Why does real estate in this market area seem sluggish? I am not referring to the Florida or Las Vegas market, I am referring to suburban New York City. Specifically, Bergen County, New Jersey, less than one hour commute to Manhattan. Let's review one town's statistics according to the New Jersey Multiple Listing Service. The town is Waldwick, NJ
Located less than one hour commute to New York City, Waldwick is nestled in among the towns of Saddle River, Allendale, HoHoKus, Ridgewood, Wyckoff and Midland Park all located in the Northwest Bergen County. (see http://www.liberty100.com for more info)
According to the New Jersey Multiple Listing, the average sale price in Waldwick for 2007 was $452,828. Compared to the surrounding towns, Waldwick is quite affordable. However, the current asking price in Waldwick, NJ is $519,771. That is 14.8% higher than the average sale price. Further statistics indicate that in 2007 the average sale to list price was 97.15% indicating the average negotiation from asking price was about 3%. That does not mean a buyer offered 3% less than asking. They probably offered between 5% and 7% less than asking and settled in the middle. What does this mean?
If the average asking price 14.8% higher than the average sale price, it means that the average asking price is probably 11% or 12% higher than it should be. If sellers would "razor sharp" their pricing to just 3% over the actual expected sale price, they would see serious action. Especially if that pricing is in the less than $500,000 range.
With interest rates hovering at or under 6% for a 30-year fixed rate mortgage, this would be a HOT MARKET if the sellers would get realistic on pricing.
"If my kids were older enough to purchase, we'd be running around looking for the best values out there and locking in that 30-year fixed rate"...
Tom Johnson
Broker
Liberty 100 Realty
www.liberty100.com
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