DO LEE

The housing market, as scraped by media and the reality nowadays, has been severely afflicted in the past 2 years, and sees little indication for the way to upturns sooner or later. Its overheated market culminated in the 2nd quarter of 2006, long after a flurry of warning signals had inundated here and there.

As shown below, Bergen County saw a dramatic plunge in sales volume in a year (-59% for 7/2006~7/2007) and another similarly worse year (-68% for 7/2007~7/2008) compared to the 1-year average of previous 3 hot years between 7/2003 and 7/2006.

During the same period, Palisades Park took a little different route to this hardships. As its condomized duplex market still hung in there to an extent with only 30% decrease, the total residential sales downed by 52% in a year. But in 2 years, its condo market followed the suit and the sales went down by 74%. This lagged but steeper slowdown in sales volume in the 2nd year (7/2007~7/2008), conceivably, may arise out of the stereotyped price temcency and the unwillingness to make a compromise with the reality.

The congestive inventories waiting for sale were abosorbed in part by rentals. Leased properties in this period soared by 38% in a year and 46% in 2 years in Bergen County, comapred with 52% in a year and 44% in 2 years in Palisades Park, vs. the 1-year average of previous 3 hot years between 7/2003 and 7/2006.

The market sensitivity these days seems to go high, as the players feel it. Dare to say, it wouldn't be wise to hold on to one's own deja vu with antennae folded. Watch out for the alive market!!!

***Charts are based on the New Jersey MLS data.

Palisades Park is one of the rarest towns whose rental ratio tops as high as 58% (cf. 38% owned). It is the 3rd highest in Bergen County, following Hackensack and Fairview.

In the past 2 years, residential sales volume tumbling half to half each year, rental market absorbed some of its impact and grew by more than 50% compared to the housing bubble period before the 2nd quarter of 2006.

Although the number of "active" rental items on the market does not increase or decrease abruptly---84 items today, Palisades Park rental market moves fast. Whatever some decent item, in terms of location, price, and move-in conditions, comes up in the market goes away instantly. Even in some cases, several offers compete, with some casualties left behind. There seem to be so many prospective tenants waiting.

However, rent seekers would not hastily take a bad-move-in condition residence, no matter what other favorables, such as prices or locations. Items deemed no good hardly attracts interests. Overpriced items either stay long on the market or survive only after their significant price reduction. Location also is an important factor, for instance, how far away from Broad Ave.

Whoever wants a satisfactory rent in Palisades Park has to constantly pay attention to the market!!!

Do J Lee

www.SweetHomeTony.com