Monday, June 26, 2006

Realtor Says 10%

I visited a few open houses over the weekend. Prices on some houses are definitely starting to drop but, in my opinion, it won’t be until next spring at the earliest that I would consider putting a bid on a house. In any event, I asked a Realtor at one of the open houses I attended this weekend how far prices had dropped since last summer. The Realtor guesstimated that prices in many towns were about 10% lower than last year’s peak, which sounds about right to me.

8 Comments:

Anonymous Anonymous said...

Unfortunately, realtors and sellers seem to be in serious denial about what is going on in today's market. I'm noticing the same houses being advertised week after week in the Sunday Press at the same prices. Realtors are spending a lot of money advertising houses that are not selling. Sooner or later they will have to convince sellers to reduce their asking prices - not going to be pretty. I'm waiting until at least next summer to buy.

Monday, June 26, 2006 7:59:00 PM  
Anonymous Anonymous said...

I'm very surprised that a realtor in this market would acknowledge such a decline.I bet there were no sellers around.

Monday, June 26, 2006 9:10:00 PM  
Anonymous Anonymous said...

I had 2 realtors in Rumson admit the market is slow and that both owners had another house under contract contingent on selling their house. The one realtor admitted that lending standards have been way too easy.

Price reductions of 15% on each house.

Ray

Tuesday, June 27, 2006 5:57:00 AM  
Anonymous Anonymous said...

wait for prices to come 40% off their highs.. prices are coming down now due to reduced speculation. prices will come down further when economic activity slows in late 06/early 07.

Tuesday, June 27, 2006 6:59:00 AM  
Anonymous TONY Di said...

The really Great thing about a bubble is when it BURST..there is nothing left ,so when prices go to zip then you know it popped

Tuesday, June 27, 2006 10:03:00 AM  
Blogger njcoast said...

Tony di- when the bubble bursts many people will have less than nothing when they are upside down with their interest only neg-am loans. They will have to bring money to the closing if they have to sell. I know first hand-when I bought our beachfront house in 1982 the owner had to pony up money at the closing to the bank. Real estate does not always go up even at the shore!

Tuesday, June 27, 2006 11:07:00 AM  
Anonymous Anonymous said...

A bit off topic, but related to real estate taxes. This story just blows my mind.

http://www.nj.com/news/ledger/index.ssf?/base/news-7/1151217464262020.xml&coll=1

Tuesday, June 27, 2006 12:32:00 PM  
Blogger NJRealtor said...

Prices will drop a bit but its a natural cycle, usually a 10 year cycle. The fed will not raise too much more. Buyers thought 6.75 (current rates) to be a sweet deal about 3-4 years ago, they have gotten spoiled with 5-6% the past 2 years. Historically the current rate is still great. The problem is that prices outpaced what people could comfortably afford so they bought more than they could afford because they needed a house. Some did this by alternative loans that made their payment less hoping that their salaries would increase to catch up to the payment that was larger than they were comfortable with. Bottom line, houses are too expensive and need to drop a bit to bring buyers back...but on the reverse side rates are still good and the buyers have the worry of rates going to 8-9%...double edged sword I suppose.

Tuesday, July 25, 2006 4:00:00 PM  

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