Home Buying in New Jersey>Question Details

Lolly, Both Buyer and Seller in Montvale, NJ

What do you think about buying a house in an adult community at this time? I am afraid the prices are just

Asked by Lolly, Montvale, NJ Fri Apr 24, 2009

going to go down forever and I will never ba able to sell.

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5
Hi Lolly,
Buying a house in an adult community at this time is probably not a good idea for two reasons: First of all, in most areas in NJ, house prices are anticipated to continue to decline, but only for the remainder of this year, maybe into early 2010. But, adult communities in NJ are really taking the hit because retirees are leaving the state due to the high cost of living here, specifically taxes!!! They are going to places like North and South Carolina where they get a lot more bang for their buck. So, if you are concerned that if you buy now you may not be able to sell in the future, you may have accurate predictions.
But, if you move into a single family home or condo, it is not the same scenario. While prices are declining, they will level out and improve again.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Fri Apr 24, 2009
as long as we have self interest politicians and lobbists presenting this kind of legislation, I would think twice about what I want in a community and how bills like this will effect the community.

http://www.njleg.state.nj.us/2008/Bills/A4000/3772_R1.PDF
Web Reference: http://Ask4Greg.com
0 votes Thank Flag Link Fri Apr 24, 2009
I'd say check out the inventory before committing. If you are looking in a certain township and it has over 300 adult community homes for sale, then prices will have to come down to account for the high amount of inventory. Now is a great time to make a trade though and if that means selling your home to buy in an adult community, then I say go for it now. If you plan to stay long term, the value of your home will go both up and down as the market goes through its cycles. Good luck!

Jillian Mason
Direct: 732-586-5488
jillian@jillianmason.com
Web Reference: http://www.jillianmason.com
0 votes Thank Flag Link Fri Apr 24, 2009
John is absolutely correct.
As boomers start to downsize they are heading to adult communities for a little bit of leisure. Many of these properties have taken a nose dive from their current prices. for instance I have a property that was bought and built for over $300k and is now selling for 234K With luxuries like a resort. Its truly amazing what is out there right now. My experience in the adult sector is they are a safe group the have not made a move just yet but they will soon because you almost cannot resist the temptation of the pricing now. Seeing some buying at the shore now and will more than likely spark the adult developments also.
If you are looking to buy in an adult community and the time is right for you, so is the market!

Larry Sarlo
Weichert Realtors
http://www.NJHomeHunter.com
609-868-1171
lsarlo@comcast.net
0 votes Thank Flag Link Fri Apr 24, 2009
Lolly,

I know with the current economic climate, their is some uncertainty concerning the real estate market. While one cannot predict the future with certainty, many experts in New Jersey expect home prices to level off in the beginning of 2010. We may not see a rise in prices right away, but historically real estate has been a sound investment over time. I

Specifically, many builders are still actively involved in developing adult communities, Toll Brothers and KHovnanian are two that come to mind. Additionally, many recent studies have shown that retiring baby boomers will have a strong influence in the real estate market and will be active buyers in adult communities.

John
0 votes Thank Flag Link Fri Apr 24, 2009
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