Foreclosures decline, NJ still in foreclosure logjam

Posted on October 14, 2015 by grim

From MarketWatch:

CoreLogic Reports 36,000 Completed Foreclosures in August 2015

CoreLogic…today released its August 2015 National Foreclosure Report which shows the foreclosure inventory declined by 25.2 percent and completed foreclosures declined by 20.1 percent compared with August 2014. The number of foreclosures nationwide decreased year over year from 46,000 in August 2014 to 36,000 in August 2015, representing a decrease of 68.9 percent from the peak of 117,357 completed foreclosures in September 2010.

Completed foreclosures reflect the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.9 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been nearly 8 million homes lost to foreclosure.

As of August 2015, the national foreclosure inventory included approximately 470,000, or 1.2 percent, of all homes with a mortgage compared with 629,000 homes, or 1.6 percent, in August 2014.

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 20.7 percent from August 2014 to August 2015 with 1.3 million mortgages, or 3.5 percent, in this category. This is the lowest serious delinquency rate since January 2008. The foreclosure rate (defined as the share of all loans in the foreclosure process) was at 1.2 percent as of August 2015, which is back to January 2008 levels.
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The five states with the highest number of completed foreclosures for the 12 months ending in August 2015 were: Florida (94,000), Michigan (47,000), Texas (32,000), California (27,000) and Georgia (26,000). These five states accounted for almost half of all completed foreclosures nationally.
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Four states and the District of Columbia had the highest foreclosure inventory rate as a percentage of all mortgaged homes for the 12 months ending in August 2015: New Jersey (4.6 percent), New York (3.7 percent), Florida (2.6 percent), Hawaii (2.5 percent) and the District of Columbia (2.4 percent).

Posted in Foreclosures, Housing Recovery, National Real Estate, New Jersey Real Estate | 110 Comments

Philly not worth it?

Posted on October 13, 2015 by grim

From CBS:

Report: Philadelphia Among Top 10 Most Overvalued Housing Markets In U.S.

Looking to buy a home in Philadelphia? According to a new report, it is one of the top 10 most overvalued housing markets in America.

The report was released by real estate analytics firm CoreLogic.

Researchers say overvalued housing markets have prices that are 10 percent or more above the long-term sustainable level.

As for Philadelphia, the report finds,“Home prices have ascended rapidly in the Philly area (up 16.7% since early 2014, which means it has the fastest home price appreciation of any town on this top-10 list), and now they are priced at 14.2% over sustainable levels.”

Researchers examined market data from the first half of 2015 for the report. Philly was ranked eighth.

Posted in Economics, Housing Bubble, National Real Estate | 157 Comments

Sword of Damocles

Posted on October 12, 2015 by grim

Nothing but fantastic journalism from the APP, kudos to Paul D’Ambrosio – This is fantastic…

WE CAN’T AFFORD NEW JERSEY

New Jersey’s regressive property tax system has long drained the wallets of workers and retirees.

As the experience of the Stevenses shows, this ballooning levy has crossed a terrible threshold, one that is pushing homeowners out of state and changing the way we live.

When Gannett New Jersey media examined this issue in 2009 and 2010 in a ground-breaking investigation, it found the tax burden was nearly intolerable, especially since the nation was enthralled in a deep recession, with falling wages, rampant foreclosures and job losses not seen since the Great Depression. Yet, in New Jersey, property taxes actually rose as people lost their jobs.

What’s more, as the national economy improved by 2014, New Jersey lagged in most economic indicators. The state continues to hemorrhage jobs — and residents — to fast-growing southern and western states. Those fleeing are taking billions of dollars with them – money that isn’t being replaced – leaving less capital for the state’s long-stalled economy, and a tax burden resting more heavily on remaining residents.

The loss goes deeper than dollars and cents.

Property taxes are tearing apart the very fabric of communities: Families. Security. Peace of mind.
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The property tax is New Jersey’s sword of Damocles – archaic, destructive and an intractable harbinger of doom that hangs over the head of each homeowner. The law cares not a whit about your ability to pay, even if you just lost your job.

As much maligned as the property tax is, it remains the government’s single most important source for life. It funds schools, police, road repairs, trash collection and a multitude of other government functions.

Five years ago, at the height of the recession, which claimed tens of thousands of jobs and forced sizable salary cuts, the tax drained $25 billion from households. It cost an average of $7,281 per home.
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Now, half of all tax revenue comes from this levy – $27 billion in 2014 – to fuel 565 towns, 586 school districts and dozens of local agencies with nearly boundless powers to hit your wallet. That’s an average of $8,161 per home.

By 2020, at its current pace, the tax will top nearly $30 billion.

That will be an average statewide property tax of $9,000 per home.

Today, tens of thousands of homeowners would cheer a $9,000 bill. The average property tax has already topped $10,000 in three of 21 counties and 127 towns. It is more than $15,000 in 25 towns.

With New Jersey ranking among the bottom in the nation for economic growth, incomes are not about to skyrocket to pay for the escalating local tax costs. In fact, the average household income has gone backward since the recession, when inflation is factored in.

Posted in New Jersey Real Estate, Property Taxes | 83 Comments

Maybe a little NYC magic will rub off on us?

Posted on October 10, 2015 by grim

From the NYT:

Manhattan Apartment Prices Near Million-Dollar Mark, Reports Say

A million dollars doesn’t buy what it used to in Manhattan. A combination of high demand and too few listings pushed the median sales price for a Manhattan apartment to just shy of a million dollars in the third quarter of the year, setting a record high, according to several market reports to be released on Thursday by major real estate brokerage firms.

The median sales price, which reflects the middle of the market and is less affected by high-end sales, was $999,000, according to a report by the Corcoran Group. Reports from other brokerage firms, using different figures and methodologies, put the median price at or just below the million-dollar mark, with most calling it a record.

“It seems like a lot of money anyplace else,” said Dottie Herman, chief executive of Douglas Elliman Real Estate, which calculated a median price of $998,000. In Manhattan, “what you get for a million dollars is not a lot of space,” she said, pointing out that buyers on a budget must turn to New York’s other boroughs or to the suburbs to find better values.

After rising incrementally over the course of last year, inventory has essentially been flat since January, said Jonathan J. Miller, president of the appraisal firm Miller Samuel and the author of the Douglas Elliman report. In the third quarter, Mr. Miller said, there were 5,654 available listings, approximately 20 percent below the 10-year average of 7,047 available listings. “That creates price pressure,” he added.

It also makes for rapid-fire sales. The amount of time that listings spent on the market fell 20 percent to a record low of 73 days in the third quarter, according to the Douglas Elliman report. “You have to be very competitive and you have to be quick,” especially at the lower end of the market, Ms. Herman said. “I tell people, ‘You really have to have your ducks in order financially and know the market yourself.’ ”

Overall, the number of closed sales was up for the quarter, driven by robust closings in new development. While prices remained high across all market segments, the average sales price for the luxury market, defined as the top 10 percent of closed sales, dropped 12 percent in the third quarter, to $6.73 million, compared with $7.68 million during the same period last year, as fewer luxury properties closed, according to the Corcoran report.

Posted in Economics, Housing Recovery, NYC | 42 Comments

Going out in style!

Posted on October 9, 2015 by grim

From the NY Post:

Couple’s ‘last hurrah’ bash at foreclosed Hamptons house

A couple that has lived at a multimillion-dollar East Hampton mansion since it was foreclosed on in May 2014 were finally given the boot on Thursday — but not before getting in one last free summer of fun.

“They partied here all summer,” a source said of David and Gia Walsh, who had been staying at the 80 Further Lane home even after it was sold to the mortgage lender for $8 million at auction in April. “It’s $300,000 to $500,000 to rent for the summer. They got a free summer out of it.”
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The couple, whose primary residence is in Bronxville, even threw a “huge” party, the source added. But it was their last hurrah in the lavish home after receiving an eviction notice in mid-August.

On Thursday, a sheriff showed up to the beachfront property with a moving company, which chucked everything the couple left behind to the curb — including three 50-inch flat-screen TVs, a pool table and disassembled treadmills.

Their belongings were taken to the town dump, where they have 24 hours to claim them.

David Walsh, who is president and CEO of a networking and software company, and Gia Walsh, a small-time movie producer, bought the 8,000-square-foot home for $2.7 million in 1999.

Posted in Foreclosures, Humor | 86 Comments

New Jersey’s Zombies

Posted on October 8, 2015 by grim

From HousingWire:

Zombie foreclosures down 43% in third quarter from last year

Precisely 20,050 U.S. residential properties in the foreclosure process — but not yet repossessed by the foreclosing lender — were vacant “zombie” homes as of the end of the third quarter of 2015, down 27% from the previous quarter and down 43% from a year ago, RealtyTrac reports.

Vacant residential properties in the foreclosure process accounted for 1.3% of all vacant U.S. residential properties, with bank-owned homes, accounting for another 1.9% of all vacant properties as of the end of the third quarter.

The report shows a total of 1.5 million vacant U.S. residential properties, 1.8% of all 84.7 million U.S. residential properties. Among the 1.5 million vacant residential properties, 36.5% have at least one open loan and 6.2% are seriously underwater, meaning the combined value of loans secured by the property is at least 25% more than the estimated market value of the property.

“The overall inventory of homes in the foreclosure process has dropped 36% over the past year so it’s not too surprising to see a similarly dramatic drop in vacant zombie foreclosures,” said Daren Blomquist, vice president at RealtyTrac. “What is surprising is there are so many vacant homes where the homeowners do not appear to be in financial distress — with only 3% in foreclosure or bank owned, and only 6% that are underwater. More than 63% of these vacant homes are not even encumbered by a loan, owned free and clear by the owner. The fact that the homeowners are not selling given the recovering real estate market in most areas indicates that many of these properties are in poor condition and in neighborhoods that have been left behind by the housing recovery.”

States with the most vacant “zombie” foreclosures were New Jersey (3,997), Florida (3,512), New York (3,365), Illinois (1,187) and Ohio (1,028).

States with the highest share of vacant “zombie” foreclosures as a percentage of total vacant properties were New Jersey (9.4%), New York (8.2%), Nevada (2.7%), Massachusetts (2.5%), and Illinois (2.1%).

Only six states posted a year-over-year increase in zombie foreclosures, most notably Massachusetts (up 66%) and New Jersey (up 29%).

Posted in Economics, Foreclosures, Housing Recovery | 59 Comments

Home price gains moderating (maybe)

Posted on October 7, 2015 by grim

From HousingWire:

CoreLogic: Home prices rose 6.9% annually in August

Home prices are up both year over year and month over month for August, according to CoreLogic (CLGX).

According to the CoreLogic HPI, home prices nationwide, including distressed sales, increased by 6.9% in August 2015 compared with August 2014 and increased by 1.2% in August 2015 compared with July 2015.

The CoreLogic HPI Forecast indicates that home prices are projected to increase by 4.3% on a year-over-year basis from August 2015 to August 2016 and remain unchanged month over month from August 2015 to September 2015.
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“Economic forecasts generally project higher mortgage rates and more single-family housing starts for 2016. These forces should dampen demand and augment supply, leading to a moderation in home price growth,” said Frank Nothaft, chief economist for CoreLogic. “Over the next 12 months through August 2016, CoreLogic projects its national HPI to rise 4.3%, less than the 6.9% gain over the 12 months through August 2015.”
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“Home price appreciation in cities like New York, Los Angeles, Dallas, Atlanta and San Francisco remain very strong reflecting higher demand and constrained supplies,” said Anand Nallathambi, president and CEO of CoreLogic.

Posted in Economics, Housing Recovery, National Real Estate | 102 Comments

Cash-out in style again

Posted on October 6, 2015 by grim

From HousingWire:

Black Knight: Cash-out refis up 68% since 2Q 2014

Cash-out refinances were up 68% year-over-year from the second quarter of 2014, as borrowers take advantage of still-low rates and newfound equity in their homes, according to Black Knight Financial Services.

This is the highest volume of cash-out refinancing in five years, but still nearly 80% below the peak in 2005.

As Black Knight Data & Analytics Senior Vice President Ben Graboske explained, borrowers have been capitalizing on increased equity available in their homes and still historically low rates. 


“In the second quarter of 2015, we saw cash-out refinance volumes rise almost 70% from the same period last year,” said Graboske. “While this is the highest volume in cash-out refinances we’ve seen in five years, it’s still nearly 80% below the peak in Q3 2005. Even so, it’s clear that borrowers have been capitalizing on the increased equity available to them.

“As we reported in last month’s Mortgage Monitor, total equity of mortgage holders has risen by about $1 trillion over the last year, and ‘tappable’ equity stands at $4.5 trillion,” he said. “Borrowers today are pulling out an average of $67,000 of equity through cash-out refis, nearly the levels we saw back in 2006. What’s really interesting though, is that even after pulling out that equity, resulting average LTVs are at 68%, the lowest level we’ve seen in over 10 years.”
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In its analysis of refinance transactions in comparison to prior loans, Black Knight also found that the distribution of cash-out refinances is highly concentrated geographically, with over 30% of all such transactions occurring in California alone.

Texas is second among states in terms of cash-out refinance volume, at just 7% of the nation’s total. Looking at Q2 2015 refinances in general, the data shows that borrowers are saving an average of $136 in principal and interest each month through refinance and cutting their interest rates by just over one%; the lowest such reductions in nine and five years, respectively.

Posted in Housing Recovery, Mortgages, National Real Estate | 110 Comments

West Milford among the worst?

Posted on October 5, 2015 by grim

From the Record:

Popular magazine ranks West Milford among state’s worst places to live

According to a prominent monthly magazine, West Milford Township is among the worst places in the state to live.

West Milford Mayor Bettina Bieri is not a believer, however, calling the 80.4-square-mile expanse simply “wonderful.”

“It really all depends on your priorities,” said Bieri, now in her eighth year as mayor. “Many people prefer our scenic surroundings, wildlife, and tranquility over shopping malls and traffic congestion. They exhale and have instant stress relief upon entering West Milford.”

Scenic, soothing isolation was, however, not one of the criteria New Jersey Monthly considered in the recent iteration of its biennial “Best Places to Live” list.
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Ultimately, West Milford is the lowest rated town in Passaic County for 2015. Neighboring Ringwood and Vernon are more than 100 positions ahead on the list. West Milford was also out-ranked by towns like East Orange (486), Paterson (491), and Camden (488), where the violent crime rate is respectively six, 10, and 25 times that of West Milford, according to the report.
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The ranking also considered proximity to acute-care hospitals and performing-arts theaters. As far as providing more of those, however, Councilwoman Michele Dale said the township is encumbered by the Highlands Act and consequently unable to provide residents with the things towns like Madison (8), Pequannock (4), and Florham Park (1) have.
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Like Dale, 44-year resident and West Milford Township Environmental Commission Chairman Stephen Sangle said the natural splendor of the town – “encompassing lakes, mountains, and vistas” – protected by the development-stifling Highlands Act cannot be compared to any other area in New Jersey. He said West Milford has alternate value as a wooded oasis protected from the sprawl that consumed other towns. Deer, fox, and bear sightings are common, as are glimpses of hikers, cyclists, and fisherman.
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As for the high taxes, Dale said the current governing body is doing its upmost to streamline local government operations and reduce the taxpayer burden. She said progress has been made and the governing body continues to work hard to reduce operational expenses while maintaining municipal services. However, there are something things that the local government just cannot control – namely state, county, and school board edits, she added.

Posted in Housing Recovery, New Jersey Real Estate | 83 Comments

Manufacturing not dead in NJ

Posted on October 3, 2015 by grim

From NJBIZ:

Report offers optimistic take on N.J.’s manufacturing industry

Contrary to public opinion and personal anecdotes regarding the New Jersey manufacturing hub of yesteryear, the manufacturing industry continues to play a vital role on the state’s economy, according to a report by the New Jersey Policy Research Organization Foundation, an affiliate of the New Jersey Business & Industry Association.

Just in time for New Jersey Manufacturing Week, which runs from Monday through Friday, NJPRO Chairman John Rogers stated: “Manufacturing continues to be a strong economic force, providing well-paying jobs and driving exports of American-made goods. What’s more, the health of New Jersey’s manufacturing sector fares pretty well when compared to that of other states’.”

The report offers a close examination of the manufacturing industry of New Jersey in 2015, including the number of manufacturing facilities as broken down by county, a 10-year outlook for manufacturing employment and a breakdown of manufacturers by business type.

According to the report, New Jersey manufacturers directly employed 247,200 individuals as of July 2015.
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“The industry has consistently played a vital role in the state’s economy and has further solidified New Jersey’s position as a global hub for manufacturing,” the report states. “It is important to note that when comparing states, one must consider their sizable differences — e.g., economy, square mileage and population — to accurately gauge how well their industries are performing. Considering these factors, New Jersey still outperforms the majority of states and fares well against its competition.”

Even the employee compensation in New Jersey is superlative: According to the report, advanced manufacturing employees make on average nearly $100,000 per year, which ranks New Jersey as the fifth-best state for compensation.
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With the report finding that New Jersey ranked 15th in manufacturing output, making $45 billion in products in 2013, and 13th in goods exported, by selling more than $32 billion in 2014, she added:

“New Jersey manufacturers excel through efficiency and expertise. Technological advances, ‘lean’ manufacturing processes and increasingly sophisticated operations are all areas where New Jersey manufacturers as a group excel.”

Posted in Economics, Employment, New Jersey Real Estate | 81 Comments

HuffPo stands up for Jersey

Posted on October 2, 2015 by grim

From the Huffington Post:

Strange Yet Interesting Facts About New Jersey

New Jersey gets a bad rap. Sometimes referred to as “the armpit of America” by residents of other states, the peninsula is actually a pretty unique place that has a lot of good qualities. Unfortunately, people often form their opinions and judgment on the state, not for its major contributions and offerings to America — such as being the first state to sign the Bill of Rights, or being the diner capital of the world (hey, breakfast is important )- -but for the fist-pumping monstrosity that was the MTV “reality show” Jersey Shore.
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As with anywhere else in the world, it has pros and cons. There are a lot of interesting facts about the state of New Jersey, and while they may not be reason enough to up and move there, they are, at the very least, interesting — even if some are quite strange (like the fact that it’s illegal to plant trees in the middle of the street in Blairstown. You know, just in case that’s something you wanted to do).

It is/was home to many of America’s biggest icons and legends. Imagine how much more credible the state would probably seem if people knew that people such as Frank Sinatra, Bruce Springsteen, Jack Nicholson and Whitney Houston were born in New Jersey, rather than assuming “Snooki” and “The Situation” are the biggest celebrity natives.

And home to many other people — record-setting amounts, in fact. With a population of nearly nine million people, New Jersey has the highest percentage of population density in the United States — with 13x the amount of people living per square mile than the national average, and is the only state in the country to categorize all its counties (21) as metropolitan areas.

New Jersey is one of the most expensive states in America to live. Contrary to popular belief, people actually do choose to move here, and they don’t do so for the cheap real estate. Not only is New Jersey one of the pricier states to live in, with average rent being approximately $1,800 a month, it also has the most expensive auto insurance. But choosing one of the few insurance companies they offer isn’t something you should skip out on. Especially when you consider the fact that…

It is one of the top states for car theft. Among the most common cars to steal are Honda Accords and Civics, Toyota Camry’s and Nissan Altimas. Also, most cars are stolen in Newark. But owning a car in Jersey isn’t all bad, considering…

You never have to pump your own gas, since it is one of only two states in the country where self-service gas stations are permitted. (The other state is Oregon.)

Tourism is the second largest industry in the state. Trying to catch a glimpse of the Jersey Shore cast isn’t the only thing that draws tourists here, either. It is the home of Atlantic City, which has the longest boardwalk, as well as the tallest water tower, in the world. From beaches to cityscapes, it also offers amazing and scenic views, including 127 miles of coastline running along the Atlantic Ocean, and 790,000 acres of farmland.

There are a lot of shopping malls. And you don’t have to travel very far between them. With 7 major shopping centers located within a 25-square mile radius, New Jersey holds the nation’s record for most shopping malls located in one area.

Posted in Humor | 112 Comments

Personal Income Increasing in NJ

Posted on October 1, 2015 by grim

From the Star Ledger:

Personal income in N.J. grew in second quarter of 2015

Personal incomes in New Jersey grew at a slightly faster pace than the nation in the second quarter of 2015 but lagged behind one of its neighbors, according to federal data released on Wednesday.

New Jersey posted a 1 percent gain in personal incomes in April, May and June, pushing the state’s total up to nearly $531.8 billion, the data released by the U.S. Bureau of Economic Analysis shows. The U.S. overall notched a 0.9 percent gain in personal incomes during those three months, while incomes climbed by 0.7 percent in Pennsylvania and 1.3 percent in New York.
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New Jersey’s growth in personal income ranked 17th in the nation. Washington posted the most growth in personal income in the second quarter, climbing 1.5 percent, the data shows.

While earnings declined in five states in the most recent quarter, the data shows New Jersey posted a 0.8 percent increase. The industries that led that growth in the state include utilities and management of companies. The biggest declines in earnings in the second quarter were in the real estate and mining industries.

The Bureau of Economic Analysis also on Wednesday released revised data that showed New Jersey posted bigger gains in personal income last year than previously reported. Personal incomes climbed by 4.7 percent in 2014 in New Jersey, according to the revised data, compared to 4 percent growth in New York and 3.6 percent growth in Pennsylvania.

Personal incomes grew by 4.4 percent overall in the U.S. last year.

Posted in Demographics, Economics, Employment, New Jersey Real Estate | 188 Comments

Cash sales drop, NJ among top

Posted on September 30, 2015 by grim

From HousingWire:

CoreLogic: Cash sales in June drop to 31%

Cash sales made up 31.3% of total home sales in June 2015, down from 33.9% in June 2014, according to the latest report from CoreLogic (CLGX).

The year-over-year share has fallen each month since January 2013. Month over month, the cash sales share fell by 0.7 percentage points in June 2015 compared with May 2015.

The cash sales share peaked in January 2011 when cash transactions made up 46.5% of total home sales nationally. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25%. If the cash sales share continues to fall at the same rate it did in June 2015, the share should hit 25% by mid-2017.

June’s drop follows a bigger drop in May. Cash sales made up 31.9% of total home sales in May 2015, down from 35.1% in May 2014, according to CoreLogic.
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Real estate-owned sales had the largest cash sales share in June 2015 at 57% and was the only sales category to see a year-over-year increase in the cash sales share. Resales had the next highest cash sales share at 30.8%, followed by short sales (28.7%) and newly constructed homes (15.6%).
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New York had the largest share of any state at 47%, followed by Florida (45.8%), Alabama (44.8%), New Jersey (40.7%) and Oklahoma (39.6%).

Posted in Demographics, Housing Recovery | 143 Comments

Pending Home Sales dip – Sign of something more to come?

Posted on September 29, 2015 by grim

From CNBC:

Pending home sales fell 1.4% in August

Rising home prices and a tight supply of homes for sale are keeping buyers at bay.

A monthly index measuring signed contracts to buy existing homes, so-called pending home sales, fell 1.4 percent in August compared to July, according to the National Association of Realtors (NAR). Expectations had been for a slight increase.

While sales are still 6.1 percent higher than one year ago, the annual gains are shrinking.
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“Pending sales have leveled off since mid-summer, with buyers being bounded by rising prices and few available and affordable properties within their budget,” said Lawrence Yun, chief economist for the NAR. “Even with existing-housing supply barely budging all summer and no relief coming from new construction, contract activity is still higher than earlier this year and a year ago.”
Home prices in July were 5.3 percent higher than July of 2014 and are now just 5.5 percent below their peak from June of 2006, according to a new report from Black Knight Financial Services. After rising through most of the spring, mortgage rates came down slightly in August, but not enough to entice more buyers into the competitive market. The potential for higher rates is just one of several concerns Realtors now cite.
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Regionally, pending home sales in the Northeast fell 5.6 percent for the month but are 8.9 percent above a year ago. In the Midwest sales fell 0.4 percent monthly and are up 6.5 percent from a year ago. In the South sales 2.2 percent monthly and are 4.1 percent above last August. In the West sales rose 1.8 percent monthly and are 7.6 percent higher than one year ago.

Posted in Economics, Housing Recovery, National Real Estate | 97 Comments

No Quick Recovery for Jersey

Posted on September 28, 2015 by grim

From the APP:

Jersey Shore home prices: Rising, but how far?

Looking to buy or sell a home? Nearly 10 years after the market in Monmouth and Ocean counties hit its peak, residential real estate has shown encouraging signs of life, but nothing like the wild climbs that once led to the housing bubble of the last decade.

Housing prices in New Jersey have increased since 2011, a few years after the housing bubble burst, but momentum is expected to slow in the next year, said Patrick O’Keefe, director of economic research at CohnReznick.

Currently, in New Jersey “prices are still about 20 percent below where they were” since their peak in 2006, O’Keefe said.

Nationally, prices are only 2.4 percent lower than what they were in 2006, according to O’Keefe.

One reason prices have been slow to recover here, is that “prices in New Jersey, relatively speaking, had run up much faster and further than what was true nationally during the housing boom,” O’Keefe said.

The median sales price of existing single-family homes for the Edison area, which includes Monmouth and Ocean County, in the second quarter of 2015 is $323,000, according to the National Association of Realtors.

That is up 4.5 percent compared with the second quarter of 2014.
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Despite the rising costs, July has seen the most sales of existing homes since the housing recession began, O’Keefe said. However, the prices of homes is expected to stagnate, he said.

“(Analysts) expect prices will rise in 2016, but not rise faster than the rate of inflation,” he said. “In other words, there won’t be real gain in prices.”

Contributing factors to the plateau of home prices include the expectation that the government will raise interest rates, and that would-be sellers are hesitant to put their homes on the market, waiting for prices to climb further, O’Keefe said.

“One of the things that has bedeviled housing recovery nationally, but even more pronounced in New Jersey, is potential home sellers have been unwilling to list their homes because of the degree to which they would have to take a discounted price,” O’Keefe said.

Posted in Housing Recovery, New Jersey Real Estate, Shore Real Estate | 62 Comments