How low prices in edison will go down further? Its down by more than 11% fromLAST YEAR.

Asked by Yog, Edison, NJ Thu May 14, 2009

From NAR:

http://www.realtor.org/wps/wcm/connect/882586804e108aadb922f…

Year over Year Single Family Price Changes (By MSA)
United States -13.8% (for reference)
Northeastern US -15.9% (for reference)
Allentown-Bethlehem-Easton, PA-NJ -8.0%
Atlantic City, NJ -21.0%
New York-Northern New Jersey-Long Island, NY-NJ-PA -16.0%
New York-Wayne-White Plains, NY-NJ -12.8%
NY: Edison, NJ -11.3%
NY: Nassau-Suffolk, NY -18.6%
NY: Newark-Union, NJ-PA -12.5%
Philadelphia-Camden-Wilmington, PA-NJ-DE-ME -6.7%
Trenton-Ewing, NJ -12.4%

(From NJReport dot com)

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10
Mary Petti, Agent, Edison, NJ
Fri May 15, 2009
Yog,
Just to let you know the statistics that are compiled certain metropolitan areas are compiled from a definied area set by the Office of Management and Budget (OMB) of the US Census Bureau. According to the OMB the area defined as "Edison" included the following (this is directly from their site):

35620 New York-Northern New Jersey-Long Island, NY-NJ-PA Metropolitan Statistical Area
35620 20764 Edison, NJ Metropolitan Division
35620 20764 34023 Middlesex County, NJ
35620 20764 34025 Monmouth County, NJ
35620 20764 34029 Ocean County, NJ
35620 20764 34035 Somerset County, NJ

So the stats don't just reflect Edison NJ, but the Edison "metropolitan area" as defined by the census bureau.

We keep talking about the Edison market so here's the stats from the Middlesex County MLS for years 2004 through 2008 (January 1 thru December 31) Average sales price:

2004 $378000
2005 $441163
2006 $462441
2007 $452057
2008 $432000
YDT 2009 $384,000.
The increase from 2004 to the peak in 2006 was a whopping 22% increase !! But the good news it that as of April 2009, we are actually now 2% above the 2004 levels. So at least in my mind, the market in Edison has finally stabilized. Each individual area has it's own statistics and they should be looked at on a town by town basis.
2 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Thu May 14, 2009
unfortunately the govt hasnt gone far enough (I cant believe I am saying that but...) With credit card interest rates of 30% or more even with low mortgage rates many are never going to ba able to afford to buy. Credit is being extended but very selectively. There should be a balance between the past where one needed only a pulse and today where stellar is required. I found out my own credit was tarnished by things that shouldnt have been there. While pulling credit reports to correct the inaccuracies, you guessed it, now it has too many enquiries.
I use to think there was something called usery, I use to think loan sharks were somewhat limited to back streets. Now it looks as if they're on wall street.
2 votes
Sak, Both Buyer And Seller, 08830
Fri May 15, 2009
Mary,

what was increase from 2001 to 2004 ? that was also as wopping as 2004 to 2006.

so IMO we are not in stabilization until some of those 2001-2004 gains are wiped out.
1 vote
Kenneth Verb…, Agent, PRINCETON, NJ
Fri May 15, 2009
Yog I was surprised when this very subject was in the news last nite. I am very optimistic that getting control of the sky high credit rates on consumer credit will help the housing market. By limiting peoples exposure (reduced limits ) and controlling the rediculous rates many charge people will have more money available to pay down balances. I see people regularly who spend as much in credit card bills as a mortgage payment would be. It isnt just credit card debt but all consumer credit that should have capped rates. If someone's credit is so poor they dont qualify dont lend them the money, period. The $8K is as far as I am concerned a joke. I am not a first time home buyer, nor are people looking for the second home,transferees, or investors. There are many many people who will not qualify for this. You lightly speak of the tax concern, NJ is driving business and residents out of the state to Delaware and Pa because of the tax oppression here. what I tell most of my clients is that while yes NJ is very expensive to live in, if you can build equity here you will have enough to live almost anywhere else like a king when you retire. To your original post though I believe the market will come back. I just hope it isnt to long away.
1 vote
Jeff Cannell, Home Seller, Edison, NJ
Wed Dec 8, 2010
I think we are at bottom now. Anyone who is looking for a house now in edison or more specifically North Edison should move to purchase right now. It's winter and prices will not go down any further. They are at rock bottom. The interest rates have started to go up slightly on a 30 Year fixed.

Hey, I've just listed my house. Call me if your serious, and are pre-approved for a mortgage. 908.797.7143. I'm also on forsalebyowner. 15 Lavender Dr. Edison.
0 votes
Yog, Home Buyer, Edison, NJ
Fri May 15, 2009
Kenneth,

I agree with you. I hope govt will pass credit card bill by this month end but I guess it will make little impact. What you guys think that govt should do more about this crisis? Govt's 8K credit and low int rate doesn't have as much impact as was expected. People are still worried about their jobs fulfilling mortgage qualification such as 20% down payment making people off the market. And in NJ/NY tax is another concern.
0 votes
Yog, Home Buyer, Edison, NJ
Thu May 14, 2009
Gil,

I agree with you. I think interest rates are so low because of govt intervention. Stabilizing real estate is very important for stabilization of overall economy. People are still losing their jobs and people who still have jobs don't have enough confidence to make big decision like purchase new home or investing in RE. So I think govt will keep interfering with it to keep interest rates low for some more time.
0 votes
Sak, Both Buyer And Seller, 08830
Thu May 14, 2009
That's a good point Kenneth.

I was reading that cheaper than 150 times the monthly rent is good price to buy home. What is your opinion ?
0 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Thu May 14, 2009
Where will the Dow be in another year? I doubt anyone can predict absolutely but what I can say is that prices are still not justified by rental prices. In most cases you can rent the very same home for less than buying it. Once rents go up or prices decline to balance this we will likely see leveling off. It is getting close now.
0 votes
Gil Lopez, , Metuchen, NJ
Thu May 14, 2009
Yog:
If I could predict the future, I would not be working as a REALTOR! If you ask 10 different "experts" you will get 10 different answers. To date I have not seen any evidence that prices have started to stabilize. The rule of thumb is that prices have been declining by 1% per month. When that decline will slow down and stabilize is anyone's guess. The only way that you know you have hit the bottom of any market is usually after the fact.

My guess is that prices will continue to drfit downward for at least the remainder of this year. On the other hand interest rates are much more volatile than home prices and are impossible to predict. Although rates have been rising somewhat from earlier this year, thery are still at relatively low levels. Keep in mind that for every 1% increase in interest rates, that erodes approximately 9% of purchasing power. Another way to say it that is that a 1% increase in interest rates over current levels offsets a further 9% decline in home prices.

If you are ready willing and able to purchase and you do not plan to sell in the near future, go for it as soon as you see a property that meets your needs.

Good Luck
Gil Lopez
Prudential New Jersey Properties
3 Amboy Av
Metuchen NJ 08840
908-510-0639 Cell
732-494-7677 x417 Office
Gil.Lopez@PrudentialNewJersey.com e-mail
Web Reference:  http://GilLopezRealtor.com
0 votes
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