I recently had someone ask a question about the Highbridge Development in Medford, NJ. The question went like this.
Is there something wrong with Highbridge? I notice that the homes listed for sale are not selling?
Here is the response that I shared. Even thought I am discussing a development in Medford, NJ, the same is true in many other parts of the country.
One of the areas that were hit hardest by the recent housing down turn is luxury housing. Luxury housing is described as homes which require a mortgage above $400,000. These homes typically have lost the most value and have a smaller set of potential buyers. Many home buyers who would be able to afford these homes are currently unemployed or under employed. Add to that the fact that many home sellers are still under the impression that their homes are still worth what they paid for them several years ago.
Real estate prices are determined by supply and demand. When there is low 
supply and high demand, prices go up. When there is high supply and low demand, price go down. Currently there are 9 homes for sale in Highbridge. In the last six months, only 3 homes have sold. That is an average of 1 home every two months. At that rate, it would take 18 months to sell every home in the development. A buyers market exists when there are 6+ months of home inventory.
This is definitely a buyer’s market for Highbridge.
The average cost of the homes sold in the last 6 months was $526,000. However, the average cost of the homes for sale is $574,000. Therein lays the problem. The homes appear to be overpriced. You can read my blog post about overpriced homes http://activerain.com/blogsview/1457704/the-top-reason-why-you-should-not-price-your-home-above-your-neighbor-s-even-if-your-home-is-nicer-by-leander-mcclain-realtor-
I hope this will hope buyers to understand that there are great bargains available at this time. Sellers should also understand that there are buyers....however, homes must be priced for todays market.
The Market determines the price.....Not the seller.
In the meantime, if you have any questions or don't know where to begin on your home search, feel free to contact me.
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Leander McClain, Camden & Burlington Township Realtor & Real Estate Consultant, Atlantic & Pacific Real Estate, 103 Carnegie Center, Princetonl, NJ 08540 609-505-6578 (direct)
lee@njsouthrealestate.com, @leemack912, www.facebook.com/Leander.NJRealtor
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