Here to tell the story are:
Robert Shiller, the Yale economist and Irrational Exuberance author, who has indexed U.S. home prices back to 1890; Lawrence Yun, chief economist of the National Association of Realtors; David Lereah, the N.A.R.’s former chief economist, who is now executive vice president of Move, Inc.; Barbara Corcoran, the real estate maven and author; Aviv Nevo, a professor of economics at Northwestern and a co-author of a study about FSBO (for sale by owner) sales versus sales via a realtor; and Amir Korangy, founding editor of the very good New York City real estate publication The Real Deal. Here are their replies:
http://freakonomics.blogs.nytimes.com/2007/08/15/freakonomics-quorum-is-it-time-to-believe-in-the-housing-bubble/
Saturday, August 25, 2007
Friday, August 24, 2007
Weekend Open Discussion
This is the time and place to post observations about your local areas, comments on news stories or the New Jersey housing market, open house reports, etc. If you have any questions you wanted to ask earlier in the week but never posted them up, let’s have them. Also a good place to post suggestions, requests for information, criticism, and praise.
For readers that have never commented, there is a link at the bottom of each message that is typically labelled “[#] Comments“. Go ahead and give that a click, you might be missing out on a world of information you didn’t know about. While you are there, introduce yourselves to everyone.
For new readers that have only read the messages displayed on the main page, take a look through the archives, a substantial amount of information has been put online in the past month. The archives can be accessed by using the links found in the menus on the right hand side of the page.
For readers that have never commented, there is a link at the bottom of each message that is typically labelled “[#] Comments“. Go ahead and give that a click, you might be missing out on a world of information you didn’t know about. While you are there, introduce yourselves to everyone.
For new readers that have only read the messages displayed on the main page, take a look through the archives, a substantial amount of information has been put online in the past month. The archives can be accessed by using the links found in the menus on the right hand side of the page.
Thursday, August 23, 2007
Foreclosures Predicted to Have No Affect on NJ Home Prices
Good, bad news for N.J. housing
Foreclosures shoot up, but total is fairly small
Thursday, August 23, 2007
BY GREG SAITZStar-Ledger Staff
The number of homes foreclosed on by mortgage lenders in New Jersey shot up in July compared with both the previous month and the year-ago period, but the number remains small enough that it shouldn't further weaken the state's sluggish housing market, a real estate expert said.
Otteau called the number of New Jersey foreclosures last month fairly insignificant considering there are about 72,000 homes for sale around the state. Adding 215 more to the total has little, if any, effect on the real estate market, he said.
RealtyTrac's latest data found foreclosure filings for July swelled 93 percent nationwide, to 179,599, compared with July 2006. In New Jersey, filings jumped 52 percent from the previous July.
However, many in the industry question the reliability of those figures, which include filings for various stages in the foreclosure process -- meaning the same property can be counted two or three times.
"That creates a scare, a panic for those in the housing market, because it paints a picture far worse than it really is," Otteau said.
http://tinyurl.com/2cuuby
Foreclosures shoot up, but total is fairly small
Thursday, August 23, 2007
BY GREG SAITZStar-Ledger Staff
The number of homes foreclosed on by mortgage lenders in New Jersey shot up in July compared with both the previous month and the year-ago period, but the number remains small enough that it shouldn't further weaken the state's sluggish housing market, a real estate expert said.
Otteau called the number of New Jersey foreclosures last month fairly insignificant considering there are about 72,000 homes for sale around the state. Adding 215 more to the total has little, if any, effect on the real estate market, he said.
RealtyTrac's latest data found foreclosure filings for July swelled 93 percent nationwide, to 179,599, compared with July 2006. In New Jersey, filings jumped 52 percent from the previous July.
However, many in the industry question the reliability of those figures, which include filings for various stages in the foreclosure process -- meaning the same property can be counted two or three times.
"That creates a scare, a panic for those in the housing market, because it paints a picture far worse than it really is," Otteau said.
http://tinyurl.com/2cuuby
Wednesday, August 22, 2007
Graduate from College and Rent an Apartment? Not Anymore
20 is the new 30. An increasing number of young Americans in their 20s are now purchasing homes. Why rent and wait when you can buy right away? It is no wonder that anyone who is over 30 and still rents is viewed as a total loser by society (or at least those who post on kannekt).
http://www.realtor.org/files/press_room/2007_06hd.pdf
http://www.realtor.org/files/press_room/2007_06hd.pdf
Ailing builder bets on N.J.
Tarragon having financial problems? Not to worry. The strong NJ real estate market will bail them out!
http://tinyurl.com/387qrf
http://tinyurl.com/387qrf
Can't Sell a House? Don't Lower the Price! Stage It
Seeing Through The Veil of Staging
by Broderick Perkins
http://realtytimes.com/rtcpages/20070821_veilstaging.htm
by Broderick Perkins
http://realtytimes.com/rtcpages/20070821_veilstaging.htm
Tuesday, August 21, 2007
What is the Gold Coast?
Recent posts by njrereport renters are alleging that I do not actually live on the Gold Coast. Well, once again, they have not done any fact checking. Here is an exceprt from a NJ Monthly Article:
"Jersey City is part of the Gold Coast, developer slang for Cliffside Park, Hoboken, Weehawken, Edgewater, and Palisades Park. "
http://www.njmonthly.com/issues/2007/05-May/coverstory/thiswayup.htm
Now here is the title of a Bergen Record article about a condo complex in Cliffside Park:
$1.3M BUYS STUNNING GOLD COAST VIEW
By Mary Amoroso - 03/11/2007
Special To The Record
So why has he plunked down a deposit to buy a $1.3 million condo in Cliffside Park that won't be ready for occupancy for two to three years? Construction has not yet begun on Aurora Over the Hudson, two glass-and-steel towers whose interiors and amenities were designed by Philippe Starck, the Frenchman who's put his brand on both the high-end market and the "cheap chic" of Target.
"Jersey City is part of the Gold Coast, developer slang for Cliffside Park, Hoboken, Weehawken, Edgewater, and Palisades Park. "
http://www.njmonthly.com/issues/2007/05-May/coverstory/thiswayup.htm
Now here is the title of a Bergen Record article about a condo complex in Cliffside Park:
$1.3M BUYS STUNNING GOLD COAST VIEW
By Mary Amoroso - 03/11/2007
Special To The Record
So why has he plunked down a deposit to buy a $1.3 million condo in Cliffside Park that won't be ready for occupancy for two to three years? Construction has not yet begun on Aurora Over the Hudson, two glass-and-steel towers whose interiors and amenities were designed by Philippe Starck, the Frenchman who's put his brand on both the high-end market and the "cheap chic" of Target.
Gold Coast is Immune to Market Slump
HIGH-ROLLER HIGH-RISE
Monday, August 20, 2007
By JARRETT RENSHAWJOURNAL STAFF WRITER
Condos get Hudson's top dollar
Who says the real estate market is cooling off?
It's still red-hot on the Hudson County waterfront, where a high-roller has purchased two condos on the top two floors of a Jersey City development at a whopping price tag of just more than $6 million. It's believed to be the highest price paid for a condo in the city's history.
Even if sold separately, either likely would have fetched more than $2.3 million, the previous record for a condo sold in Jersey City.
The unnamed buyer reportedly plans to merge them into a lavish two-story penthouse at the top of the 49-story building. Once completed, the two-story penthouse will measure 4,188 square feet. That translates to roughly $1,400 a square foot.
The purchase was made at K. Hovnanian's 77 Hudson St. development. The developer announced the sale last week but refused to divulge any details about the buyer - only about the development itself.
"The sophisticated design, hotel-quality amenities, luxury materials and finishes at 77 Hudson are exactly what buyers are seeking," said Tom Graham, of K. Hovnanian Homes, in a press release boasting about the sale.
Gershon Adjaye, a broker who deals with high-end real estate in Hudson County for Keller-Williams, said the price per square foot is on the high end in the county - but it's still a steal compared to prices in the New York City market.
"The truth is the square foot price is still much less expensive than penthouse condos in New York, which don't offer the same views," said Adjaye, who is not associated with the sale.
K. Hovnanian Homes opened 77 Hudson St. for VIP sales two weeks ago, with more than 300 appointments set for the initial sales release of condos.
Approximately 50 percent of the 100 residences released already have been sold, ranging in price from the upper $400,000s to $6.07 million. Thirty percent of sales have been broker generated.
http://www.nj.com/news/jjournal/index.ssf?/base/news-4/1187589594256230.xml&coll=3
Monday, August 20, 2007
By JARRETT RENSHAWJOURNAL STAFF WRITER
Condos get Hudson's top dollar
Who says the real estate market is cooling off?
It's still red-hot on the Hudson County waterfront, where a high-roller has purchased two condos on the top two floors of a Jersey City development at a whopping price tag of just more than $6 million. It's believed to be the highest price paid for a condo in the city's history.
Even if sold separately, either likely would have fetched more than $2.3 million, the previous record for a condo sold in Jersey City.
The unnamed buyer reportedly plans to merge them into a lavish two-story penthouse at the top of the 49-story building. Once completed, the two-story penthouse will measure 4,188 square feet. That translates to roughly $1,400 a square foot.
The purchase was made at K. Hovnanian's 77 Hudson St. development. The developer announced the sale last week but refused to divulge any details about the buyer - only about the development itself.
"The sophisticated design, hotel-quality amenities, luxury materials and finishes at 77 Hudson are exactly what buyers are seeking," said Tom Graham, of K. Hovnanian Homes, in a press release boasting about the sale.
Gershon Adjaye, a broker who deals with high-end real estate in Hudson County for Keller-Williams, said the price per square foot is on the high end in the county - but it's still a steal compared to prices in the New York City market.
"The truth is the square foot price is still much less expensive than penthouse condos in New York, which don't offer the same views," said Adjaye, who is not associated with the sale.
K. Hovnanian Homes opened 77 Hudson St. for VIP sales two weeks ago, with more than 300 appointments set for the initial sales release of condos.
Approximately 50 percent of the 100 residences released already have been sold, ranging in price from the upper $400,000s to $6.07 million. Thirty percent of sales have been broker generated.
http://www.nj.com/news/jjournal/index.ssf?/base/news-4/1187589594256230.xml&coll=3
Sunday, August 19, 2007
Saturday, August 18, 2007
Where is My Media Coverage?
It is interesting that only the gloom and doom bloggers ever get picked up by the media. I doubt I will get any media coverage since I am not a bubble believer. But, if I make some insane statement, maybe I will get picked up by a reputable media organization. Here it goes. Remember, I am only saying this so that I will get my picture in the newspaper:
House prices will decline 45% and foreclosure rates will increase by 50%. The market will improve no earlier than 2014.
Call me!
House prices will decline 45% and foreclosure rates will increase by 50%. The market will improve no earlier than 2014.
Call me!
Bubble Bloggers Are Rooting for Total Recession! Should Government Be Contacted?
Here is a post written by Keith from Housing Panic. (If you do a Google search of Housing Panic, you will find that most people read it for entertainment, not for information as the site is completely insane, much more insane than NJREREPORT).
"This may disturb some of you. This may surprise some of you. This may disappoint some of you. But it has to be said.
After denying it for sometime, to you dear reader and even to myself, the truth is now clear. And you should now read this blog in the context of what I am about to say.
I am rooting for an epic housing collapse, a disastrous recession, the collapse of the stock market, a complete replacement of our current partisan leadership, a questioning of our country's current economic model, and a severe and historic financial meltdown. Period.
Before, I thought just a correction would do the trick. A cleansing of the debt-and-greed-fueled housing balloon we as a society created. But I've come to the conclusion that will not be enough to right the wrongs and fix the problem, so that future generations will not be burdened with the current generation's misguided and self-centered ways.
Pure and simple, I want Change (with a Capital C), and I now feel that only an historic financial meltdown will create the environment where Americans wake up from their current slumber, and call for new leadership, new thinking, and above all, change.
Something went awry in the US over the past decade. Something changed, with our government, our system, and our collective conscious. And this change was not for the better.
Greed overcame and infected so many of us - the idea of getting rich without working, and an overwhelming need to consume, consume, consume. We no longer worked for the benefit of our common man - we worked only for ourselves. We said "screw the next generation - I want mine, and I want it now!". And we went on a debt-fueled orgy of spending, never stopping to look at the bills coming due, and never stopping to think about the repercussions.
Now, dear reader, it's time to stop. It's time to pause, and consider where we went wrong, and above all, how we can fix it.
So, in conclusion, the fate that awaits us, this cleansing of our ways and of our system, in the form of an epic real estate market and financial collapse, in my simple opinion is a fate of necessity, and will serve as a catalyst for needed Change.
And away we go. Good luck to all of you, and know that I believe that we will come out of this stronger, wiser and determined to Change."
------------------------------------------------------
Posts like these definitely indicate that Keith has mental problems and perhaps the authorities need to be contacted before Keith walks into a realtor's office and does something awful. Seriously Keith, please remember to take your Prozac!
Hats off to BloodhoundBlog for devoting some excellent coverage to counter the completely insane comments made by Keith Brand:
http://www.bloodhoundrealty.com/BloodhoundBlog/?p=1132
"This may disturb some of you. This may surprise some of you. This may disappoint some of you. But it has to be said.
After denying it for sometime, to you dear reader and even to myself, the truth is now clear. And you should now read this blog in the context of what I am about to say.
I am rooting for an epic housing collapse, a disastrous recession, the collapse of the stock market, a complete replacement of our current partisan leadership, a questioning of our country's current economic model, and a severe and historic financial meltdown. Period.
Before, I thought just a correction would do the trick. A cleansing of the debt-and-greed-fueled housing balloon we as a society created. But I've come to the conclusion that will not be enough to right the wrongs and fix the problem, so that future generations will not be burdened with the current generation's misguided and self-centered ways.
Pure and simple, I want Change (with a Capital C), and I now feel that only an historic financial meltdown will create the environment where Americans wake up from their current slumber, and call for new leadership, new thinking, and above all, change.
Something went awry in the US over the past decade. Something changed, with our government, our system, and our collective conscious. And this change was not for the better.
Greed overcame and infected so many of us - the idea of getting rich without working, and an overwhelming need to consume, consume, consume. We no longer worked for the benefit of our common man - we worked only for ourselves. We said "screw the next generation - I want mine, and I want it now!". And we went on a debt-fueled orgy of spending, never stopping to look at the bills coming due, and never stopping to think about the repercussions.
Now, dear reader, it's time to stop. It's time to pause, and consider where we went wrong, and above all, how we can fix it.
So, in conclusion, the fate that awaits us, this cleansing of our ways and of our system, in the form of an epic real estate market and financial collapse, in my simple opinion is a fate of necessity, and will serve as a catalyst for needed Change.
And away we go. Good luck to all of you, and know that I believe that we will come out of this stronger, wiser and determined to Change."
------------------------------------------------------
Posts like these definitely indicate that Keith has mental problems and perhaps the authorities need to be contacted before Keith walks into a realtor's office and does something awful. Seriously Keith, please remember to take your Prozac!
Hats off to BloodhoundBlog for devoting some excellent coverage to counter the completely insane comments made by Keith Brand:
http://www.bloodhoundrealty.com/BloodhoundBlog/?p=1132
Jim Cramer's/Fed's "Discount Window" Starting to Open
Fed Approves Cut in Discount Loan Rate
('WASHINGTON (AP) -- The Federal Reserve approved a half-percentage point cut in its discount rate on loans to banks Friday, a dramatic move designed to stabilize financial markets roiled by a widening credit crisis.
By THE ASSOCIATED PRESS
Published: August 18, 2007
Filed at 1:30 a.m. ET
WASHINGTON (AP) -- The Federal Reserve approved a half-percentage point cut in its discount rate on loans to banks Friday, a dramatic move designed to stabilize financial markets roiled by a widening credit crisis.
The action sent stocks soaring, with the Dow Jones industrial average up more than 300 points right after the opening bell. The blue chip index finished the day up 233.30 points at 13,079.08.
The decision means that the discount rate, the interest rate the Fed charges to make direct loans to banks, will be lowered from 6.25 percent down to 5.75 percent.
The Fed did not change its target for the more important federal funds rate, which has remained at 5.25 percent for more than a year, but it sent a strong signal in the wording of its statement that it was prepared to cut that rate as well.
It did that by dropping any reference to inflation, which was the worry that previously had kept it from cutting the federal funds rate, and instead stated that ''the downside risks to growth have increased appreciably.''
Many economists said the move from an emphasis on inflation worries to an emphasis on worries about economic growth is the precursor to an actual cut in rates, probably at the next regular Fed meeting on Sept. 18.
''They provided a much needed response to the growing market turmoil today, but they will have to do more,'' said Mark Zandi, chief economist at Moody's Economy.com.
Some analysts said the funds rate would be cut at least twice before the end of the year while others predicted the Fed would cut the funds rate by a quarter point at each of its remaining meetings in September, October and December if the risks of an economic slowdown keep growing.
The move to cut the discount rate will not have a major impact on consumer interest rates in the way that cutting the federal funds rate triggers an immediate drop in banks' prime lending rate, the benchmark for millions of consumer and business loans.
However, Friday's move was expected to help with a severe cash crunch facing many businesses, including mortgage companies, which are having trouble getting loans for short-term financing needs.
In a statement explaining the action, the Fed said that while incoming data suggest the economy is continuing to expand at a moderate pace, ''the downside risks to growth have increased appreciably.''
The Fed said it was ''monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.''
It also said that ''financial market conditions have deteriorated and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward.''
The discount rate cut was approved by the Fed's board, which controls this rate. However the policy statement was approved unanimously by the Federal Open Market Committee, the larger group of Fed board members in Washington and Fed regional bank presidents who set the federal funds rate.
Economists saw that as a significant signal that the Fed stood ready to cut the funds rate, which has been at 5.25 percent since June 2006 when the Fed ended a two-year rate tightening campaign aimed at slowing economic growth enough to keep inflation under control.
http://www.nytimes.com/aponline/business/AP-Fed-Interest-Rates.html?_r=1&hp=&adxnnl=1&oref=slogin&adxnnlx=1187356300-ZIiY7oBhkUJ7U7HLscWn1Q
('WASHINGTON (AP) -- The Federal Reserve approved a half-percentage point cut in its discount rate on loans to banks Friday, a dramatic move designed to stabilize financial markets roiled by a widening credit crisis.
By THE ASSOCIATED PRESS
Published: August 18, 2007
Filed at 1:30 a.m. ET
WASHINGTON (AP) -- The Federal Reserve approved a half-percentage point cut in its discount rate on loans to banks Friday, a dramatic move designed to stabilize financial markets roiled by a widening credit crisis.
The action sent stocks soaring, with the Dow Jones industrial average up more than 300 points right after the opening bell. The blue chip index finished the day up 233.30 points at 13,079.08.
The decision means that the discount rate, the interest rate the Fed charges to make direct loans to banks, will be lowered from 6.25 percent down to 5.75 percent.
The Fed did not change its target for the more important federal funds rate, which has remained at 5.25 percent for more than a year, but it sent a strong signal in the wording of its statement that it was prepared to cut that rate as well.
It did that by dropping any reference to inflation, which was the worry that previously had kept it from cutting the federal funds rate, and instead stated that ''the downside risks to growth have increased appreciably.''
Many economists said the move from an emphasis on inflation worries to an emphasis on worries about economic growth is the precursor to an actual cut in rates, probably at the next regular Fed meeting on Sept. 18.
''They provided a much needed response to the growing market turmoil today, but they will have to do more,'' said Mark Zandi, chief economist at Moody's Economy.com.
Some analysts said the funds rate would be cut at least twice before the end of the year while others predicted the Fed would cut the funds rate by a quarter point at each of its remaining meetings in September, October and December if the risks of an economic slowdown keep growing.
The move to cut the discount rate will not have a major impact on consumer interest rates in the way that cutting the federal funds rate triggers an immediate drop in banks' prime lending rate, the benchmark for millions of consumer and business loans.
However, Friday's move was expected to help with a severe cash crunch facing many businesses, including mortgage companies, which are having trouble getting loans for short-term financing needs.
In a statement explaining the action, the Fed said that while incoming data suggest the economy is continuing to expand at a moderate pace, ''the downside risks to growth have increased appreciably.''
The Fed said it was ''monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.''
It also said that ''financial market conditions have deteriorated and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward.''
The discount rate cut was approved by the Fed's board, which controls this rate. However the policy statement was approved unanimously by the Federal Open Market Committee, the larger group of Fed board members in Washington and Fed regional bank presidents who set the federal funds rate.
Economists saw that as a significant signal that the Fed stood ready to cut the funds rate, which has been at 5.25 percent since June 2006 when the Fed ended a two-year rate tightening campaign aimed at slowing economic growth enough to keep inflation under control.
http://www.nytimes.com/aponline/business/AP-Fed-Interest-Rates.html?_r=1&hp=&adxnnl=1&oref=slogin&adxnnlx=1187356300-ZIiY7oBhkUJ7U7HLscWn1Q
Bednar Only Posting Negative NYC Articles: Completely Ignoring Positive Ones
Here is another NYC real estate market article that Crazy Bednar neglected to post:
The New 30 Is Now 50
A report concludes the truly rich now need to think about spending $50 million to acquire a one-of-a-kind property in Manhattan.
By JOSH BARBANEL
Published: August 19, 2007
THE uncertainties on Wall Street may be sending shivers down the backs of hedge fund titans and their real estate brokers, but so far the upper reaches of the Manhattan property market have been so strong that a report concludes the truly rich now need to think about spending $50 million to acquire a one-of-a-kind property.
1060 Fifth Avenue
In a midyear report on the luxury market, Kirk Henckels, the director of Stribling Private Brokerage, said that only a year or two ago, a buyer needed just $30 million to buy a sprawling town house or legendary penthouse with the best views, and the most bragging rights. But with more money chasing fewer apartments, that price tag is now $50 million for trophy properties, not including decorating costs, he said.
Now, he said, “$50 million is the new $30 million — somehow $40 million was skipped.”
For example, property records show that in June the developer Harry Macklowe closed on the purchase of seven contiguous condominium apartments at the newly refurbished Plaza, with more than 13,000 square feet of space. He paid the sponsors a total of $52 million in two separate transactions, but his total costs were closer to $60 million.
The details of the purchase were pieced together from clues in the property records. The records show that six of the apartments were bought in a single transaction by a limited liability corporation for $50 million, while the seventh, a one-bedroom, was bought by a separate corporation, for $2 million.
Both transactions occurred on the same day, and both buyers were represented by the same real estate lawyer, Stuart M. Saft. It appears that the transactions were split because Mr. Macklowe was able to buy six apartments directly from the developer, El-Ad Properties, but was forced to buy out the interests of another buyer in the seventh apartment before closing, in order to create the space he wanted.
Mr. Macklowe’s transaction is one of two at the Plaza said by brokers to be for more than $50 million. (The other, which has not yet appeared in public filings, is for $56 million.)
The $50 million benchmark was first passed last fall with the $53 million sale of the Harkness Mansion on 75th Street near Fifth Avenue. More recently, a contract was signed for the sale of a 31-foot-wide town house owned by Edgar Bronfman Jr. on East 64th Street off Fifth Avenue. That sale, for $51 million, has not yet closed either.
And several real estate brokers say they have been told that a deal is in place for the sale of a 17-room duplex penthouse co-op at 1060 Fifth Avenue, at 87th Street, for close to the asking price: $48 million. Because the market for the most expensive and exceptional apartments is so strong, the owners of two separate apartments, a 12-room apartment on the 13th floor and a 5-room penthouse above with huge wraparound terraces with views of the Central Park reservoir, agreed to market their apartments together to a single buyer.
http://www.nytimes.com/2007/08/19/realestate/19Deal1.html?ref=realestate
The New 30 Is Now 50
A report concludes the truly rich now need to think about spending $50 million to acquire a one-of-a-kind property in Manhattan.
By JOSH BARBANEL
Published: August 19, 2007
THE uncertainties on Wall Street may be sending shivers down the backs of hedge fund titans and their real estate brokers, but so far the upper reaches of the Manhattan property market have been so strong that a report concludes the truly rich now need to think about spending $50 million to acquire a one-of-a-kind property.
1060 Fifth Avenue
In a midyear report on the luxury market, Kirk Henckels, the director of Stribling Private Brokerage, said that only a year or two ago, a buyer needed just $30 million to buy a sprawling town house or legendary penthouse with the best views, and the most bragging rights. But with more money chasing fewer apartments, that price tag is now $50 million for trophy properties, not including decorating costs, he said.
Now, he said, “$50 million is the new $30 million — somehow $40 million was skipped.”
For example, property records show that in June the developer Harry Macklowe closed on the purchase of seven contiguous condominium apartments at the newly refurbished Plaza, with more than 13,000 square feet of space. He paid the sponsors a total of $52 million in two separate transactions, but his total costs were closer to $60 million.
The details of the purchase were pieced together from clues in the property records. The records show that six of the apartments were bought in a single transaction by a limited liability corporation for $50 million, while the seventh, a one-bedroom, was bought by a separate corporation, for $2 million.
Both transactions occurred on the same day, and both buyers were represented by the same real estate lawyer, Stuart M. Saft. It appears that the transactions were split because Mr. Macklowe was able to buy six apartments directly from the developer, El-Ad Properties, but was forced to buy out the interests of another buyer in the seventh apartment before closing, in order to create the space he wanted.
Mr. Macklowe’s transaction is one of two at the Plaza said by brokers to be for more than $50 million. (The other, which has not yet appeared in public filings, is for $56 million.)
The $50 million benchmark was first passed last fall with the $53 million sale of the Harkness Mansion on 75th Street near Fifth Avenue. More recently, a contract was signed for the sale of a 31-foot-wide town house owned by Edgar Bronfman Jr. on East 64th Street off Fifth Avenue. That sale, for $51 million, has not yet closed either.
And several real estate brokers say they have been told that a deal is in place for the sale of a 17-room duplex penthouse co-op at 1060 Fifth Avenue, at 87th Street, for close to the asking price: $48 million. Because the market for the most expensive and exceptional apartments is so strong, the owners of two separate apartments, a 12-room apartment on the 13th floor and a 5-room penthouse above with huge wraparound terraces with views of the Central Park reservoir, agreed to market their apartments together to a single buyer.
http://www.nytimes.com/2007/08/19/realestate/19Deal1.html?ref=realestate
NJREREPORT Watch Celebrates 100th Reader
This blog has been in existence for less than one week and, at the time of this writing, we have had 101 readers! This definitely proves that many readers out there like to read real estate news without all of the gloom and doom predictions. When Crazy Bednar finally realizes that the market is not going to crash, I will be more than happy to purchase the domain name from him and take over the blog. Once everyone realizes the market is not going to crash, I doubt there will be anything left for him to write about, unless he plans to be in total denial for the next ten years. We shall see...
Bednar Presenting Biased Information AGAIN
The other day Crazy Bednar posted an article from the NY Post about the potential collapse of the $5 million + luxury housing market in Manhattan. However, being that he is one of the most biased bloggers out there, he conveniently neglected to post this article from the NY Times that just about contradicts everyhting the NY Post article stated.
Be careful Bednar. NOBODY who attacks the NYC market ever wins. At the end of the day, those who try to spread their gloom and doom to NYC will lose. It's as simple as that. Stick with what you "know" best: New Jersey. Leave Manhattan to the experts.
Now, without further to do, THE FACTS:
The City of Gold
IT wasn’t supposed to happen this way.
Damon Winter/The New York Times
Just a year ago, as real estate brokers fretted through an ominously quiet third quarter, many Manhattanites waited for the housing market to reverse its madcap ascent and fall into line with the rest of the country.
But something happened on the way to the Great Manhattan Housing Slump. After what brokers optimistically termed a “pause” in the second half of 2006, buyers swarmed into the market. The torrent was so intense that by the end of this past June, it was clear that an astonishing gulf had opened up between Manhattan and nearly everywhere else.
On the national level, sales of existing homes slowed by 17 percent in the second quarter of 2007, compared with the second quarter of 2006, while inventory swelled by 16 percent, according to figures provided by the National Association of Realtors. New homes fared even worse: they fell by almost 19 percent, according to Commerce Department figures.
In Manhattan, by comparison, sales of new and existing apartments more than doubled. In a trend that could shift quickly in light of the recent problems in the credit and stock markets, inventory shed a third of its bulk. It dropped to 5,237 units, despite the influx of several thousand new condos, according to Miller Samuel Inc., the Manhattan appraisal company.
Prices have been starkly different as well. By last month, the national picture was so dire that Angelo R. Mozilo, the chairman and chief executive of Countrywide Financial, the country’s largest mortgage lender, said things had not been so bleak since the Depression.
Cut to Manhattan. After a boom with annual price increases of 20 percent or more ended in mid-2005, prices have continued to rise over all, but not as sharply. In the second quarter of 2007, Miller Samuel said the average sale price of a Manhattan studio climbed 16.5 percent compared with the second quarter of 2005. The average for a one-bedroom climbed by 18.4 percent and a two-bedroom by 5.9 percent.
Apartments with three bedrooms, which make up about 6 percent of the market but appeal to an ever-more-moneyed class of buyers, rose by 17.9 percent in the same period.
Major brokerages, including Halstead Property, Bellmarc Realty, Brown Harris Stevens, Prudential Douglas Elliman and the Corcoran Group, say they are recording sales and profits that rival boom-time results. In fact, Douglas Elliman and Corcoran predict that this will be their most lucrative year by far.
Whether this momentum can be sustained remains to be seen, particularly in light of the recent gyrations in the debt market, which have led to a reduction in the availability of large mortgages and to an increase in their rates. A deepening credit-market crisis and national housing slump could squeeze the economy, the stock market and bonus pools.
“For the first time in over a year, there is some negative talk — about the credit markets and whether or not this will permeate the New York City real estate market,” said Pamela Liebman, president of Corcoran. “As of right now, it hasn’t. There has been no slowdown.” She said the biggest concern among her agents is finding enough inventory to satisfy demand.
But a buying binge alone does not a housing boom make. “I’m still not characterizing the market right now as a housing boom except in the upper echelon,” said Jonathan Miller, president of Miller Samuel.
Families who want to stay, brokers say, are only one segment of the more stratified and well-heeled masses clamoring for a piece of Manhattan. While the dollar’s seemingly endless slide may have crimped the foreign vacation plans of many Americans, the purchasing power of Europeans has strengthened. They are increasingly matched, if not outmatched, by buyers from countries like China and India. And foreign buyers find Manhattan real estate very appealing when they compare prices in other large international cities like London.
“I’ve had 20 percent more business from international clients in the past couple of years,” said Sallie Stern, a senior vice president and managing director of Brown Harris Stevens. “They probably account for 30 to 35 percent. It’s a world market now.”
Shaun Osher, the chief executive of CORE Group Marketing, which is handling 11 condominium projects in Manhattan, said the number of foreign apartment-seekers had doubled since the end of 2005. Foreign buyers now constitute 5 to 10 percent of the sales in the buildings marketed by his firms.
“When you look at hotel rates and what it costs to come into Manhattan, it makes sense now to buy a pied-Ã -terre,” he said.
Besides foreign buyers, brokers say, more parents are snapping up apartments for their children, and some retirees are choosing Manhattan over the likes of Boca Raton.
“The baby boomer generation isn’t ready to give up and live in a swamp,” said Darren Sukenik, an executive vice president of Prudential Douglas Elliman. In fact, they are living the lives their nearby children would like to lead if only they weren’t working so hard, he said.
Meanwhile, renters have emerged as a force in the market, particularly for entry-level apartments. “Rents are rising again, and that pushes people back into the condo and co-op market if they have more than a one- or two-year time frame for living in Manhattan,” said Stephen G. Kliegerman, the executive director of marketing for new developments at Halstead Property.
Fanning the flames have been job and population growth, historically low interest rates and a trove of personal wealth minted by hedge funds, private equity firms and, to a lesser extent, the investment banks that serve them. Add to that the psychological comfort of knowing that Manhattan flourished after the Sept. 11 terrorist attacks, and further, that it appears to have shrugged off a national housing slump.
Even the condo glut that so many real estate executives feared has turned out instead to be a boon of sorts. “If we didn’t have new development coming on at the pace we did, we’d have a chronic shortage across all sectors, and we’d see 20 percent price growth,” said Mr. Miller, the appraiser.
Mr. Peters of Warburg Realty agreed. “You can’t even imagine how awful it would be,” he said. On the other hand, he added, things may feel pretty awful already for buyers who want a prewar apartment, since inventory in this sector continues to evaporate. In the last two years, co-ops, about half of which were built before World War II, have slipped from 63 percent of the market to 47 percent as new condos have been built, Miller Samuel said.
“There are so many new units coming on the market and being sold, but the real heart and soul of the co-op market is really depleted,” said Barbara Fox, the president of the Fox Residential Group, a Manhattan brokerage.
Consequently, brokers say, many prewar apartments in good condition, along with family-size apartments of any vintage, are being snatched up in bidding wars whose aggressiveness outrivals those of two years ago.
http://www.nytimes.com/2007/08/19/realestate/19cov.html?pagewanted=1&ref=realestate
Here is the link to the NY Post article:
http://www.nypost.com/seven/08172007/news/regionalnews/painful_realty_reality_in_5m__nyc_market_regionalnews_braden_keil.htm
Be careful Bednar. NOBODY who attacks the NYC market ever wins. At the end of the day, those who try to spread their gloom and doom to NYC will lose. It's as simple as that. Stick with what you "know" best: New Jersey. Leave Manhattan to the experts.
Now, without further to do, THE FACTS:
The City of Gold
IT wasn’t supposed to happen this way.
Damon Winter/The New York Times
Just a year ago, as real estate brokers fretted through an ominously quiet third quarter, many Manhattanites waited for the housing market to reverse its madcap ascent and fall into line with the rest of the country.
But something happened on the way to the Great Manhattan Housing Slump. After what brokers optimistically termed a “pause” in the second half of 2006, buyers swarmed into the market. The torrent was so intense that by the end of this past June, it was clear that an astonishing gulf had opened up between Manhattan and nearly everywhere else.
On the national level, sales of existing homes slowed by 17 percent in the second quarter of 2007, compared with the second quarter of 2006, while inventory swelled by 16 percent, according to figures provided by the National Association of Realtors. New homes fared even worse: they fell by almost 19 percent, according to Commerce Department figures.
In Manhattan, by comparison, sales of new and existing apartments more than doubled. In a trend that could shift quickly in light of the recent problems in the credit and stock markets, inventory shed a third of its bulk. It dropped to 5,237 units, despite the influx of several thousand new condos, according to Miller Samuel Inc., the Manhattan appraisal company.
Prices have been starkly different as well. By last month, the national picture was so dire that Angelo R. Mozilo, the chairman and chief executive of Countrywide Financial, the country’s largest mortgage lender, said things had not been so bleak since the Depression.
Cut to Manhattan. After a boom with annual price increases of 20 percent or more ended in mid-2005, prices have continued to rise over all, but not as sharply. In the second quarter of 2007, Miller Samuel said the average sale price of a Manhattan studio climbed 16.5 percent compared with the second quarter of 2005. The average for a one-bedroom climbed by 18.4 percent and a two-bedroom by 5.9 percent.
Apartments with three bedrooms, which make up about 6 percent of the market but appeal to an ever-more-moneyed class of buyers, rose by 17.9 percent in the same period.
Major brokerages, including Halstead Property, Bellmarc Realty, Brown Harris Stevens, Prudential Douglas Elliman and the Corcoran Group, say they are recording sales and profits that rival boom-time results. In fact, Douglas Elliman and Corcoran predict that this will be their most lucrative year by far.
Whether this momentum can be sustained remains to be seen, particularly in light of the recent gyrations in the debt market, which have led to a reduction in the availability of large mortgages and to an increase in their rates. A deepening credit-market crisis and national housing slump could squeeze the economy, the stock market and bonus pools.
“For the first time in over a year, there is some negative talk — about the credit markets and whether or not this will permeate the New York City real estate market,” said Pamela Liebman, president of Corcoran. “As of right now, it hasn’t. There has been no slowdown.” She said the biggest concern among her agents is finding enough inventory to satisfy demand.
But a buying binge alone does not a housing boom make. “I’m still not characterizing the market right now as a housing boom except in the upper echelon,” said Jonathan Miller, president of Miller Samuel.
Families who want to stay, brokers say, are only one segment of the more stratified and well-heeled masses clamoring for a piece of Manhattan. While the dollar’s seemingly endless slide may have crimped the foreign vacation plans of many Americans, the purchasing power of Europeans has strengthened. They are increasingly matched, if not outmatched, by buyers from countries like China and India. And foreign buyers find Manhattan real estate very appealing when they compare prices in other large international cities like London.
“I’ve had 20 percent more business from international clients in the past couple of years,” said Sallie Stern, a senior vice president and managing director of Brown Harris Stevens. “They probably account for 30 to 35 percent. It’s a world market now.”
Shaun Osher, the chief executive of CORE Group Marketing, which is handling 11 condominium projects in Manhattan, said the number of foreign apartment-seekers had doubled since the end of 2005. Foreign buyers now constitute 5 to 10 percent of the sales in the buildings marketed by his firms.
“When you look at hotel rates and what it costs to come into Manhattan, it makes sense now to buy a pied-Ã -terre,” he said.
Besides foreign buyers, brokers say, more parents are snapping up apartments for their children, and some retirees are choosing Manhattan over the likes of Boca Raton.
“The baby boomer generation isn’t ready to give up and live in a swamp,” said Darren Sukenik, an executive vice president of Prudential Douglas Elliman. In fact, they are living the lives their nearby children would like to lead if only they weren’t working so hard, he said.
Meanwhile, renters have emerged as a force in the market, particularly for entry-level apartments. “Rents are rising again, and that pushes people back into the condo and co-op market if they have more than a one- or two-year time frame for living in Manhattan,” said Stephen G. Kliegerman, the executive director of marketing for new developments at Halstead Property.
Fanning the flames have been job and population growth, historically low interest rates and a trove of personal wealth minted by hedge funds, private equity firms and, to a lesser extent, the investment banks that serve them. Add to that the psychological comfort of knowing that Manhattan flourished after the Sept. 11 terrorist attacks, and further, that it appears to have shrugged off a national housing slump.
Even the condo glut that so many real estate executives feared has turned out instead to be a boon of sorts. “If we didn’t have new development coming on at the pace we did, we’d have a chronic shortage across all sectors, and we’d see 20 percent price growth,” said Mr. Miller, the appraiser.
Mr. Peters of Warburg Realty agreed. “You can’t even imagine how awful it would be,” he said. On the other hand, he added, things may feel pretty awful already for buyers who want a prewar apartment, since inventory in this sector continues to evaporate. In the last two years, co-ops, about half of which were built before World War II, have slipped from 63 percent of the market to 47 percent as new condos have been built, Miller Samuel said.
“There are so many new units coming on the market and being sold, but the real heart and soul of the co-op market is really depleted,” said Barbara Fox, the president of the Fox Residential Group, a Manhattan brokerage.
Consequently, brokers say, many prewar apartments in good condition, along with family-size apartments of any vintage, are being snatched up in bidding wars whose aggressiveness outrivals those of two years ago.
http://www.nytimes.com/2007/08/19/realestate/19cov.html?pagewanted=1&ref=realestate
Here is the link to the NY Post article:
http://www.nypost.com/seven/08172007/news/regionalnews/painful_realty_reality_in_5m__nyc_market_regionalnews_braden_keil.htm
Thursday, August 16, 2007
Highball!
Welcome to another edition of Highball!
Highball! takes a look at home sales from a different perspective. For those new to Highball!, a highball offer is when a buyer offers a higher bid than asking in hopes that the seller accepts the offer. We take a list of recent home sales and pick out the sales that have the highest percentage difference between original list price and selling price.
The purpose of Highball! is to show buyers that the market has changed and buyers now have considerably less leverage than sellers. Just a short time ago, Lowball! offers would have been laughed at and discarded, and they still are. The fact that so many over-asking offers are being accepted is clear proof that the market is changing.
80 Lexington Ave. Cresskill
Listed: $454,000 Sold: $460,000
50 Strawberry Hill Rd. Hillsdale
Listed: $919,000 Sold: $960,000
19 Glen Place. Old Tappan
Listed: $620,000 Sold: $680,000
729 Gettysburg Paramus
Listed $679,000 Sold: $700,00
205 Peters Place River Vale
Listed $525,000 SOLD: $625,000***
501 Bernita Drive, River Vale
Listed: $979,000 Sold: $989,000
35 Quail Run Old Tappan
Listed: 549,000 Sold: $560,000
31 Central Ave., Old Tappan
Listed: $349,777 Sold: $369,000"
http://realtytimes.com/rtmcrcond/New_Jersey~Bergen_County~paulaclark
Highball! takes a look at home sales from a different perspective. For those new to Highball!, a highball offer is when a buyer offers a higher bid than asking in hopes that the seller accepts the offer. We take a list of recent home sales and pick out the sales that have the highest percentage difference between original list price and selling price.
The purpose of Highball! is to show buyers that the market has changed and buyers now have considerably less leverage than sellers. Just a short time ago, Lowball! offers would have been laughed at and discarded, and they still are. The fact that so many over-asking offers are being accepted is clear proof that the market is changing.
80 Lexington Ave. Cresskill
Listed: $454,000 Sold: $460,000
50 Strawberry Hill Rd. Hillsdale
Listed: $919,000 Sold: $960,000
19 Glen Place. Old Tappan
Listed: $620,000 Sold: $680,000
729 Gettysburg Paramus
Listed $679,000 Sold: $700,00
205 Peters Place River Vale
Listed $525,000 SOLD: $625,000***
501 Bernita Drive, River Vale
Listed: $979,000 Sold: $989,000
35 Quail Run Old Tappan
Listed: 549,000 Sold: $560,000
31 Central Ave., Old Tappan
Listed: $349,777 Sold: $369,000"
http://realtytimes.com/rtmcrcond/New_Jersey~Bergen_County~paulaclark
Welcome Kannekt Readers!
Thank you for clicking on the link to this blog!
Please take a look around. Feel free to leave a comment. Check back frequently for regular updates...
Please take a look around. Feel free to leave a comment. Check back frequently for regular updates...
Lawrence Yun: Real Estate Genius
Some people out there are smart enough to make housing market predictions that actually come true. Dr. Lawrence Yun, chief economist for NAR, is one of those people.
NJREREPORT Renter Promoting Communism
This recent post is totally outrageous:
CAIBC Says: August 16th, 2007 at 1:30 pm
this correction is much needed….it will keep the rich from getting richer and the poor from getting poorer…besides, where would this country be without the middle class fueling all this! for the past few years, the middle class thought they were a little richer than they actually were (McMansions, BMWs…)now comes reality..
we are just the middle class and we need to come back to senses..why? there is another scam around the corner that needs us!
CAIBC….
------------------------------------------------
Where is Joe McCarthy when you need him?
CAIBC Says: August 16th, 2007 at 1:30 pm
this correction is much needed….it will keep the rich from getting richer and the poor from getting poorer…besides, where would this country be without the middle class fueling all this! for the past few years, the middle class thought they were a little richer than they actually were (McMansions, BMWs…)now comes reality..
we are just the middle class and we need to come back to senses..why? there is another scam around the corner that needs us!
CAIBC….
------------------------------------------------
Where is Joe McCarthy when you need him?
Home Prices are UP in North Jersey, Especially Along NYC Train Lines
Softer Landing
State's housing market is surviving slump better than rest of the country
Thursday, August 16, 2007
BY SAM ALIStar-Ledger Staff
Nationally, the median price of an existing single-family home declined 1.5 percent. In the New York metropolitan area, which includes North Jersey, prices were up 1.7 percent.
So, why are real estate brokers like Pat Hoferkamp, president of Parsippany-based Burgdorff ERA, smiling?
"Last year was the third best year in Burgdorff's history in terms of homes sold and, quite honestly, I feel very good about this market," Hoferkamp said. "Things are happening. People are buying homes. We've got busy open houses. I expect to do what we did last year, if not increase our business."
SPLIT PERSONALITY
Is Hoferkamp talking about the same New Jersey housing market?
The answer is yes and no.
That's because when it comes to real estate, New Jersey has a split personality.
Talk to real estate agents who sell homes along the state's commuter rail lines -- where 12 of Burgdorff's 14 offices are located -- and the news is all good.
Talk to agents anywhere else, and, well, the news is predictably glum.
But in towns like South Orange, Summit, Montclair and Morristown, which are along the main branch of New Jersey Transit's Morris and Essex line, it's another story.
For example, Montclair has just a three-month supply of unsold homes on the market, according to Otteau. Chatham, only two months.
The number of homes contracted for sale in prime markets in Bergen, Essex, Hudson, Middlesex, Monmouth, Morris, Somerset and Union counties declined by only 1.7 percent from May to June, compared to 5 percent statewide, Otteau said.
Most notable in this group are places like Jersey City and Hoboken in Hudson County, where year-to-date sales activity is running 12 percent ahead of last year, he said.
Looking ahead, Otteau expects this trend will only accelerate, with communities near direct-to-Manhattan rail lines seeing the strongest price increases once the market recovers.
The primary reason is job growth: Employment in Manhattan is expected to grow from 2.7 million to almost 3 million over the next two decades -- with over half of this growth in Midtown, according to a NJ Transit study.
"Once again, Manhattan is king as it relates to the New Jersey housing market," Otteau said. "That is what will drive our housing market going forward."
For additional reading:
http://tinyurl.com/2u6s4g
http://www.nj.com/starledger/stories/index.ssf?/base/business-7/1187240579302040.xml&coll=1&thispage=1
State's housing market is surviving slump better than rest of the country
Thursday, August 16, 2007
BY SAM ALIStar-Ledger Staff
Nationally, the median price of an existing single-family home declined 1.5 percent. In the New York metropolitan area, which includes North Jersey, prices were up 1.7 percent.
So, why are real estate brokers like Pat Hoferkamp, president of Parsippany-based Burgdorff ERA, smiling?
"Last year was the third best year in Burgdorff's history in terms of homes sold and, quite honestly, I feel very good about this market," Hoferkamp said. "Things are happening. People are buying homes. We've got busy open houses. I expect to do what we did last year, if not increase our business."
SPLIT PERSONALITY
Is Hoferkamp talking about the same New Jersey housing market?
The answer is yes and no.
That's because when it comes to real estate, New Jersey has a split personality.
Talk to real estate agents who sell homes along the state's commuter rail lines -- where 12 of Burgdorff's 14 offices are located -- and the news is all good.
Talk to agents anywhere else, and, well, the news is predictably glum.
But in towns like South Orange, Summit, Montclair and Morristown, which are along the main branch of New Jersey Transit's Morris and Essex line, it's another story.
For example, Montclair has just a three-month supply of unsold homes on the market, according to Otteau. Chatham, only two months.
The number of homes contracted for sale in prime markets in Bergen, Essex, Hudson, Middlesex, Monmouth, Morris, Somerset and Union counties declined by only 1.7 percent from May to June, compared to 5 percent statewide, Otteau said.
Most notable in this group are places like Jersey City and Hoboken in Hudson County, where year-to-date sales activity is running 12 percent ahead of last year, he said.
Looking ahead, Otteau expects this trend will only accelerate, with communities near direct-to-Manhattan rail lines seeing the strongest price increases once the market recovers.
The primary reason is job growth: Employment in Manhattan is expected to grow from 2.7 million to almost 3 million over the next two decades -- with over half of this growth in Midtown, according to a NJ Transit study.
"Once again, Manhattan is king as it relates to the New Jersey housing market," Otteau said. "That is what will drive our housing market going forward."
For additional reading:
http://tinyurl.com/2u6s4g
http://www.nj.com/starledger/stories/index.ssf?/base/business-7/1187240579302040.xml&coll=1&thispage=1
Changing the Light Bulb
Question: How many NJREREPORT renters does it take to screw in a light bulb?
Answer: None. They would rather sit in the dark and blame it on the home sellers.
Answer: None. They would rather sit in the dark and blame it on the home sellers.
Wednesday, August 15, 2007
NJREREPORT Renter Admits to Living in Parents' Basement, I Mean Loft
This post was too hilarious and pathetic not to pass up:
Joeycasz Says: August 14th, 2007 at 11:53 am
"We’re in the same situation. I had to pay $500 to break our lease early when we renewed it. We thought we were buying a house this summer but soon realized we’d have made a HUGE mistake. We’ll be getting the full finished basement which has a full second kitchen (eat in) full bathroom and a living room that is big enough for a bed. not the biggest place we’ve ever lived but we also have the rest of the house when we want to be out of the basement. We’re calling it our “SOHO Loft” :)"
Joeycasz Says: August 14th, 2007 at 11:16 am
"My parents can’t sell their house in Bloomfield and have fallen on financial times. Fortunately for me and my wife we’ve been given a rare opportunity to help them out money wise (we’re both young and have very good jobs) and put a ton of money in the bank and wait on the sidelines. We currently rent and will be paying significantly less living back home (we’ll be back home Sept 30 2007). We’ll be prepared to buy at pretty much any time because we don’t own anything. It’s a pretty good feeling."
Sad. Our renter friend above will never buy a house because living in that basement is going to result in him getting divorced. What self-respecting woman is going to put up with living in her parents-in-law's basement? I know many woman who would IMMEDIATELY divorce their husbands if they even thought of this awful living arrangement!
I hope this guy has a pre-nup!
Joeycasz Says: August 14th, 2007 at 11:53 am
"We’re in the same situation. I had to pay $500 to break our lease early when we renewed it. We thought we were buying a house this summer but soon realized we’d have made a HUGE mistake. We’ll be getting the full finished basement which has a full second kitchen (eat in) full bathroom and a living room that is big enough for a bed. not the biggest place we’ve ever lived but we also have the rest of the house when we want to be out of the basement. We’re calling it our “SOHO Loft” :)"
Joeycasz Says: August 14th, 2007 at 11:16 am
"My parents can’t sell their house in Bloomfield and have fallen on financial times. Fortunately for me and my wife we’ve been given a rare opportunity to help them out money wise (we’re both young and have very good jobs) and put a ton of money in the bank and wait on the sidelines. We currently rent and will be paying significantly less living back home (we’ll be back home Sept 30 2007). We’ll be prepared to buy at pretty much any time because we don’t own anything. It’s a pretty good feeling."
Sad. Our renter friend above will never buy a house because living in that basement is going to result in him getting divorced. What self-respecting woman is going to put up with living in her parents-in-law's basement? I know many woman who would IMMEDIATELY divorce their husbands if they even thought of this awful living arrangement!
I hope this guy has a pre-nup!
Home Prices UP in Northeast
Yes, the number of home sales, according to NAR, is down 6.8%, BUT, at the end of the day, PRICE is what matters, not sales volume. This is a great report from NAR since it breaks the market down by metro area. Remember the golden rule for reading real estate statistics:
THERE IS NO NATIONAL HOUSING MARKET
"Regionally, existing-home sales in the Northeast fell 6.8 percent to an annual pace of 1.05 million units in the second quarter from the same period a year ago. The median existing single-family home price in the Northeast rose 0.7 percent to $298,000 in the second quarter from the same period 2006."
http://tinyurl.com/2t9w95
THERE IS NO NATIONAL HOUSING MARKET
"Regionally, existing-home sales in the Northeast fell 6.8 percent to an annual pace of 1.05 million units in the second quarter from the same period a year ago. The median existing single-family home price in the Northeast rose 0.7 percent to $298,000 in the second quarter from the same period 2006."
http://tinyurl.com/2t9w95
When Foreclosure is GOOD
Now, that was a title that should attract some attention! Why is foreclosure good? Well, it is good if the homeowners are committing animal cruelity against 23 dogs and cats, as was the case at this $2.5 million Saddle River mansion.
Let's hope the homeowners responsible for this end up sharing a prison cell with Michael Vick!
3-car garage hid 23 pets' bodies
Animal welfare workers pulled 23 dead dogs and cats from a multimillion-dollar Saddle River house on Tuesday, and rescued 68 others left to roam the feces-filled rooms of the stately home, authorities said.
The carcasses of the dead animals -- some of which officials estimate died more than a year ago -- were found wrapped in flannel shirts, tissue paper and towels and then sealed in shoeboxes, authorities said. The remains were discovered in plastic bags in the three-car garage of the house on Burning Hollow Road, they said.
"We found 50 animals in the house and 23 dead animals in the garage," Frank D. Saracino, an investigator and deputy chief of law enforcement for the Bergen County Prosecutor's Office's Animal Cruelty Task Force, said as the rescue effort was in progress. "Based on the decomposition of the dogs, they had to be there over a year. There were 18 cats, two dogs, and three skeletal animal remains that are unknown."
The live animals -- six dogs and 62 cats -- were found in the house, which was without air conditioning and was strewn with pet food and feces that measured 6 to 10 inches deep.
Authorities said they are considering cruelty charges against the owners of the animals.
The house is owned by Cynthia Stewart, 49, and Philip Tamis, 66. They bought the property that the house is on for $525,000 in 1996, and built a home now assessed at $2.55 million. The house is in foreclosure proceedings, police said.
"The condition of the [rescued] animals varied," said Saracino. "Some of them were young; some of them were puppies, some of them adults."
The surviving cats and dogs were taken to Tyco Animal Control's shelter to be cared for, fed and cleaned up, said Tyco owner Carol Tyler. Tyler said at least two of the animals -- a cat and dog -- had to be shaved because their hair was so matted that it covered their eyes.
The animals may be up for adoption in the future, but not until they are examined, Tyler said.
"It's probably one of the worst houses I've been in in 20 years," Tyler said. "There was breeding going on -- some cats were 3 weeks, 8 weeks, and 4 months old."
Saracino could not comment on the cause of death of the 23 animals.
"They were just placed in bags in a pile in the garage," Saracino said.
http://tinyurl.com/2qxuk8
Let's hope the homeowners responsible for this end up sharing a prison cell with Michael Vick!
3-car garage hid 23 pets' bodies
Animal welfare workers pulled 23 dead dogs and cats from a multimillion-dollar Saddle River house on Tuesday, and rescued 68 others left to roam the feces-filled rooms of the stately home, authorities said.
The carcasses of the dead animals -- some of which officials estimate died more than a year ago -- were found wrapped in flannel shirts, tissue paper and towels and then sealed in shoeboxes, authorities said. The remains were discovered in plastic bags in the three-car garage of the house on Burning Hollow Road, they said.
"We found 50 animals in the house and 23 dead animals in the garage," Frank D. Saracino, an investigator and deputy chief of law enforcement for the Bergen County Prosecutor's Office's Animal Cruelty Task Force, said as the rescue effort was in progress. "Based on the decomposition of the dogs, they had to be there over a year. There were 18 cats, two dogs, and three skeletal animal remains that are unknown."
The live animals -- six dogs and 62 cats -- were found in the house, which was without air conditioning and was strewn with pet food and feces that measured 6 to 10 inches deep.
Authorities said they are considering cruelty charges against the owners of the animals.
The house is owned by Cynthia Stewart, 49, and Philip Tamis, 66. They bought the property that the house is on for $525,000 in 1996, and built a home now assessed at $2.55 million. The house is in foreclosure proceedings, police said.
"The condition of the [rescued] animals varied," said Saracino. "Some of them were young; some of them were puppies, some of them adults."
The surviving cats and dogs were taken to Tyco Animal Control's shelter to be cared for, fed and cleaned up, said Tyco owner Carol Tyler. Tyler said at least two of the animals -- a cat and dog -- had to be shaved because their hair was so matted that it covered their eyes.
The animals may be up for adoption in the future, but not until they are examined, Tyler said.
"It's probably one of the worst houses I've been in in 20 years," Tyler said. "There was breeding going on -- some cats were 3 weeks, 8 weeks, and 4 months old."
Saracino could not comment on the cause of death of the 23 animals.
"They were just placed in bags in a pile in the garage," Saracino said.
http://tinyurl.com/2qxuk8
Bednar Concerned About Negative Housing News
James Bednar Says: August 15th, 2007 at 11:35 am
We can’t ignore the psychological impact of negative housing data, national or local. To some extent, these national statistics, along with national anecdotes of “real estate riches” helped feed the boom. Do you really believe that negative housing news, nationwide or not, won’t have a negative impact on buyer psychology?
jb
-------------------------------------------
And who do we have to thank for spreading negative housing news (most of which is just predictions, not ACTUAL facts)? Why, NJREREPORT of course!
We can’t ignore the psychological impact of negative housing data, national or local. To some extent, these national statistics, along with national anecdotes of “real estate riches” helped feed the boom. Do you really believe that negative housing news, nationwide or not, won’t have a negative impact on buyer psychology?
jb
-------------------------------------------
And who do we have to thank for spreading negative housing news (most of which is just predictions, not ACTUAL facts)? Why, NJREREPORT of course!
$5 House in Tenafly? I Don't Think So!
The house for sale below has been getting some attention on NJREREPORT since it is listed with an asking price of $5. Well, this is a HUGE mistake! I called up the number in the listing and here are the prices:
$6,000 a month to rent
$1.3 million to purchase
http://tinyurl.com/2x8adl
NICE TRY RENTERS!
$6,000 a month to rent
$1.3 million to purchase
http://tinyurl.com/2x8adl
NICE TRY RENTERS!
Tuesday, August 14, 2007
A Look at NJREREPORT Posts
Round 2
I know I said I will stop posting for tonight, but this one really caught my eye:
"BC Bob Says: August 14th, 2007 at 8:45 pm
[272],
Selles are setting their #ss on fire? Just one example of a ton;
$540000 JUST REDUCED!! Beautiful 1320 sq. ft. 2 bed 2 bath
http://newjersey.craigslist.org/rfs/396106036.html
Very good job BC Bob. You probably picked the worst listing in all of Hoboken. If you had bothered to read the ad, it clearly says the apartment is a 4th floor walkup. Now which condos will sell the fastest? Ones in brand new buildings with elevators or those in antiquated buildings without elevators? Kind of hard to sell an old condo when you are competing against TONS of new construction, most of which is selling VERY quickly and for TOP dollar!
I know I said I will stop posting for tonight, but this one really caught my eye:
"BC Bob Says: August 14th, 2007 at 8:45 pm
[272],
Selles are setting their #ss on fire? Just one example of a ton;
$540000 JUST REDUCED!! Beautiful 1320 sq. ft. 2 bed 2 bath
http://newjersey.craigslist.org/rfs/396106036.html
Very good job BC Bob. You probably picked the worst listing in all of Hoboken. If you had bothered to read the ad, it clearly says the apartment is a 4th floor walkup. Now which condos will sell the fastest? Ones in brand new buildings with elevators or those in antiquated buildings without elevators? Kind of hard to sell an old condo when you are competing against TONS of new construction, most of which is selling VERY quickly and for TOP dollar!
A Look at NJREREPORT Posts
Today we will be starting another series: A Look at NJREREPORT posts.
This blog has only been up for less than 24 hours and already the renters are in shock that the market is not going to collpase. What happened? I thought prices are going to see a significant decline this Septemeber 1st, according to "clotpoll"
"comrade gary Says: August 14th, 2007 at 8:49 pm
Greenbrook Rd, North Caldwell - There was a house listed in the high 800s for about a year or so. It just went up to 929K. Someone, please explain."
I will explain. First off, what's this "comrade" nonsense? We are in the United States, not the Soviet Union!
As far as the price increae, there is a long list of why it could have gone up including:
1. To reflect recent renovations made
2. Sellers felt they under-priced the house
3. To show the buyers who's boss in this market (all right, this is probabaly not the reason, but I like the sound of it)
Well, that is it for tonight! Thank you to everyone who sowhowed up. Tomorrow we will be discussing a lucky seller in Seattle who sold her house in only 6 days! Market collapse? Obvivously she did not get the memo!
This blog has only been up for less than 24 hours and already the renters are in shock that the market is not going to collpase. What happened? I thought prices are going to see a significant decline this Septemeber 1st, according to "clotpoll"
"comrade gary Says: August 14th, 2007 at 8:49 pm
Greenbrook Rd, North Caldwell - There was a house listed in the high 800s for about a year or so. It just went up to 929K. Someone, please explain."
I will explain. First off, what's this "comrade" nonsense? We are in the United States, not the Soviet Union!
As far as the price increae, there is a long list of why it could have gone up including:
1. To reflect recent renovations made
2. Sellers felt they under-priced the house
3. To show the buyers who's boss in this market (all right, this is probabaly not the reason, but I like the sound of it)
Well, that is it for tonight! Thank you to everyone who sowhowed up. Tomorrow we will be discussing a lucky seller in Seattle who sold her house in only 6 days! Market collapse? Obvivously she did not get the memo!
Sales Strong at Millionaire's Only Condo Complex
Funny, the bloggers at njrereport keep talking about "price reductions" and "incentives" being offered by developers, but if you go to the website of almost any new development on the NJ Gold Coast, you won't find any of these "incentives." Just like the article below. The developer is not offering any incentives. Why should they? More than 10% of the complex is sold out and it won't be ready for another 3 years. No need to cut prices and offer incentives for condos that won't be ready for occupancy until 2010.
$150M Condos Under Construction
By Eric Peterson of GlobeSt.com
Monday, August 06, 2007 -
CLIFFSIDE PARK, NJ-Construction is just under way for Aurora Over the Hudson, a two-tower residential condo development here. The project is being done by Aurora Development, a joint venture of a trio of developers, Pinnacle Downtown of Chatham, Kohl Partners of Teaneck and the locally based Craftex Builders Inc.
Aurora Over the Hudson, located on the Palisades overlooking the Hudson River opposite Manhattan, carries a construction price tag of $150 million. Its 131 units will encompass two- and three-bedroom units in two, 11-story towers. The residences are slated for delivery by the developers in 2010.
And those units will carry an upscale price tag for prospective owners, in a range of $1 million to $2.5 million, reports Mary Boorman, Pinnacle Downtown’s SVP for development, sales and marketing. Formal plans had been unveiled in March after local approvals were cleared, and since then, “we sold more than 10% of the homes before there were even shovels in the ground,” she says.
http://www.cityfeet.com/News/NewsArticle.aspx?PartnerPath=&Id=25343
$150M Condos Under Construction
By Eric Peterson of GlobeSt.com
Monday, August 06, 2007 -
CLIFFSIDE PARK, NJ-Construction is just under way for Aurora Over the Hudson, a two-tower residential condo development here. The project is being done by Aurora Development, a joint venture of a trio of developers, Pinnacle Downtown of Chatham, Kohl Partners of Teaneck and the locally based Craftex Builders Inc.
Aurora Over the Hudson, located on the Palisades overlooking the Hudson River opposite Manhattan, carries a construction price tag of $150 million. Its 131 units will encompass two- and three-bedroom units in two, 11-story towers. The residences are slated for delivery by the developers in 2010.
And those units will carry an upscale price tag for prospective owners, in a range of $1 million to $2.5 million, reports Mary Boorman, Pinnacle Downtown’s SVP for development, sales and marketing. Formal plans had been unveiled in March after local approvals were cleared, and since then, “we sold more than 10% of the homes before there were even shovels in the ground,” she says.
http://www.cityfeet.com/News/NewsArticle.aspx?PartnerPath=&Id=25343
Bednar Resorting to Censorship
Well, Crazy Bednar is at it again! He deleted the posts on the blog that linked to this site! It's a pitty, when someone links to another housing bubble site, those links never get deleted. That is all right, a link to this blog will continued to be posted on njrereport in the future!
This blog is NOT a one man operation!
This blog is NOT a one man operation!
53 Steps Forward, One Step Back
This post should get everyone on the Lawrence Yun watch blog fired up.
Let's see, we are in a "market slump." The average home appreciated by 53% in the last 5 years, and now home prices are down a whopping 1%. I am pretty sure that most Americans would not mind seeing their net worths increase by 53% one day and then decline by 1% the next day. They still make out like bandits at the end of the day!
FRONT LINES: Economy
The Wrong CorrectionBY LAWRENCE YUN, NAR SENIOR ECONOMIST
But there’s no real correction where consumers are concerned. Yes, home price appreciation has slowed considerably, and nationally we’re expecting a price drop of 1 percent for 2007. But that drop comes at the tail end of a five-year spurt that increased home prices by 53 percent. We may have taken one small step back, but that’s after taking 53 steps forward.
Even a relatively large price decline, such as the 12 percent drop we saw in Sarasota, Fla., cannot reasonably be called a correction when that market had a 150 percent price increase during the boom.
When today’s consumers look at real estate markets, they need to use the same analytical approach as investors in the stock market. Those buyers aren’t generally concerned about the volume of stock trades on a given day. Why should they be? They’re focused on price trends. And by that measure, now is a great time for consumers to be in the housing market: Prices have steadied, and inventories are healthy.
http://www.realtor.org/rmomag.nsf/pages/economyjuly07
Let's see, we are in a "market slump." The average home appreciated by 53% in the last 5 years, and now home prices are down a whopping 1%. I am pretty sure that most Americans would not mind seeing their net worths increase by 53% one day and then decline by 1% the next day. They still make out like bandits at the end of the day!
FRONT LINES: Economy
The Wrong CorrectionBY LAWRENCE YUN, NAR SENIOR ECONOMIST
But there’s no real correction where consumers are concerned. Yes, home price appreciation has slowed considerably, and nationally we’re expecting a price drop of 1 percent for 2007. But that drop comes at the tail end of a five-year spurt that increased home prices by 53 percent. We may have taken one small step back, but that’s after taking 53 steps forward.
Even a relatively large price decline, such as the 12 percent drop we saw in Sarasota, Fla., cannot reasonably be called a correction when that market had a 150 percent price increase during the boom.
When today’s consumers look at real estate markets, they need to use the same analytical approach as investors in the stock market. Those buyers aren’t generally concerned about the volume of stock trades on a given day. Why should they be? They’re focused on price trends. And by that measure, now is a great time for consumers to be in the housing market: Prices have steadied, and inventories are healthy.
http://www.realtor.org/rmomag.nsf/pages/economyjuly07
Welcome NJREREPORT Bloggers
It is only a matter of time until the bloggers on NJREREPORT discover this site. Well, I would like to welcome them! The first thing you should know about this site is that I beleive in balanced speech. Comments that disagree with me will NOT be deleted solely based on that fact. I have no intentions of using Kannekt style tactics. I welcome you to offer differing opinions, as long as they are appropriate.
Please feel free to leave a comment!
And be sure to check back for updates...
P.S. The creation of this blog has NOTHING to do with the quality of the real estate market. Heck, I would probably have created this blog even if the market was still "hot."
Please feel free to leave a comment!
And be sure to check back for updates...
P.S. The creation of this blog has NOTHING to do with the quality of the real estate market. Heck, I would probably have created this blog even if the market was still "hot."
Common Beliefs on NJREREPORT
For the next few weeks, we will be taking a look at some of the common views on njrereport and why they are wrong.
The first one:
1. "No market is immune to the 'correction'"
Really? Funny people should think this, since the NJ Gold Coast is seeing soaring property values:
New Condo Complex Sets City Record for Penthouse Sales Published: August 13, 2007
By Kelly Sheehan, Online News Editor
Jersey City, N.J.—K. Hovnanian Homes has sold two penthouse condominiums to one buyer for $6 million. The units are part of 77 Hudson, a new condo complex located in Jersey City, N.J.The sale sets a new record price for a penthouse sold in the city. The penthouses, on floors 48 and 49, total 4,188 square feet.
http://www.multi-housingnews.com/multihousing/content_display/industry-news/e3i06aa97b6b0ab3a95adb63b0282528006
Perhaps the renters on the blog should learn to do some fact checking BEFORE they make their claims.
The first one:
1. "No market is immune to the 'correction'"
Really? Funny people should think this, since the NJ Gold Coast is seeing soaring property values:
New Condo Complex Sets City Record for Penthouse Sales Published: August 13, 2007
By Kelly Sheehan, Online News Editor
Jersey City, N.J.—K. Hovnanian Homes has sold two penthouse condominiums to one buyer for $6 million. The units are part of 77 Hudson, a new condo complex located in Jersey City, N.J.The sale sets a new record price for a penthouse sold in the city. The penthouses, on floors 48 and 49, total 4,188 square feet.
http://www.multi-housingnews.com/multihousing/content_display/industry-news/e3i06aa97b6b0ab3a95adb63b0282528006
Perhaps the renters on the blog should learn to do some fact checking BEFORE they make their claims.
What is this Blog?
This blog is meant to be a place to rebut the insane and crazy claims made on the real estate blog know as www.njrereport.com
First off, I used to post on the blog, but was banned because Crazy Bednar thought it was fun to only enforce certain rules against me because I disagreed with the majority view.
First off, I used to post on the blog, but was banned because Crazy Bednar thought it was fun to only enforce certain rules against me because I disagreed with the majority view.
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