Category Archives: Demarest

Bergen County Luxury Home Market On Life Support

So many luxury homes for sale & not many sold = PROBLEMS

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Luxury Home For Sale Cresskill, New Jersey

The luxury market may be flying high in Manhattan and elsewhere in New York City where luxury apartments are selling for insane prices, but out here in the suburbs of Bergen County, which used to be the hotbed for  the luxury market in New Jersey, on its death bed…as it has been since the market crashed

 

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Here’s some facts:

  • Only 23 homes priced above $3 million have sold to date in 2013
  • The 5 most expensive homes sold: $13,375,000…$10, 500,000…$6,375,000…$5,500,000…$5,125,000…
  • Only 5 homes were sold in 2013 priced above $5 million
  • There are 95 single family homes listed for sale priced above $3 million
  • The most expensive home for sale in Bergen County is the “Gloria Crest Estate” in Englewood that is listed for $29,900,000. Guess they wanted to keep it under $30 million.  The home was originally listed for $39 million…and it was purchased in 20000 for $4,672,500.  Unfortunately the agents pictures don’t do this home justice…2 yr old picts taken in an off season doesn’t help the sales effort
  • There are 30 homes for sale priced above $5 million
  • The 5 most expensive homes for sale are $29,900,000…14,500,000…$14,000,000

Though there is a sizable percentage increase (90%) in sales for this price range, the number of homes sold (a 9 home increase…most in the $3M range) is insignificant compared to the number of homes that are for sale…95 homes

Towns with the most luxury homes for sale priced above $3 million:

  • Alpine…25 homes for sale
  • Saddle River…19
  • Cresskill…11
  • Franklin Lakes…8
  • Tenafly…8
  • Demarest…11

As with everything on this site, we let the numbers speak for themselves.  The luxury market is deader than dead, and there’s no light at the end of the tunnel.

Tell us what you think the future is for these ultra luxury homes

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Home Sales Report: Closter, Cresskill, Demarest, Englewood, Englewood Cliffs, Haworth, Norwood, Tenafly

The numbers are in, and they are what they are…good, bad or indifferent

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Here’s the stats for the number of homes sold, and the dollar volume for the sales for the following towns in Bergen County, New Jersey:

  • Closter
  • Cresskill
  • Demarest
  • Englewood
  • Englewood Cliffs
  • Haworth
  • Norwood
  • Tenafly

Sorry, but for this post I’m only providing the cold hard facts.  Commentary will follow in a future post.

Just remember…in real estate, numbers can be misleading, and they often are.

Even though the number of homes of homes sold, and the dollar volume had dramatically decreased for this time period for Tenafly…should we really be concerned?

If you need a quick fix on the facts behind the numbers, you can email me at Snkonefsky@gmail and we can have a short chat.

How new rental projects along the waterfront will affect area home sales

Just came across this article on NTTimes.com titled….Feeding the rental appetite…by Antoinette Martin, where the author details numerous upcoming  rental projects that are slated to be built in Hudson County, as well as some interesting facts that back up her perception for the areas future as it pertains to housing.  Though the article was published in February 2012, the facts remain relevant:

HUDSON COUNTY indisputably rules the rental housing market in New Jersey: It has the largest supply of Class A units — around 13,000, according to industry experts — and commands the highest average rental rates of any part of the state. This year and next, that rental kingdom is projected to grow rapidly      

As these projects get off the ground and start renting out, I believe that it will have a negative effect on the for sale market in the outling markets in Bergen County and elsewhere in New Jersey. Home sales in the suburbs will suffer as young buyers flock to these projects, rather than buying homes in the suburbs. And it will happen sooner rather than later:

  • people will put off making a purchase or rental decision while these projects are being built
  • there’s no real rush to buy a home because interest rates and prices aren’t inflating anytime soon

Developers are already at work on, or have recently announced, projects that will add several thousand more units in waterfront communities like Hoboken, Jersey City and Weehawken, and hundreds of other units elsewhere. Hudson County is one part of the state where builders “can still get the economics to work” in their favor, said David Barry, the president of the Ironstate Development Company in Hoboken. “You have to add in the fact that multifamily rentals seem to be the only thing for which builders can get a construction loan from lenders these days,” Mr. Barry added, noting that this factor was keeping the rental development market “very warm, if not hot.”  

Even if the economy picks up these rental projects will thrive for decades compared to home sales and new home construction.

If you’re trying to sell your home in towns like Tenafly, Cresskill, Closter and Demarest, then you need to find a way to compete for the first time buyers who make up a majority of home buyers in our area.  You need to find a way to entice them with their future ties in the community, because the rental market is an easy “buy”for them.

And these new mega projects that contain every modern amenity imaginable that everyone now looks for, so they too will affect the older once more established rental markets like Fort Lee and Hackensack, because they can’t compete with new more vibrant projects and locations.

As I point out time and again on this site.  It’s all about competing for sales.

It’s all about marketing.

Home sales data for Tenafly and surrounding towns. There are some surprises

Here is a close look at how the local housing markets are performing in our area: It’s all facts, and no fiction or misrepresentation of the numbers

  • Closter
  • Cresskill
  • Demarest
  • Englewood
  • Englewood Cliffs
  • Haworth
  • Norwood
  • Tenafly

Remember, real estate is local, so it really doesn’t matter what all the broad based reports are reporting.  It only matter what is happening locally.

Tenafly is still the king of home sales in our region.  Even though the sales figures are down across the board, the number of homes sold and the dollar volume for those home sales is still considerably more than all the other towns.

Tenafly is still considered the best place to buy a home, even if it costs more to live here compared to the other towns:

  • Tenafly dollar sales volume is 4xs more than in Norwood and Haworth
  • And it’s 1.5 –  2xs more than most of the other towns on the chart
  • Tenafly has more hoes sales than in all the other towns
  • Tenafly represents 23% of all homes sold in all of the towns combined on this chart
  • Tenafly ranks #3  for the average sales price, but considering the the number of homes sold and the dollar volume, the ranking is closer because of the diversity of homes that have been sold
  • In 2011 the dollar sales volume in Tenafly was 50% + higher than any other town on this chart
  • And the average sales price in Tenafly was only beat out Englewood Cliffs…but EC had only 46 homes sold compared to 158 homes sold in Tenafly

In the next post, I’ll discuss a major misrepresentation of the housing market in Tenafly.  One agent stared that sales in Tenafly had increased by double digits, when the facts show that Tenafly is in fact at -9% for the year to date. That’s about a 20 point mistake.  That’s a big difference, and it’s misleading..  Catch the data in my next post…”keeping the facts honest“.

As always. this sit5e is about homes and up to date market information and how using these number can help sellers to batter market their homes to buyers. And we aim to help buyers, by providing them with information that will help them analyze their purchase decisions based on facts…not fiction.  And that will help to avoid making a huge mistake.

It’s all about marketing your home: #1

A great picture is worth a thousand words.  But a crappy picture is worth a click of a mouse in search of something much more appealing

Great marketing adds value to a home.

Horrible marketing decreases the value of a home, while increasing the length of time that it takes to sell homes.

Horrible marketing is worse than no marketing, because horrible marketing turns off potential buyers (internet viewers) , and they end up clicking off of these homes in search of something more appealing.

Dark photos, tiny photos, POW looking bedding, photos of toilet bowl cleaners and toilet paper…can you smell it!.  Does this appeal to anyone!

It’s not all about price.

Selling homes has now become all about marketing …grabbing someones attention, and appealing to online viewers, so they spread the message about your home to their friends, family or spouse.

If someone falls in love with your home even though irt’s more money than they wanted to spend, they will still try to find a way to buy it…through neither negotiating a lower price or simply by spending more than they originally wanted to spend.  And this is happening everywhere in America.  It’s still human nature.  And it’s what happens in Bergen County.

So it’s all about marketing and creating a love connection, between your home and potential buyers…and everyone else who helps influence a sale (parents, in-laws, friends, co-workers)…you have to impress everyone who gets into the act, and that cn only be done through marketing.

Here’s a few crappy pictures of some horrible looking rooms that are posted on the mls.

  • this is the art of how not to market a home
  • it’s how to create a longer sales cycle
  • and it’s how to create a lower sales price

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These are pictures that only a Realtor can love…and they’re of homes for sale in Tenafly, Closter, Denarest and Cresskill.

I have no idea what Realtors assume will be the response from online viewers.  But if these pictures make me want to puke, then I can only imagine that they will turn off viewer and buyers as well.  And what do these pictures say about the home, the agent and the brokerage company?  Not much.

Selling products in today’s world is all about how well you can do it online.  Selling is now about how great you are at attracting buyers, and enticing them over a long time period and creating value for sellers so that their homes sell faster and sell for the highest price possible.

If this is the best marketing that you’re going to get, then be prepared for mega price reductions.

New homes may be gaining steam…in some areas

An article I came across in the MiamiAgent.com blog, asks if new construction homes are attractive again.

Link…Are New Construction Homes Attractive Again?

New luxury home for sale on Essex St, Tenafly

I think we’re starting to see the beginnings that trend, but in areas like Tenafly, Cresskill, Demarest. Alpine and other town in the area, this may not be a long haul trend, because:

  • we have very little vacant land
  • knockdowns are still over priced
  • the risk to build a spec home is still substantial
  • tows don’t want to see multi family homes being built…which makes new homes that much more expensive
  • and it takes a long to to complete a spec home…and who knows what the economy will be like at that time
  • and how many people can afford a new home

But, real estate is local and some towns will do better than others…like Tenafly which as seen a rash of new home construction…some for sale and some built by the owners.

I would tend to believe the builders on this more on this, than listening to the brokerage rhetoric because the builders have to risk a fortune when building a project, and can’t afford to mess this up and be swayed by their own hype. Being wrong is deadly for a builder/developer, but not for agents.

Market News: home sales comps…Tenafly, Closter, Cresskill, Demarest

 Hot off the press!

Here are the up to date sales stats for towns surrounding Tenafly.  More will follow.

Here’s the good, the bad and the ugly of what’s happening with the local real estate market.

Home sales comparisons

Here are the stats:

Comparing Tenafly, Closter, Cresskill and Demarest…Tenafly is hands down the hottest market.  Tenafly seems to be the first choice for most buyers…even with our incredibly high property taxes which keep going up and up every year.

  • Home sales in Tenafly are up 24% in 2012…with 26 homes sold through March. And has the second highest average sales price behind Demarest (but only 8 homes have been sold in Demarest)
  • Closter home sales are up 29% with 18 home sales…BUT the average price in Closter is almost 50% less than for Tenafly and Demarest
  • Tenafly has the highest dollar volume for homes sold…and is 64% higher than its closest rival.  The dollar volume of homes sold in Tenafly increased by 24% from the same time period in 2011
  • The dollar volume of homes sold in Cresskill took a huge hit…-65%.  And the number of homes sold in  Cresskill is down an ugly 45%

These are the figures that every buyer and seller needs to familiarize themselves with:

  • For sellers…in order to price your home based on fact rather than fiction or on misleading information, you need to know the numbers.  This will give you the logic behind selling your home for its highest price
  • For buyers…don’t let anyone tell you that buying a home isn’t a huge risk…because it is.  To protect yourself, you need to understand the market for each town.  Be happy to pay more to buy into a town that is out of the recession…like Tenafly.  Buying into a safer town is a smart move, unless of course you can steal a home in another town.  Working against insanely low offers is that the inventories of homes for sale in most town is much lower than in previous years…and low inventory means higher prices.  And that’s a good thing.  The confidence in the market is improving…and that is a positive sign for all of us.

Let me know if you need additional information or analysis…without any industry manipulation.  The numbers fall where they fall.