Saturday, July 15, 2006

Price Reduced 6/23 - 7/15

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.

Sine the bulk of the large reductions seem to have been to higher priced properties this week, I'm devoting this week's list to high-end properties and towns. On to the list!

MLS# 2269098 - Millburn, NJ
Previous Price $1,199,000
List Price $849,000 (Price Reduced 29.2%)

MLS# 2285070 - Montclair, NJ
Previous Price $1,349,990
List Pirce $995,000 (Price Reduced 26.3%)

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# 2285057 - Montclair, NJ
Previous Price $1,299,990
List Price $995,000 (Price Reduced 23.5%)

MLS# 2272553 - West Orange, NJ
Previous Price $759,000
List Price $599,900 (Price Reduced 21%)

MLS# 2290250 - Summit, NJ
Previous Price $1,250,000
List Price $997,500 (Price Reduced 20.2%)

MLS# 2241462 - West Orange, NJ
Previous Price $1,250,000
List Price $999,900 (Price Reduced 20%)

MLS# 2260657 - Franklin Lakes, NJ
Original List Price $1,299,900
Previous Price $1,249,000
List Price $999,999 (Price Reduced 19.9%, 23.1% off OLP)

MLS# 2236725 - Fredon, NJ
Previous Price $1,100,000
List Price $890,000 (Price Reduced 19.1%)

MLS# 2254535 - Ridgewood, NJ
Previous Price $849,000
List Price $699,000 (Price Reduced 17.7%)

MLS# 2237983 - Lake Mohawk, NJ
Previous Price $850,000
List Price $699,900 (Price Reduced 17.7%)

MLS# 2258527 - Harding, NJ
Original List Price $1,460,000
Previous Price $1,275,000
List Price $1,050,000 (Price Reduced 17.6%, 28.1% off OLP)

MLS# 2255569 - Kingwood, NJ
Previous Price $2,895,000
List Price $2,400,000 (Price Reduced 17.1%)

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

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

MLS# 2268840 - Clifton, NJ
Previous Price $679,900
List Price $569,900 (Price Reduced 16.2%)

MLS# 2246435 - Bernardsville, NJ
Original List Price $1,650,000
Previous Price $1,490,000
List Price $1,250,000 (Price Reduced 16.1%, 24.2% off OLP)

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# 2271975 - Kinnelon, NJ
Previous Price $1,750,000
List Price $1,499,999 (Price Reduced 14.3%)

MLS# 2235696 - Washington Twp, NJ
Previous Price $849,000
List Price $729,000 (Price Reduced 14.1%)

MLS# 2276910 - Westfield, NJ
Original List Price $1,250,000
Previous Price $1,160,000
List Price $999,900 (Price Reduced 13.8%, 20% off OLP)

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

MLS# 2110877 - Harding, NJ
Previous Price $7,900,000
List Price $6,900,000

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

MLS# 2267390 - Summit, NJ
Previous Price $1,695,000
List Price $1,495,000 (Price Reduced 11.8%)

MLS# 2269817 - Franklin Lakes, NJ
Previous Price $1,449,000
List Price $1,279,000 (Price Reduced 11.7%)

I'm going to give up at this point, I could go on for pages and pages. The list was incredible this time.

6/23 - 7/15
Total Price Reductions: ~4400
Average Price Reduction: 4.3%
Total Dollar Reduction: $105,086,522

Caveat Emptor!
Grim

34 Comments:

Blogger njdoc said...

Prices are still rather rich. Very nice work.

7/15/2006 04:22:00 PM  
Anonymous Anonymous said...

I noticed rather substantial price drop in central new jersey in the past few weeks, such as 1.1M dropped to 990K on nicer properties too.

I feel that sellers who are trying to sell started to face the real market.

7/15/2006 04:50:00 PM  
Blogger Richard said...

while it's an interesting weekly topic, i personally don't care for the asking versus selling reduction reviews. here's why. it's a trick realtors and sellers use to think you as a buyer are getting a 'good' deal if you get X$ or X% off asking. such logic plays right into their bag of tricks. think about it. do you pay retail for clothing? of course not. the retail price is meaningless just as the asking price is.

this 'list over what i want for the property' further confuses the real value of a property causing a further slowdown in getting the supply/demand curve more balanced. i think if properties were closer listed for what the market would bear there would be alot less confusion and angst in the market. unfortunately greedy sellers and realtors have to employ 3rd grade tricks which might snare a few suckers but only bites them in the bum in the end by decreasing transactions.

7/15/2006 04:57:00 PM  
Anonymous Anonymous said...

Good work Grim.

I was surprized by this one the most:

MLS# 2254535 - Ridgewood, NJ
Previous Price $849,000
List Price $699,000 (Price Reduced 17.7%)

I know Ridgewood pretty well. I know a guy, good pal, who owns a sushi joint down there (and he is a god damn Korean, figure that one out?..he he..)

SAS

7/15/2006 05:03:00 PM  
Anonymous Anonymous said...

Richard, that is O.K. if all houses were required to be sold by auction to the highest bidder [or on Ebay], if someone chose to sell. No false sales.

But folks are allowed to just test the water - dabble- just to see what bites. That's what has to get filtered off of grim's list before the true reductions are known.

7/15/2006 05:03:00 PM  
Anonymous Anonymous said...

I see ya fellas points about the asking price.

But keep in mind, this was unheard of last summer. Houses like this were in fact being bid up (not down).

I think Grim's main point is that he is showing us that the times are a changing. The market psychology is changing. Yes, these are still third grade tricks, but last summer things were selling like hotcakes, the RE agents need not such tricks.

There is a shift in market.
SAS

7/15/2006 05:16:00 PM  
Anonymous Anonymous said...

grim
can we see reductions in the $500,000 and below level?
thanks

7/15/2006 07:07:00 PM  
Anonymous UnRealtor said...

A neat thing to look at is TaxRecords.com, to see what sellers paid 1-2 years ago. Many hoped for a quick turnaround, to cash in on a year of wild property appreciation, but now they're underwater, and their adjustable rate mortage is adjusting upwards, as the value of their house is adjusting downwards.

7/15/2006 10:29:00 PM  
Anonymous Anonymous said...

unrealtor said
a neat thing to look at is TaxRecords.com, to see what sellers paid 1-2 years ago. Many hoped for a quick turnaround, to cash in on a year of wild property appreciation, but now they're underwater, and their adjustable rate mortage is adjusting upwards, as the value of their house is adjusting downwards.

ive noticed that myself in the area im looking. some listings are just above the realtors commission and closing costs, leaving no room for reductions. the sad thing is i watched a house on the market for a year sell (uc)waiting to see sale price

7/16/2006 05:34:00 AM  
Anonymous Anonymous said...

always a greater fool? dont people know?

7/16/2006 05:35:00 AM  
Anonymous Anonymous said...

i recently saw a house like this. was bought in 7/04 for $549k now asking $589k which is 7.2% more than original purchase price. that would cover RE commissions and closing costs somewhere else, or maybe their risky loan is resetting and they need out. unfortunately for them this property won't sell for $589k, no way no how. i can see a greater fool coming in and giving $560k at the most so they might come close to breaking even IF they paid off some of that principal.

what this shows (and we'll see more of) is houses bought 2 years ago and less on the sales block won't fetch what they paid for it, more so if you paid too much during the frenzy just to 'get in'

7/16/2006 08:05:00 AM  
Anonymous Anonymous said...

These are NOT LOW PRICES!

When soemthing goes parabolic upwards a significant correction is in order to adjust to fundamentals.
lots and lots of people getting squeeeeeezzzzzed now with escalating Prop taxes , utility expenses and re-adjusting mtg ARMs, adjusting HELOCs and credit cards.
Something has to give and it ain't utility bills or property taxes.

Assets that are inflated will DELATE. Bad news Bubbleheads.

Babababababa

Bob

7/16/2006 08:24:00 AM  
Anonymous Anonymous said...

A MAJOR DOWNSIZING IS COMING!

Are you stretched and own a McMansion you can't afford?
Bad news.
Watch all the finger pointing when this cooooolllapse is in full force.
The House of Ponzi is ready to Coooooollaspe!
An economy built on escalating debt is not strong, a disaster in the making. The FOOLS that had the urge to get sucked in by the slick realtors will be underwater next year. Then what?

Papapapapapa
PANIC!

Bob

7/16/2006 08:44:00 AM  
Anonymous Anonymous said...

About 30% of car loans are underwater; meaning that the avg car loan being rolled into the new car loan averages about $3,600.

$3,600 in the whole already not including the new car loan.

This is going to be a dooooooozy.

Babababababa

BOOOOOOOOOOOYcoot Houses!

Cacacacacaca Cash is King.

Patience.
Patience sacrifice and rational behavior should be rewarded in the end. Make sure you are compensated for that sacrifice and time! Do NOT be a FOOL and sign up for monthly slavery. THINK for yourself!

Bababababa

Bob

7/16/2006 08:49:00 AM  
Anonymous Anonymous said...

See foreclosures hitting up in some the Snoot raised towns. wow even the so called blue bloods going under.

It's only the beginning. The show and tell society ready for a lesson.

Babababbababababa

BOOOOOOOOOOOOOOOycott Ripoff Houses!

Bob

7/16/2006 08:52:00 AM  
Anonymous Anonymous said...

Spoke to a friend. Sees some ackwards things happening with neighbors. Upper class neighborhood.
The pool lights were on, but the windows in the house were open. HAHHAHAHA!
No air conditioning on but pool lights on.
I am impressed! NOT!
Show and tell society about to cooooolllapse.

Babababababa

Bob

7/16/2006 08:59:00 AM  
Anonymous Anonymous said...

Bob's right. Its over.

7/16/2006 09:29:00 AM  
Anonymous Anonymous said...

Some of thes price reductions
are overwhelming. What can we
conclude from these results?

And it seems to me that many
houses are still way overpriced.

7/16/2006 09:36:00 AM  
Anonymous Anonymous said...

grim
can we see reductions in the $500,000 and below level?
thanks


I second that request! Any hope for us poor bastards at the $400K - $500K range?

Ms. Poor

7/16/2006 12:07:00 PM  
Anonymous Anonymous said...

How $250k or $300k?

This is alot of money!

But everyone appears to beloaded.

7/16/2006 12:12:00 PM  
Anonymous Anonymous said...

Anon. said
"I second that request! Any hope for us poor bastards at the $400K - $500K range?"
just to let you know this poor bastard doesnt want to spend more then $300,000 i must be nuts this is nj in a hoyty toyty area to boot

7/16/2006 01:05:00 PM  
Blogger Rich52 said...

Nice to see bob back. Where have u been?

Here's what looks like a flipper of a new construction. Been on the market for a while now.

MLS ID#: 617759

OLP - $795,000
5/21 - $779,900
7/24 - $759,000 + 1 point paid at closing.
7/6/ - $749,000 + 1 point still paid.

Put the MLS id in realtor.com to read their sob story. Unfortunately, their are other larger homes in the development for sale by flippers for less money. They are of course not moving either.

7/16/2006 01:07:00 PM  
Anonymous Anonymous said...

Rich52
Thanks for sharing 617759...boy it really made my day. I never saw anything like this before. The RE agent is going along with the BS.
It is simply pathetic.

7/16/2006 01:42:00 PM  
Anonymous Anonymous said...

What do you think about a house like 617759? I will be ready to buy in a year or so and that area seems to be pretty nice. The thing I have been noticing is that there are alot of houses in these cookie cutter developments (Toll, etc) that are now for sale.

Look at GSMLS listings for Warren county, many houses built 2001 and after are now for sale, with many of them being from developments like these.

I guess these are the people that are having issues with their ARMs and other debts. What do you think the chances are for a house like 617759 coming down to the 500 to 550 k range?

7/16/2006 03:59:00 PM  
Blogger Rich52 said...

This comment has been removed by a blog administrator.

7/16/2006 09:30:00 PM  
Blogger Rich52 said...

I made a typo, 7/24 should be 6/24.

7/16/2006 09:31:00 PM  
Blogger Rich52 said...

Anon 4:59,

I havn't been keeping up with prices in Warren County, however they should be lower than prices in Middlesex. There are a ton of these homes for sale through the state, however mind you anything that was bought in 2001, probably sold for around half of what the listed price is today. Even homes in these "cookie cutter" communities by toll, hov, etc..

$550k might be a little on the low side right now for such a home. I just don't see them going back to those price levels anytime soon, unless rates really start to creep up into the 9-10% range. One can only hope.

7/16/2006 09:37:00 PM  
Anonymous Anonymous said...

Hi,
Extremely informative blog congrats on the Good work.
As you know Mr.Trump n others are planing on huge building projects in JC
what you think of the below?
MLS ID#: 60003109 $569,000
MLS ID#: 60002120 $600K
These are the highest prices I have ever seen ..Do you think prices have a sot @ coming down? if so by what percetile?
Poor person wanting a home!!
Without taking an ARM head on
Prettyria

7/17/2006 02:30:00 AM  
Anonymous Anonymous said...

Rich52 said...
Nice to see bob back. Where have u been?

Thanks Rich52.

I will be away again soon so had to make up for my absence.

Things are getting ugly in housing land. Don't let a slick talking realtor tell you otherwise.

NO BIDS NO NOOOTTT"""ING!

Bbabababa

Bob

7/17/2006 06:20:00 AM  
Anonymous Anonymous said...

Hello Everyone,
Does anybody know if prices in Jersey city Heights section..Downtown asking a million plus thanks to people like Trump. Are home prices going to ever come down?
A year back - may 2005 the home I wanted was priced @ 520k now they are asking 700k for brand new construction ???
weird I have to shelve $5000/month on housing alone?
What about shots for my kid?
Medical , life insurance food or increased utility expenses?
these homes in 2000 would sell for $200k now they are asking $700k
Please help/advise

7/17/2006 02:40:00 PM  
Anonymous Anonymous said...

I think centex and others ike Trump are overbuilding the area Jersey city so there might be a huge drop in prices

7/17/2006 02:43:00 PM  
Blogger RenterForever said...

I just DO not get it - how is it that everyone can afford 500k house - whats the average salary of the people in this state - O thought I have a decent job and I can't afford anything above 300k?????
Don't you have to make over 150k to afford something like 500k?? and how many people are making this much?
As far as 300k segment is concerned it seems that prices there are still rising or at least owners are reluctunt to sell lower..
The house I lookd at was 310k a month ago and now they was 320K ??
Lol I guess I'll just rent forever - as long as it stays 1500$ /month below mortage rates - now it's more like 2000/month. - after taxes and at 6.5% fixed which is not an easy task to get nowdays.

Renter Forever

7/19/2006 09:03:00 AM  
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