The Economic Picture for Property Now
Sep 7, 2011 Uncategorized
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Hudson County in New Jersey was once known among real estate professionals as the Gold Coast for its quick and easy access to downtown Manhattan while offering all the buccolic charms of small-town America. Yet because of the current economic malaise, real estate in the area has been tough to sell, even with consecutive price discounts.
It’s true that local properties are being sold regularly, if not rapidly. However, the backlog of inventory for condominiums and single-family houses is tremendous. An analysis of sales statistics reveals that even if no new units were listed for sale, it would take up to two years to sell those already listed, assuming the current pace of purchases being made!
In contrast to the half a year that industry insiders believe would be required of a healthy market.
Naturally, we are speaking generally here: it’s certain that at some times, some particular places in this area have done pretty good. However, in no area is there genuinely positive news to be found, from premium developments to affordable properties in Jersey City, Hoboken, or Weehawken – never mind communities such as West New York or Guttenberg.
After all, almost exactly the same thing has been happening all across the country, from the West Coast to the East Coast, from the South to the North. Even as prices keep falling, there is hardly anyone who’s interested in buying in this kind of an economy. This is something that even industry insiders like Isaac Toussie are confounded, that despite the great deals sales should actually decrease!
Then again, who would want to take out – or give – a loan for several hundred thousand dollars in such an uncertain job market?