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Prices in Montclair are up about 10% this spring in areas that are close to transportation and in the $600-$800k range (some in the up to $1million range). Most sell in the first week. There was pent up demand from urban area buyers (west side and Brooklyn primarily, here) that waited for prices to bottom. Well, they have and interest rates are low. Couple this with a very strong market in the city and buyers are either coming out with a lot of cash from proceeds from a recent sale or they see a lot value here despite taxes. Also, we are seeing empty nesters hold on to their houses, either because they think there is additional upside or, simply, they love the town and their homes and aren't ready to move on. As was mentioned, if you are looking to get by the school year and want a done house near the train, you are going to pay a premium. We are seeing buyers pay 100k over the 750k ask here for the right house. Of course the most inventory is on in the spring, so it is in your interest to look now, but if you want a deal, look for a "grandma house" that needs cosmetic work (carpet up, wallpaper down, maybe a new kitchen and bath) and comes on in the fall. alternatively, scale back your home requirements figuring you have to pay more or bite the bullet and take on more debt, which is super cheap right now. Good luck, you'll find your house!
This people was one of the reasons for the housing bubble. Got to love the people that do this. A person only ASKS 750K for a home and someone gives them 850K. Makes sense to me. My Toyota is for sale for 15K anyone want to give me 20K for it.
I agree, folks that were waiting for prices to drop further are now seeing that not only are prices NOT dropping, but rates ARE rising (i think up to 4% this week). I am thinking there will be a lot of pent up demand.
I went to "seminar" at a real estate office a few weeks ago--basically one of those sessions where the RE office is trying to recruit new salespeople. Was interesting overall, but what the woman was saying was pretty much that. They are seeing buyers coming out now but there isn't enough inventory on the market yet. People who gave up on selling may start thinking about it again.
I have been waiting to make improvements on my home. I wanted to see where the market was headed before sinking any more money in. I think now is the perfect time to pull some money out of stocks and put it into real estate, so I am starting on those improvements that I have sidelined for the last 5 years.
For several years, there were irrational sellers who didn't beleive that their houses wouldn't sell for what it may have been worth before the big drop.
Now, it seems we have buyers who can't believe that they can't get the same deal that was out there months ago.
Supply and demand always in effect and never impacted by what buyers or sellers want.
The inventory is somewhat low and therefore the good properties are picked up right away because some people need to move. However the not so good properties or the ones that are overpriced sit.
Inventory has grown much recently in most towns and as soon as more houses come into market prices will stabilize. Economy is weak, income has not increased, life is costlier there is no reason for house prices to come up-just low inventory. Prices have not gone up much since the recent lows here in NJ so wait it out if you can.
The inventory is somewhat low and therefore the good properties are picked up right away because some people need to move. However the not so good properties or the ones that are overpriced sit.
Inventory has grown much recently in most towns and as soon as more houses come into market prices will stabilize. Economy is weak, income has not increased, life is costlier there is no reason for house prices to come up-just low inventory. Prices have not gone up much since the recent lows here in NJ so wait it out if you can.
I think the truth lies somewhere close to the middle,between this post and some of the housing bulls.
This people was one of the reasons for the housing bubble. Got to love the people that do this. A person only ASKS 750K for a home and someone gives them 850K. Makes sense to me. My Toyota is for sale for 15K anyone want to give me 20K for it.
Used Toyotas are a dime a dozen...15k is way too high.
You nailed it right in the head with your explanation.
Quantitative Easing is Fed Chairman Ben Bernanke's policies to keep interest rates artificially low to help jump start the economy, right? Consistent with one of the biggest concerns of QE, the housing market is slowly (or is it quickly?) starting to show signs of inflation.
My wife and I are so glad to have bought back in January. Our real estate agent was telling me that she recently had a house on the market in our hometown for just two days, and she also knew of one house which had 17 offers. Insane.
It helps that home prices dropped as far as 2002-2003 prices, which brought a lot more buyers into the market. Sellers have started pricing their homes more appropriately, and the ones who weathered the storm may no longer be underwater on their mortgages so they actually CAN sell their home without a short sale. Home in my neighborhood have been turning over quite quickly this spring, and i can see people who have attempted to sell their homes over the past 3 years but gave up have started listing their homes again.
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We are seeing buyers pay 100k over the 750k
My Toyota is for sale for 15K anyone want to give me 20K for it.
