Tag Archives: homes sold tenafly

Tenafly Home Sales Report: January-April Sales

As promised…here are the sales stats for homes sold in Tenafly…comparing 2013 to 2012.

The numbers aren’t what one would expect…but there’s a good reason:

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Tenafly has been experiencing a shortage of inventory of homes priced below $1 million on the East Hill…and when there’s no inventory, then the sales numbers take a hit.

  • The number of homes sold in 2013 decreased by 47% compared to the same time frame in 2012…Jan, Feb March…for homes priced below $1 million.  All due to a shortage of inventory
  • The number of home sales in Tenafly decreased by 60% for homes priced above $1.5 million 2013/2012…because there is an over supply of homes in this price range.  The higher you go above $1.5m the higher the inventory

However…before everyone starts thinking that I lost it mentally…from January-March 2013 , here’s what has been happening with sales in Tenafly…that have yet to be declared “SOLD”

  • 9 homes sold in Tenafly priced below $1 million
  • 7 homes sold in Tenafly priced between $1.0M-$1.5M
  • 2 homes were sold above $1.5M

I just want to point out something regarding all the talk about inventory,whether it be high or low:

  • Inventory has almost nothing to do with sales activity…regardless of the inventory, people who are looking to buy a home will still look for homes
  • Even though the inventory levels ar considered low, thre’s still a lot of homes for sale…so not everything is sold or is selling…for whatever reason
  • If more homes are suddenly listed for sale, it doesn’t mean that they will sell.  The housing market will not suddenly get better, and it will not go back to where it once was, for a variety of reasons: unemployment is still high, savings are lower than needed, and some people will now only rent
  • Rental apartments are being planned and built by the thousands in Bergen and Hudson Counties, and this will eventually hurt home sales

The same sales trends are taking place for home sales throughout all of Bergen County

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The market is what it is, but these are the numbers for Tenafly, and Tenafly is still the hottest and most desirable market in our region.

If you need more info, let me know.

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March retail sales hit a snag…how will it affect Tenafly home sales

A New York Times article by the Associated Press titled…March Retail Sales Fell as Consumers Cut Back….states that retail sales declined a seasonally adjusted 0.4 percent last month, after a 1 percent gain in February.

That’s big news for the Bergen County home sales, and in our specific case it’s big news for how this could affect future home sales in Tenafly, and luxury home sales in Alpine and Saddle River…because retail spending drives about 70% of economic activity.

When consumers begin to cut back on retail spending, it creates a ripple effect on home sales

An example of just how volatile the local housing market is are the home sales in Tenafly…in which more homes are sold in Tenafly per year compared to the surrounding towns by up to 500%.  This once stable heaven of home ownership, home sales are down 31% Y/Y compared to  2012

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“Consumers cut back spending across a wide range of categories”

With all the hoopla surrounding the calls announcing a housing recovery, people need to take a few steps back to analyze what is happening in their local markets, where its not always what it seems. Sure home sales are up in Bergen County…but that’s ONLY the case for homes priced below $1M. The higher you go above $1M the worse the market becomes, but that’s something realtors don’t like to talk about.

 

 

The US consumer looks a little less resilient, an economist at JP Morgan Chase

And why isn’t anyone focusing on other items that affect local home sales on the negative side.  Can we have a housing recovery regardless of facts:

  • Forever increasing property taxes in suburban New Jersey
  • A still unacceptable unemployment forecast…does anyone really think that we can have a real recovery with so many unemployed people. Inst this some of what brought us to a crash and are keeping us from an overall economic recovery?
  • New rental complexes are sprouting up in Bergen and Hudson counties. And every rental takes away from home sales
  • The decline of the suburbs and the rise of urban areas that are more conducive to today’s consumers
  • And incredible number of home sales and rentals in New York City, and increasing home prices are keeping people IN the city, rather than fleeing to the New Jersey and New York Suburbs

Let us know your thoughts on this

Tenafly is a sellers market! Here’s the facts to back it up

This is part 1 of a multi part series on the Tenafly and Bergen County housing market

For anyone out there who is trying to sell their home in Tenafly, or is considering doing so READ THIS FIRST!

TENAFLY IS A SELLERS MARKET!

Yes you’ve heard it right…Tenafly is a sellers market

 And you heard it hear first!

Tenafly homes are in DEMAND, and as the numbers point out, buyers are OVERWHELMINGLY choosing Tenafly compared to the surrounding towns.

When the demand is HOT and homes are selling and inventories are lower than normal, and sales are stable (4 straight years)…it’s a sellers market!

Unlike many other towns, Tenafly is the one niche where home sales are a shining example of a market that has made the turn.

Sure, prices are down in Tenafly (as they are for all the other towns), but the decline in prices is more Realtor made, than a product of a horrible market and economy. In 2010 Realtors continued pushing price reductions, when the market had already showed signs of stability and recovery. Their old habits die hard.

It’s all in the numbers, but but no one other than me is analyzing the numbers.

Chart 1 shows that with few exceptions, the number of homes sold for the past 6 years (since 2006), has remained fairly steady.  So even with all the industry Realtorblabber about lowering prices, they haven’t created more sales.

chart 1: yearly sales comparisons
  • Home sales in Tenafly increased by 26% in 2011…33 addl homes sold
  • The dollar volume for homes sold increased by a whopping 41 % in 2011
  • 2011 dollar sales volume was the 4th highest year since 2000
  • 2011 had the highest number of home sales since 2006
  • 2011 had the 7th highest number of homes sold since 2000
  • 2011 saw the 3rd highest average sales price since 2000
  • 2011 average sales price increased by $103,718 over 2010

The lure of Tenafly is that if this if this is where a buyer wants to be, then they’re not going to settle for a home in another town

chart 2: Tenafly homes sold and for sale

  • 69% of the homes sold in Tenafly were priced under $1 million…108 homes sold
  • 82% of the homes sold were priced under $1.5 million…128 home sales
  • 22% of the homes sold were priced between $1M-$2 million…34 home sales
  • 11% of the homes sold in Tenafly in 2011 were priced over $2million…12 home sales

There will be some Realtors who will dispute everything I’ve laid out, and they’ll start with the decline in the number of home sales since 2003.  Sales are down considerably since 03, 04 and a bit of 05.  But the problem with their argument is that we have entered a new era, and the past is the past. All this blabber about getting sales and prices to the highest levels in our lifetime is nothing more than sales propaganda.

And what makes my scenario even more correct is:

  • Tenafly homes are more expensive than the neighboring towns
  • If buyers only looked for the lowest priced home to purchase then there’s 7 other towns where homes are more affordable, and where taxes are considerably less expensive. And the further you go from Tenafly home prices become even less expensive

Buyers will spend more money on a home in Tenafly, compared to the surrounding towns.

 Price is what you pay, value is what you get

…Warren Buffet

Tenafly is a captive market. It’s an oasis, and today’s buyers want to live her compared to any surrounding town.

Coming posts will provide more ammo to prove the superiority of the Tenafly housing market:

  1. supply and demand
  2. Luxury market is on fire
  3. Home building

Give us your comments

Realtors need to stop pushing price reductions in Tenafly’s hotter than hot market

The Tenafly real estate market doesn’t need any more price reductions.  The market is hotter than hot and we’re entitled to higher prices.

Yesterday I bumped into an agent at Cafe Angelique in Tenafly, and she like some of the other agents in the area are still mad at me for arguing against further price reductions for Tenafly homes.  They still believe that lower prices increase your chances of selling your home.  And to that I say bull!

It’s time that someone stands up for what’s right for buyers and sellers.  They need an advocate

Home sales in Tenafly for 2011 will most likely surpass 2007…considered by Realtors to be a BOOM year.

We already beat out 2006.

So why push price reductions?

Tenafly: single family homes sales comparison

Here are the facts right from the njmls database:

  1. the number of home sold in Tenafly as of 11/30/11 have increased by 30% from the same time period in 2010.  That’s great news!
  2. the dollar volume for all the homes sold, increased by an INCREDIBLE 48%!  Tell me that’s not great frik’n news!….a $48 million increase!!
  3. the average sales price has increased by 13%…a $120k increase per/home…more great news

Hello!  This is an incredible market, and it can’t get any better than this until the agents stop cutting price.

Tenafly is an oasis

It’s time to start raising price!

sorry for the fast cut and paste job

All throughout the country people are looking for a sign of a turnaround…and we are living it right here in Tenafly.

Why aren’t Realtors promoting the success of Tenafly? The don’t want fewer sales…they want more sales, even if it means lowering values.

The numbers don’t get any better than this.  This is a banner year and it’s news that Realtors and brokers should be promoting the daylights out of.  This is BIG TIME news!

The Realtors expectations that Tenafly home owners should continue to lower their prices is an insane proposition, and more importantly it’s destructive to sellers and to all homeowners in Tenafly.

Artificially lower the value of our homes…so they can potentially sell more homes?  But there’s no proof that lower prices equates to more sales in Tenafly…especially given the fact that Tenafly is the highest priced town in sales dollars…see Town Sales Comparison chart

The area doesn’t need more home sales….147 homes sold through November 2011 is an incredible number of sales compared to past years.

Tenafly is beating out the BOOM years!

It’s insane to push lower prices!!

Realtors need to forget what happened in the boom years.  Those days are long gone and my generation will most likely never see the market return to that volume of sales and pricing in our lifetime.  Tenafly will not reach 214 home sales as it did in 2004…and it doesn’t have to for it to be considered a smashing market.

What’s good for the brokerage community isn’t good for buyers and sellers:

  • Realtors only care about the volume of homes sold…the higher the volume the more commissions that are paid to a larger group of agents
  • they don’t care what a home sells for…because the price paid for one home, has an almost negligible effect for that one commission

Let’s be fair to Realtors…there is a very small percentage of homes that are probably grossly over priced.  However, if that’s the case, then it’s the agents fault for listing something that they know WILL NOT SELL…just so they can have the listing, while expecting over time to wear down the seller and keep pushing price reductions until the home finally sells. Agents fail all homeowners buy playing that game. That’s exactly what is happening in the top end of the market in Alpine.

This is a common and horrible practice by agents, because it makes potential buyers believe that EVERY home is grossly over priced. No one is forcing agents to take a listing…they have the power to say no.

Other than Realtors, what business in their right mind would try selling products that they know won’t sell because they’re over priced?  No smart business person would do that.

In short, the numbers tell a story of revival and a return to normalcy for one covey lucky local market.

Tenafly is hot! and the demand for Tenafly is hotter.

Buyers will gladly pay a premium to be in a stable and increasing market, because they feel that their investment is safe.  That’s exactly what happened in the BOOM years

Just look at what’s happening in Manhattan…stability in most markets, and increasing sales #’s and dollar volume in most markets.

Check out the numbers in these charts…overwhelmingly buyers prefer to live in Tenafly, even though they can easily purchase a less expensive home in a neighboring town, but they choose NOT to.

That is a sign of a great market!

Run from everyone who tells you that it’s all about price.  Because it’s not!

Tell us what you think

PS…if you need more proof of how vibrant the market is in Tenafkly, look no further than all of the new homes that are being built either as spec homes or homes being built by the purchaser.  There’s probably 10+ homes that are being built or were built in that past year that range in value from $2-$4 milliion. 

That’s buyer confidence

Tenafly luxury home sales surge

Bolstered by a surge in luxury home sales ($1.5M+) the housing market in Tenafly remains one of the hottest markets in the region

  • From $1.5M-$1.99 sales are up 18% ytd compared to the same time period 2010
  • Sales for homes priced between $2M-$2.99 increased by 67%
  • and for home priced $3M and above, sales increased by 75%

Another item that’s being neglected in Realtorland, is the volume of home sales in the past year where homes were purchased, then knocked down to build much larger and more expensive homes in their place.

  • Several homes on Churchill, Buckingham, Oxford, Devon and Kent (as well as other streets) are being replaced at a time when luxury home sales in other towns are non-existent.  And given that the land is priced between $1.5M-$2M, these aren’t cheap homes )minimum cost more $3 million).

Knowing that homes can be purchased for less money in other towns, buyers are still willing to invest their money in Tenafly

This speaks volumes about the confidence buyers have in the Tenafly market.

And we’re still waiting to add homes sales for November and December.

So stay tuned!

Analyzing Tenafly Homes Sales

Homes sold in Tenafly 2004-2011

This chart presents an interesting view of the 1165 homes that have been sold in Tenafly since 2004:

  • 80% 0f the homes sold were priced under $1 million
  • the largest block of home sold (62%) were priced between $500k- $1 million

It’s amazing to see how dramatically the sales decrease when homes are priced above    $1 million

  • Only 8% of the homes sold were priced between $1-1.5 million (for an almost 7 year stretch)…a 56% drop in sales compared to homes priced between $1-1.5 million

What can’t be lost in the numbers, is that for the homes that sold pre 2004-2006 (and appreciated), those homes will have a tougher time selling at their once appreciated values.  However, what’s been great to the Tenafly market,is that Tenafly is still overwhelmingly the got to town for today’s buyers.  And even though we’re still far behind the pre-crash sales volumes, Tenafly is faring much better than the surrounding towns, withe the number of homes sold.

Check back because there’s more to come

Eating Real Estate provides buyers and sellers with valuable information, that will help you make sound decisions based on real market facts, not hype…and will help you to avoid making the same costly mistakes that buyers and sellers made in the past.                       It’s everything you need to know about the local market, but no one’s telling you.              Learn all the facts before you buy or sell a home…it’s your money at stake.