Hudson County in New Jersey was once known among real estate professionals as the Gold Coast for its quick and easy access to downtown Manhattan while offering all the buccolic charms of small-town America. 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. But that’s just the point: the inventory of condos is incredibly backlogged, not to mention single-family houses. An analysis of sales statistics reveals that even if no new units were listed for sale, it would take up to two years to sell those already listed, assuming the current pace of purchases being made!
That’s in comparison to the usual half-year timeframe that real estate experts believe to be the case of a healthy market.
Naturally, we are speaking generally here: it’s certain that at some times, some particular places in this area have done pretty good. Still, from Jersey City to West New York; from Weehawken to Guttenberg; the news is grim, no matter if we’re talking about new developments or old blight.
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. It’s a singular situation that even professionals such as real estate developer Isaac Toussie have not seen before, that despite the great deals sales should actually decrease!
On the other hand, would you take on, or even offer, a decades-long loan with things being the way they are?
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