Category Archives: Market Stats

Alpine luxury home market continues to tank

When will the luxury housing market begin to recover in Bergen County?

Alpine used to be at the top of the Forbes list as one of the most expensive zip codes in the nation.  I doubt it will be there again if the look at the updated market stats and home sales.

Screen Shot 2014-05-09 at 12.58.04 PM

Ever since the housing market began its recovery in our area about 3 years ago, our once precious and busy luxury market is still in the biggest hole of its lifetime.

The ironic thing is, there are a number of ultra luxury homes that were built by land owners or are presently under construction that cost considerably more than $3 million…but the realtors can’t save their lives to sell a luxury home without a steep discount.

People who are building luxury homes see the value,  yet the realtors don’t.  I kinda like what the consumers are saying because they’re making some huge investments.

The luxury market has taken a huge hit, and the effects are  showing in the prices…it’s devastating and  there’s no end to the bloodbath.

A number of wealthy homeowners have taken their homes off of the market and have opted to wait it out.  I think they’re in for a long wait

Luxury homes

Alpine:

  • There are 32 homes for sale in Alpine priced above $3,000,000
  • In 2013 only 6 homes sold for more than $3 million
  • The highest priced home sold was $13,375,000…which was a 25% discount (originally listed for $18,500,000
  • The second highest priced home that sold was $7,500,000 and was originally listed at $14,900,000 in early 2011…50% discount
  • Of the 6 homes sold…5 were local residents and only 1 was from out of the area (Manhattan)

Going back to the high flying days a 2 acre lot was worth $4 million…for the land only.  Now you can buy a home in Alpine for $4 million and it has a house on it.

Discounts on most of the homes sold in Alpine was 25%.  Most of the homes are dated and need major makeovers which will probably cost another $500k

luxury homes for sale Alpine NJ,alpine, steven konefsky, eating real estyate, prominent properties sothebys international, luxury homes
luxury homes for sale Alpine NJ,alpine, steven konefsky, eating real estyate, prominent properties sothebys international, luxury homes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alpine has several home for sale that have been on the market for 5 years.  

  • One is listed for almost double what the owners paid for the home in 2005
  • Another home was built as a speech home…guess that was a bad investment
  • And one has been ion and off of the market for 4 years and the price keeps increasing…from $9m-$14 million

Bergen County Stats:

  • One-third of the homes for sale in Bergen County are listed for sale in Alpine (32 homes for sale)
  • In 2013 only 28 homes priced above $3 million were sold in all of Bergen County
  • There are 96 homes for sale in BC priced above $3 million

For those of you who have the ability to spend $3 million to purchase a home and then some additional bucks on a renovation, this may be your time.  As a long term investment…maybe, maybe not.  As a place to live and enjoy…yes.

Tell us where you think this end of the market is heading

 

Disclaimer:  Steven Konefsky is a home builder…inc renovations, real estate developer, design consultant, real estate marketing guru, and he sells real estate through Promiment Properties Sotheby’s International in Tenafly NJ.  If you have any real estate related questions you can make comments on this blog or Steven can be reached at 201.522.5256 and at Skonefsky@me.com.  FaceTime and Skype video conversations are welcomed 🙂

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Homes for sale in tenafly are at critical stage

It’s a fact that the housing market in Tenafly is doing great.  Homes are selling at a brisk rate, though most are under-priced so they should sell fast. However…

  • Is the market doing great in all price ranges?
  • Are all homes selling fast?
  • Are all homes selling for their optimum price?

This is something you can’t possibly figure out without understanding the facts.

Tenafly homes for sale and sold...click to enlarge chart
Tenafly homes for sale and sold…click to enlarge chart

 

Here’s some quick facts about the homes that are presently for sale in Tenafly, and have been sold over the past few years.

  • The market for homes for sale in Tenafly has been incredibly active for homes priced below $1 million

However as you can see by the last 2 items in each price range (2014 sold to date & 2014 homes for sale), the numbers don’t look so great, because the inventory for the number of homes for sale has greatly diminished.

  • Below $500k there are only 3 homes for sale
  • From $500-799k there is only 18 homes for sale…and most of those homes are outdated and are in dire need of major home renovations
  • $800-999k there ore only 16 homes for sale

In the near future  there will be no homes in Tenafly that are worth less than $500k

More facts:

  • in 2013 there was a approx a 50% decrease in the number of home sold in Tenafly below $500k,  because of a lack of inventory…and this slow pace will continue well into the future until there are no homes in this price range
  • The same holds true for homes priced between $500-799k.  A dwindling supply will cause prices to rise
  • Homes priced between $800-999k will move up into the next price bracket

This may seem like a lot of homes are for sale, but compared to the number of homes that have sold in Tenafly in the past several years, there aren’t nearly enough homes for sale to fill the demand.

How does this affect home sales in Tenafly and in the surrounding towns?

  • Will potential home buyers who are mostly interested in Tenafly move up to the next price range…which puts an even greater premium on homes in the lower price range
  • Or will they seriously consider buying a home in one of the surrounding towns…which also creates higher prices for those towns because of their demand
  • will the next price level increase in value because of this new  demand?

The answer is yes to everything.

The demand is so great for homes priced below $1 million, and these homes are worth more because of it…even for the wort homes in that price range.

All of these homes will need to be renovated or retrofitted to meet today’s lifestyle needs.

Over the next few weeks, Steven will begin a video series containing: market updates, how to market your home to attract buyers and how to sell your home faster and for a higher price, how to buy the right home and how to go about the renovation process with the least amount of headaches…and whatever else comes to mind.  Oh, I’m also going to do a video series where I rate the homes for sale. This will all be done  from the consumers POV.  It’s going to be fun!

As you can see from the chart 2011-2013 were great years for home sales below $1 million…it would have even been better if there was enough inventory for all of the people who wanted homes in this price range.  Cresskill and Closter should be happy for getting the spillover sales from Tenafly.

Advice: Run from every realtor who preaches “price it right”, because your home is worth more than they think it’s worth.  They don’t understand these facts (unless they’re reading this blog) and so many homes were listed and sold for far less than they should have been

  • Your home is worth more than it was last year, the year before, the year before…and all the way back to 2007…and by a large percentage.  Don’t let anyone tell you differently.

In the next few posts I will address the following:

  1. Tenafly home sales priced $1-2 Million
  2. Tenafly’s ultra luxury home market

There’s a lot going on in these price ranges, and it’s not all good news.

As always. let us know what you think.

Disclaimer:  Steven Konefsky is a builder…inc renovations, real estate developer, design consultant, real estate marketing genius, and he sells real estate through Promiment Properties Sotheby’s International in Tenafly NJ.  If you have any real estate related questions you can make comments on this blog or Steven can be reached at 201.522.5256 and at Snkonefsky@gmail.com

Bergen County Home Sales: 2012

The home sales facts are in: Bergen County increased by 14% in 2012 (compared to 2011).

That’s great news…right?

Or is something hidden behind these lump sum numbers?

First…the real facts:

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The Good News:

  • Home sales: priced below $500,000 increased 14%
  • Home sales: priced $500k-999k increased 16%
  • Home sales: priced $1M-$1,499M increased 5%

Bergen County home sales increased 14% for homes under $1,499,000 (sold price…not the list price)

The Bad News:

  • The average sales price for homes in 2012, have decreased by 20%…from the peak in 2006
  • Home sales: priced $1,500-$2M were even
  • Home sales: priced $2M-$2.99M decreased 6%
  • Home sales: priced $3M-$3.99 decreased 12%
  • Home sales priced: $4M+ increased by 11%…but don’t get excited because the increase was just 1 home sale (9 home sales vs 10 home sales)

So, if it’s big news that the “whole” market is up 4-6% percent, then isn’t really big news when the luxury market is down by 8-10%?.  Isn’t this cause for a lot of concern?

Note:

  • Even with a 14% increase in home sales, sales are still down by an additional 31% from 2005 (the year before the Bergen County market crashed).
  •  Equally important is that the dollar volume for single family homes sold, decreased by 28%…however, theis doesn’t mean that sales prices are down.  It may just be that many more lower priced homes are being sold
  • Multi-family home sales have fared much worse…sales have declined by 51% since 2005. And the dollar volume decreased by 61% 

The fact is, Bergen County has a multitude of micro markets, that react differently to one another:

If someone combined all single family home sales in Bergen County into one group, then they would be misrepresenting a 15% sales increase for 2012.  Even though the entire market was up, if your $1.5M+ home was for sale,  your market actually declined 4% compared  to homes priced below $1,500K.  That’s a 19%  decrease swing from one price range to another

Raise your price?  You bet!

There’s some great news that everyone in our local real estate circle is ignoring: with such a high percentage of home sales in Bergen County being below $500k (even up to $1M), sellers in this price range should be raising their prices

Yes, raise your price!

When the demand is so high for homes in any price range, and the inventory of homes for sale is low, homes become more valuable. Avoid the agents push to lower your price.

Scarcity of homes for sale (or any other product for that matter), and high consumer demand is what every seller prays for.  When consumers can’t have something that they want, they’ll pay more to have it.  Including homes.

So it’s time to raise the price!

How long will it last

The time frame to raise your price in the New Jersey suburbs, is limited to the next 2 years.  In 2015 tens of thousands of rental units will be coming on the market, along the New Jersey waterfront (Jersey City, Hoboken, Edgewater, North Bergen) and elsewhere in the State. When that happens, the face of suburban real estate in our area will be altered for the next decade (a future post).

And lets not forget other important factors:

  • New Jersey taxes are insanely high, and will climb even higher…that hurts home sales
  • The New York City market is going gangbusters, and there’s better value in NYC, because prices are stable, and on the rise.  Right now NYC is a more guaranteed investment, especially for young people

Your time has finally arrived

Right now, it’s your time to take advantage of the opportunities to raise your price, and recoup some of the equity you lost in the past 5-7 years.

If my home was priced below $500k I’d raise the price between 10-20%…20% only for homes in great condition, where a buyer would have little to do in the way of renovations.  And a 10% increase is for a home in the worst condition…because the value of your home is in the price, and in the value of the land, that the home sits on.

Take it from a builder/real estate developer and numbers geek, who has lived through the best and worst markets: strike while the market is in your favor!  And run from anyone who tells you not to.

Let me know what you think

Northern New Jersey luxury market getting clobbered by NYC luxury sales

Why is New York City having a banner year(s) selling incredibly expensive ultra luxury homes (and everything else for that matter), and Bergen County, New Jersey is having another only soso year…and a another horrible year for the ultra expensive end of the market.

Usually when NYC condo sales and prices skyrocket, and rents increase, buyers start flocking out of the city to the New York suburbs. Bergen County has always reeled in a huge portion of the exodus….but that’s not happening now.

The Iconic New York by Gehry building

Sales of ultra luxury homes in Bergen County are down 47% in 2012, and 2010-2011 wasn’t any better. But sales  of ultra luxury units (trophy properties) in Manhattan have been booming the past several years.

The New York Times reported that Kiefer Sutherland recently sold NYC his townhome for $17+ million, which is just a drop in the bucket compared to all of the trophy sales that have been happening north of $50 million.  Yet in the affluent New Jersey suburbs, the high end of the market is gasping for air.

Even luxury home sales in the Hampton have hit the breaks.

The end effect, is that the NYC housing market is further killing the suburban market…and the effects are painful for the suburbs.  A lack of buyers leaving NYC coupled with an incredible number of rentals in the planning stages, and already under construction will make things  even more painful for areas on the other side of the Hudson River.

All these new rental projects in Jersey City, Hoboken, Edgewater and Fort Lee, and in NYC will have a devastating effect on suburban home sales.

Looking ahead, if the suburbs don’t learn real fast how to compete for buyers, then they’ll start failing.  And it will happen fast:

  • Downtown’s are already failing
  • taxes are rising and home prices aren’t
  • the market above $1 million is hurting
  • Very few single family homes are being built
  • The suburban office market isn’t recovering

These aren’t good signs. And there’s nothing pointing to things getting any better in the future.

More on this later.

Check out the Kiefer Sutherland article…Big Ticket: Sold for $17.5 million

Also check out…New York By Gehry

Cnbc: do mortgage rates affect me?

Article via cnbc.com

How does the fed help my house, my mortgage?…by Diana Olick

For those of you who expected to wake up to a 30-year fixed rate mortgage below 3 percent, you may as well go back to sleep.

Yes, rates moved down, 0.125 percent, according to several sources, but that was not as low as some had predicted. Remember, we hit the low of 3.49 percent in July, but then we jumped back into the mid to high threes. (Read More: Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates.)

“Hasn’t everyone learned by now that home sales, have very little to do with low interest rates and low prices?  More homes sold at much higher rates and prices.” 

“Short term, people who are thinking about moving really need to lock in,” says Craig Strent of Maryland-based Apex Home Loans. He is concerned that the strong consumer sentiment number that came in today could cause the Federal Reserve to pull back on its buying in the future. “When this thing turns, it’s going to be fast. Just pulling back a little sends a message,” adds Strent.

But others argue that the housing market is still on such shaky ground that that’s unlikely to happen. Mortgage applications to purchase a home have declined five of the last six months, according to Diane Swonk of Mesirow Financial.

“I think that this will be a trillion dollar commitment from the Fed,” said Swonk on CNBC’s “Squawk on the Street.” “Home values appreciating, that’s something very important in this economy getting more legs and moving forward more rapidly.” (You can watch the interview here.)

So say mortgage rates could dip lower than the latest record, perhaps to around 3.25 percent. How does that help me? Does it boost my home price? (Read More: Will Fed’s Mortgage Buying Juice the Housing Recovery?)

On the one hand, lower mortgage rates give potential buyers more purchasing power. “A 0.125 percent drop in rates adds 1.5 percent to your maximum purchase price (given all the other fees),” according to Dan Green at Waterstone Mortgage. “Assuming a mortgage payment of $1500, that’s the difference between $404,800 and $411,000-ish.” So that is how much more house you can buy. If people can buy more house, then perhaps home prices will rise.

Mortgages
            
30 yr fixed    3.53%        3.25%
30 yr fixed jumbo    4.19%        4.13%
15 yr fixed    2.94%        2.83%
15 yr fixed jumbo    3.39%        3.40%
5/1 ARM    2.93%        2.81%
5/1 jumbo ARM    2.86%        3.01%
Find personalized rates:

Bankrate.com
But as we’ve noted so many times before, the great low rate doesn’t mean anything if you can’t qualify, if you don’t have the down payment or credit scores to get it.

“They’re also not talking about other factors that will continue to contribute to fewer home sales…even when the market does start improving…such as demographics, competition from rentals, and the risk that many people don’t want to take after being beat up by the crash”

“Instead, the underlying improvement in housing demand is still very reliant on cash buyers and investors,” notes Paul Diggle of Capital Economics, who does not believe mortgage rates will fall dramatically. “Admittedly, low bond yields and savings rates more generally are probably playing a part in the strength of investor demand for housing.”

Lower rates could cause a boost in refinances, but so many have already refied at record low rates that it would take a pretty large drop to lure more in, given the fees and hassle involved. And of course negative equity keeps millions of potential refinancers out of the game. The government’s refinance program for underwater borrowers (HARP) has helped over half a million borrowers get lower rates since the beginning of this year, but unless you have a Fannie Mae or Freddie Mac [FNMA  0.2773     0.0053  (+1.95%)       ] backed loan, you’re not eligible.

There is a push by Democrats in Congress to expand the government’s refi program, and lower mortgage rates could help more Republicans come on board, but that is unlikely to happen before election day. (Read More: Wealthiest Counties Rake In Government-Backed Mortgages)

“To ensure as many voters as possible can benefit from this, we believe there will be another push to enact HARP expansion legislation during the lame duck session that will start after the election,” says Jaret Seiberg of Guggenheim Partners. “Lower mortgage rates only matter if people can refinance and plow that extra cash into the economy. Given that as many as a quarter of borrowers may be underwater, the HARP is the way to translate the Federal Reserve’s effort into economic stimulus.”

It is hard to say now just how low rates will go and just who will be able to benefit from lower mortgage rates. In today’s tricky housing recovery, so dependent on investors and so sensitive to a still-swollen pipeline of foreclosed properties and delinquent loans, mortgage rates are just one piece of the recovery puzzle.

In other words…they have no idea what’s going to happen!

Cresskill home sales report 2012

Like every town in Bergen County, home sales in Cresskill have taken a beating over the past five years.  Once known as an oasis for new home luxury sales in developments like Tammybrook and Tamcrest Estates, the luxury end of the market still can’t find it’s way out of the basement.

Cresskill, New Jersey 2012 home sales stats

The reality is, even though home sales in Cresskill are down 11% in 2012, that’s really not all that bad considering there’s only a smattering of sales at the upper end of the market.

The dollar volume of sales are down a mere 6%…but the average sales price in Cresskill increased by 6%.  And that’s not so bad considering that there have only been eigh homes sold in 2012 priced above $1 million.

  • 6 home sales priced $1.0M – $2.0M
  • 2 homes sold $3.0M – $4.0M
  • 39 homes sold  under $1.oM
    …interestingly half of the homes sold below $1.oM were priced BELOW $400K

Over the next few posts, I’ll start comparing home sales from Tenafly, Cresskill, Closter, Haworth and Alpine…then we’ll get a clearer picture as to what’s really happening in the marketplace.

As usual, let us know what you think.

Closter home sales stats 2012

Believe it or not,  home sales in Closter are on a roll in 2012.

  • Home sales increased 12% in 2012 from 49 home sales in 2011 to 55 home sales for the same period in 2012
2012 home sales stats…Closter, New Jersey

But what’s a bit of a drag on the number of sales, is the decrease of the the dollar volume of sales and the average price of those sales:

  • the dollar volume of sales is down 8%
  • and the average sales price decreased by 18%

We’ll get into the numbers and why all of this is happening in a future post.

But remember one thing when you’re looking to buy or sell a home…you need to analyze and understand all of the facts.  It’s one thing to believe that a specific town is doing great because of the number of homes sold, but when you take a closer look at the numbers, it may not be even close to the hype.

Buyer beware:  Know the facts before you do anything.

Run from everyone who tells you that selling your home in Tenafly is all about price. They’re wrong!

This is for all of the Realtors who are making a push to lower home prices in Tenafly.

You’re out of your mind!  You have it all wrong!

I don’t get it…Tenafly is still the hottest town in the region, yet Realtors are still pushing lower prices.  They should be pushing higher prices!

It’s time for homeowners in Tenafly to start recouping some of their losses.

Unnecessarily pushing lower prices causes instability in the marketplace

Tenafly is a sellers market…and here’s the data to back it up!

  • To date there have been 110 home sales in Tenafly.  The next closest is 72 home sales in Englewood, and 55 home sales in Closter.  That’s a 35% to 50% sales lead over it’s two nearest town
  • Tenafly has double + the dollar sales volume over its nearest rival…Englewood Cliffs (which is also on fire in 2012)
  • Since 2001 Tenafly has more home sales than 8 of its neighboring towns (except for 2006…Englewood)

Run from anyone who tells you that it’s all about price, because it’s not!

If you go by the average sales price date, Tenafly is #4 on the list (only because there has been a drop in the sales volume over $2 million in 2012)…and yet the sales volume has remained consistently high even after the market crashed in 2006…compared to all the other towns:

  • the sales volume far exceeds all the other towns by a whopping percentage
  • and property taxes are the highest in Tenafly

And none of this has changed the desirability for living in Tenafly…yet.

Prices did not come down in Tenafly!!

Every smart business person knows, that when your market or product is hot,  you don’t lower your price…you raise it!  Except if you’re a Realtor… who regardless of data to the contrary, still believe that lower prices create more sales…and that’s totally false.

  • We’ve had the lowest prices in a decade….and sales have been stable
  • We’ve also had the lowest interest rates in our lifetime, since the market crashed…and sales have NOT increased

The data shows that the only thing you get from lower prices…are lower prices.  Not more sales!

The value of your home is dependent on the facts…not the industry pov.

If someone is pushing you to lower your prices…find another Realtor!

Selling your home is all about marketing!

Let me know what you think

Are home sales more important to the economy, than dealing with underwater homes?

Some may consider me a pessimist, but I’m not.  I’m just a realist when it comes to analyzing the housing market

I was looking through some of my housing data just now, and something hit, that I really haven’t paid much attention to…the tremendous loss of real estate values (homes for this post) that we have all suffered ($6-$7 trillion), and what effect will this have on home sales and the economy going forward.

Everyone in the media and real estate brokerage is focusing on a new theme of affordability, yet there is very little being said that affordability isn’t anywhere close to being a solution to the market crisis that still looms over every one of us…not just sellers.

Almost everyone who has purchased a home since 2002 has lost money, and some have lost  And that holds true even for homes purchased today. 

Since 2001 almost 100,000 homes (single and multi-family) have been sold, and every one of those homes have lost value…and a major percentage of these homes are underwater.  And this is just for the homes sold.

This table not only represent Bergen County home sales, but more importantly it represents the number of people who have purchased homes since 2001, and who have lost money on the homes they purchased…and that’s almost every sale on this chart! And this chart is only for homes sold below $2 million.

The Wall Street Journal and a few other media outlets have started writing about this issue, because they’re starting to see the light.

This is a huge issue.  Underwater homes are the reason why the housing inventory is so low…homeowners simply can’t sell their homes for less than they’re worth, because they don’t have the money to make up the difference between the two amounts.

So it’s great news that prices are rising, and inventories are low, but this is only a temporary thing.  It won’t last.  There is a difference between the current low inventories of homes that are for sale…and for those homeowners who either want to sell their homes or have to, but can’t because their values are underwater.  And this inventory is the killer that’s lurking right in front of us, but is being ignored.

I love how the media has picked the side of the home buyer and affordability to write about, and miss a much larger problem that needs to be dealt with, before a recovery can take place…namely those who own homes and can’t sell them.  A recovery can’t happen until the underwater problem is resolved.  The problem won’t magically disappear.

What effects will this have for our local home markets in Tenafly, Alpine, Cress,kill and Haworth?  We’ll soon see.

Tenafly home sales data point to a strong market. It’s time for price increases

If your house is currently for sale in Tenafly, or if you are considering selling your home, then this blog post will give you valuable information that you can’t get anywhere else (hey, no one else will put in the effort that it takes to analyze the market for your benefit).

Run from everyone who tells you that it’s all about price, because they’re wrong.

It’s time for Tenafly to take the lead, and stop lowering the sales prices when trying to sell your home

Sales figures show that Tenafly is overwhelming in demand compared to its neighboring towns

High demand has created a sellers market in Tenafly.

Selling your home is not all about price. And it’s not all about being the lowest price (but you can’t be a pig and over price it by a whopping amount, just because you want/need to sell it for more).

And contrary to the Realtors mantra, your house doesn’t need to be priced right for it to sell or to sell faster (I still haven’t figured it out what they mean by price it right).

The following charts breakdown the yearly home sales in Tenafly starting in 2001:

The following charts detail a yearly breakdown of home sales for Tenafly starting 2001 and ending in mid 2012…by price range

What these charts show us is that the yearly home sales have been fairly consistent since around 2006…in every price range other than for the ultra luxury niche (that segment got slammed).

Fact: home sales in Bergen County really crashed in 2006…2 years before the national market collapsed…see chart____ .  And home sales have pretty much bounced around the same sales volume (# of homes sold) since that time.  However, home prices did fall by a large percentage.

The consistent number of home sales in each price category shows us that as long as your home is within a general price range, then you’re fine.

Lower sales prices and lower interest rates do not create more sales.

Sales people like to believe that the lower the price is, more homes will sell…but the evidence shows us that this mindset is wrong.  It’s an outdated wives-tale, that doesn’t hold water.

  • a supposed 30% price decrease hasn’t created more home sales
  • and 3+ years of historically low interest rates has not created more homes sales in our area

In fact, Tenafly is for the most part the most expensive town in the area…given the volume of home sales

If it’s all about lowering your price, or being the cheapest home on the market, then the towns surrounding Tenafly should be bursting with home sales…because in those towns you can get a newer larger home, or a smaller home for considerably less money than you can buy in Tenafly.  And the property taxes are less expensive as well.

Home sales year to date:

  • Alpine…8 homes sold
  • Closter…47 homes sold
  • Cresskill…36 sales
  • Demarest…27 sales
  • Englewood…60 sales
  • Englewood Cliffs…29 sales
  • Haworth…24 sales ytd, which is 2 more sales that Haworth had in all of 2011.  Why are home sales on fire in Haworth?
  • Norwood…16 sales
  • Tenafly…92 homes sold ytd

Even though homes in Tenafly are more expensive and have higher property taxes…Tenafly sales outpace each one of these towns by a range of 30%-90%

The only market segment in Tenafly that has been whacked (compared to 2011) or has it been,  is the luxury home sector.  For some reason that I can’t explain, sales of homes priced over $2 million skyrocketed in 2011 to 16 sales. between 2008 and 2010 luxury home sales averaged around 6 homes per year.  And at this point in time in 2012 were sold in this price range, 6 homes.

What these figures don’t show for Tenafly is the new construction activity that has taken place in Tenafly over the past 2 years.  People bought properties, knocked down the houses, and built new homes, either to live in or to sell as spec homes. there were 12 new, very large and expensive homes built in the past 2 years in Tenafly…so even though the luxury market took a hit on paper, the real market condition is quite different.

Why haven’t the Realtors pointed this out to everyone.  They just don’t get it.

Reason behind breaking the numbers down to specific price ranges:

I didn’t just break them down by volume, which would be very misleading to buyers and sellers…I broke down the numbers by a defined set of price categories that I have consistently used throughout this blog.  By breaking down the numbers, you can see how the market is performing at every price category.  This is the only way for consumers to get an honest and clear understanding of what is really happening in our marketplace. Knowledge will save you a fortune in the longrun.

It’s one thing to see the stats for homes sold up to $1 million, but the numbers become more meaningful and honest when you break them down do a more defined price point 

I wish I had been smart enough to analyze the market in such detail while I was building homes, because if I had done so I would not have built the last 2 homes that I built.  The agents told me one thing, while the numbers pointed to something entirely different.

Important note: just because one price niche is down in sales, doesn’t necessarily mean that-that niche is in trouble.  You really have to take a look at the price points surrounding your target price…and this will give you a more realistic view of the market

For those of you who are hungry for real in depth information, this should be enough to sink your teeth into. So analyze away and let me know what you think.

Home sales in Tenafly are are incredibly stable.  And stability is key to a recovery. Now is the time for Realtors and the brokerage firms to get on the ball and start pricing homes where they should be…not just where they think they should be. And the data backs this up.  The sales prices in Tenafly have been stable for quite some time, so now is the time to push them back up to where they need to be.  A healthy and thriving Tenafly, will help lift all of the neighboring town…and it has to start in Tenafly.

Let the recovery begin!