Saturday, July 01, 2006

Price Reduced 6/23 - 7/1

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.

This week's list really got my attention. There are more than a handful of jaw dropping price reductions this week. Multiple price reductions are starting to become commonplace at the top of the list. The list is straight off the top this week:

MLS# 2262563 - Plainfield, NJ
Previous Price $380,000
List Price $270,000 (Price Reduced 28.9%)

MLS# 2255200 - Delaware Twp, NJ
Original List Price $1,125,000
Previous Price $999,990
List Price $749,900 (Price Reduced 25%, 33.3% off OLP)

MLS# 2260657 - Franklin Lakes, NJ
Original List Price $1,299,000
Previous Price $1,249,000
List Price $999,999 (Price Reduced 19.9%, 23% off OLP)

MLS# 2294804 - New Providence, NJ
Previous Price $587,500
List Price $487,500 (Price Reduced 17%)

MLS# 2202222 - Mount Arlington, NJ
Previous Price $451,016
List Price $375,000 (Price Reduced 16.9%)

MLS# 2261570 - Verona, NJ
Previous Price $1,200,000
List Price $999,999 (Price Reduced 16.7%)

MLS# 2202280 - Weehawken, NJ
Original List Price $3,325,000
Previous Price $2,975,000
List Price $2,498,000 (Price Reduced 16%, 24.9% off OLP)

MLS# 2272959 - Bedminster, NJ
Previous Price $2,395,000
List Price $2,025,000 (Price Reduced 15.4%)

MLS# 2236099 - Bernardsville, NJ
Original List Price $3,250,000
Previous Price $2,950,000
List Price $2,495,000 (Price Reduced 15.4%, 23.2% off OLP)

MLS# 2293846 - Montclair, NJ
Previous Price $399,900
List Price $339,900 (Price Reduced 15%)

MLS# 2267223 - Plainfield, NJ
Original List Price $279,900
Previous Price $269,900
List Price $229,900 (Price Reduced 14.8% 17.9% off OLP)

MLS# 2268840 - Clifton, NJ
Previous Price $679,900
List Price $579,900 (Price Reduced 14.7%)

MLS# 2281213 - Washington Boro, NJ
Previous Price $349,900
List Price $299,500 (Price Reduced 14.4%)

MLS# 2229875 - Mahwah, NJ
Previous Price $559,000
List Price $479,000 (Price Reduced 14.3%)

MLS# 2285452 - Summit, NJ
Previous Price $1,750,000
List Price $1,500,000 (Price Reduced 14.3%)

MLS# 2286502 - Montague, NJ
Previous Price $250,000
List Price $214,900 (Price Reduced 14%)

MLS# 2106337 - Glen Rock, NJ
Previous Price $1,450,000
List Price $1,249,900 (Price Reduced 13.8%)

MLS# 2254357 - Watchung, NJ
Previous Price $899,000
List Price $775,000 (Price Reduced 13.8%)

MLS# 2255210 - Delaware Twp, NJ
Original List Price $1,999,000
Previous Price $1,873,000
List Price $1,623,000 (Price Reduced 13.3%, 18.8% off OLP)

MLS# 2285933 - Vernon, NJ
Previous Price $495,000
List Price $429,900 (Price Reduced 13.2%)

MLS# 2257275 - Belvidere, NJ
Original List Price $339,000
Previous Price $319,900
List Price $279,000 (Price Reduced 12.8%, 17.7% off OLP)

MLS# 2276516 - Hamburg, NJ
Previous Price $285,000
List Price $249,900 (Price Reduced 12.3%)

MLS# 2281454 - Bernardsville, NJ
Previous Price $10,700,000
List Price $9,395,000 (Price Reduced 12.2%)

MLS# 2268276 - Blairstown, NJ
Original List Price $359,000
Previous Price $339,000
List Price $299,000 (Price Reduced 11.8%, 16.7% off OLP)

MLS# 2246907 - Alexandria, NJ
Previous Price $1,125,000
List Price $995,000 (Price Reduced 11.6%)

MLS# 1629381 - Andover, NJ
Previous Price $649,900
List Price $574,900 (Price Reduced 11.5%)

MLS# 2283772 - South Orange, NJ
Previous Price $899,000
List Price $799,000 (Price Reduced 11.1%)

MLS# 2259912 - Lincoln Park, NJ
Original List Price $199,900
Previous Price $179,900
List Price $159,900 (Price Reduced 11.1%, 20% off OLP)

MLS# 2283698 - Union, NJ
Previous Price $449,900
List Price $399,900 (Price Reduced 11.1%)

MLS# 2254466 - North Caldwell, NJ
Original List Price $1,899,900
Previous Price $1,799,900
List Price $1,599,900 (Price Reduced 11.1%, 15.8% off OLP)

MLS# 2276405 - Millburn, NJ
Original List Price $990,000
Previous Price $900,000
List Price $800,000 (Price Reduced 11.1%, 19.2% off OLP)

Caveat Emptor!
Grim

20 Comments:

Blogger grim said...

Stats for this period.

Price Reductions: 1630
Total Reduction Amount: $37,729,422

7/01/2006 06:18:00 AM  
Anonymous Anonymous said...

Do you have any of those first five with a last purchase since 1/1999?

Just curious where they stand right now relative to a fixed point in history.

Maybe that one in Montclair?

Thanks
Pat

7/01/2006 06:20:00 AM  
Anonymous Anonymous said...

PS- My tailgating numbers on houses above $600K drops shows they are now below peak in my zip.

7/01/2006 06:23:00 AM  
Blogger grim said...

This comment has been removed by a blog administrator.

7/01/2006 06:32:00 AM  
Anonymous Anonymous said...

Curious about it, was all - it was a single converted to two.

Maybe buyer is living down, selling up to pay of mtg.

Smart, huh?

7/01/2006 06:44:00 AM  
Blogger grim said...

Sorry, I didn't realize they converted that to a condo.

grim

7/01/2006 06:56:00 AM  
Anonymous Anonymous said...

As you state Grim, and I agree with you. Although these are reductions, they are still way overpriced.

I think the sellers and RE agents are still on the neverland ranch with Michael Jackson playing grab ass, and don't realize that real world market forces is about ready to take them away.

All bull markets die on euphoria, what was summer of 05 like for sellers?

Think I will goto an open house today and just for kicks, offer 50% lower than what they want.
I really love that dear in the head lights look.

7/01/2006 08:07:00 AM  
Anonymous Anonymous said...

SOME PRICE DROPS FROM PRESTIGIOUS Harding Township:

MLS#: 2061218 from $3.2 Million to $2.4 Million been on the market for 3 months ($800,000 drop)

MLS#: 2255654 from $2.595 million to $2.195 been on the market for 3+ months ($400,000 drop)

MLS#: 2086707 from $1.795 mil to 1.595 mil listed JUST OVER ONE YEAR
(took this seller one year to drop $200,000, chasing the market)

MLS#: 2270328 from $1.838 mil to 1.695 mil listed two months ($138,000 drop)

MLS#: 2256702 from $1.75 mil to 1.65 mil listed two months ($100,000 drop)

MLS#: 2292695 from $2.395 mil to 2.295 mil listed one week ($100,000 drop)

MLS#: 2267860 from $2.199 mil to 2.099 mil listed two months ($100,000 drop)

My wife and I watch harding and its obvious that the high end is not selling at all. The house at 9 post road which has been on over a year is still overpriced by $400,000.

IT PAYS TO WAIT PEOPLE, THESE WILL KEEP DROPPING.

Stan

7/01/2006 08:46:00 AM  
Anonymous Anonymous said...

These so called "reduction" are more of trick than sincere effort to sell. It is an insult to our buyers' intelligence! offer them about 20-30% of the asking price.

7/01/2006 10:32:00 AM  
Anonymous Anonymous said...

It is really looking like the landslide is staring....

7/01/2006 11:06:00 AM  
Blogger rymingrealtor said...

Couldnt help but look at Harding twp the most interesting home on the list is listed under 4 diffrent mls#s same listing agent, 5 diffrent prices its quite amusing
665 spring valley rd
Original 22,000,000
Next 19,500,000
Next 12,500,000
Next 9,750,000
Now 8,750,000

These are not showing as price reductions because of the 3 different listings - never saw anything like this before.
The listing reductions were
22mil to 19- 9.7mil to-8.7 the 12.5 never reduced.
VEry Confusing
Im checking into solds for 2003

KL

7/01/2006 11:25:00 AM  
Anonymous Anonymous said...

HOUSING MARKET CRASHING AND SELLERS ARE GETTING DESPERATE!

Went to an open house and private sellers was putting on the pressure. Show his desperation.
Buying another house and his closing is in 2 weeks. Bad news carrying 2 houses. I see potential disaster here. It's noone but their fault for grasping for a bigger house! None else is responsible for their decision!

7/01/2006 02:17:00 PM  
Anonymous Anonymous said...

yes, market psychology is changing, which is going to be very dangerous if you are a seller, good if buyer.

The thinking use to be of buyers (or should I say the mass idiots)...I better buy now, cause these prices only go up and I don't want to be priced out...so they bought, and bid up prices (totally stupid).

Now the psychology is....ok, we have a bubble here, if I sweat this guy out, he is going to lower his prices till a point that I feel I want.

HUGE difference.

I am just wondering, how many people with ARMS who thought they could refinance are going to lose their shirts because they are going to be carrying that heavy monthly mortgage payment alot longer than anticipated.

This is just the start. We are going to have a wave of foreclosures like never seem before.

7/01/2006 03:21:00 PM  
Blogger InvestorDavid said...

Someone I know bought a house June 2004 at $1.27M. He put down $400K and used 1% Interest only payment for $870K and was going to flip the house.

The house was on the market on March 06 at $1.85M. Then it went down to $1.75M until yesterday.

Now, the house is off the NJMLS. I called the agent and she told me that she will re-list at $1.499M.

I believe that the house will sit on the market for another year and he will be lucky to get what he paid for.

In the mean time, he is paying $25K/year in tax as well as negative equity every month.

He moved to his new house 3 months ago. He bought it off the blue print last year at $1.6M. Similar houses by the same builder next doors were sold at $1.5M. One remaining house will probably go for $1.3-$1.4M.

So within 2 years, he probably lost at least $200K from his previous house and another $200K on his new house.

He thought he would make money by flipping houses.

7/01/2006 05:31:00 PM  
Anonymous May Li said...

Hi, I am new reader. Thanks to everone to have this great blogspot place.

Could anyone please tell me how I can find the following houses Grim mentioned? I check NJMLS using the MLS # but I didn't find them. Please advise. Thanks in advance!

MLS# 2260657 - Franklin Lakes, NJ
Original List Price $1,299,000
Previous Price $1,249,000
List Price $999,999 (Price Reduced 19.9%, 23% off OLP)

MLS# 2106337 - Glen Rock, NJ
Previous Price $1,450,000
List Price $1,249,900 (Price Reduced 13.8%)
Thanks!
May

7/03/2006 09:18:00 AM  
Blogger confused said...

Reduced does not impress me. Anything more higher than would have sold say last year February is just a game. Sellers try to lure buyers by this "reduced" BS.
A condo that would have sold for 250 k last year and now is reduced from 400k to 310 k is not a deal

7/03/2006 07:31:00 PM  
Anonymous Anonymous said...

what would you guys offer on this

http://newjersey.craigslist.org/rfs/175152070.html

7/05/2006 01:21:00 PM  
Anonymous Anonymous said...

Here on the Jersey shore (Monmouth/Ocean), I'm starting to notice some drastic price reductions as well.

7/05/2006 11:04:00 PM  
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7/07/2006 04:09:00 PM  
Anonymous Anonymous said...

I would like to know where the price reduction info is coming from? Periodicals, newspaper, brokerage firms? Please advise, as I want to know the reliability of the data. Thanks, Dale

8/10/2006 01:52:00 PM  

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