How much are you depreciating a month in south jersey?

At a recent seminar I had attended, I learned some interesting facts about the decreasing value of home prices. Jeff Otteau, a respected New Jersey economists has figured out statistically that home values are decreasing 1% per month and have been since October 2008. Prior to October 2008, home values were decreasing by .5%. Home values are expected to decrease by 1% per month through May or June of this month and it is not certain yet where they will head from there.

The reason I am revealing these facts is for homeowners and listing agents. Listing agents should be doing new CMA's as of today to determine the new value of their listings. There is no reason a home that you "comp'd" out 6 months ago for $200,000 should be re-listed for $200,000 again.

To put this into an exact perspective, homes are averaging 9 to 11 months right now. So if you home has been on the market 8 months exactly as of today this how where you should be now.

Lets say your CMA (comparitive market analysis) originally came in at $300,000 and you listed your house at that price in May of 2008 (approx. 8 months ago). You still haven't sold and your price is still the same. According to these statisitcs this is where you need to be, at the maximum, at this point.

May through September- .5% ($1500.00) decrease in value X 5 months = $7500.00

October through December- 1% ($3000.00) decrease in value X 3 months = $9000.00

1/2 of January- half of 1% ($1500.00)= $1500.00

$18,000.00

So as of today you should be listed at the most $282,000.00

We have to be honest and realize that prices have descreased in value and we need to start adjusting them accordingly. I hope these statistics help somewhat and you can use them to your advantage.

Again these percentages are focused on Southern NJ specifically Ocean county.