Spring Lake “Extreme” Over Supply
Today’s Wall Street Journal had an article about the national housing market. In summary, the article pointed out that “hot” markets like Boston and San Diego are cooling and that “cool” markets like Dallas and Atlanta are heating up. The article also made this reference to New Jersey, and specifically Spring Lake. I don’t have a link.
Snip…
“In New Jersey, a market highly dependent on people who commute to other states, prices are likely to be flat to slightly higher this year, down from the double-digit pace of recent years, says Jeffrey G. Otteau, president of Otteau Appraisal Group in East Brunswick, N.J. Next year, he thinks prices could fall 5% or so in the state.
"We think that we're going to be in a flat holding pattern for the next several years," Mr. Otteau says, though at the top end of the market, there is "an extreme oversupply" of houses. In Spring Lake, N.J., known for expensive homes, there is a three-year supply of homes at the current rate of sales, and Upper Saddle River has a 21-month supply, Mr. Otteau estimates. He blames the state's loss of high-paying jobs in such industries as telecommunications and pharmaceuticals.
Snip…
“In New Jersey, a market highly dependent on people who commute to other states, prices are likely to be flat to slightly higher this year, down from the double-digit pace of recent years, says Jeffrey G. Otteau, president of Otteau Appraisal Group in East Brunswick, N.J. Next year, he thinks prices could fall 5% or so in the state.
"We think that we're going to be in a flat holding pattern for the next several years," Mr. Otteau says, though at the top end of the market, there is "an extreme oversupply" of houses. In Spring Lake, N.J., known for expensive homes, there is a three-year supply of homes at the current rate of sales, and Upper Saddle River has a 21-month supply, Mr. Otteau estimates. He blames the state's loss of high-paying jobs in such industries as telecommunications and pharmaceuticals.
posted by Little_Silvered at 7:30 PM
5 Comments:
Spring Lake, Sea Girt and Brielle and Manasquan all have out priced and over supply of homes. They are all in the same price range and just sitting.
In Ocean County there are some towns trying to hit that elite town pricing. Point Pleasant Beach is a tourist spot with tons of traffic and transients. There are some sellers that feel they can fetch the same price as Spring Lake!
This market is crazy and it is best to wait to see where things are headed.
Just some thoughts on Monmouth County compared to other markets
Keep in mind that there are a lot of things that could play a role in these stats from different regions, but I find them interesting nonetheless:
San Diego MLS inventory is up 27 percent since the start of the year. Monmouth County is up 39 percent.
The ratio of properties for sale to population nationwide seems to be on the order of 1/140. Monmouth County - 1/90.
There are something like 443 homes listed for sale for $1M or more in the state of Maine. There are 779 (last week) for sale in Monmouth County.
I really don't put to thought into supply build up the real concern is how many of thoes listings MUST sell..how many people put up there house for sale to test the market ..."If we sell then we'll move "..to me it just looks like people are trying to capture a hot market .With very little price reductions this proves the point .However home builders MUST sell homes to profit ,there I see a concern of overbuilding ........
three years, unbelievable. i wonder what it is in belmar. all i see are forsale signs there. it will be interesting to see what happens when the bubble really starts to deflate.
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