TAKING THE HYPE OUT OF HOBOKEN REAL ESTATE: Lack of real estate data transparency prevents sound decisions from objective sources. The current debate on property values in Hoboken, NJ and their future direction seems to have brokers and flippers sounding off about the resilience to any vulnerability. This blog has been erected to bring some RE.ality (real estate reality) to the discussion.
Monday, June 28, 2010
New Source of Home Sellers
The growing angst in Trenton is about to create an unforeseen group of property sellers, joining the ranks of financial services employees. Figure 1 attached.
2 comments:
skyward
said...
New Jersey: FY2011 shortfall: $10.7 billion % of FY2010 budget: 37.4% Previous cuts: $11 billion in '10; $6.1 billion in '09
- Credit is tighter. - Demand is at its lowest point in a decade. - Prices are still reverting from artificially high levels and remain overpriced. - Inventory has increased. - Shadow inventory is growing as flippers paid too much and have held on, waiting for a bounce to sell. - REOs are increasing but haven't hit the market for the above reasons as banks have no incentive to clear out. - Unemployment is not going to improve for a very long time while wages have been flat for a decade.
Hoboken is simply going to go through this correction for a longer period of time since Wall Street is still "RIF-ing" on a net basis, post-mergers.
Deflation is a torturous and extended cycle of painful deleveraging. Did I miss anything? I'm sure. But you can't spin a good story if you tried!
2 comments:
New Jersey:
FY2011 shortfall: $10.7 billion
% of FY2010 budget: 37.4%
Previous cuts: $11 billion in '10; $6.1 billion in '09
Source: CBPP
Read more: http://www.businessinsider.com/18-states-facing-the-most-painful-austerity-cuts-for-next-year-2010-6#ixzz0sBi5DW5e
I think the hyper-inflation bugs have been squashed dead!
- Credit is tighter.
- Demand is at its lowest point in a decade.
- Prices are still reverting from artificially high levels and remain overpriced.
- Inventory has increased.
- Shadow inventory is growing as flippers paid too much and have held on, waiting for a bounce to sell.
- REOs are increasing but haven't hit the market for the above reasons as banks have no incentive to clear out.
- Unemployment is not going to improve for a very long time while wages have been flat for a decade.
Hoboken is simply going to go through this correction for a longer period of time since Wall Street is still "RIF-ing" on a net basis, post-mergers.
Deflation is a torturous and extended cycle of painful deleveraging. Did I miss anything? I'm sure. But you can't spin a good story if you tried!
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