"This is not a market that is going to collapse,"
Snip...
[Media reports nationwide are warning of a potential real estate collapse, but county and state experts say those reports are not representative of what the facts show.
"This is not a market that is going to collapse," said Jeffrey Otteau, president of the New Jersey-based Otteau Appraisal Group, which did a study comparing this year's real estate trends with last year's and presented it to The New Jersey Homebuilders Association last week. "This is not a time to stop buying. It's a time to negotiate a little tougher and take advantage of (61/2 percent) interest rates that will surely be increasing."
New Jersey's most recent real estate market collapse occurred in 1989 when three factors created a so-called perfect storm, Otteau said. Homes were becoming less affordable, New Jersey builders overdeveloped at a rate of 50,000 new homes per year and the economy slipped, resulting in widespread job loss.]
posted by Little_Silvered at 9:23 PM
15 Comments:
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Otteau said a 1 percent increase in mortgage rates reduces a person's buying power by 8 percent......No, it should reduce the asking price of the house. The market is not strong enough to command these prices any longer.
In order for the market to collaps people "must"have to sell ...layoffs,cannot afford to maintain the house ....people will not sell just to sell or perhaps move up .there will be no price movement untill this occurs
HOV misses earnings forecast
We have vacationed on Long Beach Island for years, and real estate prices have reached insanity. Little two bedroom capes fetching $1 million? Reality is about to hit these people, mostly idiots from New York City who think that $1 million for a one bedroom condo is OK, so how about a whole house on the beach?! This market is going to fall 50% from the peak, and the only ones that will be OK are the long time owners. God help the rest of these people.
that sounds more like wishful thinking than reality
Anon 7:04:
Anon 6:31 may be a little extreme, but certainly vacation/second home dominated areas are more prone to problems. By definition these properties are a luxury, and are the first things to be cut when someone's is in financial duress.
You shouldn't put a limit to how much downdraft is possible.
Tell that to the 3800 people at Ameriquest who just got laid off...
http://money.cnn.com/2006/05/02/news/companies/ameriquest/index.htm
credits to Grim at NNJBubble blog...
I had my house up for sale for 4 months. Not one person came to look at it. Big house completely renovated, corner lot next to protected woods with the bay and a community beach up the street. Not 1 person. Curb Appeal to the max. 4 bed 2 bath sidewalks.Priced right in where everyone else was and then I lowered it by 10k, still no one, 3 weeks later I lowered it another 10k, 8 open houses no one comes. I waited and waited and still same answer no one. I took the house off the market and will wait till everything settles down and things are clearer. I'll probably have to stay another 10 yrs. I waited too long. Should have sold last year.
We have noticed that shore properties are not only not moving, but the RENTALS are not moving. If this isn't a sign that the market is starting to crack, I don't know what is.
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