Catalina, Home Buyer in Fort Lee, NJ

Is real estate market climbing back up?

Asked by Catalina, Fort Lee, NJ Sat Apr 7, 2012

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def not. OF course it may seem there is more activity this spring....but take into consideration real estate is busiest in march to summer to begin with. Also take into consideration increased activity in relation to what..last yr , 2010? Then the answer might be yes. There are tons of short sales and forclosures that are still being held by the bank. With this little activitywhile the interest rates being artificially propped down should be a concern for what would happen when the interest rates move up. Esp with much tighter lending standards then before. I don't consider a 20-25% decline in real estate prices a true crash and correction from the bubble. Bergen county is way too exp for a normal person to afford. Granted that there are more higher income people living here, but a person such as myself that is in the top 1% of america I still consider this area too expensive to live relative to anywhere else. If you wanna see a real market crash check out arizona, fl or ca..where prices have stumbled 60-80%. We still have alot of room to follow the markets down and there are no indicators that things are improving anytime soon. A typical real estate market takes about 10 years to recover. So we are not even half way there. If you ask a agent they will always say its recovering and a good time to buy, cause they have to put the bread on the table. However, any logical person will see america still has a long way to go. I strongly beleive bergen county esp fort lee and suburbs needs at least another 20% price decline back to early 2001 or 1999 levels before it can be affordable for the upper middle class again.
0 votes Thank Flag Link Sat Apr 28, 2012
We keep an eye on a number of factors. The "Days on Market" shows us how quickly homes are selling. The Inventory in each town compared to the same time last year shows how much competition a Listing will have. We also look at Short Sale and Foreclosure activity.

All 3 of these factors are looking much better this spring in NNJ.
0 votes Thank Flag Link Sun Apr 8, 2012
Hi Catalina,
I can't speak for national figures and activity only for my Bergen County area. The answer is yes absolutely. I myself was in 2 bidding wars this week..this has not been the norm in the last 3 years.
By climbing are you referring to prices or activity. ?
I believe sellers have recognized difficult market conditions in the past and have adjusted their pricing and expectations but it is only a matter of time before this activity is reflected in increased pricing.
For you as a buyer, we cannot predict when interest rates will go up or how quickly but now is the time to act/purchase based on what's going on here in NW Bergen County.
Best of luck to you in your home search.
Chris Gubb
0 votes Thank Flag Link Sat Apr 7, 2012
Markets are local, and so you will get more specific feedback from a Ft Lee agent, but I will comment more generally on conditions I am seeing in Somerset County. I just blogged a post regarding activity in Warren and Basking Ridge - both performing well this Spring. Basking Ridge in particular is performing well with only 4 months of inventory or put another way, properties are moving in about 4 months on average. So our local market is moving well - IF the properties are priced well. If not, the will sit and linger unsold, awaiting an price reduction that corrects the pricing issue.

Market is moving - but not climbing. Moving comes first, and tells me that the correction is over in some areas and nearly over in others. I see stabilization and then modest growth over the next few years.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Sat Apr 7, 2012
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