Sunday, July 23, 2006

New Jersey Frenzy Is Over

From the Asbury Park Press:

Feeling the pinch
BY DAVID P. WILLIS

For now, Stephen and Jaime Dane are living in a summer rental in Avon. Their new four-bedroom home at K. Hovnanian Homes' Manors at Metedeconk development in Jackson is under construction.

"Right now, it is a big hole with some bricks around it," said Stephen Dane, 32.

The Danes put down a deposit in February and expect to move into their home in January. Some may say it was a great time to purchase a new home. The builder, working with its own mortgage company, gave the Danes a $10,000 credit for improvements inside the house and another $10,000 for upgrades outside.

"We have a nice big home," Dane said. "We were happy with the incentives that they gave us."

Once red hot, the market for new homes in New Jersey has begun to cool.

"The frenzy in the real estate market that we have experienced in the last three or four years is no longer in existence," said Tom Critelli, president of Danitom Development, which has offices in Holmdel and Paramus. "We are seeing good traffic, but not necessarily anyone overreacting to having to buy now (and) worrying about the price going up later."
...
"Last year was the most active year for home building in 18 years," O'Keefe said. There were 38,481 building permits issued in the state in 2005, up from 35,936 in 2004 and 32,984 in 2003.
...
"I think right now, in a number of markets, buyers are feeling less pressured today," Cooper said.

11 Comments:

Anonymous Anonymous said...

But the majority of these sellers do not understand this. I still see listing prices 5-10% above 2005 listing price. Hopefully they will get their first lesson of market economy (demand-supply)when they will have to reduce their profits (off course very few will loose because of some stupid buyers who brought this market to these dot.com levels).

7/23/2006 06:54:00 AM  
Anonymous Anonymous said...

I went thru the record and the
star ledger.

the seller still don't get it.

you got real sh t boxes selling
for 100k over what they are worth.

chatham, 725k for a one car 3 bedroom split.

They still don't get it.

Whats the inventory number?

7/23/2006 08:02:00 AM  
Anonymous Anonymous said...

And has anybody noticed the over
55 Ad's.

If I see another overpriced
boxed condo,I'm going to scream.

Who's buying this things.

500k 600k 700k for these disgusting
all look alike boxes.

NJ and you together.

7/23/2006 08:04:00 AM  
Anonymous Anonymous said...

Please help me out in here. My wife keeps pushing to stop renting and move out of the apartment that we've been staying for the past 5 years. I feel her pain too, she's a stay-at-home and we have two kids - 6 yrs old and 2 yrs old. We've actively looking around and viewing houses with buyer's agent for the past 4 months. But each passing week, I get even more scared due to all the things I've read on this blog. Could somebody please chime in and offer your opinion on how to handle this situation? Thanks in advance.

7/23/2006 08:44:00 AM  
Anonymous Anonymous said...

Anonymous 9:44,

Why not invite your wife to read some of the same things you're reading. Knowledge is your best defense against a bad decision.

7/23/2006 09:42:00 AM  
Blogger RentinginNJ said...

My wife keeps pushing to stop renting and move out of the apartment that we've been staying for the past 5 years.

Not sure how much advice I can offer, but I do feel your pain. The desire for a place of your own can often override logic sometimes.

Here is what worked for me: We came up with a budget of what we thought we could reasonable afford using a 30 yr fixed load and adding in property taxes and other expenses. My wife then went to some open houses in that price range and was shocked at how little we could get. It help turn a theoretical housing bubble argument into something very tangible. I still get some complaints, but this helped a lot.

good luck

7/23/2006 10:37:00 AM  
Blogger lisoosh said...

Anon 9:44 - kind of in your position (although it is the husband who is pushing). I second rentinginnj and would also add that it might be smart to rent a townhouse as a temporary measure for a year or two.
There are lots on the rental market at the moment (worried investors) and the price pressure is downward. It would give you more room and take the pressure off of making a hasty decision.

7/23/2006 11:23:00 AM  
Anonymous UnRealtor said...

Money mag's "Best Places to Live" is out for 2006:

Rank / City
1 Fort Collins, CO
2 Naperville, IL
3 Sugar Land, TX
4 Columbia/Ellicott City, MD
5 Cary, NC
6 Overland Park, KS
7 Scottsdale, AZ
8 Boise, ID
9 Fairfield, CT
10 Eden Prairie, MN

http://money.cnn.com/magazines/moneymag/bplive/2006/top100/

http://tinyurl.com/kstl3

7/23/2006 02:18:00 PM  
Anonymous Anonymous said...

NORTH DOVER- OCEAN COUNTY
TOMS RIVER,NJ

Check Homebuilders` FREE OPTIONS and standard options !!!

http://www.ryanhomes.com/findhome/searchresult.asp

http://www.khov.com/Home/NJ/D0WE/_Properties_AUTH.htm?Region=NJSOUT&Brand=KHV&Search_Type=Product&NavPathAnchor=%7BFCBE8DAA%2D5B5D%2D422E%2DA09C%2DB05DC031B473%7D&State=NJ&PerPage=25&ProductType=SingleFamily&SearchBrand=KHV

7/23/2006 11:45:00 PM  
Anonymous Anonymous said...

Anon 9:44am said...
Please help me out in here. My wife keeps pushing to stop renting and move out of the apartment that we've been staying for the past 5 years. I feel her pain too, she's a stay-at-home and we have two kids - 6 yrs old and 2 yrs old. We've actively looking around and viewing houses with buyer's agent for the past 4 months. But each passing week, I get even more scared due to all the things I've read on this blog. Could somebody please chime in and offer your opinion on how to handle this situation? Thanks in advance.

I think it is great that your wife is a stay at home Mom, mine also, however if she persists...punt her.

7/24/2006 12:18:00 AM  
Anonymous Anonymous said...

"Entrepreneurs profiting from real estate
These business owners have gone from tenant to landlord. They see fresh opportunity amid turmoil in commercial property...

"Most people don't have the nerve to do what we do. You have to plunge in."


The contrarian contrarians.

http://tinyurl.com/s75lo

7/24/2006 06:24:00 AM  

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