Sunday, April 16, 2006

Price Reduced! 4/10 - 4/17

Welcome to another edition of Price Reduced!

For all the newcomers to this blog, Price Reduced! takes a look at a handful of significant price reductions across Northern NJ. The purpose of this exercise is to serve as proof that the Northern New Jersey real estate market has long since been overvalued and has started the long hard decline back to the mean. These listings are in no way an endorsement by myself, nor do I believe they are a bargain or a value. Even reduced, I still believe these homes are still grossly overpriced.

I'm going to break this down into two lists this week. I'd like to keep the $1m and higher properties separate due to the fact that they are beginning to dominate the price reduction lists.

The Sub 1m List:

MLS# 2251858 - Hampton, NJ
Previous Price $289,900
Current List Price $249,900 (Price Reduced 13.8%)

MLS# 2262035 - Bloomfield, NJ
Previous Price $575,000
Current List Price $499,900 (Price Reduced 13.1%)

MLS# 2257002 - Rahway, NJ
Previous Price $299,900
Current List Price $265,000 (Price Reduced 11.6%)

MLS# 2258259 - Washinton Boro, NJ
Original List Price $275,900
Previous Price $264,900
Current List Price $234,999 (Price Reduced 11.3%, 14.5% off Original List)

MLS# 2241722 - Florham Park, NJ
Previous Price $675,000
Current List Price $599,900 (Price Reduced 11.1%)

MLS# 2242359 - Sparta, NJ
Previous Price $895,000
Current List Price $799,900 (Price Reduced 10.9%)

MLS# 2253255 - Belleville, NJ
Previous Price $399,900
Current List Price $359,900 (Price Reduced 10%)

MLS# 2247607 - Elizabeth, NJ
Previous Price $449,900
Current List Price $405,000 (Price Reduced 10%)

MLS# 2210453 - Cedar Grove, NJ
Original List Price $1,150,000
Previous Price $1,099,000
Current List Price $999,000 (Price Reduced 9.1.%, 13.1% off Original List)

MLS# 2256483 - Woodbridge, NJ
Previous Price $339,900
Current List Price $309,000 (Price Reduced 9.1%)

MLS# 2247901 - Rockaway, NJ
Previous price $769,900
Current List Price $699,999 (Price Reduced 9.1%)

MLS# 2212294 - Roselle Park, NJ
Previous Price $454,900
Current List Price $415,000 (Price Reduced 8.8%)

The $1m+ List:

MLS# 2243656 - Chester, NJ
Original List Price $1,350,000
Previous Price $1,199,999
Current List Price $999,999 (Price Reduced 16.7%, 25.9% off Original List)

MLS# 2255980 - Montville, NJ
Original List Price $2,400,000
Previous Price $1,900,000
Current List Price $1,600,000 (Price Reduced 15.8%, 33.3% off Original List)

MLS# 2258312 - Ridgewood, NJ
Previous Price $1,595,000
Current List Price $1,399,000 (Price Reduced 12.3%)

MLS# 2228485 - Montville, NJ
Previous Price $1,695,000
Current List Price $1,495,000 (Price Reduced 11.8%)

MLS# 2104615 - Franklin Lakes, NJ
Previous Price $1,699,000
Current List Price $1,499,000 (Price Reduced 11.8%)

MLS# 2232910 - Montclair, NJ
Original List Price $1,395,000
Previous Price $1,219,000
Current List Price $1,079,000 (Price Reduced 11.5%, 22.7% off Original List)

MLS# 2238993 - Chatham, NJ
Previous Price $1,150,000
Current List Price $1,025,000 (Price Reduced 10.9%)

MLS# 2250020 - Harding, NJ
Previous Price $3,999,000
Current List Price $3,599,000 (Price Reduced 10%)

MLS# 2241648 - Scotch Plains, NJ
Original List Price $1,695,000
Previous Price $1,550,000
Current List Price $1,399,000 (Price Reduced 9.7%, 17.5% off Original List)

For those wondering why it seems that mid-range properties aren't being represented here, let me explain why. Many midrange properties are seeing lower percentage reductions at a shot, typically on the order of $10-20k each reduction. I never make it deep enough into the list to pull out the $400-$500 properties that have been reduced multiple times. The week's list contained over 700 properties, going through every one of them to check it's history. The higher range sellers seem perfectly content to make huge reductions in one shot, the mid-range looks to prefer making multiple smaller reductions.

Again, this list is just an illustration of what is going on in the market, I trust that no-one is actually scouring this list for prospective purchases. I'm still urging sellers to be patient and wait to see how the next few months unfold.

Caveat Emptor!
Grim

8 Comments:

Anonymous Anonymous said...

Hi Grim - I love this site, as I am looking to buy, but have secured my rental for another year, so I have some more time to watch this market. Where can I get the info. for the lowball offers and default amounts in the Point Pleasant, Manasquan, zip codes (08742, 08730,08736 and 08735)? I know these are "affluent" areas with mostly second, vacation homes, but I am still hoping to get more than I POS for all the $$ the sellers are still asking. Thanks for your help and Happy Easter - I gotta go be the Easter Bunny before kiddies wake up!

bch

4/16/2006 07:45:00 AM  
Anonymous Brian said...

It would be great if a link to the listings (if available) could be placed with the price reduced and lowball listings to help qualify these reductions somehow.

4/16/2006 09:05:00 AM  
Anonymous Anonymous said...

Happy Easter - Unbelievable amount of open houses today! Passed 3 while walking my dog!
I also would like to know how to make a lowball seem like a decent offer to those sellers who are way overpriced. I can't find any sites that show the honest number of price reductions, re-listings and sales prices.

4/16/2006 09:49:00 AM  
Blogger Roadtripboy said...

Brian,

Grim gets these "price reduced" listings from the Garden State Multiple Listing Service and the New Jersey Multiple Listing services. Both can be accessed online at www.njmls.com and www.gsmls.com. With the MLS number he provides, you can look up the listing yourself.

4/16/2006 10:26:00 AM  
Anonymous UnRealtor said...

From Cherry Hill NJ's Courier Post:



SURVEY SAYS: Lenders predict real estate slide

Tuesday, April 11, 2006

Two-thirds of lenders nationwide believe a real estate bubble exists in the United States and half of them believe it has already begun to burst or will burst in the next six months, according to results of this quarter's Phoenix Management "Lending Climate in America" survey.

A significant 93 percent of lenders surveyed expect an anticipated housing correction to result in real estate prices declining 10 to 20 percent across the country.

Among the 92 lenders who participated in this quarter's survey, only 9 percent said they did not believe a housing bubble existed. When asked which area of the country was likely to be most affected by a housing correction, 30 percent of respondents named the Northeast, followed closely by 27 percent who predicted the West Coast. Fourteen percent named the Southeast.


http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20060411/BUSINESS01/604110329/1003/BUSINESS

4/16/2006 09:11:00 PM  
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