| |
Outbreak of RDS (Rampant Denial Syndrome) Hits Toms River, NJ!
Posted at 9:44 PM, Dec. 2, 2008
Some FASCINATING statistics for November in Toms River, NJ:
Statistics Summaries Report
Category - SingleFamily / Area: TOM - TOMS RIVER TWP / County: OceanStatistics for Entire MLS from 11/01/2008 to 11/30/2008
|
|
Total
|
Total List / Closed $
|
Avg List $
|
Avg Closed $
|
Avg DOM
|
Median Price $
|
%SP/LP
|
|
New
|
109
|
$53,993,900 / n/a
|
$495,357
|
n/a
|
17
|
$375,000
|
n/a
|
|
Under Contract
|
38
|
$14,936,496 / n/a
|
$393,066
|
n/a
|
63
|
$272,450
|
n/a
|
|
Closed
|
46
|
$19,293,212 / $18,131,450
|
$419,418
|
$394,162
|
111
|
$296,500
|
93.98%
|
|
Expired
|
77
|
$36,429,631 / n/a
|
$473,112
|
n/a
|
188
|
$365,000
|
n/a
|
|
|
|
Currently Active (as of today)
|
729
|
$360,865,054 / n/a
|
$495,014
|
n/a
|
118
|
$399,000
|
n/a
|
--Information deemed reliable but not guaranteed--Copyright: 2008 by the Monmouth County Association of REALTORSR
We Never Stop Moving!
Prepared by JAMES FLANAGAN of COLDWELL BANKER FLANAGAN REALT on 12/2/2008 8:50:07 AM
Why would I call them "fascinating"? Let's take a closer look, shall we?
· 46 Homes CLOSED during November at an average price of $394,162
· And ONLY 38 homes went UNDER CONTRACT at an average price of $393,066
· SO, why did 109 NEW homes LIST for an average of $495,357 when…
· 77 homes EXPIRED at an average LIST price of $473,112????????????
Here's my Official Diagnosis:
Toms River, NJ, continues to suffer from RDS (Rampant Denial Syndrome). When 109 Sellers think they will sell for more money than 77 unsuccessful sellers FAILED to sell for; that's RAMPANT DENIAL SYNDROME! When real estate agents continue to LIST homes for an average of $100,000 OVER the current CLOSED price; that's RAMPANT DENIAL SYNDROME! When, despite the OVERWHELMING EVIDENCE ABOVE, sellers and agents REFUSE to accept REALITY; that is RAMPANT DENIAL SYNDROME!
CAUTION: Failure to seek immediate treatment for RDS could result in catastrophic consequences such as "short sales", "foreclosures", "bankruptcies", "insanity" and in certain cases DEATH (of a real estate agent's career)!!!
Isn't Technology Wonderful?
Posted at 2:12 PM, Nov. 25, 2008
It's 4pm(EST) and I have received no less than 3 e-mails alerting me to the Fed's decision to purchase X amount of mortgage backed securities and the subsequent effect this announcement has had on interest rates. Isn't technology wonderful? In order to verify this information, I went to Inman News and sure enough; here's their release...Isn't technology wonderful! Then, I log on to activerain and see that Rob Rauf (see Rob's post here) has already posted this news...Isn't technology wonderful?
So, if technology is so wonderful, why aren't more real estate agents in Toms River, NJ, using it to get this exciting news out to all their buyers and buyer prospects? Well, let me give you my hypothesis:
They would rather be basting a turkey secure in their own rationalization that NO business is ever conducted over a Holiday Weekend, let alone this year. And yes, I know Thanksgiving is still two days away!
Now, please let me clarify; I have nothing against Holidays, especially Thanksgiving. I too am looking forward to loosening my belt a notch and fading in and out of a "stuffed" slumber during football...BUT NOT UNTIL THURSDAY!
Alas, have no fear; for if we are the statistics? And we are! I find comfort in the knowledge that 13% of us (real estate agents doing business in Toms River, NJ) will be busy taking advantage of; the Fed's decision, lower interest rates and technology. The same 13% will enjoy their turkey just a little more than their peers this Thursday, secure in the knowledge that while everyone else was in "Holiday Mode", they were e-mailing, texting and CALLING their buyers and buyer prospects with the GOOD NEWS!
How NOT to get a Half Million Dollar Buyer Referral!
Posted at 8:04 PM, Nov. 14, 2008
 It was Sunday morning. I was at the marina helping pull our favorite Dive Boat out of the water for the winter when my Blackberry buzzed. Scanning the e-mail, I noticed it was from a diver/friend of mine of 10 years. As I read further, he changed his subject to real estate:
"Not to talk shop but I have a couple of real estate questions if you don't mind..."
Long story short; after a half dozen e-mails via our Blackberry's, my diver/friend was asking me if I would refer him to an agent in the Northern New Jersey town in which he was looking to buy!
Being a good friend, and dive buddy, I wanted to make sure I referred him to only the best. I searched activerain for an agent in his town but to no avail. Next, I searched my franchise website and found too many profile pages to choose from. I needed to be more SELECTIVE and as an e-PRO, myself, I decided to search the e-PRO directory.
I found ONE! There was ONLY ONE e-PRO listed within 5 miles of this Northern New Jersey town. I e-mailed him to see if he was (1) interested in a buyer referral and (2) going to respond quickly. Sure enough, less than 20 minutes later, I had a response via his Blackberry!
Now, my diver/friend is being taken care of, a fellow e-PRO is going to earn a healthy commission and I will earn a nice referral fee! So, if you DON'T think e-PRO is worth the investment and you DON'T think Blackberrys are worth the investment, you DON'T have to worry about any HALF MILLION DOLLAR BUYER REFERRALS, from me anyway!
Riddle Me this, Batman...
Posted at 8:32 AM, Nov. 12, 2008
Within the last 2 weeks, I have been questioned by a couple of our better Listing Agents as to why our company does not list RENTALS. Apparently, there are a significant number of unsuccessful sellers in the Toms River, NJ, market that would like the "option" to rent their home if they cannot sell it at their price.
So, let's look at this conundrum from the three significant perspectives; first, the Agent's Perspective:
- It's a tough market out here. We have 14 months of inventory here in Toms River and none of my listings are selling, so why can't I make a few bucks renting it for them?
Yes, it is a tough market and discretionary sellers who are still in denial over the market value of their home are only making it tougher! The potential return on investment for "spot rentals" is NOT worth the time, aggravation and liability involved. Are we NOT fooling ourselves into thinking we're busy, and thinking we're making money, instead of staying FOCUSED on our goals and the true value of our TIME?
Next, let's look at the "Bewildered One", the perspective of today's Accidental Landlord:
- "I'm not giving my house away! Maybe I'll just rent it until the market changes and then sell it? I don't have to sell!
If you don't have to sell, do EVERYONE and this country a service and take your home off the market! These "sellers" are half the reason we have 14 months of inventory in Toms River, NJ. Just be aware; because of all the "tightened standards" in the mortgage industry, your pool of tenants consists of those who DON'T have good enough credit to get a mortgage OR; those who just lost their home to FORECLOSURE or took a SHORT SALE! Have you read NJ's TRUTH IN RENTING handbook?
And last but certainly not least; my humble opinion as the Broker/Owner:
- It is a tough market out there and my agents are frustrated and discouraged. It is my RESPONSIBILITY to support, encourage and help them make money! Should I be looking at alternate sources of revenue?
Absolutely. But RENTALS are NOT a viable, sustainable source of revenue in our market! There are buyers who understand what a GREAT TIME it is to buy and sellers who have to sell. We must stay FOCUSED on helping today's First Time Buyer achieve the American Dream and we must be SELECTIVE and assist only those Sellers who need to sell! To compromise on this commitment would be IRRESPONSIBLE.
What's YOUR "Top 3"?
Posted at 8:10 AM, Nov. 10, 2008
I received an interesting e-mail last week. It was part of a recruiting campaign by a local "100%-Residual Income" driven brand. Before I launch into my criticism of this e-mail, let me point out something positive about it; only my e- mail address showed in the "to" field!
The "guts" of the e-mail was a WORD attachment entitled, Top 20 Important Questions for Agents to Ask During a Real Esate Interview. No, that's not my typo. That is exactly how "Estate" was spelled on the attachment! Aside from the redundancy of Top 20 and Important, the title was effective enough for me to read on...their next mistake.
Here are the Top 3 of the Top 20:
- How many training classes do you offer per month?
- Who will train me?
- How much will the training cost?
I won't speak for any other real estate professional but those 3 questions wouldn't make my list at all, let alone the Top 3! Now, don't get me wrong; I'm a huge proponent of training and education but...obviously, this Broker does not understand and does not respect their target customer; today's "experienced sales associate". Today's ESA has most likely been trained because they are STILL HERE! I propose today's ESA would more likely ask these 3 questions:
- How will you help me make more money?
- What are you doing in this market to generate leads?
- Will leads from my activities be directed back to me?
I may be wrong but I don't think so...The main problem, as I see it, with this particular company's philosophy is that they haven't accepted WHO their REAL CUSTOMER is; today's real estate consumer (buyers & sellers)! And, as long as they stay focused on recruiting "experienced sales associates" that are concerned about how much training will cost, they will lose much more than just the "t" in "estate"!
I Want My Cake And Eat It Too!
Posted at 2:49 PM, Oct. 1, 2008
![i want my cake and eat it too](%3Cdiv%20class="picappstyle"%3E%3Cscript%20src="http://pis.picapp.com/IamProd/Resources/Javascripts/PisV3.js"%3E%3C/script%3E%3Cscript%20src="http://pis.picapp.com/IamProd/Resources/javascripts/DataV3.ashx?ImageId=147228&PublisherId=8731"%3E%3C/script%3E%3Ca%20href="http://www.picapp.com/PublicSite/ViewDetails.aspx?ImageId=50048"%20target="_blank"%20class="remove"%3E%3Cimg%20id="picappimg"%20src="http://www.picapp.com/ftp/Images/0047/c3dcc970-9905-43de-b774-a0e2c2f24b00.jpg"%20width="320"%20height="242"%20oncontextmenu="return%20false;"%20onload="try{registerLoadImage(this)}catch(ex){}"%20alt="Woman%20eating%20a%20cake"/%3E%3C/a%3E%3Cscript%20type="text/javascript"%3Evar%20iamInit%20=%20function()%20{try{initIamServingHandler(320,242,147228,"http://pis.picapp.com/IamProd/Resources/Css/css2.css")}catch(ex){}}()%3C/script%3E%3C/div%3E)
"I don't want a "starter" home! I want the home I grew up in. I don't want to do any work and I'm only going to pay this much for it." --Today's First Time Homebuyer
"Yes, I'm aware it's no longer a Seller's Market but I'm not going to give my home away!"--Today's Typical Homeseller
"Buyers are liars and Sellers are nuts!"--80% of Today's Real Estate Agents
"If the government doesn't bail out Wall Street, we're heading into the Second Great Depression!"--The National Media
"The American Public has every right to be upset. It's not fair for the tax payer to pay for the mistakes and greed of our financial institutions. But, we have no choice!"--POTUS
"It's Bush's fault. It's Clinton's fault. It's Wall Street's fault. It's Greenspan's fault. It's Bernanke's fault. I better sell my stocks, cash in my 401K and take my money out of the bank before it's all gone!--Joe Public
Back to School, Again!
Posted at 5:34 PM, Sep. 4, 2008
Welcome back, to school that is!
In her wonderful article, Inside the Mind of the Consumer, in the September issue of REALTOR magazine, author Wendy Cole quotes a top Chicago broker as he answers the question, "What exactly are buyers and sellers seeking these days?" His answer:
"Nordstrom service, Disney innovation, and K Mart prices!"
Today's "First Time Homebuyer" is a completely different consumer, or "mutant" as one of my salespeople might say, than the FTHB of the past! They have access to too much information and despite all that information, and misinformation, at their fingertips, they seem to take an almost "whimsical approach to determine fair pricing."
As reflected in yesterday's lesson, today's FTHB is convinced prices will drop further. When presented with the data that shows that even if home prices do fall another 10%, and interest rates rise just a half a percent, they will actually be paying more (monthly) for the same house; they just nod their heads and stick to their guns! Why?
For one, very simple, reason: They don't have to buy!
They want to buy but they want to buy the home they grew up in. They don't want to "start out", they want to "move in" and move on…
FIRST-TIME HOME BUYER EXPECTATIONS FOR 'MOVE-IN' CONDITIONS MAY CONFLICT WITH THEIR DESIRE FOR AFFORDABILITY
New Coldwell Banker® Broker Survey Reveals Possible Disconnect
in First-Time Home Buying Process
PARSIPPANY, N.J., (Aug. 21, 2008) - First-time home buyers are primarily concerned with affordability when choosing a new home, but their expectations may be too high relative to their current financial buying power, according to a recent Coldwell Banker® survey conducted among its brokers. While nearly halfof the Coldwell Banker broker respondents reported that affordability was the No. 1 concern for this group, 81 percent said today's first-time home buyers consider move-in conditionsto be very important when searching for homes. In contrast, only 7 percent are looking to purchase "fixer-upper" homes that they could buy at a lower price and renovate themselves.
"In the past, first-time home buyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership," said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate, LLC. "Today, this group has greater home expectations because they have grown up more accustomed to their parents' lifestyles. It is important for first-time homebuyers to remember that by considering a 'fixer-upper' for their first home purchase, they can build equity over time and move up and into their second-stage home that better reflects their expectations."
Survey findings also suggest that first-time home buyers worry more about credit ratings and approval than they did a decade ago, but less about down payments. This may be because they have saved money themselves, or have received additional support from parents to help their first-time home purchase.
According to 29 percent of brokers surveyed, first-time home buyers were more concerned with down payments 10 years ago than anything else, while only 17 percent said this is the biggest concern in today's market. Meanwhile, survey respondents said that only 4 percent of first-time home buyers were worried about their credit scores in 1998, while 14 percent said it is more of a concern today.
"Owning a home is a great investment that will provide tax breaks, financial gains - as well as considerable joy over the years," Gillespie said. "First-time home buyers now have higher standards, placing an increased focus on the financial aspects of home ownership and at the same time, want a larger home they can live in right away."
Additional key findings from the survey include:
· 71 percent of brokers noted that first-time home buyers are looking for larger homes than they were 10 years ago.
· According to 41 percent of the respondents, proximity to job is the No. 1 attribute first-time home buyers are looking for in a home.
· 35 percent of the survey respondents said "investment" is the No. 1 reason first-time home buyers are making their purchase.
· 46 percent of the survey respondents reported that first-time home buyers look at five to 10 homes, on average, before making a purchase.
In addition, the survey explored initial reasons that a first-time home buyer contacts a Realtor in today's market and how that has shifted from 10 years ago, according to the Coldwell Banker brokers:
|
|
Today's Market
|
10 Years Ago
|
|
|
73%
|
32%
|
|
Because that is what they feel like they are supposed to do
|
3%
|
28%
|
|
To view houses / do walk-throughs
|
17%
|
30%
|
|
To help with navigating mortgage issues
|
1%
|
4%
|
|
They are not ready but trying to better understand the process
|
6%
|
6%
|
Methodology: Coldwell Banker Real Estate LLC conducted an online survey about the trends real estate professionals are seeing with first-time home buyers. The survey yielded responses from 150 Coldwell Banker brokers across the United States.
Back to School!
Posted at 3:17 PM, Sep. 3, 2008
Today marked the return to the classroom for school children across Ocean County, NJ. By most accounts it was a long, dry, hot summer. Am I talking about the weather? An interesting analogy could be drawn between this past "Summer Break" and the Summer Real Estate Market here in Toms River...
"We want to be in our new home before school starts."
Traditionally, these words meant the three months of June, July and August were our biggest closing months here at the Jersey Shore. But if we compare 2007 with 2008, two of those three months were down from the same time last year and August of this year was significantly below August of 2007:
Category - Single Family-Toms River
Mo/Yr Monthly Sales Avg List $ Avg Sale $ % Diff Sell/list Avg DOM Curr Inventory Mos Inventory
June 2007 88 $445,644 $425,660 95.52% 80.0 871 9.90
July 2007 81 $402,287 $383,148 95.24% 76.0 877 10.83
August 2007 90 $403,178 $381,372 94.59% 100.0 860 9.56
June 2008 95 $455,884 $427,894 93.86% 99.0 829 8.73
July 2008 79 $391,795 $372,642 95.11% 95.0 806 10.20
August 2008 65 $361,688 $343,605 95.00% 100.0 786 12.09
What do these numbers mean?
Well, lets go "Back to School"! 
As we can see, there were 95 closings, in Toms River, in June of this year, compared to 88 in June of 2007. Which means that these homes probably went under contract in April and May (Peak Selling Season). Nothing new here...
But when we look at July and August of 2008, compared to the same time last year, the data tells us that the homebuyer took the summer off! Why? Good question.
The homebuyer who bought in April and May and closed in June of 2008 was the traditional Nuclear Family. They wanted to be in their new home before school started! But what about the homebuyer who bought, or didn't buy, in June, July and August?
The NAR (National Association of Realtors) estimates that 40%* of all homes purchased this year (2008) will be purchased by First Time Home Buyers! These particular buyers are far different than their predecessors of the last "buyers market", 1990-1993.
Tomorrow, we will go back to school and examine exactly what today's First Time Homebuyer thinks, wants and buys!
*This percentage is probably higher locally (Ocean County, NJ) by about 5%.
National Housing Report: June Sales and Prices Down (Except in Toms River, NJ)
Posted at 10:36 AM, Jul. 30, 2008
NAR Releases June's Housing Market Report:
The National Association of Realtors recently released their housing numbers for June 2008. Here's a brief synopsis:
- Nationally; sales were down 16.4% and prices were down 7.9% versus June 2007
- Northeast; sales were down 19.9% and prices were down 3.0% " "
- South; sales were down 18.2% and prices were down 4.5% " "
- Midwest; sales were down 18.2% and prices were down 4.8% " "
- West; sales were down 10.1% and prices were down 17.2% " "
What does all this information mean? Well, according to the "National Media Outlets", it's the beginning of the Apocalypse! Fortunately for us, there are a few reputable analysts who read the POSITIVE in all these negative numbers.
"Overall, we've seen marked improvement in every region of the country over the previous month," said Steve Murray, editor of REAL Trends. "By no means is this reason to celebrate, but their are telltale signs that could indicate reasons for some optimism. Of particular interest was the increase in closed sales in California, up 6.6% versus June 2007, and Nevada, where sales were up 3.6% over a year ago. With these markets firming, there are signs that the worst may be in the past."
All Real Estate Is Local:
So, how did Toms River, NJ, compare to the Nation in June 2008? Here's how:
- Closed Sales (June 2008 vs June 2007); UP 9%!
- AVG Sales Price (June 2008 vs June 2007) ; UP .05%!
If we look back at the numbers in May 2008 versus May 2007:
- Closed Sales down 8.1% and prices down 6.2%
Toms River, NJ, may be ahead of the Nation in showing signs of firming? It's only two month's worth of data. Let's see what July's numbers say!
Perception Is Reality
Posted at 6:57 AM, Jul. 17, 2008
and so, misperception is fantasy?
According to most of the major news sources; Fannie Mae and Freddie Mac are on life support and Indy Mac should be tried as a war criminal. Combined with the current price for a gallon of gasoline and the "weakness" of the U.S. dollar, one would be INSANE to buy a home today, right?
"Buy Low, Sell High"
That's how one makes money in the stock market. Well, that's also how one makes money in the real estate market! After all, real estate is a commodity, an investment and a tax shelter. But it's more:
-
It's a dream (Home Ownership)
-
It's a lifetime
-
It's a family
-
It's memories
It's many different things to many different people. Can anyone place a price on a lifetime, or period, of memories?
20/20 Hind-sight:
Remember the late seventies, early eighties? Remember the late eighties, early nineties? Knowing what we know today, is it safe to say we all would have bought homes then if we could have? Of course we would have! Why then, are we scared to death to buy in the late 0's?
What does all this have to do with real estate in Toms River, NJ?
Everything! Although all real estate is local, perception is not. We, as consumers, are influenced by national and global news, events and yes, trends, or dare I say it, fads. We like to buy what everyone else is buying, when they are buying, and vice-verse.
So, a "bedroom community" within an hours drive of the financial capital of the world, with access to the Atlantic Ocean and the Pinelands, is prone to the same prejudice and social pressure as every other "place to live", or is it?
The BEST Time to Buy A Home in Toms River, NJ, was Yesterday!
Posted at 3:57 PM, Jun. 4, 2008
Buy Low, Sell High
This is the "golden rule" when it comes to obtaining the greatest return on investment! For many of us, our largest investment is, or will be, our home. That is why we, as REALTORS, should be advising anyone and everyone who is considering purchasing a home to DO IT NOW!
The Proof Is In The Data
Monday, June 02, 2008
Category - SingleFamily
|
Month
|
Year
|
Monthly Sales
|
Avg ListPrice
|
Avg Sale Price
|
% Diff Sell/list
|
Avg DOM
|
Curr Inventory
|
Months Inventory
|
|
January
|
2007
|
62
|
$432,723
|
$404,088
|
93.38%
|
88.0
|
688
|
11.10
|
|
February
|
2007
|
52
|
$411,500
|
$389,525
|
94.66%
|
105.0
|
714
|
13.73
|
|
March
|
2007
|
81
|
$460,791
|
$426,744
|
92.61%
|
102.0
|
729
|
9.00
|
|
April
|
2007
|
80
|
$428,563
|
$404,167
|
94.31%
|
118.0
|
753
|
9.41
|
|
May
|
2007
|
90
|
$449,094
|
$430,309
|
95.82%
|
86.0
|
846
|
9.40
|
|
June
|
2007
|
88
|
$445,644
|
$425,660
|
95.52%
|
80.0
|
872
|
9.91
|
|
July
|
2007
|
81
|
$402,287
|
$383,148
|
95.24%
|
76.0
|
879
|
10.85
|
|
August
|
2007
|
90
|
$403,178
|
$381,372
|
94.59%
|
100.0
|
865
|
9.61
|
|
September
|
2007
|
58
|
$398,898
|
$374,859
|
93.97%
|
86.0
|
861
|
14.84
|
|
October
|
2007
|
66
|
$408,591
|
$392,563
|
96.08%
|
97.0
|
845
|
12.80
|
|
November
|
2007
|
77
|
$466,345
|
$435,895
|
93.47%
|
96.0
|
789
|
10.25
|
|
December
|
2007
|
57
|
$434,232
|
$405,609
|
93.41%
|
92.0
|
742
|
13.02
|
|
|
|
Total
|
|
882
|
$428,487
|
$404,495
|
94.40%
|
93.8
|
799
|
11.16
|
|
|
|
January
|
2008
|
45
|
$333,396
|
$316,134
|
94.82%
|
101.0
|
715
|
15.89
|
|
February
|
2008
|
48
|
$401,981
|
$382,167
|
95.07%
|
99.0
|
728
|
15.17
|
|
March
|
2008
|
58
|
$402,336
|
$378,614
|
94.10%
|
99.0
|
773
|
13.33
|
|
April
|
2008
|
64
|
$410,389
|
$388,173
|
94.59%
|
101.0
|
850
|
13.28
|
|
May
|
2008
|
63
|
$451,179
|
$420,043
|
93.10%
|
84.0
|
849
|
13.48
|
|
|
|
Total
|
|
278
|
$399,856
|
$377,026
|
94.29%
|
96.8
|
783
|
14.23
|
|
|
|
Note:
|
The "Current Inventory" column reflects the number of active listings on the market on the 16th day of each Month.The "Months of Inventory" column is equal to the "Current Inventory" divided by the "Monthly Sales". This reflects how many months it would take to sell out of inventory at the current month's rate of sale.
|
As we can plainly see; the Toms River Real Estate Market is showing signs of stability! Sure, some price ranges may continue to fall over the next few months as the "pending" inventory closes but...will rates remain at historically low levels over that same period of time?
I Want My Cake and Eat It Too
If indeed, as I believe, we are at or very near the "bottom" of this real estate cycle, it is just a matter of time before the "savy real estate investor" enters the market and begins to stimulate the market. As sales increase, so will interest rates (as sure as the rising and setting of the sun)! Now here's the rub; that buyer who's sitting on the fence, trying to perfectly time their purchase, they are going to get BURNED!
Remember this graphic*: 
Rates are already at or near 6.35% for a 30 year fixed mortgage! So, BUYERS, if you're reading this post...GET OFF THE FENCE TODAY! That way, tomorrow, you can say, "I bought my home yesterday when it was the BEST TIME to buy."
*A mathematical discrepancy was discovered in this particular example but the principle remains sound.
Gas Prices and Home Prices in New Jersey
Posted at 1:35 PM, Apr. 25, 2008
I live about a 20 minute drive down the Garden State Parkway from my office. The last 2 evenings, on my commute home, I've noticed long lines waiting for fuel at the closest "Food & Fuel" on the Parkway. The reason for this; gas stations at the "Food Fuels" on the Garden State Parkway & New Jersey Turnpike are only allowed to increase their fuel prices weekly, instead of daily or hourly like the private sector. So, as local gas prices have risen about 25 cents a gallon in the last week, these "Food & Fuel" gas prices were too much for many commuters to pass up. This particular "Food & Fuel" actually needed State Troopers to pull traffic duty last night...don't worry taxpayers of NJ, Thursday's at midnight is the price adjusting hour...the carriage is a pumpkin once again!
What does all this have to do with real estate? These commuters, who would rather spend 40 minutes to an hour waiting to save 25 cents a gallon rather than spend that same time with their family after a full day's work & commute, are our Sellers and Buyers! Think about it; for cents on the dollar ( OK, it's 25 cents in this particular case) they will deprive their families and themselves of the most important commodity of all; time with the people that matter the most!
Is this behavior unlike the Seller who refuses to negotiate with a ready, willing & able buyer because they didn't offer them 2005's price for their home? This Seller would rather "wait on the fuel line" than get on with his, and his families life because he doesn't understand that the "25 cents" he's afraid to lose, will be washed out on his purchase on the other end.
Or today's buyer, sitting on the "fuel line" trying to time the market? Why can't they accept that even if prices do fall another "25 cents on the dollar", rates will eventually rise and their monthly payment will cost them more? Not to mention that the new mortgage regulations regarding down payments in "declining markets" have taken more than a few "fuel line sitters" right out of the market altogether!
Me, I'll keep driving forward, thank you. 
Worst April Fools Joke Ever?
Posted at 3:00 PM, Apr. 2, 2008
Riddle me this Batman?:
With close to 16 and a half months worth of inventory available today in Toms River, coupled with historically low interest rates, why aren't buyers swarming the market like a termite bloom?
The answer is really quite simple:
Today's Home Seller refuses to accept the reality that their home is not worth what THEY THINK IT IS WORTH!
David Leonhardt illustrates the significance of this National Epidemic of Denial in his NEW YORK TIMES piece, Economic Scene: Be It Ever So Illogical: Homeowners Who Won't Cut the Price
Let's look at the local numbers for Toms River in the First Quarter of 2008:
|
Sold Price
|
Last Year
|
This Year
|
Last Yr Vs This Yr
|
|
|
01/01/2007-3/31/2007
|
01/01/2008-3/31/2008
|
|
|
$0 - $99,999
|
1
|
1
|
0%
|
|
$100,000 - $149,999
|
2
|
2
|
0%
|
|
$150,000 - $199,999
|
5
|
11
|
120%
|
|
$200,000 - $249,999
|
21
|
18
|
-14%
|
|
$250,000 - $299,999
|
36
|
30
|
-17%
|
|
$300,000 - $349,999
|
38
|
27
|
-29%
|
|
$350,000 - $399,999
|
29
|
15
|
-48%
|
|
$400,000 - $449,999
|
13
|
14
|
8%
|
|
$450,000 - $499,999
|
13
|
7
|
-46%
|
|
$500,000 - $549,999
|
5
|
5
|
0%
|
|
$550,000 - $599,999
|
6
|
1
|
-83%
|
|
$600,000 - $699,999
| |
RSS Blog Feed
View more entries tagged with: Toms River, Nj, Agents, Sellers, Statistics, Syndrome, Denial, November, Homes