Where You Live Affects Home Prices
Real Estate is Local!!!
There is no doubt about it!!!
If you live in a community adjacent to or along the Midtown Direct Train it is OK to step back from the bad news:
Yesterday Standard and Poor’s released the latest results of the S&P/Case-Shiller Home Price Indices. Data through March showed the following:
· The U.S. National Home Price Index declined by 4.2% in the first quarter of 2011, after falling 3.6% during the fourth quarter of 2010.
· The National Index has fallen 5.1% over the past year, pushing home prices back to their mid-2002 levels.
Not a pretty picture to say the least.
However, and this is a big however, where you live matters.
If you are fortunate to live in parts of Essex, Morris or Union counties that are easily accessible (30-60 minutes) to New York City along the Midtown Direct Train line and/or the NJ Transit/Coach bus system, you are not experiencing double-dip housing price drops. Towns such as Millburn/Short Hills, Summit, Chatham or Livingston for example.
In today’s NJ.com article Home Prices at Lowest Point Since 2006 Bust by Sarah Portlock:
“This months report is marked by the confirmation of a double-dip in home prices across much of the nation,” said David Blitzer, chairman of the index committee at S&P Indices, in a statement. “Home prices continue on their downward spiral with no relief in sight.”
The group defines a double-dip as the index dropping below its previous low, which was in April 2009 for the 20-city composite. The rebound in prices in 2009 and 2010 was largely due to the first-time home buyers tax credit, Blitzer said.
But there is some hope for buyers or sellers in well-priced communities and who understand the current market conditions.
“It is my job to educate buyers who are reading those national statistics and want to lowball their offers,” said agent Perri Feldman, an agent with Keller Williams Realty who works in Essex, Morris and Union counties. “When they see the real numbers in our area, their offers become more realistic.”
“A house that is marketed correctly, with realistic pricing and shows well, will be gone within the week,” she added.
At the end of the day…
Location, Location, Location
Yes, it matters.