Are prices of Single Family homes in North Edison ( Wood brook corners) likely to go down further ?

Asked by SN, Edison, NJ Sat Mar 27, 2010

I am looking to offer on a single family home in this area. It appears there are a lot of attached homes in this community with not much recent sales. Would like to know if prices would go down further in this area ? In one of the Money magazine reports it is said that Edison would go down by 9% this year.

Thanks for your responses in advance,

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10
Catherine "C…, Agent, Metuchen, NJ
Thu Apr 15, 2010
Hi SN,

As other folks have mentioned, North Edison (08820) has been behaving differently than other parts of Edison (08817 and 08837). So whichever national source you are looking at, as always it will likely not take into consideration hyper local facts.

I do not know if prices will go down in that specific area because I do not know what the future hold...
Usually when my clients ask me this question (it is a very valid question from a buyer's perspective) I try to stick to the facts and understand their purpose for buying. Meaning if you are looking to buy a property to flip it in few months or if you know you will need to move in the very short future then the answer might be more complex. However if you can afford the loan and intend to live there for the foreseeable future and you are looking at improving your life then the answer becomes very easy...

I hope it helps…..
0 votes
Mary Petti, Agent, Edison, NJ
Mon Mar 29, 2010
@Dan and Jerry

While I appreciate your comments, this question was VERY specific to a particular development in Edison. Unless you are famiiar with this developments dynamics, and North Edison as a whole, I would suggest that the "rules" will not necessarily apply as much as some other areas.
0 votes
Sak, Both Buyer And Seller, 08830
Mon Mar 29, 2010
If you ask me about Edsion as a whole, I will say "may be" "may be not" who knows !

But North Edison specifically - I don't think so.
0 votes
Jerry Barker, Agent, Atlantic City, NJ
Mon Mar 29, 2010
Unfortunately, there are an excessive number of factors coming into play this year that will force the market to decline. Outlined below are some of the most significant.

1. Tighter Lending Standards through out the Fiancial Industry
2. No More Gevernent Tax Credits after April
3. The Governement stops buying MBS after april, forcing Mortgage rates to rise, just in time for number four on my list.
4. Four more waves of adjustable rate mortgages are resetting this years whcih will force a ton of new forclosures into a real estate market that already predominantly bank owed.

Complete details on the above items listed and also reasons why values may decline for the next ten years can be viewed online in an article title "My 2010 Real Estate Outlook" which was published at Suite101.com. Click the link in the web reference below to view
0 votes
Dan Chase, Home Buyer, Texas City, TX
Sun Mar 28, 2010
Look below, I would bet on prices dropping more.
http://www.housingpredictor.com/newjersey.html
Vast numbers of New Jersey residents fleeing the state as a result of rising job losses and one of the highest two tax bases in the country is projected to delay any come back in the housing market through the year. However, home sales are expected to rise as the states housing markets move towards stabilizing.

No one will know for 100% sure what will happen until next year when we can look back. The trend is not your friend in house prices.

Consider that the free $8k is going away. More importantly interest rates will rise. When interest rates go from 5% to 7% buying power drops by 23.9%. That means a mortgage for $200k suddenly becomes a mortgage for $152k at the same payment. What will house prices do to accommodate the drop in buying power? What if you are talking about a $400k mortgage turning into a $304k mortgage. Talk about a reason for further price declines, I mean wow!
0 votes
Vishal Maher…, , New Jersey
Sun Mar 28, 2010
Dear SN,

It is definately hard to predict the market. However, to my understanding areas such as North Edison will always stay hot. Just a perfect example as of Today, Sunday, March 28, 2010, I was in an Open House in North Edison waiting for my Buyer for about 15 minutes and noticed that there were over 8 families visited the house within 15 minutes. This shows that there is tremendous amount of demand in North Edison. I see very low chances of this type of demand in North Edison. I only believe in one thing. " If there is a demand, prices will still hold".
For further questions, contact me at my cell# 732-277-9321.

Thanks,
Vishal Maher
Richa Realty
0 votes
Roxana Wojda…, , Bergen County, NJ
Sun Mar 28, 2010
check out the link below or copy and paste in your browser.

http://www.trulia.com/real_estate/Edison-New_Jersey/
0 votes
Mary Petti, Agent, Edison, NJ
Sun Mar 28, 2010
SN,

Dev is right we cannot predict anything but I can tell you that Woodbrook corners is a terrific development. Usually once people move there they stay a while, hence the fewer resales in relation to the surrounding area. (I used to live ther myself on Stonewall Drive in one of those detached homes. Bought when it was being built and stayed 14 years)
Also, there are very few detached homes in the development, and when they come on the market then tend to sell fast.
I also just rerurned from a seminar on housing by a prominent Real Estate research group (the Otteau Group...Google them). Their information regarding the past years performance and future prediction for Middlesex County was quite favorable on both counts.
There was however a prediction, (which is shared by many others in finance) that, as soon as the April 30th deadline for the federal tax credit ends, along with the March 31st cut off for the Federal Reserve to stop buying mortgage back securities, interest rates will start to creep up again. For every 1% increase in mortgage interest rate, the amount you can afford decreases by 9-10%.
SO if you plan on staying in the home for a while, (and I know the house you are speaking of), take advantage of the historically low interest rates and buy the house. just make sure you get your agent (if you have one) to do a market analysis and make a fair offer price based on that.
0 votes
Roxana Wojda…, , Bergen County, NJ
Sun Mar 28, 2010
Hi SN,

Like Dev mentioned below, there is no way to predict the housing market, however prices might go down if there are a lot of short sales in the area, but I noticed the market of regular homes becoming more steady. Also the fact that right now there is a lot of buyers out there might make prices go slightly up. Honestly the time to buy is right now when theres still a lot inventory at great prices.

I'm currently working with a couple of buyers in the Edison area and I would love to show you the great homes we have there.
Please e-mail me or call me

Roxanne Wojdalski
REALTOR Associate
cell 732-910-5835
office 973-772-9404
e-mail roxanne.wojdalski@century21.com
0 votes
Dev, , Princeton, AL
Sun Mar 28, 2010
Nobody can predict Exactly what's going to happen tomorrow. Housing market depends on economy,jobs etc.. It can either go up or down depending on the market condition.
If you need I can send you the past sales prices in that community , give me a call or email me

regards
Devkumar
Keller Williams
732-322-7255
dev@devrealtor.com
Web Reference:  http://Www.devrealtor.com
0 votes
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