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Old 07-22-2013, 01:02 PM
 
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I've been looking in a few different towns (mainly in northern Bergen county) and for awhile there (spring/early summer) it seemed like any decent listing that was priced within reason would have multiple offers within 2-2-3 days. But in the past week or 2, it seems that several decent houses have been sitting, and a couple have even had price reductions. I have also noticed at least 3 houses that had been under contract, have come back on the market and have not been snatched up as quickly as the first time around.

Is this an indication that the super high season is over, since we are getting past the point of being able to comfortably complete a typical transaction before the start of school? Is it related to rising rates? Or just a random coincidence? WDYT?
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Old 07-22-2013, 01:15 PM
 
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Typical cycle, yes the market is starting the annual cool down which starts in August. This year was even more abrupt due to the insanely low rates in the spring and the massive rise in rates( a full point literally overnight) that happened in June. NJ houses are expensive so mortgage rates play a much larger role in home affordability than elsewhere( a 1 point swing on a $500K house will add $250/month to your payment!). I think they also eliminated all 0 doc loans in late June/July. Tighter regs equal a more stable market but do make it harder to sustain the housing market heat that was gathering March-June.

Also psychology plays a lot into how people price their homes, most people saw a little pick up in the market and thought they could start asking 2006-2007 prices again! Which is why as the market cools people's expectations come back to planet earth in regards to home value, hence the price reductions.
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Old 07-22-2013, 02:24 PM
 
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also the ones that are coming back might have shown some problems in inspections and now people are scared to buy them
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Old 07-22-2013, 04:25 PM
 
291 posts, read 910,885 times
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Thanks for the input! I know that at least one of the houses had the buyer's financing fall through --my realtor was even able to get a copy of the inspection report (same office), and the house seems to be in good shape. Not sure about the others. I guess time will tell what happens with inventory and prices as the year goes on.
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