Springtime Brings New Hope in Real Estate Market
Can you believe it May is already here? Springtime in the real estate industry means spring cleaning, home improvments, and open houses. This past wekend we saw the largest weekend for open houses we will see all year as the National Association of Realtors hosted the National Open House Weekend. In Bergen County we saw 811 open houses which is simply unheard of. It turned out to be a great day to host the event as blue skies prevailed making it a great day to travel around looking at homes.
So How is the Market?
We have been very busy lately as more and more buyers and sellers are getting past the winter and looking for real estate deals. Obviously this is a good thing for anyone in the real estate industry but with more buyers and sellers you need to act more quickly to get the deal you want. If you look at homes on the market for $400,000-499,000 you will see that in April 2012 there were 47 homes on the market and they sold in 90 days which is fairly quickly for a "down" market. For those houses that are priced to sell that number will drop dramatically. On the most desireable homes we have even seen bidding wars driving prices above list. This all bodes well for a growing market that desperately needs signs of life.
Re Max agents report good news for a recovery in the market:
"The housing industry is staging a recovery with increasing sales and stabilizing prices, according to a national survey of RE/MAX agents. Four out of five agents believe U.S. home prices won’t decline further. In fact, nearly 70% predict prices will go up, led by a strong demand for homes in the low to middle price ranges."
To get more market data click here
Chris Hansen
10:56 pm on Sunday, May 6, 2012
Mr. Lutz,
You show signs of a superior intelligence on the subject of house prices. I may be doing a one hour segment of that topic for Dateline and perhaps I could have you interviewed as an expert witness. Let's shoot for the Fall after the summer selling season is over. If it is as dismal as you say it's going to be, then you will have the advantage of someone who had called it well enough in advance of the actual selling period. Then you and I should appear to Dateline's educated audience as brilliant, insightful people.
GGT
10:13 am on Monday, May 7, 2012
Jimmy: You are right, in that prices are still falling and will continue to. But that is not dismal, the prices were unsustainable, and that is what got us into the mess we are in, in the first place. Prices will correct to where they are affordable again, for the upcoming young buyers who may be out, you know the ones people claim to care so much about; our children. These young people, are coming out with much lowered job prospects, student loans, and somehow they are expected to pay for sellers still in many cases delusional asking prices, And of course throw in rising property taxes. So yes Chris Hansen prices are not coming back, any reasonable person can see that.
Ryan Gibbons
12:26 pm on Monday, May 7, 2012
I don't believe anyone thinks that prices will rise to the level they were at the height of the market. Those prices were too high and unsustainable. What the quote from ReMax said was that the market is primed for a recovery and stabilized prices. i believe that is in our future as more people enter the market prices will recover. When exactly this will happen is obviously an unknown but there are signs of progress.
From www.Realtor.org:
Lawrence Yun, National Association of Realtors chief economist, said the recovery is in the process of settling into a higher level of home sales. “The recovery is happening though not at a breakout pace, but we have seen nine consecutive months of year-over-year sales increases,” he said. “Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year. With job growth, low interest rates, bargain home prices and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year.”
riveredgetime
2:10 pm on Monday, May 7, 2012
Ryan:
With the inceased taxes in River Edge, do you see an adverse effect on prices?
Ryan Gibbons
2:17 pm on Monday, May 7, 2012
Unfortunately what we are seeing in River Edge with the houses that did see tax increases is that people are hesitant buy. At least with the current reassessment many homes did not go up but the larger/newer homes did go up. Those homes that increased will definitely have a harder time selling resulting in lower resale values. As the reassessment is just hitting the market its is tough to tell how much it will affect the town right now. It is certainly a concern to anyone who has seen a large increase in assessed value.
Gary Rabinowitz
2:21 pm on Monday, May 7, 2012
So Ryan, allow me to recap:
You, a broker, quote the NAR's chief economist (a post occupied by David Lereah, who TIme Magazine put on their list of 25 people responsible for the housing bubble). The NAR economist is based on a (statistically flawed) survey of (biased) realtors (with a very self serving interest in giving loaded answers). Realtor quotes the economist who quotes the realtor -- a circular reference of nothing that you spin into something.
Not to come down hard on you or any realtor, you're just "doing your job" right?, but exercise some caution just in case there's people foolish enough to not only believe but also base a major life decision on what their friendly realtor says.....
GXR
Ryan Gibbons
2:29 pm on Monday, May 7, 2012
I am simply stating an opinion of how I and others in the real estate industry view the future of the market. I agree that the survey of ReMax agents is not the most scientific study ever completed but simply an opinion of people in my company. Will the market rebound this year? Next year? I don't exactly know but its is my belief that it will rebound soon. You are entitled to your opinion and I welcome the discussion. Prices will never get back to the bubble years but I believe that prices will stabilize which along with an economy that will hopefully be on the mend soon the real estate market will return to healthier situation.
Gary Rabinowitz
3:04 pm on Monday, May 7, 2012
@ Ryan Gibbons: yes, in this context, I am sure it's just an opinion. In the context of an expiring offer or full blown negotiation, I hope it remains a humble opinion, and not a talking point in a boiler room sales pressure tactic. Just sayin'.....
THere are many good realtors out there Ryan, I'm not sure if you're one of the good guys or not, but by quoting the successor to David Lereah, one of the most reprehensible faces of the RE debacle (right up there with Angelo Mozillo), optimism and flawed surveying tactics sounds eerily similar to his predecessor, well, that tends to undermine your credibility. Just a thought.......Cheers GXR.
Ryan Gibbons
3:54 pm on Monday, May 7, 2012
Gary, I would like to think that I am one of the good guys!
GGT
1:50 pm on Monday, May 7, 2012
Lawrence Yun is a shill just like his predecessor David Lereah, who admitted when he left the NAR, that he was encouraged, and expected by the NAR to proclaim all is well.No informed home buyer should listen to a word that the NAR, they contributed mightily to the real estate bubble. Before we have buyers come into the market, there needs to be good, stable well paying jobs, for them to be able to afford the house, including the heavy property taxes. We are not in that type of environment. Housing will be dead for years.
Gary Rabinowitz
2:12 pm on Monday, May 7, 2012
@ GGT -- you nailed it. The NAR and all the sycophant realtors who parroted the fraudulent company line played their nefarious part in inducing buyers at the height of the bubble. You're as bad as the shady subprime mortgage brokers and wall st banksters.
Since it's too much to ask that Lereah or any "prices can only go up..." BS artist/realtor suffer civil or criminal consequences for the web of lies they spun from 2004 - 2007, at the very least we ask that you refrain from your bogus puffery. Stop your market predictions and quietly collect vig that RE buyers & sellers are forced to pay. You've done enough damage.....GXR
riveredgetime
2:49 pm on Monday, May 7, 2012
Ryan
What is your expectation on River Edge and Oradell in terms of more houses on the market. Has the busy season already peaked or should we expect many more listings in the next month or two.
Ryan Gibbons
3:53 pm on Monday, May 7, 2012
In River Edge and Oradell we haven't really seen much of an increase in homes on the market. The below info is from NJMLS
Residential homes on the market in River Edge and Oradell:
Feb 28, 12: 98
March 30, 12: 100
April 30, 12: 101
These numbers are lower than last year for the 2 towns so I would hope that we will see an upswing in those numbers in the next 30 days.
DOOMS
12:30 pm on Tuesday, May 8, 2012
Ryan
are you serious. the market is about to tank. taxes 15k for a lot .15 of an acre or less. Schools cutting back. No businesses coming to RE. The market is doomed.
GGT
8:55 am on Thursday, May 10, 2012
The National Association of Realtors released their numbers for the first quarter of 2012, and prices in the NY Metro area are down 6.3%. Anyone who is under contract today, is losing money period. Prices are not done falling in our area, and in River Edge prices will fall even more because of the insane taxes.
Hot Head
7:43 am on Tuesday, May 15, 2012
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Keith Jensen
8:56 am on Tuesday, May 15, 2012
Pleasant article, but what should be loudly broadcasted is not the honkey-dorey housing market of 2012, rather a looming Bill that is destined to disjoint this forecast by Re-Max significantly, lower home values, raise taxes and affect the community in which we live.
http://www.youtube.com/watch?v=EOcBqy2SrKU&feature=youtu.be
An interview to further explain this perspective.
http://nj1015.com/steve-lonegan-talks-about-foreclosure-bill/
Michael Agosta
9:08 am on Tuesday, May 15, 2012
Keith,
Lonegan? Really?