Falling Prices Find No Buyers
Despite its quiet backwater charms, Hudson County in The Garden State used to be nicknamed “The Gold Coast” due to its proximity to the financial district of neighboring New York City. Yet because of the current economic malaise, real estate in the area has been tough to sell, even with consecutive price discounts.
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. The way things are, it might be some twenty-four months before everything is moved…unless new offerings become available!
Compare that to the typical six-month inventory that industry professionals consider the sign of a healthy market.
To be sure, that’s just an overal view, as precise circumstances at specific locations can vary. 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. Even as prices keep falling, there is hardly anyone who’s interested in buying in this kind of an economy. This is something that even industry insiders like Isaac Toussie are confounded, where even with the prevalence of bargains sales should still remain flat!
But of course, what person in his or her right mind would sign up, never mind give, a multi-decade loan in this kind of an economy?