Sunday, May 07, 2006

Price Reduced! 4/30 - 5/7

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.

The list is (mostly) straight off the top this week:

MLS# 2107776 - Mahwah, NJ
Previous Price $599,000
Current Price $459,000 (Price Reduced 23.4%)

MLS# 2208645 - Franklin Twp, NJ
Previous Price $749,000
Current Price $595,000 (Price Reduced 20.6%)

MLS# 2248278 - Newark, NJ
Previous Price $1,100,000
Current Price $895,000 (Price Reduced 18.6%)

MLS# 2273453 - Jersey City, NJ
Previous Price $425,000
Current Price $349,900 (Price Reduced 17.7%)

MLS# 2267238 - Elizabeth, NJ
Previous Price $599,900
Current Price $499,999 (Price Reduced 16.7%)

MLS# 2261656 - Millburn, NJ
Previous Price $1,198,500
Current Price $999,850 (Price Reduced 16.6%)

MLS# 2236935 - Franklin Lakes, NJ
Original List Price $749,000
Previous Price $599,000
Current Price $499,900 (Price Reduced 16.5%, 33.3% off Original List)

MLS# 2243227 - Westfield, NJ
Original List Price $1,895,000
Previous Price $1,750,000
Current Price $1,495,000 (Price Reduced 14.6%, 21.1% off Original List)

MLS# 2267767 - Tewksbury, NJ
Previous Price $1,195,000
Current Price $1,025,000 (Price Reduced 14.2%)

MLS# 2256521 - Summit, NJ
Previous Price $1,159,000
Current Price $995,000 (Price Reduced 14.2%)

MLS# 2264614 - Millburn, NJ
Previous Price $2,550,000
Current Price $2,199,000 (Price Reduced 13.8%)

MLS# 2254865 - Boonton, NJ
Previous Price $299,900
Current Price $259,900 (Price Reduced 13.3%)

MLS# 2270199 - Chatham, NJ
Previous Price $1,595,000
Current Price $1,395,000 (Price Reduced 12.5%)

MLS# 2264540 - Clifton, NJ
Previous Price $799,000
Current Price $699,000 (Price Reduced 12.5%)

MLS# 2261477 - South Plainfield, NJ
Previous Price $799,000
Current Price $699,000 (Price Reduced 12.5%)

MLS# 2258403 - Wayne, NJ
Previous Price $1,139,900
Current Price $999,900 (Price Reduced 12.3%)

MLS# 2227166 - Montclair, NJ
Original List Price $3,450,000
Previous Price $2,950,000
Current Price $2,590,000 (Price Reduced 12.2%, 24.9% off Original List)

MLS# 2111828 - Nutley, NJ
Original List Price $799,000
Previous Price $624,900
Current Price $549,900 (Price Reduced 12%, 31.2% off Original List)

If you take the time to look some of these up in Realtor.com, I'd appreciate if you posted the links to the listings in the comments section.

Caveat Emptor!
Grim

25 Comments:

Anonymous Anonymous said...

It could be a bad picture but from first looks #2236935 doesn't look like a "ready to move in" type.

There seems to be a lot of stagnant water in the front yard. Hope it's not what i think it is.

Of course the price is 1/2 mil.

5/07/2006 07:46:00 AM  
Anonymous Anonymous said...

sorry the link for the mentioned property (2236935 )is
http://www.realtor.com/Prop/1054991453

5/07/2006 07:57:00 AM  
Blogger Metroplexual said...

Grim,

Is the Franklin TWP the Warren or Somerset. Oh and by the way has anyone mentioned the Harpers Monthly that came out this month? It features an article on how the housing runup, and new BK law has created a new class of serfs.

A small anectdote. I was out yesterday at a restaurant and saw a couple with a boy, who were looking at RE printouts, and talking prices. I was seriously thinking about walking over to them to tell them they would be crazy to buy in the market now. I almost wanted to tell them to at least look at your site. Nonetheless, I did not. What would you do? I felt it was none of my business.

5/07/2006 09:11:00 AM  
Anonymous Anonymous said...

Are these price reductions lower than 2005 summer peak?
Prices seem to be lower, but you never hear that from realtors.

5/07/2006 10:35:00 AM  
Anonymous Anonymous said...

Ba ba ba ba ba ba ba BOYCOTT Overpriced Houses!
Just say "NO MAAS"

Boooooyaaaaaa

Bob

5/07/2006 10:44:00 AM  
Blogger Metroplexual said...

Rentinginnj,

Interesting read then?

5/07/2006 11:07:00 AM  
Anonymous Anonymous said...

http://tinyurl.com/q5eaj

This is the one in Millburn. Pathetic. 60x140 lot, boring as a box of hair.

What is the deal in NJ about not having total square footage of houses listed? It's in all listings in CA yet I don't think I've ever seen it for NJ houses.

Here's the Summit one for $995K:
http://tinyurl.com/qgcd7

Wow. How dreadfully dull on the outside...and only a 1 car garage! Inside's not awful; wonder how close it is to the tracks/busy streets.

Another CA/NJ difference in listings: most CA listings have the address. It's BS that the NJ listings don't. Sheesk.

Gotta tell ya, the more listings I look at the happier I continue to be that I bought what I did. Our place is easily 5X as nice as either of the places above for less than those prices. Even with the differential for the towns, I feel lucky. (and don't bother debating me on this, I'm just stating my opinion, m'kay?)

5/07/2006 01:29:00 PM  
Blogger Metroplexual said...

Michelle said...

"This is the one in Millburn. Pathetic. 60x140 lot, boring as a box of hair."

It is presented to you by Jane Goetz. I wonder if shes married to Leo Goetz.

Whatever you need Leo Goetz the RE guy in L.A. Okay Okay Okay Okay Okay Okay Okay.

Lethal Weapon 2 reference.

5/07/2006 02:58:00 PM  
Anonymous Anonymous said...

if it is not 50% off, it is not reduction. Lets call it bait.

5/07/2006 03:03:00 PM  
Anonymous Anonymous said...

"MLS# 2261656 - Millburn, NJ
Previous Price $1,198,500
Current Price $999,850 (Price Reduced 16.6%)



Note: this house was originally on the market for $1,295,000, and was then re-listed with a new MLS #. The original MLS number was 2204767.

The current owner bought the house last June for $1,300,000, and is now hoping for a $300,000 loss (not including closing costs, taxes, and mortgage interest paid).

Can you say F'd Buyer?

5/07/2006 05:34:00 PM  
Anonymous Anonymous said...

Losses mounting for flippers/speculators

Pa pa pa pa pa pa PANIC!

Boooooyaaaaaaaaaa

Bob

5/07/2006 05:38:00 PM  
Anonymous Anonymous said...

Why do they call them brokers?

Because, if you're already broke...they will make you even broker!

HAHAHA
Ba ba ba ba ba ba ba BOYCOTT Overpriced Houses!


Boooooyaaaaaa

Bob

5/07/2006 06:05:00 PM  
Anonymous Anonymous said...

I've been keeping my eye on a few properties in parts Bergen & Passaic counties and have noticed a few of start to lower their prices -- but mainly only 20k (on ~600-700k) - what's up with that?! Why do people lower prices 3%? Wouldn't they think that if all buyers in the market thought x was considered a bad deal, wouldn't they think x-3% is also?

5/07/2006 08:01:00 PM  
Anonymous Anonymous said...

Here's a link to the Nutley house:

http://www.realtor.com/FindHome/HomeListing.asp?snum=1&frm=bymlsid&pgnum=1&mls=xmls&js=off&fid=so&vtsort=&ss_aywr=&locallnk=&poe=realtor&ct=&st=&zp=&primaryZp=&nearbyZp=&mnprice=0&mxprice=99999999&mnbed=0&mnbath=0&typ=1&typ=2&typ=4&mnsqft=0&exft=0&exft=0&exft=0&exft=0&lid=2111828&sid=0695F1B3948DC&snumxlid=1052066572&lnksrc=00003

5/07/2006 09:47:00 PM  
Anonymous Anonymous said...

What's the story on Nutley? It seems they allow people to build absurdly large houses (close to 4,000 square feet) on lots that are 1/8 of an acre or less? There's literally a 5 foot buffer on all 4 sides.

These lots are smallish for a 3 bedroom Cape Cod, and they're building these giant boxes all over the place.

Anyone know how the town lets this happen? Seems getting a few extra tax dollars is short sighted when such craziness reduces the value of all houses in the town.

5/07/2006 10:25:00 PM  
Anonymous Anonymous said...

Ever wonder how many of the people that are posting these joyous comments about the fall of RE prices don't have enough nerve to buy anything, at any time, for any price? They just seem to be too happy witnessing other people’s financial problems. BTW I did sell last year, as I did remember 1988 RE in NJ.

5/08/2006 05:26:00 AM  
Anonymous Anonymous said...

It is a one street with these bubbleheads. It's great if prices escalate up and the hell with anyone else that can't afford on rational terms. Well Sorry charlie things are turning down now better get used to much lower prices.

5/08/2006 07:10:00 AM  
Anonymous Anonymous said...

minutesfromNYC:

Right on!

We have a third choice:

BOYCOTT Overpriced Houses!

Boooooyaaaaaa

5/08/2006 07:45:00 AM  
Blogger chicagofinance said...

Shailesh:

You have a right to your opinion, but I disagree strongly.

NJ's problem is too much government and too much corruption.

When you start to manipulate markets with what "on the face" seem to be progressive policies, you often create even worse circumstances such as: black markets, gray markets, housing shortages, lawsuits, disincentives for capital investment, unhealth and unatrractive business climates.

Be careful what you wish for....

5/08/2006 08:35:00 AM  
Blogger Metroplexual said...

CF,

It is not too much gubmint but too many. Everything else you said is true. But the market is distorted because school funding comes from local property taxes, so every municipality fights residential develoment in their own self interest, unless it is age restricted. They do it by buying open space, farmland preservation, downzoning, rezoning, and outright hostilityy to developers through concessions.

What does this create? Artificial scarcity.

5/08/2006 08:53:00 AM  
Anonymous Anonymous said...

"There's entirely too much giddiness here (Unrealtor and Bob are prime examples)."


Why yes, I am optimistic that home prices are beginning to fall in line with incomes.

--

"Assuming there's a real estate bubble deflating, their observations would be more dispassionate."

No, the larger the price reductions, the more excited I get! Though I can understand why sellers taking $300K losses probably has you upset.

--

"They're not and many here are resentful because they didn't buy earlier, hate those who did and want to see us hurt financially."

No resentment here, only excitement at dropping prices. I've started to circle furniture in catalogs, waiting for greedy sellers to accept their losses. Maybe I'll but one of your houses -- in 18 months -- if you're able to hang onto your "investment" property until then.

5/08/2006 10:39:00 AM  
Anonymous Anonymous said...

Franklin Lakes house is a cottage and Mahwah house has to be torn down, it is uninhabitable. I believe this is stated on the MLS but not on Realtor.com

5/08/2006 10:55:00 AM  
Anonymous Anonymous said...

Ba ba ba ba ba ba BOYCOTT Insane House Prices!

Tell'em NO MAAS!

Don't be a serf and sign the slave (MTG) contract.

Booooooyaaaaaaa

Bob

5/08/2006 11:23:00 AM  
Anonymous Anonymous said...

Last week, was outside all day Sun doing school work. Had a nice view of my neighbor's open house. Two people showed up.

Same count yesterday.

Regarding: "many here are resentful because they didn't buy earlier, hate those who did and want to see us hurt financially. "

I am not resentful. I got out of the RE investment mkt last yr. Made a few $ in the process and consider myself very lucky.

Am I giddy? No, I'm hopeful that I can purchase the home I want and and continue to stash 25% of my gross salary without putting 50% down.

SPW

5/08/2006 09:56:00 PM  
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5/18/2006 05:17:00 PM  

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