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

16 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  
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  
Anonymous Anonymous 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  
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  
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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