Home Buying in Tinton Falls>Question Details

Neil, Home Buyer in New Hope, PA

Home prices in NJ - why haven't they gone down?

Asked by Neil, New Hope, PA Thu Apr 2, 2009

I don't get it . . . All I keep hearing on the news is "falling home prices" and "downward pressure on home prices will continue into 2010, "great time to buy", "buyer's market", etc., etc. Yet over the course of the past year and half, I have been tracking about 15 different homes on trulia with alerts set up to email when a change in the home's price occurrs. in addition I have been going to the broker's websites to confirm the prices are still accurate on trulia. The homes are in areas such as Tinton falls, Union Beach, Ocean Grove, and Asbury Park, NJ. Of all the homes I have been tracking, NOT ONE has dropped in price in the past year and half. Not one red cent. Is it the area I'm looking in? Am I missing something? thanks in advance for all responses.

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Home prices in NJ have been falling. On average at 1%/mo. We are not hit nearly as hard as other parts of the country, though. And, yes, it is a great time to buy. Never before in the history of home prices been so low while interest rates are low. Usually, when prices are low, rates are high. They normally have an inverse relationship to eachother.
Anyway, you do not track what home prices are doing by tracking individual properties. You have to take closed sale statistics. I think your question really is, if prices are down, why aren't the homeowners getting it and reducing their properties??? There are many reasons all determined by the sellers' motivation. That should not stop you from working with a good local agent who knows the market and can put together a strong arguement for your offer based on comparable sales.
If you want to see median sales comparisons for some of the MOnmouth County towns that I service, go to my website and you will see 2007 vs 2008 market sale information. There were towns that actually had higher median sales prices in 08 vs 07--Spring Lake, Sea Girt, and Belmar. So, it is not all doom and gloom for NJ. As always, real estate is local. Each market is different and the stats I gave above are averages.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Thu Apr 2, 2009
NJ prices are down and will be even lower. People can ask whatever they want - sales prices are key. No homes are selling so just wait for now.
0 votes Thank Flag Link Fri Apr 3, 2009
Hi Neil
Let me make sure I understand what you are saying. You say you have been tracking 15 homes over the past year and a half? Not one of them has dropped in price? Well - guess what - they haven't sold either !!!!!!! If these homes are still on the market after all that time......It means, at the very least, they are OVERPRICED, and SHOULD have been reduced. Part of the problem today is sellers who aren't really sellers. What I mean by that is, they say they will sell only if they "get their price". That's not a seller - not a motivated seller, anyway. A real seller needs or wants to sell, and will do what they can to make that happen. I tell my sellers that it doesn't matter what your neighbor got for their home last year.... it doesn't matter how much your new kitchen or landscaping cost ....it doesn't even really matter how much I think it's worth ....... a house is only worth what someone will pay for it! A simple concept, yet so hard for some to comprehend. Having your home sit on the market month after month after month at the same price doesn't show a desire to sell. These kind of "sellers' muddy the market for those who really are serious about selling, and willing to negotiate with a buyer.

So........don't judge the market by those homeowners who stubbornly stick to a list price.

The prices in NJ, as with the rest of the country, have gone down - no one is immune. The amount of depreciation depends on the town, of course, but no town has gone without feeling the affects of this market downturn.

Hope this sheds some light on your concerns!
Debbie
0 votes Thank Flag Link Fri Apr 3, 2009
Neil,

What u need to realize is that the media hype that you are hearing is an average acorss the nation. NJ is not as affected as what the meia plojects. There are deals to be had in the areas you mention (having just had a frined go UC on awesume property in Ocean Grove that I wish I had a buyer for). If three are the areas you desire, you will need to find yourself a Realtor that is committted to not only email u daily listigs, but remain cogniant enogh of your nees to personally email you DIRECT When aa true opporuntiy arises. Trulis a great tool, but not a repaclment for that perosanl touh that will net u the real deal.

Francesca, Realor, ePro

Web Reference: http://www.PatrizioRE
0 votes Thank Flag Link Fri Apr 3, 2009
You've heard it before, all real estate is local. While prices have fallen in some areas by as much as 17%, other areas have remain stable.

You also must take into account the type of sale. If a seller isn't motivated, meaning they're going to loose the home or relocating, they might be more willing to sit on a price and wait.

Laura Giannotta
Keller Williams Atlantic
0 votes Thank Flag Link Fri Apr 3, 2009
Hi Neil,

I tell clients all the time. Sure, the market is real bad in Virginia, Florida, Ohio and so on.. but realisitcally being 35 -50 miles out of NYC.. good schools and a nice homes, NJ has not been as affected as other states. Real estate markets are local.

I go through this numerous times a week.. someone calls wants to see a house and offer 100k under the asking price, with the statement.. I hear on the news that prices are falling and I should offer this amount. Well, it is just not the case. Due diligence is key to finding a home in the area you want to live in..
Then take an even closer look. You can find a great home right now at a great price.

It IS a great time to buy.

I have recently been telling people.. the longer you wait for the bottom, you are going to miss it and will be saying.. wow, I should have acted on that.

Good Luck.
0 votes Thank Flag Link Thu Apr 2, 2009
Neil,

That does sound peculiar. Care to share a few MLS #'s or addresses with me and I will check it out on my end? It doesn't seem reasonable that 15 homes haven't sold AND haven't lowered their prices!

Please keep in mind that a home being on the market for a year and not lowering the asking price doesn't signify that prices aren't dropping. What it shows is a seller who has his head in the sand!
Web Reference: http://www.JoTheRealtor.com
0 votes Thank Flag Link Thu Apr 2, 2009
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