KGordon, Home Buyer in New Jersey

What is the median VALUE of a home in Bloomfield, NJ? Why is Bloomfield considered a distressed market?

Asked by KGordon, New Jersey Mon Jun 23, 2008

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Answers

20
Gina's area
07006 declining market
07013 declining market
07052 declining market
07109 declining market
07110 declining market

You can use the link below to see if your area is a declining market. AIG has determined these zip codes as declining markets.
https://www.ugcorp.com/rates/DecliningMarketsList20080604.pdf

Here are some excerpts from Jeffrey's advice

"Hey NonRealtor in case you haven't heard life is risky."
"KG needs to commit to a Realtor who knows the area and be loyal to that agent. "

Life is risky for you Jeffrey. KGordon, it's like marriage when you hook up with Jeffrey--love, honor, and obey him. Good luck KG
1 vote Thank Flag Link Mon Jun 30, 2008
Hi Everyone,

Just thought I should jump in to let you know that deleting a post does not get rid of the thumbs down you received for that post. The thumbs down are still alive and well in our database and will continue to be part of your profile statistics.

Best Wishes,

Emily Gibson
Customer Service Representative
1 vote Thank Flag Link Thu Jun 26, 2008
Also, Jeffrey this link you posted is very helpful....
http://www.jchs.harvard.edu/publications/markets/son200...
1 vote Thank Flag Link Mon Jun 23, 2008
First, thank you all for the advise/input....it is important to know that the biggest investment we will be making will be a wise one from the get-go....we thought we liked Bloomfield because of the proximity to things in NJ plus good transpo to NYC...and we can't afford the high prices of other areas...that being said....we are not sure now since our lender told us it is a "distressed" area....
Jeffrey, I pulled the original question because I thought I could be more succinct, therefore, posed this one....thanks for the suggestions of houses in the area but the Hawthorne house does not appeal to us and we feel it is priced too high for what it offers....we drove by the whittle house and it is on a very odd corner and didn't go in because of it...a yard is important to us...
but getting back to the posed question...the lender told us there were only 4 counties that weren't distressed....and one is Bergen county...so we will be looking there now too...
Jeffrey, we have children on the way and we have to make sure we are making a good investment....so any other thoughts you have for Bloomfield would be appreciated....like I said we thought we would buy there and now we are backing away because of our lender....
Lastly, as far as committing to a particular Realtor...we have interviewed/met with and discussed with several...we haven't signed on with one in particular...not only are we looking for a very good agent who will rep us as BUYERS but also we need to be sure which county we will be using before we commit to anyone....and not all Realtors are experts in all counties...Thanks Again....
1 vote Thank Flag Link Mon Jun 23, 2008
The first answer was in summer of 2008. The median price for YTD in Bloomfield as of this week is, all properties, is $299,000, down from $325,000. Median income is about $63,000 household. The C of L index is 126 with 100 being the USA average, considered high but all of this area is high to very high (Millburn- 140). For Bloomfield, the outlook is brighter than other towns in Essex plus Clifton. Prices are near the normal for HH income. The effort to control multi-family over crowding - i.e. 3-4 famiies in a 2-family- is slowly progressing. Sought after areas such as Oakview, Brookdale and now Watsessing due to new school management/administration impact housing market. As the "transit village" concept takes off it will favorably impact the interest as a commuter haven and destination for buyers. Plenty of inventory now- July 2009 and sales rate or absorption is 5-6 months for single family homes.
Carl - http://www.CarlWitzigHomes.com
0 votes Thank Flag Link Mon Jul 6, 2009
Distressed means the prices are dropping in the area. It's risky to buy in a distressed market. It may be better to rent.
0 votes Thank Flag Link Mon Jun 30, 2008
NonRealtor,

Just for the record if you want to maintain high ratings, try adding some value and facts to your postings. You wouldn't get any "thumbs down" (which for the record...I didn't give you) or have to keep deleting and reposting if you would provide some useful information.
0 votes Thank Flag Link Thu Jun 26, 2008
Once again Jeffrey...you took the words right out of my mouth!! Even his responses to other posts are nothing of value either.
0 votes Thank Flag Link Wed Jun 25, 2008
KG the good thing about the internet is there is a lot of infomation out there, the bad thing about the internet is that there is lots of information out there. I am glad that you are feeling more comfortable with your direction. It is not easy but once you are settled in you can move on the the next phase of life.

Good luck and feel free to reach out if you have and other questions or concerns.
0 votes Thank Flag Link Wed Jun 25, 2008
Jeffrey, you are right about life plan/time frame issues...they come and go regardless of how the market is or if someone is calling it distressed or not...people do want to buy even in Markets that aren't ideal....you do have to hope you make the right decisions....and then go along for the ride....so Thank You for all your thoughts....it helps us to feel comfortable about Essex as a possibility....
As far as NonRealtor's suggestion...thank you for your opinion/suggestion, but Buying/Renting is not that simplistic ...everyone buys/rents for different reasons and personally we would rather buy...we have our own personal reasons and we will be smart and find the right home at the right price....
0 votes Thank Flag Link Wed Jun 25, 2008
Hey NonRealtor in case you haven't heard life is risky. Perhaps before you check in here with your 146th post of "wait for the 20% decline" mantra you should remember that KG has ASKED for advise about buying. Maybe just maybe they see a value in owning something, realizing the tax advantages of owning and oh yeah and providing a place to raise a family. Some people still need to buy and NO ONE not even you can predict the bottom. Trulia Voice is a place where people come looking for advice. Your purpose should be to add value to the conversation. Tell me what is a typical rent for someone looking at a 3/4 bedroom home here in Bloomfield?

It is really quite condescending of you to not give the people here a little more credit and assume they have looked at renting versus owning.
0 votes Thank Flag Link Tue Jun 24, 2008
KG,

I do have some thoughts I would like to share with you on Bloomfield so if you are interested you can get in touch via contact info on my website. I am glad that you found the link useful but again just remember that all real estate is local.

As far as going to Bergen keep in mind that just because the county is NOT defined as distressed by your bank doesn't mean that certain the towns are not. I'll be willing to bet that certain towns are defined as distressed in Bergen as well. In the price range you are looking many towns may not get you what you are looking for. I have had more than a few client that start in Essex and then think that Ridgewood, Paramus etc will get them what they want and after a few weekend of us going out give up and come back to Essex.

You are RIGHT for the all the reasons that you like the area and I feel a your lender has done you a disservice by not clearly explaining what it means when a BANK decides an area is distressed. It is an arbitrary criteria used to require the purchaser to put more equity into the property up front so the bank isn't as exposed. Look if we could tell you what the market will do in the next couple of years we would all be jumping into our giant pile of money like Scrooge McDuck.

You know your life plan and the time frame associated with those events. Based on that you make the best decision you know how for yourself and your family. After that life happens and you go along for the ride.
0 votes Thank Flag Link Tue Jun 24, 2008
KGordon,

After reading the question and preparing to write my response, I read through the other responses and I couldn't have said it any better than Jeffrey. I never got a chance to read your first question but seeing Jeffrey's response I am assuming you are interested in the North End of Bloomfield. The North and South ends of Bloomfield are two totally different areas and should not be be comp'd together. I don't only sell the community, those are my roots and my family still lives there too. I am fully familiar with the entire town of Bloomfield, including but not limited to the entire Bloomfield market. As in many towns, Bloomfield has a lot of good buys on the market that are not distressed houses, foreclosures or short sales. Again, just as in Essex Fells, Fairfield, and many other towns, Bloomfield has its share of pre-foreclosures, foreclosures, and short sales but that doesn't mean it's a mistake buying in the town. We have no idea what forced some these homeowners into their unfortunate situation. Keep in mind that towns that have rail and public transit to NYC should hold better value than other towns which do not.

If you are looking for an area specialist and interviewing agents in the area, please contact me I'd love to work with you finding your new home.

Good Luck.

Gina Chirico, Sales Associate/Realtor
Prudential NJ Properties
973-715-1158 cell
973-239-7700 ext 132
GinaChirico@PruNewJersey.com
0 votes Thank Flag Link Mon Jun 23, 2008
Just FYI there is a foreclosure in Essex Fells. See the link below.
0 votes Thank Flag Link Mon Jun 23, 2008
With all due respect Christine you have no idea what you are talking about. Thanks for pulling the first 200 homes returned by the GSMLS but since there are 286 properties for sale in the MLS you missed the mark. It would be better to run the report for area statistics for by town,bedroom month to date. Even then what KG needs is for someone who knows Bloomfield and not Hillsboro as KG is looking in 2 specific neighborhoods in town. How about the FSBO's can you could let him know where some of those are located and which ones are willing to work with agents?

KG needs to commit to a Realtor who knows the area and be loyal to that agent.

Matthew did you not get the memo... people are reading the just released report from The Joint Center for Housing Studies (Harvard University) titled, “The State of the Nation’s Housing 2008”. Here is an excerpt...
"Housing markets contracted for a second straight year in 2007. The national median single-family home price fell in nominal terms for the first time in 40 years of recordkeeping, leaving several million homeowners with properties worth less than their mortgages."

That can be scary when you are looking to buy if you don't have the fact. There is one that just came on last weekend that will probably have 8 offers. Some people have to buy and do see value.

AGAIN KG NEED TO WORK WITH SOMEONE WHO KNOWS THE AREA and can explain where there is value.
0 votes Thank Flag Link Mon Jun 23, 2008
I wouldn't say it won't come up in value and is a mistake - it just might not have as much of an increase as other areas. As Jeffrey explained, there are areas in and around Bloomfield that are going up for sale and selling. It's hard to predict exactly how it will differ due to the uncertainty of the market and when you plan on reselling or refinancing.
0 votes Thank Flag Link Mon Jun 23, 2008
Its depends which part of bloomfield we are talking about right now they consider all of of essex county a depressed market, but you don't see homes in Essex Fells going into foreclosure, its kind of a broad term yes there are good pockets and bad pockets, but from the report's I have been reading lately we are going to be looking at an upswing towards the end of the year and up from there, at least that is what they are predicting.
0 votes Thank Flag Link Mon Jun 23, 2008
Why did you delete your original question? I put together a thoughtful answer and then poof it was gone. Anyway the lender decides what areas are declining market areas and will finance less of the purchase price. I had a situation where a buyer for one of my listings was approved through Chase. They would only finance 90% of the loan initially but if an area is deemed a declining market area then they would only finance 85% of the purchase price essentially requiring they buyer to put 15% down. I have a mortgage guy at Chase and he said that almost everywhere in NJ is defined as a declining market area by them, not just Bloomfield. Have you spoken to a couple of lenders?

KG your agent should have explained to you that there is value in towns located along the midtown direct line. There are still lots of buyers that have rented or purchased in the city and now are looking for a place in the 'burbs as it were. Some are priced out of some of the other towns like Montclair which is looking at a possible 7% tax increase and/or cuts to services 1 year after the reassesment. Things are still selling that are priced right and yes still getting multiple offers in some cases...including Bloomfield.

You need the agent to specifically pull the numbers for the Brookdale and Oakview sections and not the whole town based on the area you are looking in. Did you every see the one on Whittle or Hawthorne?
0 votes Thank Flag Link Mon Jun 23, 2008
So does this mean if we buy there we are making a mistake and our property won't come up in value?
0 votes Thank Flag Link Mon Jun 23, 2008
The average price for properties currently available in Bloomfield is approximately $325,000. The range in pricing is from $123,000 - $449,000. Remember there are several properties that are in foreclosure (bank owned) and short sales (require bank approval) which are all included in these numbers.

Distressed typically is used to describe an area where there's a widespread unemployment and poverty compared to the state averages. Are you looking only in Bloomfield? There are many affordable opportunities in "northern" New Jersey outside Bloomfield. Let me know if you'd like more information!

Christine Markow
ERA Statewide Realty
Office: (908) 874-7797, ext 519
Cell: (908) 444-3106
Mailto:christine.markow@era.com
0 votes Thank Flag Link Mon Jun 23, 2008
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