Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm wondering how many readers/contributors of this forum are in the market to purchase. And of those, how are you finding the inventory of available properties to be ?
I culled this from the nationwide portion of C-D :
Quote:
I know they say the credit markets are much stronger this time around and that they don't give out shady loans like they did during the last bubble, but there are still zero money down loans and people buying houses that require both incomes living paycheck to paycheck with overtime to get by.. the minute a next recession hits and one of them loses their job or their overtime, there will be a correction in housing prices.
With that said overpriced housing seems to be a worldwide problem that will likely never go away. We seem to have a monetary system where the top 1% have ridiculous amounts of money and many of them invest in real estate with it. The highest income people get the most choice in where they can live and typically pick the obvious choices and then it kind of trickles down to the "less desirable" cities. This is one reason I don't believe they should offer section 8 housing in cities like NYC, Denver, and other high priced cities. Plenty of people would like to live in these cities yet some get to live there just because they were born there, but alas life is not fair.
A person can always move to a city that has lower housing prices because it's "less desirable."
Northeastern NJ has always been, to one degree or another, a separate animal in terms of prices. But I'm resigning myself to agree with the above poster that any "correction" that may be coming, will only halt the rise of prices, not reverse them...
Depends on how big the correction is. I think a lot of the tightness in the market is from people who are unwilling to leave their current homes until they have to.
That quote just looks like a rant, I don't see much evidence for it. Anyway, there's a ton of inventory in northern NJ; it may be more expensive than you want and it may be older/smaller/more run down than you want, it might not be in the exact town you want (especially if that town is Montclair or Westfield) and it will definitely have higher property taxes than you want, but there's no lack of inventory.
Not sure what areas you are basing that statement on. There is a severe lack of inventory in many towns. It depends where in North Jersey.
In Bergen County, we have very low inventory, sales are down because of the low inventory, days on the market are down, and prices are up. Bidding wars are happening again.
Now I have listings in Sussex and Passaic Counties, where there is plenty of inventory, tons of foreclosures, and values are down.
In my opinion, where are nearing the end of this up cycle. We hit the bottom in 1st quarter of 2011. Real estate market runs in cycle, so we are 7 years plus into this one. Rates are up. Home prices are ridiculous, there is over improvement/building, and incomes can't keep up with the rise in home prices.
Not sure what areas you are basing that statement on. There is a severe lack of inventory in many towns. It depends where in North Jersey.
In Bergen County, we have very low inventory, sales are down because of the low inventory, days on the market are down, and prices are up. Bidding wars are happening again.
Agreed, that is exactly what I'm seeing as a prospective buyer.
Quote:
Originally Posted by Kevin1975
In my opinion, we are nearing the end of this up cycle. We hit the bottom in 1st quarter of 2011. Real estate market runs in cycle, so we are 7 years plus into this one. Rates are up. Home prices are ridiculous, there is over improvement/building, and incomes can't keep up with the rise in home prices.
Here, I'm not so sure. Just because R.E. has previously run in "cycles", doesn't mean it will always be the same duration/severity.
Not sure what areas you are basing that statement on. There is a severe lack of inventory in many towns. It depends where in North Jersey.
In Bergen County, we have very low inventory, sales are down because of the low inventory, days on the market are down, and prices are up. Bidding wars are happening again.
Now I have listings in Sussex and Passaic Counties, where there is plenty of inventory, tons of foreclosures, and values are down.
In my opinion, where are nearing the end of this up cycle. We hit the bottom in 1st quarter of 2011. Real estate market runs in cycle, so we are 7 years plus into this one. Rates are up. Home prices are ridiculous, there is over improvement/building, and incomes can't keep up with the rise in home prices.
I'm currently looking to buy in Sussex County (probably Vernon). Ton of homes for sale but it does seem to have picked up a little over the past year or so. I can't imagine prices dropping much more here since they're still bumbling along the bottom. Obviously high demand markets like Bergen are a different story.
I'm in West Orange where inventory is low and the market is hot. Much of this is due to our proximity to Montclair and Maplewood, where prices and bidding wars are downright ridiculous. People get priced out of these towns pretty quickly and look in nearby West Orange. I get at least 1-2 mailings per week from local realtors trying to get me to sell.
As long as the stock market keeps up with the streak, there will be no correction soon. In fact I think this could be the beginning of a longer bull run now that Trump removed many bank regulations and easy credit is back and tax cuts will allow companies to boost salaries and hiring. With unemployment below 4%, it's unlikely there will be any price drop with homes.
In Bergen County we have a serious lack of inventory which is on par with most of the country. The myth that home prices are rising in an unhealthy manner around here though is simply not true. In 2017 the average sales price of a single family home was $589,210 which is a little higher than it was in 2004. Over the last 8 years (2009-2017) we saw an increase of 5% and 2016 vs 2017 we saw a 3.9% increase. I am sorry but those don't seem like drastic increases to me. the main problem we have here is inventory which has been an issue for a few years. Values are increasing in Bergen County but it is mostly due to inventory, not predatory lending or ease of lending. If the economy continues to be strong and more homeowners are able to upsize/downsize we can correct the inventory issue and get back to a more stable market.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
