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I know this is a hot topic but thought i would see what kind of replys i get. Whats the over-under when the New Jersey Real Estate market rebounds and we can recoup some of our investments in Real Estate.
How many more years? Will it ever rebound??
I know this is a hot topic but thought i would see what kind of replys i get. Whats the over-under when the New Jersey Real Estate market rebounds and we can recoup some of our investments in Real Estate.
How many more years? Will it ever rebound??
Not anytime soon... I would think NJ real estate has a ways more to decline before its all over.
Prices won't return to their 06 peaks until at least the end of next decade. The deflationary winds are much too strong; credit has contracted back to historic norms, unemployment is around 10% and probably will tread to 11-12% in the next year or two, wages are being cut or frozen, and a mindset of frugality has returned.
What we saw earlier in the decade was ahistoric, not the norm; a bubble, like so many before it.
If you want to see a stark example, consider real estate in Japan, which 20 years after the crash they experienced is still around 1/2 it's value in the late 80's.
I know this is a hot topic but thought i would see what kind of replys i get. Whats the over-under when the New Jersey Real Estate market rebounds and we can recoup some of our investments in Real Estate.
How many more years? Will it ever rebound??
If the property is producing income, then you're recouping your investment each time a rent check comes in, and as long as you bought at a sensible price/rent ratio, then you're fine.
As for the market rebounding, won't happen any time soon. Unwinding of price support measures including tax credits and artificially low rates will put downward pressure on future prices and keep them stagnant for some time.
Prices are likely to be flat for the next 5 or so years, and then you're looking at a few more years of steady appreciation after that to return to 2006 levels.
New Jersey real estate was also priced so high because of the high salaries of the area and the abundance of jobs here that made this a place where people wanted to move. Salaries are now much lower, and companies are moving out of New Jersey because land, facilities, taxes and employees cost less in other locations. While some locations are more tied to the NYC economy, locations that are tied to a "domestic" New Jersey economy are what I'm worried about.
One of the wealthiest areas of the state has been the Princeton area with all of the pharma around there. But one wonders what happens as those companies merge with others and the new bosses wonder why they're in New Jersey when costs are much less in North Carolina.
New Jersey real estate was also priced so high because of the high salaries of the area and the abundance of jobs here that made this a place where people wanted to move. Salaries are now much lower, and companies are moving out of New Jersey because land, facilities, taxes and employees cost less in other locations. While some locations are more tied to the NYC economy, locations that are tied to a "domestic" New Jersey economy are what I'm worried about.
One of the wealthiest areas of the state has been the Princeton area with all of the pharma around there. But one wonders what happens as those companies merge with others and the new bosses wonder why they're in New Jersey when costs are much less in North Carolina.
Same goes for much of Morris County, with many of the the recent pharma mergers.
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