From the Star Ledger (Hat Tip JB):
This 2-family home on the market for $590K got 88 offers in less than a week
It was a quick sell for a home in Bergen County that hit the market for just six days and got 88 offers.
The two-family in Lyndhurst drew more than 200 people to an open house and 184 appointments for showings.
“There was a line of people waiting to get in … before my agent got there,” said Jan R. Kwapniewski, president of Coccia Realty. “In the 38 years I have been selling real estate, I never had such an amount of showings on a single house in six days.”
The two-family house has four bedrooms and three bathrooms. The first unit, which includes the first floor and a finished basement, has two bedrooms and three bathrooms. The second unit occupies the second and third floors and has two bedrooms and one bathroom.
It was listed for $590,000 on May 22 and the final showings were on May 28.
“Although we had offers in the first few days, we advised the seller it was in their best interest to keep the property on the market for a full week,” Kwapniewski said. “This was a good strategy as the ‘phenomenal offers’ received two days into the listing were low in comparison to the offers received after a full week of showings.”
All of the offers were over list price, and some were as high as 20% over list price. The contract price can’t be disclosed until after closing.
“The seller did not accept the highest dollar offer but selected an offer where the buyer made certain concessions – namely a waiver of lender appraisal and a waiver of the home inspection contingency clause as well as a 30 day closing,” Kwapniewski said.
…
A two family home in Clifton recently generated 120 offers and sold for $150,000 over its $449,000 asking price.
first
Interest rates be damned. Supply and demand… little to buy means bidding wars. Where to move if you sell your house within a 30 mile radius of NYC? Will we ever see a buyers market in this area again? Where is the money coming from?
The cycle of the real estate market since 2006 has been lower lows and higher highs. In my opinion we are heading for another extreme low off of this insane high. How or why this happens is not clear to me, but it sure seems likely.
Tough year for bears. Market is not rational.
“All the bearish posts since the start of this year sound smart, is smart, is backed by data/facts, makes a lot of sense, and is posted by highly intellectual and well respected professionals who have done this successfully for years..
..have been ALL WRONG.
Because the stock market, frankly, just dgaf (for now).
Not capitulating on my -10% correction call later this year (yet) though!
But the bear’s have been smoked on the indice level. By a lot. So ya.”
Bitcoin going down. Has been a precursor to the overall market…so maybe market falls next week. We went too high already…so there is a chance. Yet, never stand in front of a running bull. Too dangerous.
Fast: I have no idea how everyday people are affording these prices. Even with help from parents with down payments. Big mortgages and high property taxes, I know some that still have student loans well into their 30s. Good jobs but not Wall Street Investment banking jobs, or tech. Inflation still high. I don’t know how it continues like this. Recession, no recession, the recession is coming, or its already over. Take your pick depending on what you read. Credit card debt at an all time high, but Jamie Dimon says consumers are in great shape. 401k balances by age group are small. People don’t seem to care, who knows. How long does this go on?
Bitcoin peaked at 32k middle of April. Been selling off since. 2021 Bitcoin topped before stocks did. It might be a leading indicator of what’s to come. Let’s see.
3b says:
June 10, 2023 at 9:07 am
“I have no idea how everyday people are affording these prices…People don’t seem to care”
In days past, I would agree that people buying homes now don’t appear to be acting rationally. But it could turn out that they are — even younger people who are taking on a lot of relatively high cost debt. If you think about it, there’s a generation(s) of people who have never witnessed, or had to experience, the full consequence of bad financial decisions; what they would have experienced going all the way back to the mid-2000’s, are Dem bailouts of underwater homeowners (HARP/HAMP), car owners (cash-for-clunkers), union workers (GM), union retirees (GM/Delphi pension), inattentive blue state depositors in failed banks (SVB), residents of bankrupt blue states and cities (2021 covid relief bill), student loan debtors, etc… So in a sense today’s homebuyers might be acting rationally in assuming that one or more of the following will happen: the Fed will drastically drop rates at the first sign of trouble (in which case they’ll simply refi), Dems will ultimately find a way to cut student loan debt or perhaps even credit card debt (why not, nothing is beyond the realm of possibility anymore), or in the case where home prices actually do fall, the Dems will simply reintroduce HARP/HAMP.
Boomer won’t allow cuts to student loan debt. Other things are possible.
SGC you have a point, they might just be gambling hoping it will get better.
Covid just wounded Boomer, now he is rip-roaring with fire and energy and even more greedy than before it happened.
Runaway train never coming back
Wrong way on a one-way track
Seems like I should be getting somewhere
Somehow I’m neither here nor there….lol
BananaJoe says:
June 9, 2023 at 3:55 pm
“[Ex] Sounds like an msnbc screed…”
Give Ex his day in the sun, Joe. After all, if you’re a blue state beta like him, this is the most excited you’ve been since pencil-neck Schiff breathlessly announced his smoking gun during the Russia collusion hoax. Imagine being Ex, living every day in fear that if your wife/breadwinner left you you’d be relegated to living in a one room dump in Bakersfield, waiting for that alimony check in order to make ends meet. It’s easy to see why guys like him relish the misfortune of successful, independent men.
SGC,
Damn you put some heat on that one. Feel the Bern
Fast: I have no idea how everyday people are affording these prices. Even with help from parents with down payments. Big mortgages and high property taxes…
And when breakfast for four tops out at $140, nobody who’s breathing can deny it. I seriously don’t know how this is sustainable or how people are surviving. Add in the expenses of food, fuel, house maintenance and everything else that crosses ones path and it defies the laws of physics. Every time you step out of the house, you’re dropping $50 for practically nothing. I assume credit cards are maxed and barrowing and debt is rampant. It’s insane.
Eddie,
Got to stop going to places like Willow and Whisk for breakfast.
Fast: Credit card debt end of first quarter of 2023, is a record 986 billion.
Old Realtor,
Lol. For sure. I’ll stick to a Taylor ham and egg sandwich from the Bendix diner.
Good project if the whole thing gets built. Lots of potential for similar projects to this, given high housing prices and the fact that millenials in NJ are shrugging their shoulders and continuing on as prop tax for a $700k house are $20k/year.
https://jerseydigs.com/the-district-at-15fifteen-parsippany/
3b,
That credit card debt will rise unabated and at pace on par with the national debt clock. Invest in any vehicle that generates revenue based on interest.
Fast: Just shy of 1 trillion , and yet Dimon says consumers are in great shape.
$600,000 for a nothing house:
https://www.trulia.com/p/nj/paramus/12-olympia-blvd-paramus-nj-07652–2006708379
Another… one bathroom… because it’s, you know, Ridgewood:
https://www.trulia.com/p/nj/ridgewood/119-somerville-rd-ridgewood-nj-07450–2006512192
3b,
Dimon is gorging himself on 19.99% interest based on consumer souls.
Fast: Some CC rates as high as 23 to 29 percent!
How many of these hats do y’all own?
https://twitter.com/HillaryClinton/status/1667167938141466630?s=20
Is it something you can wear ironically?
Fairly certain trying to wear it ironically would be lost on that target audience.
The U.S. is building factories at a wildly fast rate – Autoblog
https://www.autoblog.com/2023/06/10/the-us-is-building-factories-at-a-wildly-fast-rate/
The US government has offered billions of dollars in subsidies for the production of electric vehicles and solar panels to compete with countries such as China and to fortify US leadership in sectors including clean energy. According to the World Bank, China makes up around 30% of global value added from manufacturing, about double the U.S. Over the last few decades, Asia has taken up a greater share of global factory manufacturing.
Factories are being constructed everywhere from deserts to resort towns as the U.S. tries to bring back manufacturing of goods commonly imported from lower-cost countries. Many battery and electric vehicle factories have popped up in the Rust Belt, while solar panel and renewable energy factories now span much of the South and Southeast.
Unpopular take: If these houses were even remotely enjoyable to live in, and not truly the shit shacks which they appear to be on the outside, people wouldn’t be so quick to sell. It’s musical chairs out there, buy a hovel cross fingers and hope for a sucker in a few years. Rinse. Repeat.
SGC with his usual BS facts. HAMP was provision of TARP bailout established by R fiscal morons Bush, Paulson, Kashkari.
Can’t listen to anything that assh#le Small says. Just like his monkey pox stupidity, the more triggered someone is by homosexuality, the more urgent the news to come out of the closet. Small is a very confused individual. Small probably wished he could have some hot guy to take care of him. Kinda of like how Ex has a hot successful wife
Small, free yourself! Celebrate Pride month and be proud to be yourself!
Hah!
Came back to say now I am still trying to wrap my brain around how broke and stupid the average American consumer was right before the pandemic, and how since then housing costs have roughly doubled if not more… and everyone continues to (pretend?) to function normally?
I mean they drive out until they can afford it… but still people were already relatively check to check, and then things doubled. I don’t know how people leverage 50% of their dual income take home on payments and taxes. ON THE SAME SH*T HOUSE the person before them couldn’t wait to get the f out of.
Unreal.
My unpopular take:
If people didn’t think these overpriced crapshacks were worth the money, they wouldn’t be buying them.
A home is worth whatever a buyer is willing to pay for it. All it takes is one to set the floor.
OC1: No disrespect, but that is a simplistic explanation in my opinion.
Unpopular take for some time: i have said this for years, to the point of pinpointing north jersey’s last great values in north jersey in Wayne and faifield. Said it over and over from 2017-2019 about these two towns on this blog.
I said 10 years out this would happen and to max out free money into as much real estate that the bank would let you have. Seriously good advice that was laughed off…
Don’t get me wrong; I’m sure the people buying those crapshacks would rather pay a lot less. But unfortunately in NJ we have barriers (mainly zoning) that limit our housing supply.
Upzone New Jersey!
Everyone who opposes new housing development in their town is voting for more “overpriced crapshacks”.
And they are also using their political power to protect their home values, at the expense of everybody else.
Rentier capitalism at it’s finest.
Leverage drives the market. Most don’t buy houses without taking mortgages. Someone has to appraise these “crapshacks” and give them the green light.
OC1 says:
June 10, 2023 at 7:10 pm
My unpopular take:
If people didn’t think these overpriced crapshacks were worth the money, they wouldn’t be buying them.
Someone has to appraise these “crapshacks” and give them the green light.
What’s an appraisal? Name a price, your price, any price. Four walls and a roof, Elmwood Park, tattered condition, 1,100 sq, ft., $1.2 million seems reasonable.
https://www.msn.com/en-us/money/news/here-s-why-americans-are-getting-tired-of-tipping-survey/ar-AA1cnX7a
Years ago, tipping was unheard of unless you were a waiter or waitress. Now, there’s tip jars everywhere as well as automated systems asking what level of tip I’d like to leave. Am I tipping myself for scanning things, packing them and wheeling them to my car? Add tip mania to the level of financial madness being pounded over our heads daily.
Hello from Central Jersey. My neighbor’s 4BR, 2.5 BA – decent bones but requires 100K plus in work got about 20 showings in 3 days leading to last weekend and another 30 for the open house. They put a Tuesday “deadline” for offers. Received 7 and it is now under contract. Listed at $750K and we’ll have to see how much higher the final offer is.
It’s almost identical to a property sold in 2012 for $500k with no work needed.
You may say it’s not a bad deal compared to other areas, but it’s still overpriced requiring a lot of work.
NY, NJ and CT lead the nation in credit card debt, over $9,000 on average. That number will rise rapidly until some traumatic event derails it. The only difference between the great depression and today are credit cards. Years ago, you either had cash or you didn’t. Cash is not an option today. It isn’t necessary. The industry will gladly forward you as much debt as you want for as long as you want.
For all credit cards, the average APR in the first quarter of 2023 was 20.09%.
For cards accruing interest, the average in the first quarter of 2023 was 20.92%.
For new credit card offers, the average today is 23.98%.
Dead muppets walking.
20 showings in 3 days leading to last weekend and another 30 for the open house.
They’ll get 15% above their asking price when the contract is finalized. During the open house, the owners should have lied on the couch, shirtless with a cigarette burning in an ash tray and a few empty beer bottles on the coffee table. It wouldn’t have mattered. As I’ve said recently, a contract requirement to feed the squirrels will be replaced with some level of s.exual payment in order to finalize the deal. Would anything shock you anymore?
Jesus, 9k in credit card debt?!
Ed,
Totally true on tipping. It has reached insanity level. Can’t buy a thing without being forced to select through tipping screen. Never underestimate the stupidity of Americans. We can’t help but spend for no apparent reason. The payment software companies know this.
Also I have 800 plus credit score and Amex was charging me 30 interest. I promptly canceled it after I mistakenly fat fingered my payment. $75 balance caused $25 interest for one month. They offered me 3% for 6 months to stay. Shysters
Tipping is a joke. Amazing how that changed in our society so fast. F that. It’s about the principle.
A tip is for above and beyond service. Not for taking my cc and giving me a bag.
$75 balance caused $25 interest for one month.
How many are clueless to the fact? Out of sight, out of mind. The plastic is quick and easy. Two burgers to go with a pickle and coleslaw? That’ll be $47, please. Would you like to leave a tip? Madness.
We went to a concert last month and bought a shirt and a cd box set before the concert started. The guy pulls the shirt out of a huge box and the cd set out of another. Scans them, and the checkout screen is asking for 10, 15, or 20% tip. I was like seriously. He pulled 2 things out of boxes in a few seconds and minimum tip option is $8. I wonder how many people are guilted or are so stoned they click a tip button. I hit the no tip.
Yes one of the worst things they could have done with payment terminals is to add those features where it asks for a donation or a tip.
Fast: Interesting that three of the wealthiest states with the highest incomes in the country have the highest amount of credit card debt. And I don’t think it’s just limited to the low income residents of these states either.
Interesting that three of the wealthiest states with the highest incomes in the country have the highest amount of credit card debt.
I’m told repeatedly that we’re bleeding wealth here. What’s the problem? Why are the plebs carrying such large balances? Prestige has a price… sign here, please.
Don’t forget the ….would you like to round up nonsense.
We were renting a house in a blue ribbon nj town in 2009 or 2010. The landlord told us his church in Basking Ridge did a survey, and the average members household credit card debt was 15k.
I remember taking my son to a playground in basking ridge and heard a stay at home mom talking about how they were behind on all of their bills and on verge of foreclosure because hubby had lost his Wall Street job, but he was starting a new job next week so they can go back to renovating the house. What a frigging moron. How about payoff all your credit cards and build up at least 3 months in reserves first.
I really think the bulk of people in blue ribbon towns are high income low asset types. My wife was always wondering how people in our neighborhoods could have fancy new cars, new kitchens, designer clothes and take expensive vacations. I told her some make a lot more than us, the rest are either getting help from their parents or grandparents or are living paycheck to paycheck and have massive debt.
Appearances are important. Muppets need to demonstrate their ‘wealth.’ Big hat, no cattle is the new norm now. If you have a German import sitting in your driveway, you’re wealthy.
The Great Pumpkin says:
June 11, 2023 at 8:33 am
Jesus, 9k in credit card debt?!
Medical and dental can get you past this number quickly. Those with Cadillac government insurance can’t fathom that any more than when you ask a woman what Selective Service is.
Looks like someone will be out Monkey Branching if he doesn’t come up with a new job.
“I remember taking my son to a playground in basking ridge and heard a stay at home mom talking about how they were behind on all of their bills and on verge of foreclosure because hubby had lost his Wall Street job, but he was starting a new job next week so they can go back to renovating the house. What a frigging moron. How about payoff all your credit cards and build up at least 3 months in reserves first.”
One illness, one job loss, one accident away from bankruptcy is how it works in America.
Sometimes your fault, sometimes it isn’t. Not everyone is born with Biden, Trump or Kardashian money.
Or you make a mistake in marriage. Is the guy above going to tell her no-then see his kids every other weekend? Sometimes you roll the dice…..
Real estate inspector:
https://www.tiktok.com/t/ZT81PsEby/
“The market can’t go down forever,” said Harry Clark, chief executive of Capital Management Group. “Investor sentiment was so negative that any news can now be taken as a positive.”
– July 16, 2008
Anyone remember what came next?
money.cnn.com/2008/07/16/mar…
Here’s a tipping scam nobody is talking about. The 18%, 20%, etc. you see on the receipts is after they apply 7% sales tax. So you are paying tip on the service + tip to uncle sam. Am I mistaken?
Phoenix
I had to look up monkey branching.
I would have felt sorry for that playground mom’s husband, but it was basking ridge so he’s probably just like her or knew she was like that before they got married. She was probably one of the most entitled and annoying people I encountered in the few years we lived in that area.
I took a school tour of a Warren elementary school with other parents of incoming kindergartners. Tour was led by an Uber PTO mom. She was bragging how they don’t have a cafeteria service, instead they get take out from a different fast food place every day and the kids just love it. She was another awful person. I told my wife we got to get out of this area. Winter in those hills sucked and the people suck even more. And it was very inconvenient too.
FlabMax has a wrought iron gate across his driveway imported from Germany with the inspirational “Arbeit Macht Frei”.
Fast Eddie says:
June 11, 2023 at 9:54 am
Appearances are important. Muppets need to demonstrate their ‘wealth.’ Big hat, no cattle is the new norm now. If you have a German import sitting in your driveway, you’re wealthy.
I forget to add the ‘Pride’ sign on the front lawn. Nothing says ‘We Belong’ like a Mercedes SUV in the driveway and rainbow colors curling in the breeze.
I’m finishing my lunch and about to go to a few open houses. I haven’t attended one in a looonngggg time. You know I’m going to work the agent over in subtle ways. I’ll report my findings.
The POS at my barber defaults to a 30% tip.
Looks like we need a new evaporator coil for the upstairs hvac unit. A nice $2,200 or so repair for the part, labor, and coolant.
https://www.financialsamurai.com/renters-won-big-during-the-pandemic-higher-utilization-rates/
Lmao
Grim says:
June 11, 2023 at 3:22 pm
The POS at my barber defaults to a 30% tip.
The POS at my barber defaults to a 30% tip.
Time to find a new barber.
Old realtor – What you are describing is a megaphone pattern (if we were to chart it).
How about the “donate” option at the local drug store, grocery store, chain restaurant, I’m like you’re a huge multinational corporation if YOU want to donate then by all means. Leave me the f-ck alone. Thx
Ex,
It’s f’ing wild. What a time to be alive.
Older generations would have never ever given a dollar to this.
Looks like we need a new evaporator coil for the upstairs hvac unit. A nice $2,200 or so repair for the part, labor, and coolant.
That doesn’t seem that bad.
The capacitor of my HVAC is not to capacity – per one of the service visits. The amperage through the wires is apparently higher than normal but not above threshold. This is as per the “health check” visits from my a/c guys. So, I asked the capacitor to be changed – and the quote was $500. I checked and the 60/20 whatever capacitor costs $25 – $40 in the market.
I mentioned it to the a/c guys and they brought the total cost of coming down and replacing it to $450.. and wouldn’t budge. WTF?!
I know a kid who just finished HVAC training and he is happy to reconnect a new capacitor for me.. am I being cheap?!
My other option is to just let it run the way it is- after all, it ran for 20 years without a problem. I have plenty of trees and the house needs far less a/c than most – so I don’t expect the a/c to run 24/7 for long any way.
I know the HVAC guys would love nothing more than replace the whole inside-outside units for $25K (what a neighbor paid).
Another good writeup
https://ironsidesmacro.substack.com/p/the-end-of-cyclical-and-secular-disinflation
From various news outlets, LOL…
“Despite raising ~$450m, robot pizza company Zume has shut down. The tech was never fully realized, as cheese kept sliding off the pies as they baked in Zume’s delivery truck.”
Disruption, baby.
Commercial RE crash dead ahead:
https://youtu.be/-oj-kWRHGkg