Asbury Park Press Opinion Piece
"Anyone who has had trouble selling their house in recent months, trying to decide whether to drop the price or take the house off the market, may have been surprised to read that third-quarter median housing prices in the region that includes Monmouth and Ocean counties were up 7.3 over the same quarter a year ago.
What about the real estate bubble? What about all the unsold inventory? What about all the homes that have been sitting on the market for months without drawing any serious offers?
The explanation, it seems, is that the median price was pushed up by the tepid demand for homes in the moderate price range. Demand has remained stronger for high-end real estate."
Full Opinion...
posted by Little_Silvered at 6:10 PM
11 Comments:
My brother-in-law lives in a beautiful Seabright waterfront townhome year-round with his family. He told me that higher priced homes with a water view will not go down in price. Unless interest rates go way up, he may be right. I'm not surprised the median price is up.
I guess your brother-law is correct (since he is an expert in real estate because he lives in a beautiful Sea bright waterfront townhouse he can also predict the future.)
If you ask me (I’m an expert too) This whole article sounds like typical real estate rhetoric.
Oh by the way main street Spring Lake is a big Zero with all the obnoxious monopolizing redundant real estate stores! If it’s such a great place to live than why the hell does it seem like a revolving door?
A rise in median home price means nothing. This could simply mean that higher end homes are coming down in price. A previous article stated that "The average sale price was $486,521, up from $466,878 for the same period last year." That could mean that $600k+ homes are now selling for $486,521 when last year $350k homes were selling for $466,878. When it comes to this type of rhetoric, you
need to read between the lines. The truth is that builders are beginning to auction off properties
to get rid of them and in other cases decreasing prices and offering nice incentives. A new adult community in wall was initially offered at $500+, now selling for $335,000. In Seaside Heights, a new condo complex who's builder was asking for $500+ a unit, has recently auctioned off those units in the mid 300's to get rid of them.
Builders are getting scared and so
are the speculative buyers.
BE CAREFUL when analyzing auction results. I've been following some of the 'auctions' in the Wildwoods and it sounds like there more or less a sales gimmick. Most of the auctions are with reserve which means if they don't get their price, there's no sale OR there's only ONE at the minumum bid price, in the hopes that a bidding war or post auction orders from 'emotiionally attached' buyers occurs. Have seen very little evidence of anything actually selling.
You got to love this "Unless interest rates go way up" crap!
As if price doesn't matter.
Sorry but, we're not all morons!
Does Seabright's brother in law remember 1987? I bet not.
Adjustables are about to re-set.
Two years ago, Jack and Jill bought their SFH with an ajdustable first and an interest only second. Jack and Jane bought with virtually no equity in their SFH. Jack and Jane do not remember 1987 and are about to tumble down the hill.
Two years ago, Harry and Sally bought their shore second. Because prices never go down and they did not want to tie up much cash in the shore house, they financed virtually the entire purchase with a home equity on their SFH and an exotic on the vacation house. When the HELOC and the exotic re-set, they are going to join Jack and Jill and tumble down the same hill.
My Seabright brother-in-law does remember '87 because he bought dirt cheap during early 90s.
Intrest rates have peaked Bernanke made that point today in his speech he also said that there are signs that the demand for homes is stabilizing, which should also stabilize prices as well.I guess he hasen't seen the latest report that shore prices are still moving up.
If he remembers '87 when prices plummeted for "higher priced homes with a waterview" how can you give his statement any validity? What is to prevent that from happening again?
I had the same thought. How could Sea Bright brother-in-law make such a ridiculous statement about prices not going down. He himself was a beneficiary of the last market downturn. Something is not right here.
Perhaps my Sea Bright brother-in-law is just wishful thinking on his retirement. I know someone else who paid a $1,000,000 in Sept. for an Avalon dune front,remodeled two- bedroom condo. The funny thing is, he made the agreement of sale a year ago and he didn't even try to renegotiate the price. He feels confident that Avalon will hold. I think the question is will some shore towns hold their value?
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