Record artice about Paterson having a foreclosure crisis, yet median price is $180,359

[TheEmissary]

Originally Posted by gradstudent77

I agree that the prices are not only high, but are absurd.

Part of the price support results from the fact that some people are born in the area and will always want to live in the area. There are a lot of people who are raised in a place like paterson each year, they eventually grow up and if even 25% of them want to stay put that is a LOT of people competing for a housing stock that does not increase nearly as quickly.

Part of the price results from the fact that our whole metro (from middlesex county,nj to suffolk county, ny through to the tip of Connecticut) suffers from extremely low vacancy compared to other metro areas. Paterson isn't as bad as many other ghetto regions of the metro and even in those regions, they aren't exactly giving away houses right now. Even the absolute gutter of Newark today is no late 70's south bronx.

Part of the price results from the fact that people are extremely reluctant to sell at a loss. These people should get beaten down, in theory, by no buyer meeting them at an acceptable price point.

I really don't even know one person that I grew up with in the 60's who still resides in Paterson. Many are in the NJ suburbs and a good percentage of them no longer live in NJ! Prices tend to remain high in NJ because it's pretty much built out. There are very few buildable acres of land left in northern NJ. So one must either refurbish or tear down existing structures to effect any change. NJ will always be an expensive place because of this!

[stevemorse]

rents are high in paterson, I was suprised to see what rents are, and you would be shocked!

[SilkCity0416]

Originally Posted by TheEmissary

I really don't even know one person that I grew up with in the 60's who still resides in Paterson. Many are in the NJ suburbs and a good percentage of them no longer live in NJ! Prices tend to remain high in NJ because it's pretty much built out. There are very few buildable acres of land left in northern NJ. So one must either refurbish or tear down existing structures to effect any change. NJ will always be an expensive place because of this!

This is something that the Mayor, and the State Government, has to address. This is a State wide problem. There isn't any room at all to build in NJ. This is why places like Paterson, Newark, Passaic, Jersey City, etc, remain so high and expensive to live in.

A lot of residents in places like Paterson, can't afford to pay over $1,000 to pay for rent in an area that has high crime.

Some people see this as a: "Well it's their problem".

But untill Trenton address this issue, it is going to be everyone's problems be cause taxpayers are going to foot the bill at the end.

It is a loose-loose situation for both parties.

This should be a major issue in the next election.

[elflord1973]

Originally Posted by JG183

yes, and this is why northern NJ will not see any further price declines.

You called the bottom of the market in November 2008, and immediately after you did so, there was a string of 4 consecutive record declines in price drops (NY metro Case Shiller index)

thing is, the super-bears have been clinging to this hope for the last 30 months or so...

It's hardly a "hope". Prices have been slowly but steadily dropping.

[elflord1973]

Originally Posted by gradstudent77

Part of the price results from the fact that people are extremely reluctant to sell at a loss. These people should get beaten down, in theory, by no buyer meeting them at an acceptable price point.

It's not just that the would-be sellers are "reluctant", some might not be able to sell it. They can't sell it for more than the appraisal, and if they're underwater, they may not have cash to bring to the table (or if they do, they may be inclined to hang onto it given the state of the economy)

Based on what I've read on the RE forum about the transactional mechanics of short-sales, clearing out an underwater inventory is not exactly a quick and painless process.

I think this to a large extent is why the price correction is taking time to run its course.

[JG183]

Originally Posted by elflord1973

You called the bottom of the market in November 2008, and immediately after you did so, there was a string of 4 consecutive record declines in price drops.

these numbers are "too fresh", and thus subject to revision.

history will prove that I was right.

[Busch Boy]

Paterson is not cheap at all, LOL. My parents own their home there and they pay about 7,000 in taxes, which is not so bad for NJ, but absurd for a city like Paterson. Although they live in a good part of the city, I tell them they can do better for the amount they're paying. But they are not really interested in moving to another town in NJ; they just want to flee the state entirely if they do eventually move, LOL.

Which also reminds me. Down the street from my parents' house was a two-family that was renting the second unit for $1,300. Also, my Dad's best friend, who also lives in Paterson, pays $10,500 in taxes!! He's trying to sell his house, but when potential buyers here the property tax amount, they flee!