Sunday, April 09, 2006

Boroson on Morris County

From the Daily Record by Warren Boroson:

Morris housing market cools off

The real-estate market has been slowing dramatically.

In Morris County, sales during the first two months of the year were off 16 percent, according to the Otteau Report, and the inventory of unsold houses leaped 61 percent.

That's in line with figures for the entire state: sales down 14 percent, along with an increase in the unsold inventory of 61 percent.

The Otteau Report is issued by Jeffrey G. Otteau, president of the Otteau Appraisal Group, a real-estate valuation and consulting firm that tracks real-estate trends in New Jersey, New York, Pennsylvania, Delaware and Florida.

It has various offices in New Jersey, including one in Morristown.

Even so, Michael Machinski, an agent at Weichert, Realtors in Ridgewood in Bergen County, doesn't think that a bubble is bursting -- and doesn't believe that there was a bubble.

Still, he acknowledges, the market is changing -- from a seller's market to a more evenly divided market.
...
Throughout the state, the picture is mixed, according to the Otteau Report.

In Somerset County, the inventory of unsold houses climbed the most, to 103 percent; in Camden, the least, with 32 percent.

The biggest fall in sales: Cape May County, with 41 percent; the least, Cumberland County, with a rise of 34 percent.

The months supply of houses for sale indicates how formidable the inventory may be, and a six-months supply is considered normal.

Morris County has a six-months supply, but Cape May has a 21 months supply, while Camden has only four months. The entire state has seven months.

Caveat Emptor!
Grim

10 Comments:

Anonymous Michelle said...

Wow. How can I get paid for just retyping what the WSJ article and others said over a week ago? I can cut-and-paste as well as Boroson can.

Of course he still tried to put his cheerleader spin on this info...he's king of the "Even so..."

I would love to know some of this blog's readers' opinion on the statement

"a 1 percent rise in mortgage rates decreases a house's affordability by 8 percent."

True? False? Please help a liberal arts major out here.

4/09/2006 07:28:00 AM  
Blogger Richard said...

the calculation is the historical relationship of interest rates to house prices. used to be interest rates went up 1% so house prices dropped around 8%. here he says affordability instead of price and that might be on purpose. reason being today you have so many creative (and risky) loan products that the relationship isn't as tight as in years past when you pretty much had to come up with a 20% down payment. for example today you can take out a negative amortization loan with a 1% teaser rate for 24 months thereby killing that relationship. sure in the end you're screwed but this allows more people into the market not playing by the same rules.

4/09/2006 09:15:00 AM  
Anonymous Anonymous said...

This realtor going to be eaten his words.

Make sure you requote this clown in 6 months.

4/09/2006 10:32:00 AM  
Anonymous Anonymous said...

"a 1 percent rise in mortgage rates decreases a house's affordability by 8 percent."
My take on this has been (what I have been telling to sellers agent) that every 1 % increase in interest, My offer will get reduced by 30K.

4/09/2006 12:12:00 PM  
Anonymous Anonymous said...

Anybody still cares about what realtors say? They are in line of other liars in our society, mechanics,lawers etc. The whole profession is corrupted.

4/09/2006 09:12:00 PM  
Anonymous Michelle said...

Thanks, Richard!

4/09/2006 09:45:00 PM  
Anonymous Anonymous said...

Very nice! I found a place where you can
make some nice extra cash secret shopping. Just go to the site below
and put in your zip to see what's available in your area.
I made over $900 last month having fun!
make extra money

4/10/2006 08:08:00 PM  
Anonymous Anonymous said...

Very nice! I found a place where you can
make some nice extra cash secret shopping. Just go to the site below
and put in your zip to see what's available in your area.
I made over $900 last month having fun!
make extra money

4/11/2006 01:05:00 PM  
Anonymous Rick J said...

I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
the indexes easily.

Take a look at Wallstreetwinnersonline.com

RickJ

4/18/2006 11:28:00 PM  
Anonymous Anonymous said...

Surf's up. Gotta get back to my own real estate sites. Thanks for letting me end the trip with a good read at your blog. Enjoyed it. Visit my site if you have a chance. you have a chance.

4/25/2006 08:12:00 PM  

Post a Comment

<< Home