Thursday, June 22, 2006

Price Reduced! 6/4 - 6/22

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:

MLS# 2288307 - Little Falls, NJ (Ranch)
Previous Price $350,000
List Price $265,000 (Price Reduced 24.3%)

MLS# 2278701 - Springfield, NJ (Colonial)
Original List Price $499,000
Previous Price $450,000
List Price $349,900 (Price Reduced 22%, 29.9% off OLP)

MLS# 2278848 - East Amwell, NJ (Colonial)
Previous Price $895,000
List Price $699,000 (Price Reduced 21.9%)

MLS# 2260619 - Stillwater, NJ (Ranch)
Previous Price $245,000
List Price $199,000 (Price Reduced 18.8%)

MLS# 2283463 - Wayne, NJ (Develpmt)
Previous Price $489,000
List Price $399,000 (Price Reduced 18.4%)

MLS# 2274620 - Montclair, NJ (Colonial)
Previous Price $729,900
List Price $598,000 (Price Reduced 18.1%)

MLS# 2270141 - Franklin Lakes, NJ (Colonial)
Original List Price $924,900
Previous Price $849,900
List Price $699,900 (Price Reduced 17.4%, 24.3% off OLP)

MLS# 2283592 Elizabeth, NJ (Colonial)
Previous Price $470,000
List Price $390,000 (Price Reduced 17%)

MLS# 2100785 - Hackettstown, NJ (Victorian)
Previous Price $598,000
List Price $498,000 (Price Reduced 16.7%)

MLS# 2245059 - Hillsborough, NJ (Colonial)
Previous Price $1,199,999
List Price $999,999 (Price Reduced 16.7%)

MLS# 2257607 - Scotch Plains, NJ (Colonial)
Previous Price $1,195,900
List Price $999,999 (Price Reduced 16.4%)

MLS# 2255116 - Frankford, NJ (Colonial)
Original List Price $475,000
Previous Price $429,900
List Price $360,000 (Price Reduced 16.3%, 24.2% off OLP)

MLS# 2087523 - Newark, NJ (Colonial)
Previous Price $400,000
List Price $335,000 (Price Reduced 16.3%)

MLS# 2276200 - North Caldwell, NJ (Colonial)
Previous Price $950,000
List Price $799,000 (Price Reduced 15.9%)

MLS# 2258587 - Harmony, NJ (Colonial)
Original List Price $499,900
Previous Price $449,900
List Price $380,000 (Price Reduced 15.5%, 24% off OLP)

MLS# 2226538 - Blairstown, NJ (Colonial)
Previous Price $650,000
List Price $550,000 (Price Reduced 15.4%)

MLS# 2243794 - Hackensack, NJ (FirstFlr)
Previous Price $230,000
List Price $195,000 (Price Reduced 15.2%)

MLS# 2257607 - Scotch Plains, NJ (Colonial)
Previous PRice $2,350,000
List Price $1,999,000 (Price Reduced 14.9%)

MLS# 2271609 - Denville, NJ (Colonial)
Previous Price $469,900
List Price $399,900 (Price Reduced 14.9%)

MLS# 2241648 - Scotch Plains, NJ (Custom)
Original List Price $1,695,000
Previous Price $1,399,000
List Price $1,199,000 (Price Reduced 14.3%, 29.3% off OLP)

MLS# 2237685 - Wayne, NJ (Colonial)
Original List Price $353,900
Previous Price $349,900
List Price $299,900 (Price Redced 14.3%, 15.3% off OLP)

MLS# 2262252 - Randolph, NJ (Colonial)
Original List Price $749,900
Previous Price $699,900
List Price $599,900 (Price Reduced 14.3%, 20% off OLP)

MLS# 2272654 - Kingwood, NJ (Ranch)
Previous Price $525,000
List Price $450,000 (Price Reduced 14.3%)

MLS# 2287003 - Bound Brook, NJ (Colonial)
Previous Price $349,000
List Price $299,900 (Price Reduced 14.1%)

MLS# 2269011 - Sparta, NJ (Cape Cod)
Previous Price $649,000
List Price $557,900 (Price Reduced 14%)

MLS# 2259908 - Mount Olive, NJ (Colonial)
Previous Price $579,900
List Price $499,900 (Price Reduced 13.8%)

MLS# 2251965 - Westfield, NJ (Victorian)
Previous Price $1,450,000
List Price $1,250,000 (Price Reduced 13.8%)

MLS# 2259815 - Phillipsburg, NJ (Cape Cod)
Previous Price $255,000
List Price $219,900 (Price Reduced 13.8%)

MLS# 2281843 - Summit, NJ (Colonial)
Previous Price $799,900
List Price $ 689,900 (Price Reduced 13.8%)

MLS# 2268787 - Chatham, NJ (Ranch)
Previous Price $740,000
List Price $640,000

MLS# 2233988 - Summit, NJ (Colonial)
Previous Price $1,850,000
List Price $1,600,000 (Price Reduced 13.5%)

MLS# 2110935 - Pohatcong, NJ (Ranch)
Original List Price $256,000
Previous Price $229,900
List Price $199,000 (Price Reduced 13.4%, 22.3% off OLP)

MLS# 2260652 - Clifton, NJ (Custom)
Previous Price $2,599,000
List Price $2,250,000 (Price Reduced 13.4%)

MLS# 2251943 - Fort Lee, NJ (First Flr)
Original List Price $84,900
Previous Price $74,900
List Price $64,900 (Price Reduced 13.4%, 23.6% off OLP)

MLS# 2266086 - Clinton, NJ (Custom)
Previous Price $375,000
List Price $325,000 (Price Reduced 13.3%)

MLS# 2284653 - Bergenfield, NJ (Colonial)
Previous Price $679,000
List Price $589,000 (PRice Reduced 13.3%)

MLS# 2281812 - Montclair, NJ (Colonial)
Previous Price $575,000
List Price $499,000 (Price Reduced 13.2%)

MLS# 2286531 - Hackensack, NJ (Colonial)
Previous Price $1,150,000
List Price $999,000 (Price Reduced 13.1%)

MLS# 2279116 - Millburn, NJ (Colonial)
Previous Price $2,295,000
List Price $1,995,000 (Price Reduced 13.1%)

MLS# 2258916 - Glen Ridge, NJ (Colonial)
Original List Price $529,900
Previous Price $459,900
List Price $399,900 (Price Reduced 13%, 24.5% off OLP)

MLS# 2233170 - Scotch Plains, NJ (Colonial)
Previous Price $1,150,000
List Price $999,999 (Price Reduced 13%)

MLS# 2268598 - Millburn, NJ (Colonial)
Previous Price $2,295,000
List Price $1,999,000 (Price Reduced 12.9%)

MLS# 2255951 - Morris Twp, NJ (Colonial)
Previous Price $1,950,000
List Price $1,750,000 (Price Reduced 12.8%)

This period of time (6/4 - 6/22) saw 4289 price reductions. The average price reduction was 4.3%, which represents a total dollar amount of $102,787,035.

Caveat Emptor!
Grim

45 Comments:

Anonymous Anonymous said...

Wow..what a post to come home to.

Thanks for the info.

Pat

6/22/2006 07:36:00 PM  
Anonymous Anonymous said...

It's exciting!!!! Down puppy down!

6/22/2006 07:47:00 PM  
Anonymous Anonymous said...

Sparta MLS #2269011 was one I'd asked about last week. I was so surprised to see it listed at $589,900; I had no idea it was originally listed at $649,000! I know the seller is (or was) trying to flip & missed the market. Wow, I don't see it selling until it's under $500K...if that. It is a *small* house on a busy section of West Shore Trail.
DS

6/22/2006 07:48:00 PM  
Anonymous UnRealtor said...

One of my favorite price drops:

320 Lupine Way, Short Hills

1. Jun 2005 - Bought for $1,300,000

2. Oct 2005 - Put on market @ $1,295,000 (MLS 2204767)

3. Dec 2005 - Listing withdrawn

4. Mar 2006 - Put on market @ $1,198,500 (MLS 2261656)

5. May 2006 - Price dropped to $999,850

6. Jun 2006 - Under Contract (June 12)

7. Jun 2006 - Closed $999,999 (June 15)

6/22/2006 08:11:00 PM  
Anonymous Anonymous said...

Re: 320 Lupine Way:

Can you provide the MLS number for the June 2005 sale at $1.3 MM, please?

6/22/2006 08:16:00 PM  
Blogger grim said...

I didn't realize that property closed.

That isn't a price drop, that's a $300k loss. It might just be one of the biggest that I've seen yet.

One correction though, it was put back on the market in August of 2005. It's been listed under 3 different MLS numbers.

grim

6/22/2006 08:21:00 PM  
Blogger grim said...

Check the tax records for that property.

Saledate:
6/1/2005

Saleprice:
1300000

6/22/2006 08:24:00 PM  
Blogger grim said...

Another prior sale on that property.

Sale date:
10/23/1996

Sale price:
$342,000.00

6/22/2006 08:28:00 PM  
Anonymous UnRealtor said...

"It's been listed under 3 different MLS numbers."

Can you post the one from the "original" June 2005 sale?

The other two MLS #s are above.

6/22/2006 08:32:00 PM  
Blogger lindsey said...

Grim,

Realizing you already provide more info than everyone else, I'm going to ask for more anyway. Since you have the total number of listings with price reduced at 4,289 can you just tell us what that is as a percentage of total listings on 6/22?

Just something I think worth keeping track of. If you have the stats going back awhile it would be interesting to see how the "price reduced" percentage has changed (I'm guessing it's higher).

If you can't put it together I understand, but I figure no harm in asking.

6/22/2006 08:41:00 PM  
Blogger grim said...

I should have qualified my post to state that Price Reduced and Lowball include other counties represented by GSMLS (Hunterdon, Middlesex) that the inventory stats do not. These counties were added based on reader request.

I couldn't add these counties to inventory, because some of my datasets simply don't have those numbers..

The % of reduced properties is an interesting metric. I'll see if I can get some rough stats to see if there is any trend worth tracking.

Let me just say that it's incredibly time intensive for me to compile those numbers.

grim

6/22/2006 08:58:00 PM  
Anonymous Anonymous said...

Lower selling prices will begin to permeate the comps in the next few months. Until recently, agents have probably been able to find a few healthy selling prices as comps. The tide is turning.

6/22/2006 09:42:00 PM  
Anonymous Anonymous said...

Question: How do you track the price history of a property? I live in Norfolk, Va., and have not found a way to do the same thing with properties here. Thanks in advance for any aid you can offer.

6/22/2006 09:55:00 PM  
Anonymous Anonymous said...

Gosh, Norfolk, I can't believe Norfolk's not on Zillow.com yet.

I got your link for the deeds office, but it's gonna cost you 50 bucks for total access to recorded land deeds 1-/86 to the present.

http://www.norfolk.gov/circuit_court/remoteaccess.asp

6/22/2006 10:19:00 PM  
Anonymous Anonymous said...

Re: 320 Lupine Way

I've checked the tax records and don't see the $1.3 million sale in June 2005.

This particular markdown is being picked up on so many blogs that I'm beginning to wonder if you've managed to create an urban legend...

6/23/2006 05:37:00 AM  
Blogger grim said...

Owner LocNum LocStreet LocCity Township Block BlockSuffix Lot LotSuffix PropertyUseCode PropertyDesc TotalAssessment Acres CalcTaxAmt SaleDate SalePrice DeedBook DeedPage FullLoc Long Lat Row
SOOD;SUMESH KUMAR & JOHANNA ROSE 320 LUPINE SHORT HILLS 12 1903 17 2 60X140 626600 0.1928 12845.3000 6/1/2005 12:00:00 AM 1300000 6197 124 Millburn Twp 77353

What database are you using? Sure it's not out of date? Taxrecords or the Monmouth link won't work for this one, it's too recent.

6/23/2006 05:47:00 AM  
Anonymous Anonymous said...

Thanks for the info and sorry for my skepticism. There is so much disinformation out there about real estate that I question everything these days.

I thought Taxrecords was up to date through 8/05.Is there something better to use that has public access?

6/23/2006 06:48:00 AM  
Blogger grim said...

Nothing wrong with being a skeptic, most of us here are.

Is it possible that the tax data is wrong? Sure.

Is it possible that MLS data is wrong? Sure.

Could there be other circumstances surrounding the prior or current sale that we are unaware of? Sure.

grim

6/23/2006 07:25:00 AM  
Anonymous Anonymous said...

yup, this board is too damn good.

These cats go over everything with a fine tooth comb.

6/23/2006 07:27:00 AM  
Anonymous Anonymous said...

Papapapapa
PANIC!

BOOOYcott Looking visiting bidding buying HOUSES!

Save yourself mucho mula.

Bob

6/23/2006 07:57:00 AM  
Anonymous Anonymous said...

Greedy money grubbing sellers do not count the lowball comps.

Hahahaha

BOOOOOOOYcott Houses...let'em ROT on the market

Bob

6/23/2006 08:00:00 AM  
Anonymous Anonymous said...

(6/23) CME Housing Futures:

Composite NYC LA Mia
8/06 222 214 262 271
11/06 217 215 260 264
2/07 220 209 260 257
5/07 215 208 251 251

Prices are dropping everywhere.

6/23/2006 08:43:00 AM  
Anonymous UnRealtor said...

"Could there be other circumstances surrounding the prior or current sale that we are unaware of? Sure."


Far as I know, a Greater Fool doctor bought that house in June, and then decided not to move in.

The market then decided to punish Dr Greater Fool, and make him a bagholder to the tune of $300,000 + 2 closing costs ($30,000) + 12 months of carrying costs ($40,000).

Total beating: $370,000 minimum, in only 12 months.

6/23/2006 09:10:00 AM  
Anonymous Anonymous said...

Sale date:
10/23/1996
Sale price:
$342,000.00

Jun 2005 - Bought for $1,300,000


Unreal. No wonder the buyer lost his shirt. The seller made about 15% annual gains over 10 years... on real estate.

6/23/2006 09:12:00 AM  
Anonymous UnRealtor said...

"Another prior sale on that property.

Sale date: 10/23/1996
Sale price: $342,000"



Wow, they made almost 4X in 10 years. Shows how crazy today's prices are.

For $350K today you can buy a nice place in Newark.

6/23/2006 09:17:00 AM  
Anonymous UnRealtor said...

Anon, didn't see your post, guess we agree on that one. :)

6/23/2006 09:19:00 AM  
Blogger RichInNorthNJ said...

"Sale date: 10/23/1996
Sale price: $342,000"


It's possible the original home could have been knocked down and a McMansion was put up in it's place.

Just a thought.

6/23/2006 09:19:00 AM  
Anonymous UnRealtor said...

"It's possible the original home could have been knocked down and a McMansion was put up in it's place."


Nope, it's the original structure. They did remodel the kitchen, etc, though.

The house and lot are not large, it's just in a 'prime' location (town).

6/23/2006 09:32:00 AM  
Blogger grim said...

Rich,

Assessed value did jump dramatically.

2003 $626,600
2000 $174,000

grim

6/23/2006 09:32:00 AM  
Anonymous Anonymous said...

butt lod of reductions!

6/23/2006 10:13:00 AM  
Blogger chicagofinance said...

Bob:

"mula" is donkey in Spanish [also Pedro Astacio]

I think you meant "moola".

I don't know if Kevin Maas would approve.

chicago

6/23/2006 10:34:00 AM  
Anonymous Anonymous said...

Stop telling Bob!

Una falta de ortografĂ­a makes me laugh all afternoon.

I like thinking about saving the mules by not bidding on real estate. We're like tree hugger contrarians.

Pat

6/23/2006 10:44:00 AM  
Anonymous Anonymous said...

MLS# 2274620 - Montclair, NJ (Colonial)
Previous Price $729,900
List Price $598,000 (Price Reduced 18.1%)

This house was originally listed by another realtor under a diffrent MLS number for $869,000---so in actuality the price was reduced by 31.1%!

6/23/2006 12:00:00 PM  
Anonymous Anonymous said...

Home sellers, builders feel pinch of slowdown By Andrea Hopkins
Thu Jun 22, 12:34 PM ET



When Keith Gersin saw the perfect four-bedroom house in southern Ohio four years ago, he jumped to buy it before anyone else could snap it up. When he finally sold it last month, it went for $30,000 less than he had hoped -- and that after seven months on the market.

In retrospect, the 41-year-old physician admits he overestimated the U.S. housing market, which has begun cooling after five years of record-breaking sales and double-digit price appreciation.

"I was naive," said Gersin, who sold his Cincinnati-area home in May to move to North Carolina with his wife and son. He made about $60,000 on the sale, but had hoped for better.

"Everyone thinks their house is the most beautiful in the world, so it comes as a bit of a shock when it doesn't sell right away."

The housing slowdown -- sharp in some regions and more gradual in others -- is seen by many economists as an inevitable and even healthy moderation to an overheated market. Even so, for many homeowners, real-estate agents and builders, the market's new direction is not particularly welcome.

With mortgage rates rising, sales of existing homes were 5.7 percent slower in April than they were a year earlier, and the inventory of new homes is at a record high.

The rising supply of unsold homes makes it that much harder for homeowners to get the sale price they hoped for.

"In our neighborhood, on our street, there were three houses that went up for sale within months of each other," said Gersin.

Cincinnati real-estate agent Jeff Schnedl has seen a shift in the market.

"It is absolutely slower. Some areas are still chugging along but even those are chugging along more slowly than they used to," said Schnedl, who has been selling homes in the Ohio River city for five years.

A drive down any street in Cincinnati, whose suburbs straddle Ohio, Kentucky and Indiana, turns up plenty of "For Sale" signs -- with the occasional "Price Reduced" addendum slapped on top.

Schnedl said homes are staying on the market longer.

"There is a lot more inventory on the market this year than last year -- about 25 percent more. So buyers have more homes to choose from and that slows the sale cycle down. Plus with rising interest rates, people are thinking harder. That slows it down, too."

The average rate on a 30-year fixed mortgage rose to 6.63 percent last week, up a full percentage point from 5.63 percent last year, according to mortgage finance company Freddie Mac.

Such an increase boosts the cost of a $200,000 mortgage by about 11 percent, or $129 a month, to $1,281 -- an unwelcome jump for consumers who are already feeling the pinch of soaring energy prices.

The housing slowdown is also being felt by home builders. While housing starts rose 5 percent in May, permits for future groundbreaking -- an indication of builder confidence -- dropped to the lowest level since 2003, government figures showed this week.

In Cincinnati, builders have felt the chill already.

"It has slowed a bit -- not to a screeching halt, but some momentum is not there," said Dan Dressman, executive vice-president of the Home Builders Association of Northern Kentucky, which represents about 1,280 building companies.

While many builders can likely diversify into commercial construction or rental housing as the market slows, Dressman said job losses will come in about six months if the slowdown persists.

"I haven't seen where there actually have been layoffs but if there is a continuous downturn that is one of the likely results," he said.

If it is any consolation, home builders have at least one more client. Gersin and his wife are planning to have a house built for them in North Carolina, rising mortgage rates or not.

"What are you going to do?" Gersin said. "We're not going to trade our house in for a tent."


POIGNANT

6/23/2006 12:01:00 PM  
Anonymous Anonymous said...

Breedy grubbing sellers pick and choose on comps. They just happen to disregard any owball comps.

Not good gruubers cz you ain;t fooling anyone!

Suck it up and beg!

No BIDS No Visits No buying No MAAS to High ripoff home prices.

Don't be a bagholding fool saddled with debt and sign up for monthly slave payments while seller cashes out in comfort.
Tell'em to shove it and work a little longer for retirement.

BOOOOOYcott Houses!

Bob

6/23/2006 01:50:00 PM  
Anonymous Anonymous said...

Translation
Breedy = greedy
owball=lowball
gruubers=grubbers
cz=cuz


BABABABABABABABABA

Bob

6/23/2006 01:53:00 PM  
Anonymous Pat said...

Bob, if I wasn't married....

6/23/2006 02:06:00 PM  
Anonymous Anonymous said...

translation

wasn't=weren't

Pat

6/23/2006 02:07:00 PM  
Anonymous Anonymous said...

Inventories are piling up.

You buy now your a FOOL!

You Buy with a risky Loan that you can't afford You DESERVE the consequences.

BABABABBABABABA

BOOOOOOOOOOOYcott HOUSES!

Bob

"A homeowner" who purhcased when houses were priced fairly/reasonably!

Do NOT listen to any self-serving RE industry slugs!

6/23/2006 02:08:00 PM  
Anonymous Anonymous said...

"Bob, if I wasn't married...."

What?


Babababababa

Bob

6/23/2006 02:09:00 PM  
Anonymous Pat said...

Hah! You do read the other posts.

6/23/2006 02:35:00 PM  
Blogger RichInNorthNJ said...

"Bob, if I wasn't married...."

What?


Maybe she'd risk losing her family due to jail time for breaking your fingers, just to stop all the inane posting you do?

I keed, I keed!

6/23/2006 02:37:00 PM  
Blogger chicagofinance said...

Translation
Breedy = greedy
owball=lowball
gruubers=grubbers
cz=cuz
Bob
6/23/2006 02:53:20 PM

Bob:
Can you be "breedy" if you got "owball"?

6/23/2006 02:42:00 PM  
Anonymous Anonymous said...

These houses had to be overpriced.
For example the one in Little Falls, is in flood zone- next to the Passaic river. I've heard that insurance companies will start to buy those properties.- close to the river

6/23/2006 03:31:00 PM  
Anonymous Anonymous said...

Check on a few properties with dropper price. I am really surprised by the audacity of the seller when their greed goes beyond the control. They are asking for 500K or 400K for some junk! I won't buy most of those until they are below 100K.

Let the flipper lose their pants!

6/23/2006 04:55:00 PM  

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