Home Buying in Hamilton Park>Question Details

Giulionyc, Home Buyer in New York, NY

I have been looking at the market in Jersey City for 1 year. I'm specifically looking in few neighborhood,

Asked by Giulionyc, New York, NY Sun Apr 19, 2009

Hamilton Park, Harsimus Cove and Van Vorst Park.
During Christmas time I have seen few properties but for my point of view the market was still overpriced. In my mind $350 per sq.ft was the correct price, no more. In today market I see prices going even lower. Condos are sold on the lower 300 per sqft if not they normally stay in the market. The job market in New York is horrendous so that is affecting Jersey City big time, if you just take a walk the entire city is for sale.
I start to believe that the market will stabilize around 300 per sq.ft but few articles in cnn are talking of prices coming down in New York and North Jersey are around 30% in the next years. What d you guys think? I'm going to be ready to buy at the end of the year, but now I'm wondering if I should wait a little more.

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6
Giulio,
If you buy this year you can take advantage of the first time home buyer credit ( if you qualify). Some of the properties prices are very negotiable take advantage..Good luck and live for now .
0 votes Thank Flag Link Wed Aug 12, 2009
check out journal square, there may be more options for you there as an investment
0 votes Thank Flag Link Wed Apr 29, 2009
Again me.
What I'm thinking is a little more complicate.. or maybe not.
I have a good amount of cash so I'm not to worry about the changes on morgage rates (what are they going to change..1%? Do you really believe that they are going to change more in the next year?). On my budget I can put down probably 30%, my problem is the sale price , the real estate taxes and the maintenance. I see a big fluctuation on real estate taxes. For a 1000/1200 sq.ft 2 bedroom apt in Hamilton Park or Van Vorst Park they go from 4,000 to even 9,000. 2/3,000 more in taxes per year in 30 years is a lot monet. My fast math is the following: if I borrow 250,000 in 30 years I will pay pretty much double, probably 500,000. So apply now the taxes: 2,000 a year per 30 years is 60,000 divided 2 is 30,000. So 2,000 more is taxes mean I have to pay 30,000 less for the same property. I don't see taxes going down any time soon, NJ is in such truble that I really cannot imagine to bring down taxes even in amedium term. Of course you can always do you paper work and try to bring them down but I still don't see a high success rate on that. Prices per sqft in the area I'm looking for are again very up and dpwn. They go from $300 per sqft to $500 per sqft. I believe 260/300 per sqft is probably a fair price, and finding the correct situation I would move and buy, but I definitely don't want to pay more and I don't want to go over 5,000 per year in taxes. I'm in New York, I owe a business and I tell you the situation in New York is getting worst every day. Unemployment is raising high and you start to see a lot of places for rent and for sale, something that you didn't see before. Downtown JC prices depend of New York. I like to see what's hap at the end of the year, but I believe we will see another 10% dropping on asking prices. Selling prices.. that's a mistery, at least for me. In new York when I talk with brokers and I say I have 350,000 budget they tell me that means 400,000 so I don't know what to think about Jersey City. The only reality I know is that if you spend a day walking in Hamilton park and Van Vorst Park it feels the entire city is for sale.
0 votes Thank Flag Link Fri Apr 24, 2009
I'm in the same boat and have been watching the market closely over the past 24 months. Prices are still really inflated in this area. Sellers are just starting to realize what most buyers and even brokers have know for the past 12 months, which is that their asking prices are based on perceived value not actual value. The problem is this realization is only just stating to take root in this area. It is important to keep an eye on interest rates but don't worry too much about it. Follow this example:

Home price: $330,000
Loan with 20% down: $264,000
Rate: 5.5%
Monthly payment: $1,498.96

Home Price -10%: $296,000
Loan with 20% down: $236,400
Rate: 6.5%
Monthly Payment:$1501.96

As you can see the payments are almost exactly the same. The lesson here is educate yourself and don't overpay for your home just to lock in a good interest rate. The overwhelming majority of experts do not see a bottom in the New York Metro Market until 2010. I'm going to wait until next year and take my chances with interest rates. The highest rates have been in the last 8 years is 7.25%I'm not too worried about them "skyrocketing" anytime soon. You might also want to check out http://www.njrereport.com
0 votes Thank Flag Link Fri Apr 24, 2009
My opinion is that the area is that both Jersey City and Hoboken are over developed and overpriced for this point in time in the world and there should be some good deals in October, November and December.

The views are great and the proximity to the city.. this area will take longer to climb back up. But, this area WILL climb back... there is no way that these areas being so close to Manhattan will hurt over time.
It may take 5-10 years... And I think Jersey City will be a better deal then anything in Hoboken.

Just my opinion.
0 votes Thank Flag Link Mon Apr 20, 2009
Overall prices fell 9% last year and have been continuing to fall about 1% a month this year. That 1% drop is expected through the summer, with prices stabilizing around September and slight appreciation starting in the new year. Of course this is only a consensus. No one knows for sure what will happen in the future.

With that said though if you are considering buying a home, you should be more concerned with interest rates then with prices. Keep an eye on them. Right now we are at all time lows with interest. Most people only expect that to last a few months. As soon as there is any sign of an economic recovery, interest rates will go up.

Interest rates and declining values have made homes more affordable then any time since 1981. The low interest rates, combined with lower housing prices, have brought the affordability index up to 122. That means that an individual making the median income can afford a home that is 122% of the median home price. That number is up significantly from the peak when it hovered in the 80% range meaning a person making the median income could only afford a home 80% of the median home value.

Interest plays a much bigger role right now. Waiting a month or two to get 2-3% off could cost you dearly if in when you go to get a mortgage three months from now, rates are up. Take the following example (rates are even lower now but this gives you the idea)

Let's say you are looking to make make a P & I mortgage payment of $4,418. ( I know that's high but it works well for the example so you can do an easy % decrease from the rounded off $1,000,000). Here is what changes in the interest rate will do to your buying power.

* Interest rate - 5.25%
* Desired monthly mortgage payment - $4,418
* How much home can you afford? $1,000,000

Let’s say rates go up 1%. How does that change the scenario?

* Interest rate - 6.25%
* Desired monthly mortgage payment - $4,418
* How much home can you afford? $896,922

Let’s say rates go up 2%. What can you shop for now?

* Interest rate - 7.25%
* Desired monthly mortgage payment - $4,418
* How much home can you afford? $809,541

As you see your buying power diminishes pretty quickly. So keep an eye on mortgage rates as much, if not more, as you do on home prices.

Andres Garcia
Sales Associate
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Office: 201 795-0100
Fax: 201 795-1245
andres@milesquarerealty.com
http://www.milesquarerealty.com
0 votes Thank Flag Link Mon Apr 20, 2009
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