We are all aware of how much the market has changed over the past year and a half and we have seen prices drop significantly, but over the last few months housing prices in Cresskill have leveled off.
At this point we have a fair amount of comparables to review to get a clearer picture of what the correct price should be. It is important to look at these comparables and truly understand what price got that house sold and the condition of the home while it was on the market. Propeties that are expiriencing price adjustments may have been priced higher than the comparable indicated due to financial limitaions, such as mortgage balance owed or perhaps based on emotion.
With that said, Cresskill is and has always been one of the top four sought after communities, for its top rated schools, its sence of community and for its easy access to the city for both work and entertainment. However, Buyers today want a super clean home with little or no work, so they can move right in.
more listings acheive the status, " Under Contract."
In the lower price bracket the stimulous package has helped. In the first draft of the package the Buyer would have had to pay back the credit amount over a period of years, now that is off the table and it is simply a credit when you file yourreturn with no repayment /payback. This in conjunctiion with the lower interest rates, they had been talkingabout for months has energized those who feel there jobs are secure.
In reviwing the daily and weekly hot sheets it is easy to see the change in the market in general, with more houses receiveing and accepting offers than months prior. It is exciting to begin to see fewer price reductions
Homes that are priced aggressively are moving and in some cases with bidding wars. This enables the Seller to choose the best qualified buyer and possibly get more than asking price.
Friedberg Properties & Associates
105 Union Avenue
Most price depreciation has already happened which is why people are coming out to look at and purchase homes more so than they have since last summer. Jeff Otteau, a very well respected analyst of the NJ housing market, has said pretty much the same - he projected 9% depreciation statewide during lectures in mid and late March and his most recent market letter said that while price depreciation will continue, the market will see an end to decline by early 2010. This does not mean that prices will go up - they won't for some time. In our area and in Cresskill in particular, I'm projecting an additional 5% over the next several months before the market stabilitzes.
It's true that real estate is extremely local so one town can be performing much better than it''s neighbor but in general, I feel that we're close to leveling off. Cresskill, as one of the most in demand locations in Bergen County, always performs well. But, you really have to look at the price range you're considering which is why I feel that average or median prices for an entire town can be inaccurate and in distressed markets you can find extreme differences which is true of Cresskill today.
For example, right now in Cresskill the ratio of homes on the market to under contract is 6.5 to 1 at under $800,000; above this figure it's extraordinarily higher and if you go to the luxury level, it's in the stratosphere. There are many reasons for this, of course, which is why not only do you have to look at the particular town but also at the particular market in that town.
So the answer is that we have a bit more depreciation to go through but at a moderate rate as we are in the early stages of a transitional market. Buyers are definitely coming back into the market for Cresskill properties as they realize this and also want to take advantage of these incredibly low mortgage rates which everyone knows won't last forever. I have articles on the market on both my website and blog; if you wish you can read those as well as market data I've posted there.
In Bergen County, I find it really doesn't make sense to compare prices in one town to another. When I help a client price a home, I only look at comparable homes in the same town.
Home prices in Cresskill have dropped a bit if you compare the past 12 months with the 12 month period prior to that (I never think it is a good idea to look at shorter time periods when trying to gague the real estate market).
The median price is down about 5%, and the average price is down 6.6% in the period described, but even more dramatic is the drop in the number of sales from 114 in 2005-06 to 82 in 2006-07 (that's a 28% drop).
However, there is one indicator that shows that the market has probably gotten through the worst of it is that the number of homes for sale has dropped off from 77 this time a year ago to 62 today (that's a 19.5% decrease in "inventory").
Certainly we are past the crazy market we had for a few years, but prices are still strong (the average price in Cresskill over the past 12 months was $930,388), and homes are still selling. You just have to price them for today's market -- not the market of a year or two ago.
If you have any questions, you can reach me by email at: Bob@SellitWithBob.com