As you all know, New Jersey Real Estate has declined in value just like every other real estate market in the nation.

As fall appears here are some observations about Real Estate in Basking Ridge and surrounding areas:

RENTALS

The price of rentals of condominiums and townhouses have fallen approximately 18% in the last 3 years.

Vacancies are abundant and most landlords are offering various types of incentives in order to get their units rented.  Where it once was common for the tenant to pay the commission fee, today most rentals offer a split of the fee between landlord and tenant or in some cases the landlord is paying the fee.

In some cases there is room for negotiation on the rental price.  Although I just had an experience where my client put an offer on a rental and there turned out to be multiple offers.  We “won” the rental by offering over asking price and my tenant offered to pay a portion of the fee (where the landlord was offering to pay the entire fee) and then he also offered to make cosmetic improvements to the  unit.  So we can get creative even in this market.

Job loss, minimal hiring and high unemployment rate are fueling the decline in the rental market.  In addition to this with the first time home buyer credit, many renters are buying.  When you think of it, the month security, first month’s rent and the fee add up to quite a some of money and the tenant might just as well buy something.

If you or anyone you know  has a question about the current rental market please let me know! Not all realtors like to do rentals because the paperwork involved is as much a selling a home and the income earned is minimal.  I love rentals!  I have everything on line and down to a science!  And everything is doable via email for out of town investor rentals!

SALES

Sales in our area have fallen approximately 17% in the last 3 years.  In the single family home market you will notice your assessments have decreased this year.  Homes are selling at or around assessed value.  Obviously there are exceptions to this.

Condominiums and townhomes are holding their value better than single family homes with the lower 20% of the market selling faster due to the First Time Home Buyer Tax Incentive. This in turn will allow those homeowners to move up to the next level and eventually our market will recover.

Right now product is abundant with many vacancies.  Homes are on the market an average of 6 months or more.

Mortgages are very difficult to obtain.  Great  credit is key.

The good news is that the market has picked up in the last several months with homes and condos that are priced right selling very fast – some with multiple offers!

If you or anyone you know is looking for market expertise or have any questions about the real estate buying or selling process please let me know!