Gail and JoAnna's Real Estate Thoughts

head_left_image

The Return of Affordability to Manalapan and Marlboro NJ Real Estate

 

Paul Slaybaugh did a great job in his blog of pointing out how affordability has been restored to the Scottsdale Arizona Real Estate Market.  He also talks about people hearing opportunity knocking but not opening the door and regretting it afterward. 

Paul motivated me to run some quick stats on my town, Manalapan, New Jersey to see how we stacked up on the affordability scale.

The numbers aren't quite as staggering as they are in Scottsdale, but still meaningful. 

I looked at Single Family Home Sales priced under $400,000.

  • In 2006, 13% of total homes sold were priced under $400,000
  • 2007 saw an increase to 17%
  • 2008 21% of total sales were priced under $400,000

Confirming my belief that affordability is quickly being restored to the Manalapan Real Estate Market.

Expanding to neighboring Marlboro New Jersey, the impact is even greater.

  • In 2006, 5% of total sales closed under $400,000
  • In 2008, that number soared to 15% of total sales closing under $400,000.

Thanks Paul!

 

When I first got into this business a decade ago, it didn't take long to encounter one of the favored pastimes of consumers and professionals alike:  Reveling in prices that once were.

Whether it was the colleague pointing out a development where he lamented not purchasing five units back when they could be had for $75,000 apiece, or the investor who regretted selling that rental property years before now that it was worth three times as much, the underlying wish was to turn back the clock to grab as much Real Estate as humanly possible at the never to be seen again values.

Turning back the clock on Scottsdale Home Prices

Of course, the downside to the markets that spawned the low price housing in Scottsdale in years past was diminished purchasing power due to elevated interest rates, and the speculative nature of our community.  Always a winter haven for the well-heeled, we were still very much a community in progress.  All the signs pointed to a city on the upswing, but with abundant raw land and subdivisions still in their infancies several decades ago, there was still a bit of a gambling aspect to home ownership in the desert. 

Flash forward to today, and those who rolled the dice on our bustling town hit paydirt, while those who were late to the speculative party (2005-2006) were the unfortunate ones who wound up with snake eyes.

The subsequent erosion of values has hurt many Valley homeowners, but it has also spawned an opportunity that many previously thought had been lost forever.  Affordable housing has returned to Scottsdale.

 

  • In all of 2006, there were 39 total sales of single-family homes listed at or below $250,000 in Scottsdale.
  • In 2007, that number rose slightly to 48.
  • 2008 saw that figure rise dramatically to 247.

 

*As of today (1/25/09), there are currently 159 Active Listings for single-family homes under $250,000!

Okay, McFly, you've climbed behind the wheel of your DeLorean, coaxed the odometer to precisely 88 miles per hour, and now find yourself back in 2003-2004.  Of course, it is a parallel universe in which pricing reflects the period immediately before the boom while interest rates are lower, competition for properties is diminished due to tightened financing guidelines and the available home inventory from which to choose is infinitely greater.  Our little town is all grown up now, so who knows when the opportunity for the scaled back pricing in a destination city that is presented today will ever return?

Alternative Scottsdale Real Estate Reality

 

 

 

 

 

 

Time to fix some of those investment laments or find that entry-level Scottsdale home that is back within reach. 

 

 

*Facts and Figures Gleened from ARMLS*

 

_________________________________________________________________________________________________________

 

For a Complete Guide to Affordable Housing in Scottsdale AZ

Paul Slaybaugh, Realty Executives

(480) 948-9450

 

 

Receive listing alerts, the Scottsdale Foreclosure Value of the Week, Community Spotlights and more by subscribing today!  Click the button above to receive email alerts for new posts!

 

___________________________________________________________________________________

Click to Search the Monmouth and Ocean County Multiple Listing Service.

Click to Sign Up For My Homefinder Service to receive automated emails when new homes come on the market that match YOUR criteria.

 

JoAnna Siminerio, Weichert Realtors

JoAnna Siminerio
Weichert Realtors - Marlboro / Manalapan
732-598-6823 cell
732-536-4400 x116 (office)
JoAnna@JoTheRealtor.com
www.JoTheRealtor.com

Let's Connect!

Comment balloon 5 commentsGail Szeluga & JoAnna Siminerio • January 24 2009 03:47PM

Comments

I believe that it is happening all across the country.  That is what is happening a reajustment which is a natural cycle or we would all be paying $10.000 for a loaf of bread.

Posted by Tom Ski, Social Media Marketing, Online Radio (BeFirst Media Group) over 10 years ago

Of course, I agree Tom.  From my perspective, this "cycle" has been a long time coming!  For quite some time, the first time homebuyer has been just about eliminated from my market. 

It was encouraging to run the numbers and see that pretty soon and young couple, who have lived here all there life, will soon be able to afford to purchase a single family home here.

Posted by Gail Szeluga & JoAnna Siminerio, Fostering Community Spirit Through Real Estate (Weichert Realtors - Manalapan - Marlboro) over 10 years ago

JoAnna - It is great to know your market inside and out.  Those numbers coming down will ultimately mark the bottom of the housing market.  As prices are lower combined with low mortgage rates that will help the areas bottom.  I believe Jim Cramer's prognosis that the bottom of the national housing market will be mid 2009.  Of course all of our local markets are different and from reading AR you can see that some areas have already started their U shape recovery.  ~ Chris

Posted by The Somers Team, Real People. Real Dreams. Real Estate. (The Somers Team at RE/MAX Access) over 10 years ago

JoAnna - I just looked some stats about my local area, and it is interesting that the DOM hovers around 3-4 months. That doesn't seem bad at all. In the height of the boom it took me about 2 months to sell my place. It is a nice dose of reality versus "news hype"

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 10 years ago
ypU9RC ooqckjlsggua
Posted by wvxgkqkac about 7 years ago

Participate