shares of Lumber Liquidators fell sharply Monday, after a “60 Minutes” report alleged the U.S. retailer of hardwood flooring has installed Chinese-made laminate flooring in many American homes that contain far higher-than-accepted levels of formaldehyde, a chemical known to cause cancer.
Shares of the Toano, Va.–based Lumber Liquidators LL, were down 23.2% at $39.47 in premarket trade.
Showings are still suffering due to weather conditions. Noticeable uptick in new listings within the last week.
This is not going to be an exciting time in real estate. Market is just going to plod along. No big upward or downward movements in price on the horizon.
China adds formaldehyde to everything, it’s for good measure.
Just as the Germans love David Hasselhoff, the Chinese love formaldehyde. Kind of like the MSG of building products to them.
I made reference to today’s lead article in yesterday’s post. The weather is a convenient excuse to use in place of the real reason which is too many people overpaid and have no way out. Of course, we’re talking about the higher end towns.
We’re at 4% for the 30 yr. and scarce inventory so, which way is up? If rates go up, then prices start to feel the weight, adding more stress to underwater muppets. It’s always been about price, though. The other stuff is RE trickery to mask the slight of hand. And, of course, there’s that little distraction called property taxes that the industry tries to bury but it keeps rising from the dead.
Lumber Liquidators shares still halted for news pending
11 min ago – Ciara Linnane
US manufacturing slows to a 13 month low, according to ISM.
Nothing clears the sinuses like a good blast of formaldehyde in the morning. Thankfully we don’t have laminate floors to worry about.
Gary,
Price is never to blame. It will always be something temporary – weather, rates, politicians, millennials, job quality etc. If those don’t work just skew stats to make it appear like everything is headed back to normal. Hell, just lie if you want. No one cares. Down payment+closing costs+ PITI + plus general maint. + household expenses+kids+emergency fund..how many people truly have these things covered on single income or even dual income? Lots of women have menial admin jobs, not big finance jobs. Now put a 650k tag with 14k taxes on some dump in Northvale. I am officially two days into my new home and I can barely get comfortable with my situation yet and I went 50-100k less than most of my friends. I know several of them are up to their eyeballs in debt and many rely on bank of Daddy to help. That is why separates a lot of people in this area. How much can parents help? I refuse, at over 40, to go to parents for help. Stand up on your oen…geez. Ridgewood is not for everyone.
re: Lumber Liquidators drop in the bucket.
Urea-Formaldehyde is everywhere. Over a million metric tons is produced yearly. Might want to rip our your cheap cabinets, also interior paint, cheap furniture, laminate wood flooring, and pretty much anything made with particle board, carpet and wall paper also use the glue too. Cheap glue that cannot be replaced easily or inexpensively.
Bystander,
The duped never know they’re duped until after they’re duped. :) For some, perhaps the help of parents is all that’s left. Of course, there are a few that are hoping to escape with minimal damage and dare to test the market. That’s only for those muppets that have any equity at all. For all other’s, pray that the next payment is there on a dual income while teetering on a ledge.
I know several of them are up to their eyeballs in debt and many rely on bank of Daddy to help. That is why separates a lot of people in this area. How much can parents help? I refuse, at over 40, to go to parents for help. Stand up on your oen…geez. Ridgewood is not for everyone.
At over 40? Lol. I bet they still went on a vacation before they asked daddy as well. Jesus, by the time I was 28, my wife and I had it down where we lived off one salary and banked the rest. It’s amazing how fast you build up a savings account when you aren’t buying stupid crap every 2 weeks.
My favorite thing is that everyone of my friends that blows money left and right refuse to actually buy a new car. They always buy used. Everything else in their life is brand spankin new but paying a few extra thousand for a car that hasn’t been beaten down for a few years by some deadbeat leaser isn’t fathomable.
“Buying a home is an emotional purchase, so making the process as pleasant as possible is important. If you’re slipping and sliding up the walkway, and skidding across the tiled foyer, it just changes your reaction to the home.”
This blurb above sounds like someone talking to a four year old. Most people are easily convinced. I went to a coin show over the weekend. A guy was next to me at one of the dealers tables telling the dealer he wanted to invest in rare coins. There’s no such thing. I bit my tongue but wanted to scream in the guys ear to run! Unless you have one of three coins in existance and hold it for a generation, there is no investment. It’s like “investing” in gold or silver. They aren’t investments. Or, like going to a seminar about closed REIT investments looking to become a real estate tycoon.
Eddie,
The super-duped don’t ever know they’ve been duped, even after they’ve been duped over and over.
See as examples anon, pumpkin, etc. They get duped, and they’re so proud of it that they want to share it with the world.
Kind of like someone who buys a Milburn 3/2 split level under 2000sf crapshack next to the train tracks for over one million and then keeps on sharing their happiness on Facebook, inviting out-of-staters to come visit their prestigious luxurious mansion. Sane people feel sorry for them living in a little shack next to the tracks, while they think they’re living large. Similarly, sane people just feel sorry for someone rooting around in Mother Jones to replace the thinking that’s beyond their mental capacity.
relevant topics today:
Shopped around at Lumber Liquidators couple weeks back as I was looking to update one room in house. LL opened new store recently in Hillsborough, so, wasn’t that impressed with staff. Also, something told me that I should go somewhere else. I asked a question if their grade of wood was ‘select’ for this particular type. They said no, even though the box was marked ‘Select xxxx’. Select xxxx apparently does not mean select grade over there. Went somewhere else.
Now as to winter taking its toll on house hunting. Just got back from Boston area, late last night from staying there over the weekend helping my son and daughter look for starter home. Some of the homeowner’s cars were buried completely in snow. Did not see the metal, tires, nothing. Most streets were down to one lane. Typical height of snow around street corners was 8 feet. Icicles from second story roofs going down to the ground. Reminded me of Howe Caverns. That area is going to have a major issue with ice dams coming in several weeks. 98% of homes had ice completely covering gutters and 1 foot of roof line. Insurers are shyting bricks. And, of course, what can you see about the house, yard, etc?
NJ is lame compared to that area. Also snacked at the original Dunkins.
Typical house we looked at was 1200-1500 sqft+, priced $380-600k. 600k house was on busy street with about 2100 usable square feet in town of Milton. All the realtors tack on attic and basement sq footage to size of house, even if it’s not usable. Utter nonsense. Of course, DIL, is gaga eyed about this all. What does she care with the Anastheiologist-in-training up there.
(16)
daughter=daughter-in-law
“”” But here’s my question: Why aren’t the seven witnesses to Dendinger’s nonexistent assault on Cassard already facing felony charges? Why are all but one of the cops who filed false reports still wearing badges and collecting paychecks? Why aren’t the attorneys who filed false reports facing disbarment? Dendinger’s prosecutors both filed false reports, then prosecuted Dendinger based on the reports they knew were false. They should be looking for new careers — after they get out of jail.
If a group of regular citizens had pulled this on someone, they’d all likely be facing criminal conspiracy charges on top of the perjury and other charges. So why aren’t these cops and prosecutors? “””
http://www.washingtonpost.com/news/the-watch/wp/2015/02/27/but-for-the-video/
The most reasonable course of action in the world…..I wonder how this will play out……
More than a dozen upstate towns are threatening to try to secede from New York and become part of Pennsylvania because of projected economic losses over Gov. Andrew Cuomo’s decision to ban fracking.
The town leaders from New York’s Southern Tier region said they would be better off in the Keystone State after Cuomo put the kibosh on natural-gas drilling here.
Towns on both sides of the state border have the same geology, but only the businesses in Pennsylvania, where fracking is allowed, have been thriving, said officials from the 15 towns in Broome, Delaware, Sullivan and Tioga counties.
The group’s Upstate New York Towns Association says it is exploring secession over the issue, as well as over property taxes and low sales-tax revenue.
“We have no jobs and no income. The richest resource we have is in the ground,’’ said Conklin Town Supervisor Jim Finch.
Secession would require approval from both the New York and Pennsylvania legislatures, as well as the federal government.
Also, the cops up there have real sense of humor. Not like the boneheads here in NJ. One young cop was directing traffic outside a restaurant Saturday night as bulldozers were carting away truckloads of snow. He was cursing and yelling at every other car that drove by, telling them to get moving. Started dancing and spinning while doing his business in the middle of the intersection after couple minutes.
On Sunday, I asked another older policeman for some directions. Told him jokingly that I was from Joizey. He asked: What exit?
The case against Tadrae McKenzie looked like an easy win for prosecutors. He and two buddies robbed a small-time pot dealer of $130 worth of weed using BB guns. Under Florida law, that was robbery with a deadly weapon, with a sentence of at least four years in prison.
But before trial, his defense team detected investigators’ use of a secret surveillance tool, one that raises significant privacy concerns. In an unprecedented move, a state judge ordered the police to show the device — a cell-tower simulator sometimes called a StingRay — to the attorneys.
Rather than show the equipment, the state offered McKenzie a plea bargain.
http://www.washingtonpost.com/world/national-security/secrecy-around-police-surveillance-equipment-proves-a-cases-undoing/2015/02/22/ce72308a-b7ac-11e4-aa05-1ce812b3fdd2_story.html?hpid=z1
Ben [13];
My favorite thing is that everyone of my friends that blows money left and right refuse to actually buy a new car. They always buy used. Everything else in their life is brand spankin new but paying a few extra thousand for a car that hasn’t been beaten down for a few years by some deadbeat leaser isn’t fathomable.
I can’t speak to most of what you describe, but provided you don’t pay dealer/retail price — i.e., Certified Pre-Owned!!!, buying a 2-yo off-lease car with 20-20k mi. on it, at 50% off sticker price, and running it into the ground is probably about as smart a money move as the type of muppets you describe are going to make. That is if they don’t take the “extended warranty”.
Buying new isn’t a terrible proposition if you drive it for 15 years.
Lib [23];
Buying new isn’t a terrible proposition if you drive it for 15 years.
That, too. It could be argued that if you do drive it for a long time, buying new is simply a relatively small price to pay to avoid the risk of buying a dud; the longer you drive, the more that premium is amortized.
But for those who poo-poo used cars to get off on the “new car smell”, well…
Last time I was looking for a car, the delta in the asking prices between new and 2-3 years old cars was very very slim.
Anon E. Moose says:
March 2, 2015 at 1:15 pm
Ben [13];
My favorite thing is that everyone of my friends that blows money left and right refuse to actually buy a new car. They always buy used. Everything else in their life is brand spankin new but paying a few extra thousand for a car that hasn’t been beaten down for a few years by some deadbeat leaser isn’t fathomable.
I can’t speak to most of what you describe, but provided you don’t pay dealer/retail price — i.e., Certified Pre-Owned!!!, buying a 2-yo off-lease car with 20-20k mi. on it, at 50% off sticker price, and running it into the ground is probably about as smart a money move as the type of muppets you describe are going to make. That is if they don’t take the “extended warranty”.
Buying CPO with the extended warranty is a good deal too if you plan to keep it for the 7 year/100k. As long as you don’t smash up the car it’s pretty easy to justify the cost knowing that you’ll never have to pay for any major repairs during the time you plan to hold the car. It’s an up front insurance on mechanical issues.
The worst place you can be is with a late model car and no warranty. I joke that it costs $500 to tighten a nut in NJ. Very few times I’ve gotten out of the repair shop for less than that. No one fixes cars in this state, they just replace parts.
Buying new or even a CPO is a waste of money. My Caddie for instance a base model sold brand new for around 37k. I bought it 18 months old with 5k on odometer. Prior owner was a snow bird. He bought it new in Spring on road a few months, put it in his indoor garage for winter drove it next summer and then traded it in. I paid $25,900 for car and considering it had a bumper to bumper four year warranty including maint from factory that had 2.5 years left I did not by a warranty and have in my 2.3 years of owning not put a nickle into car.
My only debate when Manufacturers warranty runs out June 1st to extend it two years is $1,600 bucks. I hardly drive car but a simple electronic problem could cost a lot.
Dealer was a Chevy Dealer with a late model Caddie so dealer could not CPO it or do an official Caddie warranty which is why he was more flexible.
Not all used cars are headaches. My BMW was from Greenwich always garaged and was perfect condition right up to moment Sandy destroyed it.
I also bought a Jeep Wrangler once with 4k miles, man that was mint and had it four years no problems till it was stolen.
My used station wagon I bought was also not bad. Had some quirks as it turned out it had two prior accidents I only found out after I bought it. But I knew something was up as car only had 9K miles it was priced 4k below retail. I drove that car six years before a Lady in an oversized SUV t-boned it.
However, My mercedes convert I bought used was one big fat lemon. But I did manager to keep it on the road for almost a decade. Was going to restore it to get it back up and running but Sandy took that out.
Now My GMC Envoy I bought new was not a great car and not a bad car it had little annoying quirks. But it always rant, never broke down. But it did have some little Gremlins you would not expect in a new car. But it was on the road 7 years before Sandy took it out.
Now if you are counting I am at five totaled cars. Is that a lot? My wife before we married had her Subaru stolen at a valet at a wedding and she bought a new cheap car to replace it and a drunk, unlicensed driver blew a red light with witnesses and totalled that one. So she had two pre-marriage. I wonder if 7 is a record. Not one accident, theft or flood was a chargeable accident. But not having to trade in cars is very useful.
The wagon actually on the car fax read collisum with another vehicle 3k, 6k and 35k the last took it out. I wonder at auction folks were wondering how does a car crash into other cars that many times in 35k miles. The inside and engine were like new. The frame was bent and rebent a few times.
Anon E. Moose says:
March 2, 2015 at 1:15 pm
Ben [13];
My favorite thing is that everyone of my friends that blows money left and right refuse to actually buy a new car. They always buy used. Everything else in their life is brand spankin new but paying a few extra thousand for a car that hasn’t been beaten down for a few years by some deadbeat leaser isn’t fathomable.
I can’t speak to most of what you describe, but provided you don’t pay dealer/retail price — i.e., Certified Pre-Owned!!!, buying a 2-yo off-lease car with 20-20k mi. on it, at 50% off sticker price, and running it into the ground is probably about as smart a money move as the type of muppets you describe are going to make. That is if they don’t take the “extended warranty”.
$1600 for two years sounds like a ripoff. I think the extended warranties can be bought from any dealership so I would shop around.
Oh God, here we go with the cars again.
Topic Changer…I’m pretty sure that $650k is the new budget number. Nevermind that we qualify for much more. That figure is about all I can stomach.
27. CPO saved me $7k once when a month old (used) 330 blew a valve and they replaced the entire head. Would have been a horrible waste of money. CPO makes sense for used esoteric cars.
The high cost of New Jersey some are willing to pay some not http://www.nj.com/inside-jersey/index.ssf/2015/03/the_high_cost_of_jersey_why_some_of_us_are_willing_to_pay_for_it_and_some_of_us_are_not.html?ath=e48193b1505a73e67f7874531301093d#cmpid=nsltr_strybutton
32. Two words: golden handcuffs
We could talk about guns…
Liquor Luge says:
March 2, 2015 at 2:18 pm
Oh God, here we go with the cars again.
Mike,
The people interviewed in that article make me want to puke. The photo of a Westfield guy wearing a suit and converse sneakers. The idiot who on taxes said “you get what you pay for”. Reads like an infomercial.
Yes, uncoupled taxes and overpriced houses are justifed because watching fights outside of Jenkinsons and proximity to Manhattan is worth it. The prices and taxes are “justified” as some fat, bl0ated, angry, menopausal house tour guide told me. She got angry when I asked her why the house was re-listed a couple of times.
Eddie – All of the listings that I am following are falling into the same pattern. I think the lies that seller’s and realtor’s have been repeating have actually passed the point of lies in the Seller’s mind, it is now officially fact.
All these listings have sat and sat for 6 months to over a year. The majority of them have recently gone through a round of price increases. Not huge bumps, but say a house sitting at $650,000 for a year expires and comes back with a 659,000 tag. I wonder if the seller mindset is: “well, I had to carry this thing another year and pay the 9k-20k property tax, so that is now included in my “must have” price”
BearsFan: are you going to hit this?
http://www.coltsneckbusiness.org/index.php?option=com_content&view=article&id=161
homeboken,
They’re angry. The sellers are angry and so are the agents. I’m seeing price increases on houses that have been sitting for weeks as well. They are either angry that they missed the scam years or that they got swindled during the peak or are using peak comps to price their stanky house. It could be anything but I can say for sure that it is a very ill market in our area. I have a house in sight that started in the upper 700s and is now in the upper 600s. I will go to see it and if I feel compelled, I’ll put in an offer for the low/mid 600s which is really what it’s worth. If they don’t even counter, then I move on to the next one.
Very few things are motive and justification to commit capital murder, but I believe uttering the following quote in a public forum is one.
“I love how it has serious urban communities with real downtowns — Newark, the Oranges, Paterson, Morristown — as well as true rural communities and working farms, all within 30 minutes of each other,” he says.
Mike says:
March 2, 2015 at 2:52 pm
The high cost of New Jersey some are willing to pay some not http://www.nj.com/inside-jersey/index.ssf/2015/03/the_high_cost_of_jersey_why_some_of_us_are_willing_to_pay_for_it_and_some_of_us_are_not.html?ath=e48193b1505a73e67f7874531301093d#cmpid=nsltr_strybutton
I would venture to say to those sellers that are wishing and hoping and holding on for relief; sell now. If your unqualified and underwater, stop making payments. Actually, there are many in the “sought after” towns that have done just that for years now but the syndicate along with the higher tier towns aren’t going to reveal what’s really going on because everything else would collapse. It makes more sense for Cole and Zoey’s Mom and Dad to stay in the house and maintain it without paying the PITI. These towns aren’t about to tarnish the image and have prices collapse around them. That would be a disaster. But then again, a 100 basis point increase in rates is just going to make it more painful. It’s a real quandry but ultimately, Mr market always wins – like the ocean eventually taking back the shoreline.
re # 40 – yeah that and pork roll.
I am surprised nobody mentioned weiners.
re # – 39 – The sellers are angry and so are the agents.
Sure they are it is still winter. Wait till spring selling season really gets going, there could even be gunfire when people don’t get any peak 2006 offers on their POS Cape.
So folks are calling me to rent for the summer. Fun times
The End Is Nigh (clot Hospitality For Strangers Edition):
“I hate IS because of what happened to an old Kurdish woman from a nearby tribe,” he said. “Her son was captured by IS fighters and taken as a prisoner to Mosul. She was determined to find her son and went to IS headquarters and asked to see him.”
He said the thugs told her to rest after her long journey and offered her the food before taking her to her son.
“They brought her cups of tea and fed her a meal of cooked meat, rice and soup. She thought they were kind,” he said.“But they had killed him and chopped him up and after she finished the meal and asked to see her son they laughed and said, ‘You’ve just eaten him,’” Abdulla told The Sun.
45. Saw that and wondered if they hadn’t seen one too many Hollywood movies.
Chifi,
I missed that “serious urban communities” quote on my first skim.
People who talk that way should be tarred and feathered with hundred dollar bills and sent to walk down main street in East Orange.
The “financial planner” sharing a 1br apt who says she finds it difficult to save money was another encounter with inanity.
Boken,
You got it. Those people who re-list at higher prices are the ones you want keep an eye on, if you like the house that is. They are hopeless dopes who are desperate and angry. In their minds, they think they’re teaching a lesson on value. In reality, they are probably in desperate straits and mad there is no one coming to save them. Time is the x-factor and the only weapon a rational thinking buyer has today. The biggest idiots are those who sit for 6-12 mos. with no price movement. They don’t care bc probably inherited it or not being pushed out (ie will die in the home). Price up or down tells you someones wheels are turning even if going in wrong direction. It may take awhile but they will come to reality.
30 year – I agree with half of that;-)
Showings are still suffering due to weather conditions. Noticeable uptick in new listings within the last week.
This is not going to be an exciting time in real estate. Market is just going to plod along. No big upward or downward movements in price on the horizon.
Anybody here have expertise in interest rate swaps or preferred stock issues? My interest is limited to a very few CUSIPs.
grim – I thought it was for taste? Never mind, I’m thinking of MSG.
China adds formaldehyde to everything, it’s for good measure.
Ragnar – apologies for inadvertently hi-jacking your quip.
I wonder how long it will take Bergen County home occupiers to realize that the surrounding counties are made up of occupiers of a different class. Squatters.
Interesting. Not sure it could work here given the dysfunction of NJT and the PA. Also, in some neighborhoods, you will see a Jitney Bus System pop up when main line bus services price the lower income out of the service. A good example is the Jersey City/Union City services, that go through the Lincoln Tunnel into Port Authority.
Seattle to charge public-transit riders based on income http://www.bbc.com/news/31699615
Fabu [54];
You mean “From each according to his means”? How quaint. Where have I heard that idea before?
#55 Moose
You are looking at it from the wrong direction. Lets take the free market approach.
That demographic represents x amount of bottom line from Recurring Revenue. Those people need to ride the bus. There is no Car Pool, drive to work etc. You have to make sure you don’t price them off the service. You jack the prices too high, they walk or ride a bicycle 20-40 miles to work.
So this make sense, isolate the group and the raise prices on the rest of the riders.
#56 Moose
While the source maybe MSNBC, the discussion is real.
EITC
http://www.msnbc.com/msnbc/eitc-anti-poverty-partisan-divide
Gluteus, everything you post here is tainted by your obvious “collectivism for thee but not for me” attitude.
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