If you currently own one of those $2+ million Bergen County luxury homes you’re not going to be happy with this news.
Plain and simple…the luxury market in the Bergen County suburbs sucks. And it’s been sucking wind even prior to the market crash. That’s a long time to not even see a whisper of a turnaround.
Towns like Alpine, Saddle River, Franklin Lakes, Englewood and Tenafly are going to take another huge hit on this.
For a multitude of reasons, like the hotter than hot New York City market (future post), this price range was hit hard and 6 years later it still hasn’t recovered.
Proof In The Numbers:
Luxury Home Sales: $2.0m-$2.999m
Luxury Home Sales: $3.0m+
Don’t get too excited that the number of homes sold for over $3 million remain even with 2013 home sales, because the next few slides highlight the problems:
Luxury Homes For Sale
Homes for sale priced:
- $2.0m-$2.999: a staggering 113 homes are for sale and as of Sept 20th. Only 31 homes in this price range have sold thus far in 2014. The supply far exceeds the demand.
The worst news is for homes priced above $3.0 million
- 106 homes are currently for sale priced above $3,0 million.
- ONLY 16 homes have sold in this price range as of Sept 20th
Who’s going to buy all of these home so the market can stabilize? Unfortunately the buyers aren’t there. They’re parking their money in Manhattan real estate
Some good signs from this:
- NYC real estate is still a great investment if you can afford it
- Towns like Hoboken and Jersey City will flourish with a great rental market
- And lower priced homes will be at a premium