Saturday, June 03, 2006

Price Reduced! 5/19 - 6/3

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 really should be doing this more often, I had to scan through close to 3,200 price reductions over this time period. The average price reduction was 4.2%. The total dollar reductions, for those of you who like large numbers, was $78,287,862.

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

MLS# 2273597 - East Orange, NJ
Previous Price $279,000
List Price $209,000 (Price Reduced 25.1%)

MLS# 2280783 - Jefferson, NJ
Previous Price $278,000
List Price $209,900 (Price Reduced 24.5%)

MLS# 2273449 - Glen Ridge, NJ
Previoius Price $499,000
List Price $389,900 (Price Reduced 20.1%)

MLS# 2216089 - Franklin, NJ
Original List Price $1,300,000
Previous Price $1,231,000
List Price $991,000 (Price Reduced 19.5%, 23.8% off OLP)

MLS# 2259487 - West Milford, NJ
Previous Price $197,000
List Price $159,900 (Price Reduced 18.8%)

MLS# 2271647 - Morris Twp, NJ
Previous Price $1,199,000
List Price $974,900 (Price Reduced 18.7%)

MLS# 2276318 - Millburn, NJ
Previous Price $4,500,000
List Price $3,725,000 (Price Reduced 17.2%)

MLS# 2268887 - Hoboken, NJ (Shipyard)
Previous Price $879,900
List Price $729,900 (Price Reduced 17%)

MLS# 2273695 - Morristown, NJ
Previous Price $2,399,900
List Price $1,999,000 (Price Reduced 16.7%)

MLS# 2270364 - Roselle, NJ
Previous Price $480,000
List Price $399,900 (Price Reduced 16.7%)

MLS# 2273412 - Roxbury, NJ
Previous Price $369,900
List Price $309,900 (Price Reduced 16.2%)

MLS# 2279220 - Hillside, NJ
Previous Price $285,000
List Price $240,000 (Price Reduced 15.8%)

MLS# 2247285 - Upper Saddle River, NJ
Original List Price $1,475,000
Previous Price $1,299,000
List Price $1,099,000 (Price Reduced 15.4%, 25.5% off OLP)

MLS# 2273386 - Millburn, NJ
Previous Price $2,349,000
List Price $1,995,000 (Price Reduced 15.1%)

MLS# 2254916 - Hope, NJ (The Inn At Millrace Pond)
Previous Price $3,500,000
List Price $2,975,000 (Price Reduced 15%)

MLS# 2263625 - Allendale, NJ
Previous Price $1,600,000
List Price $1,375,000 (Price Reduced 14.1%)

MLS# 2256260 - Delaware Twp, NJ
Previous Price $1,500,000
List Price $1,295,000 (Price Reduced 13.7%)

MLS# 2253808 - Belvidere, NJ
Original List Price $245,000
Previous Price $219,900
List Price $189,900 (Price Reduced 13.6%, 22.5% off OLP)

MLS# 2228485 - Montville, NJ
Original List Price $1,695,000
Previous Price $1,495,000
List Price $1,295,000 (Price Reduced 13.4%, 23.6% off OLP)

MLS# 2270471 - Nutley, NJ
Previous Price $379,000
List Price $329,000 (Price Reduced 13.2%)

MLS# 2272070 - Union, NJ
Previous Price $449,000
List Price $390,000 (Price Reduced 13.1%)

MLS# 2280444 - Denville, NJ
Previous Price $489,000
List Price $425,000 (Price Reduced 13.1%)

MLS# 2101240 - Hopatcong, NJ
Previous Price $459,900
List Price $399,900 (Price Reduced 13%)

MLS# 2264433 - Tewksbury, NJ
Previous Price $1,149,900
List Price $999,900 (Price Reduced 13%)

MLS# 2267697 - Bernards, NJ
Previous Price $1,150,000
List Price $999,999 (Price Reduced 13%)

MLS# 2264469 - Piscataway, NJ
Previous Price $629,900
List Price $550,000 (Price Reduced 12.7%)

MLS# 2273572 - Somerville, NJ
Previous Price $789,900
List Price $689,900 (Price Reduced 12.7%)

MLS# 2276430 - Bloomfield, NJ
Previous Price $799,000
List Price $699,000 (Price Reduced 12.5%)

MLS# 2260160 - Montclair, NJ
Original List Price $1,495,000
Previous Price $1,295,000
List Price $1,150,000 (Price Reduced 11.2%, 23.1% off OLP)

Caveat Emptor!
Grim

17 Comments:

Anonymous Anonymous said...

Hi:

Do you know how to get data on short sales completed by month?

http://tinyurl.com/mswm6

Pat

6/03/2006 06:46:00 AM  
Anonymous Anonymous said...

I see the Price Reduced List keeps growing every week ... and I see a lot of houses not listed (those with 10-20K reductions).

Keep it coming people !!

MD.

6/03/2006 08:05:00 AM  
Anonymous Anonymous said...

MD @ 9:05

Yes .. you cannot scroll on the list.
You have to hit Page-Down.

Yes keep it coming.

6/03/2006 08:07:00 AM  
Blogger grim said...

GSMLS - SFH/Condo/Coop
Sussex, Passaic, Bergen, Warren, Morris, Essex, Hudson, Hunterdon, Somerset, Union, Middlesex

100 reductions greater than 10%
263 reductions greater than 7.5%
793 reductions greater than 5%
2227 reductions greater than 2.5%
3284 reductions gt/eq 0.1%

Average reduction 4.2%
(Off Prior Price, Not Original Price)

Pre-reduction prices $1.85 billion
Post-reduction $1.77 billion
Total Reduction $78 million

grim

6/03/2006 08:26:00 AM  
Blogger new 200 Mbps BROADBAND over POWER LINES said...

Read USATODAY.COM: 'Housing boom is over,' analyst says as Pulte is latest home builder to cut outlook
Posted 6/2/2006 5:26 PM ET


DETROIT (AP) — Pulte (PHM) on Friday became the latest major home builder to lower its full-year earnings outlook as the housing market continues to cool. Its shares tumbled more than 5% to a 52-week low.
Pulte cut its full-year outlook after both Hovnanian Enterprises (HOV) and Toll Brothers (TOL) lowered their forecasts within the past month.

All three companies cited large dips in new orders and jumps in cancellation rates in the second quarter on top of rising interest rates and larger inventories.

Pulte, which operates in 27 states, reported preliminary new orders dropped about 29% in April and May from last year to 6,447 units from 9,128 units.

Toll Brothers, a luxury home builder operating in 21 states, had a 29% second-quarter drop in signed contracts and Hovnanian, which builds mostly in the Northeast, California and the Washington D.C. area, had about a 19% drop in net contracts.

"Buyer demand through April and May has been below expectations," Richard Dugas Jr., Pulte's president and chief executive, said in a statement.

Home prices should start to dip as companies offer incentives and discounts and investors who bought up many homes during the boom sell their assets, said Rick Murray, an analyst from Raymond James & Associates.

"I think it's safe to say the housing boom is over," Murray said.

Pulte, the largest builder of active-adult communities for people 55 and older, projects earnings of 85 cents to 95 cents a share for the current second quarter, and $4.70 to $5 a share for the full year. In April, the company had forecast 2006 earnings between $6 and $6.25 a share.

Cancellation rates for the two months stood at 27.4%, up from 14.8% in the year-ago period.

Based on the slower sales pace, Pulte forecast unit settlements for the year will range from 44,000 to 46,000 homes. New orders fell in every part of the country except the central region, which had 1,169 units, up from 1,492 last year.

The National Association of Home Builders expects home sales this year to fall to 2004 levels, which were surpassed only by those in 2005.

This year "might still end up being the second best year ever," said Michael Carliner, an economist with the association. Much of the effect from fewer orders shouldn't show up in this year's earnings, he said.

On the New York Stock Exchange, Pulte shares fell $1.70, or 5.2%, to close at $31.33, Hovnanian Enterprises shares fell 91 cents, or 2.7%, to close at $32.36, and Toll Brothers shares rose 4 cents to close at $28.83.

6/03/2006 10:20:00 AM  
Blogger pesche22 said...

and the prices are still to high.
many folks are holding out from
price reductions.

i dont think i have every seen so many for sale signs and fsbo

6/03/2006 10:51:00 AM  
Anonymous UnRealtor said...

Here's another one dropping like a rock, and still over-priced:

93 Meadowbrook Rd, Short Hills
MLS 2259341
http://www.realtor.com/Prop/1056920191

Mar 22, 2006 - $799,000

Apr 06, 2006 - $749,900

May 03, 2006 - $725,000

Jun 03, 2006 - $700,000


There are currently 9 houses for sale on this street; this is the Broken ARM crowd trying to avoid impending doom.

6/03/2006 02:48:00 PM  
Anonymous UnRealtor said...

Here's a $600,000 price drop:

145 Forest Drive, Short Hills
MLS 2221889
$6,500,000
(Nov 2005 listing -- expired May 28, 2006)


New June 1st listing:

145 Forest Drive, Short Hills
MLS 2284677
$5,900,000
http://www.realtor.com/Prop/1061029624


Assesed at $3,023,000 and will probably sell between there and $4M, depending on when it sells.

6/03/2006 03:40:00 PM  
Anonymous Anonymous said...

Agreed, prices are still too high. But it's nice to see that things are finally starting to break. The funny thing is, who wants to invest in an asset that is dropping in value? That's why I feel this is only the start. 15-20% off the top is a good start. But why would I buy now when I know these prices are likely to go lower? Am I wrong?

3-toed Pete

6/03/2006 04:32:00 PM  
Anonymous Anonymous said...

How to lowball a seller...

1. Put out lowball offers on multiple homes. If one bites you're ready to start dealing. Chances are if you put in a lowball offer all sellers will return with a number they feel comfortable with. (Which probably won't be close to your price) When they do show them what their neighbor is willing to sell for. There's a good chance when they see the neighbors number they'll try to go lower. This is the reverse of a bidding war. ;-)

2. The second way to lowball a seller requires two buyers working together. The buyer that does not want the house to be lowballed submits a REALLY low offer. What this does is shock the seller into a new realty of what their house is worth. If the seller accepts the offer you "gracefully" try to bow out but, while doing so have buyer number two submit an offer at the same price. The seller will forget about buyer one and sell to buyer two. If the owners don't accept the offer you play with them a little then get out. At this point you "softened" the seller up to accepting a lower offer. This is where buyer two comes in knowing how low the seller will go. ;-)

*The second technique is something only buyers can do together (not agents) and it won't make friends if people find out about what your doing. So don't ever tell people how you got the house for the price you did.

6/03/2006 06:41:00 PM  
Blogger pesche22 said...

Bergen, the Gold county. prices will
not drop to bad?

6/04/2006 11:51:00 AM  
Anonymous Anonymous said...

Can anyone give me some information on Mount Olive? What is the town like, what are the schools like, what is the town traditionally known for, was it built on a radioactive waste site? Anything you can give would be helpful. PS Great blog Grim

6/04/2006 01:47:00 PM  
Blogger delford said...

pesche: Bergen County, the gold county is dropping baby, and dropping quickly. Yesterday in my town there were open house signs everywhere, and all over north central, north western Bergen county, you know the most desireable areas, with the rail roads into Hoboken, and the excellent schools. Oh it is happening, and it is going to be ugly.

6/05/2006 08:32:00 AM  
Anonymous Anonymous said...

Great site loved it alot, will come back and visit again.
»

6/09/2006 02:20:00 AM  
Anonymous Anonymous said...

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6/19/2006 03:00:00 AM  
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