Market Conditions in Newark>Question Details

Victor Kamin…, Real Estate Pro in Edison, NJ

Does this mean we may be near the bottom as far as pricing goes?

Asked by Victor Kaminski, Edison, NJ Sat Jun 28, 2008

With a lot of so called "Experts" on this site bashing realtors advice at every turn, let's see what kind of great advice or opinion they have on this topic. PLEASE NO QUOTING STOCK MARKET data, CASE SHILLER INDEXES or HEDGE FUND DATA PLEASE!!!! Speculation is causing enough problems in our Gas & Energy Pricing already.

I've been seeing more and more the banks refusing offers for short sales and coming back with much higher counter offers causing deals to die. What do you suppose the motive is behind this? I mainly see this problem with countrywide but others as well. Does this mean we may be near the bottom as far as pricing goes? Foreclosures are another topic entirely so please stick to the question at hand when answering.

I realize market conditions vary greatly because "The Market" is a LOCAL topic, despite what the stock and hedge fund guys may tell you. This question is primarily targeted toward the New Jersey market(s), because NJ cannot be considered ONE market itself.

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Answers

3
Appraisers are coming in low except when they are sent out by the bank for a short sale, then I'm noticing they are coming in too high! Yikes, Go Figure!
0 votes Thank Flag Link Sat Jun 28, 2008
Victor,
I for one dont think the tumble is over. I expect another year or more of decline, I look at the rental market and until it becomes better to buy than rent, rental prices will continue to rise(I have seen a marked increase) and sales prices decline. When the market took off it was cheaper to buy than rent due to the record low rates. Prices escalated far greater than people's income. In addition the costs of oil were a little more stable. Now with record heating, utility and food costs as well as creeping interest rates I fear real estate will continue to drop.
As to your observation re the bankwhen they are selling, perhaps they are following the same path as other sellers who just dont get it. Funny that at the same time I am seeing appraisers really coming in with low numbers reflecting not just current sales but expectations of further decline. Still, as Jeanne said, properly priced homes will sell( I put 3 listings under contract in the past few weeks).
0 votes Thank Flag Link Sat Jun 28, 2008
Hi Victor, very interesting observations that you share here. I surely am hoping that the bottom is here or near, and while my experience with short sales is limited, I think that the inference you are making is worth noting. I do most of my work in Somerset County - the general buzz is that banks are looking for very close to the list price on short sales. Does that jive with what you are seeing in terms of response.

Also, on just regular transactions, I'm seeing homes sell for between 1-5% of their list, when the price is right, be that right out of the gate or after several price reductions. Just happened with one of my own listings - sellers listened and priced at about $690K, and we went under contract quickly at 1% below that. We've got many examples in our office of homes once they hit their proper strike price, moving quickly in that 1-5% margin.

I think we are there or very, very near the bottom. Sharing our observations and experiences is helpful as we all grapple with getting our arms around this market.

Thanks for posting this question. I look forward to the dialogue!

Best,
Jeannie Feenick
Weichert Realtors
http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sat Jun 28, 2008
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