Hitting Resistance at the Shore
Individuals and brokers throughout the area, speaking on condition of anonymity, and advising SyMall.com of serious decreases in asking prices of homes for sale, as well as a substantial increase in the amount of homes for sale, and the amount of time some of these homes are remaining on the market as unsold.”
posted by Little_Silvered at 6:08 PM
17 Comments:
This blog seems very biased towards the existance of a bubble, and its impending burst... If you are residents of the area it would seem that you would encouage high real estate prices. This area, (Monmouth County) is very special.. I live in allenhurst, my parents bought our house for less than 200k in the late 70s...today it is worth millions. I hope the bubble never bursts, and if it does, I dont think it will be as catastrophic as you all are claiming it to be..
Well my friend, I won't buy your house in Allenhurst for millions and if it means that I rent it for 20K a year, so be it.
Every place is "special." (in fact use of that obvious cliche makes the above post look like a troll)
Anyway, the shore got whooped in the last downturn. There's no reason it can't get whooped again.
It just seems to me that this entire blog has all the charm of a nascar racing event... spectators waiting to see a crash. I wonder how many of you have degrees in finance or any real estate experience. of course everyone is entitled to their opinions...there are as many experts who say there is a bubble as those who say there is not.
And, yes there are houses all over the country which are overpriced, and sit for a long time on the market, but I there are exceptions.
In allenhurst, where one of the commentors said he would rent my house for 20k a year. Just last week a neighbor was offered 4 million, the house was not even for sale. Furthermore, the house resold
for more a week later. I never said
my house was for sale, thanks anyway though
No not flying off the shelf at all, but...There will always be properties which will retain their value. I dont doubt that you all make valid points, there are properties which are way overpriced in allenhurst, but there are some that are not..I think you will find that these properties rarely change hands. I do not mean to say that there is no price inefficiency in the area, but an imminent catastrophe?
Lets not forget that the people who are buying these houses as second homes, most likely are not too worried about interest rates. Either way, I think we can both hope that the Jersey Shore continues to be a great place to live for everyone...no matter what happens with real estate prices. And if you are like my family, which i surmise you are, we are here because we love it, not to make a quick buck!
Are you basing your opinion of the market on one sale?
Even if we take your anecdote at face value, even if one house did sell quickly, there are plenty more that languish on the market.
There's this one empty waterfront house in rumson that has sat for over a year. Even with price reductions, it still sits.
I have read, and I personally know
many of his investors. I know the Syrian Community quite well, and for every syrian investor involved with Dwek there are 100 who have absolutely nothing to do with his business. My comment before was directed to the gentleman or gentlewoman who commented on renting my house for 20,000 dollars. I guess we will have to see what happens, the truth is noone can predict the market. Anyway, I enjoyed our debate, and hope to talk to you when the next scandal comes out..hahaha. Enjoy this beautiful weekend. And in fact I think I will go to the beach right now!!!
"Anonymous said...
It just seems to me that this entire blog has all the charm of a nascar racing event... spectators waiting to see a crash. I wonder how many of you have degrees in finance or any real estate experience."
I have an MBA in finance and accounting from the University of Chicago.
thanks for the advice njcoast...I have a few years before i am at that stage ...but i will definetly keep reading....!!!!!
Currently working on my second Masters degree. MBA with a double concentration, Economics and Finance. Next step will likely be a Doctorate in Economics..
grim
Northern NJ Real Estate Bubble
http://nnjbubble.blogspot.com
why do many of us want the real estate bubble at the shore to crash? because like me, some of us missed the boat and didn't buy way back when so, we are a bit bitter. but, most importantly, because we love the life style of the jersey shore and we want to preserve that. we love the honky tonk and rock 'n' roll grungy shore. that part of it is somewhat disapearing. community and fun. that is what the jersey shore is all about. if you tear down an arcade or a club and replace them with mcmansions and "luxury condos" it just isolates people and takes away from the fun and the community. yes, i hope that the real estate market at the shore does crash. i can't stand the mcmansions and condos. they turn fun places into boring ghost towns!
rbyzell said the above and i'm proud of it!
It just seems to me that this entire blog has all the charm of a nascar racing event... spectators waiting to see a crash. I wonder how many of you have degrees in finance or any real estate experience.
Well, 15 years experience working on Wall Street. Only 1 year or so RE experience (built the infrastructure for a major investment bank's mortgage conduit business, and that's why I read this blog.)
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Yes, I do have a masters degree in finance and my husband is a MBA, CPA and a CFP...gee feeling like I have to qualify to comment...and yes I would like to see a drop because we have been waiting to buy in for a few years now...OK now that you all know where I stand...
1% Fed Rate has never been seen before this recent past...now that the rate is back to 5% you would be INSANE not to believe the housing pricing will decrease. Shore real estate will always be worth a lot of money and will always be sought after - but 2 br cottages for $900,000 - those days are gone for now.
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I can tell you for a fact that many of the sale prices that are printed in the newspapers are often way below actual transaction prices. An Deal-Allenhurst area homeowener got $4,000,000 for their house last year. But, the newpaper and the tax board recorded a transaction somewhere around $2,500,000.
In other words, about $1,500,000 essentially went from one pocket to the next, and nobody was taxed. This is just something to keep in mind, as things recorded by the tax board do not tell the full story about the real estate market, especially when high transaction prices are involved.
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