Palisades Park, NJ

Well, maybe your voice has been heard. Maybe it was the shot heard around the world. As news broke earlier today, in which there has been speculation that bill HR 3221, the "Housing and Economic Recovery Act of 2008, would be overturned, bill HR 6694 made strides today.

There are good signs stating that the down payment assistance programs, such as Nehemiah, AmeriDream, Genesis, and so many others, will be voted back in. It's not a done deal as of yet, but with the strong support from Congressman Barney Frank, who is the chairman of the House Financial Services Committee, has some promises on the table. One such promise on the table is that HR 6694 would allow all borrowers with credit scores 680 and above, to be able to use the seller-funded DPA programs. This is a huge start and a lot of this is from the support from people like you and I.

This kind of news won't keep me from taking back Down Payment Assistance Programs in Washington D.C. tomorrow afternoon. We still need everyone's support, to make the Senate aware of the ramifications of eliminating such down payment assistance programs.

Such elimination, in my opinion, would put another severe strain on the already strained housing market. And it could add a ripple affect to those houses on the market, adding more days not sold. If you think about it, if you are moving up, someone needs to buy your home and that is usually a first time homebuyer.

Conclusion :Some other things that HUD supports as a compromise to bill HR 6694 are :

• Borrowers with credit scores from 620 to 680 could be subject to higher insurance premiums. (I personally wouldn't have a problem with this)
• Borrowers with credit scores below 620 would be banned from using the down payment assistance program until mid 2009. ( I truly think that we could improve on this one. First off, why down to 620? Secondly, even people with credit scores of 570 or such can still have decent credit, under FHA's credit guidelines.

For more on this story, you can read about it here, at Inman News. http://www.inman.com/news/2008/09/10/congress-weighs-reprieve-seller-funded-gifts

UPDATE as of 9/11 - Mr. Belonger goes to Washington DC.

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Copyright © 2008 by Jeff Belonger

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