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.
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
- 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
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 🙂