Property Q&A in Chesterfield>Question Details

Chesterfield, Both Buyer and Seller in Chesterfield, NJ

How much more prices can depreciate in Chesterfield NJ?

Asked by Chesterfield, Chesterfield, NJ Mon Dec 7, 2009

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I wish I could say I’m optimistic, but I think its going to be more of the same for 2010. Several sources are predicting increased foreclosures, a second wave so to speak. There has been a big push to avoid adding to the foreclosure pile by using the “making home affordable” program to modify loans so lenders have built a dam that temporarily slowed the number of foreclosures, but the prediction is that as lenders sort through those applications many will not qualify. Also because there are so many short sales now and the lenders can’t keep up, I’m expecting to see more defaults as those properties fall into full on foreclosure. In some places this temporary dam has stabilized home prices or caused them tick up slightly, but overall its still strongly a buyers market and I think prices will continue to slip a little. (how much of course, I agree with the other agents, is impossible to say) I think the tax credit will keep things moving at least until April, but after that who knows. Also there’s some speculation that interest rates which the fed has been holding down artificially will start to go back up (predictions range from march to august 2010 on when this might start but it coincides with whenever they stop buying mortgage-backed securities as they try to stabilize the market).

I wish you the best of luck - feel free to call me with any questions.

Joseph Mancini
AVALAR Atlantic Properties
mobile: 856.275.6433
fax: 856.879.2024
0 votes Thank Flag Link Mon Dec 7, 2009
Dear Chesterfied Buyer and Seller,

As long as your homes in your area are in competition with short sales and foreclosures, values will continue to decline until this inventory is dealt with. Banks are getting better at managing these distressed sales, so we would hope this trend will correct itself sooner than later. I completely agree with the previous post - sit down with a real estate agent and evaluate the trends in your area over the past year. This will give you insight into how quickly prices are still declining in your area, or if depreciation has decreased in your area.

As you conduct your research, keep in mind the real estate market is unique to each area. Good luck and if I can be of any further assistance, please let me know.

Jessica Nooney
Weichert Realtors
(609) 276-8183 (cell)
0 votes Thank Flag Link Mon Dec 7, 2009
Sorry but there is no real way of determining that. Prices go down based on available and the sellers motivation. Distress sales and bank reos add to values going down. What can be determined is the history of sold homes. By looking at what has actually sold in the last two years one can look at a trend or pattern. From that pattern you can see whether prices has actually stabilized or is continuing to dip.

Jeremy S. Hill, Realtor Associate,
Keller Williams Realty
Office: 856.685.1651
Direct: 609.876.5817
Fax: 609.482.8235
Licensed PA, NJ
"Your Interest 1st Always"
0 votes Thank Flag Link Mon Dec 7, 2009
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