Aug 23 2011
Industry Insiders Surprised Again
Hudson County in New Jersey was once known among real estate professionals as the Gold Coast for its quick and easy access to downtown Manhattan while offering all the buccolic charms of small-town America. Thanks to The Great Recession, however, properties have been on the market for up to well over a year – despite repeated discounts – and there appears to be no end in sight for exasperated sellers.
It’s true that local properties are being sold regularly, if not rapidly. However, the backlog of inventory for condominiums and single-family houses is tremendous. Given current trends, up to two years could pass by before everything is sold – provided that no new properties come on the market!
Compare that to the typical six-month inventory that industry professionals consider the sign of a healthy market.
Naturally, we are speaking generally here: it’s certain that at some times, some particular places in this area have done pretty good. However, in no area is there genuinely positive news to be found, from premium developments to affordable properties in Jersey City, Hoboken, or Weehawken – never mind communities such as West New York or Guttenberg.
In fact, it is just such a situation which has visited the rest of the country from Oregon and Texas to Ohio and, as just described, New York. Moreover, despite the dramatically falling prices, buyers are few and far in-between. It’s a singular situation that even professionals such as real estate developer Isaac Toussie have not seen before, where even with the prevalence of bargains sales should still remain flat!
Then again, who would want to take out – or give – a loan for several hundred thousand dollars in such an uncertain job market?