Mortgage Trendlines Today
Posted on August 8, 2011Despite 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. Given current trends, up to two years could pass by before everything is sold – provided that no new properties come on the market!
That’s in comparison to the usual half-year timeframe that real estate experts believe to be the case 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. 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 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?
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