Ridgewood Real Estate: Sales Volume Up Over 30% in Each of the Past 3 Months
The table below is a comparison of 2008 versus 2009 (through 12/14) in 9 key real estate categories. It would appear to paint a picture of a declining real estate market but when you dig a bit deeper the numbers tell a different story. For instance, inventory is lower than it was at this time last year. Generally, in real estate as in most other industries, lower inventory = higher prices. More importantly, since the table looks at (nearly) an entire year you can’t see the trends. Consider the following trends:
Ridgewood Real Estate Trends
- The dollar volume of Ridgewood Residential sales have increased in each of the past three months versus the same month last year – and the increases were significant.
- September – Sales Volume up 35%
- October- Sales Volume up 79%
- November – Sales Volume up 39%
- The number of homes sold have increased in each of the past three months versus the same month last year.
- The average Sales Price of Ridgewood Homes have increased in 2 of the past 3 months (versus 2008) and the average price in December (as of 12/14) is up 27%.
9 Key Ridgewood Real Estate Statistics
| 2008 | 2009* | ||||||
| Total Active Residential Listings | 89 | 75 | |||||
| Average List Price | $873,590 | $833,372 | |||||
| Average Sales Price | $823,942 | $747,875 | |||||
| List Price vs Sales Price Ratio | 94.3 | 89.7 | |||||
| Average Days On the Market | 65 | 77 | |||||
| Number of Sales YTD | 228 | 198 | |||||
| Number of Expired Listings | 121 | 120 | |||||
| 2007-2008 | |||||||
| Overall Appreciation or Depreciation | -3% | -9% | |||||
| Number of Months of Supply | 4.7 | 4.5 | |||||
| *as of Dec 14th
The information in this blog post is based on data provided by the New Jersey Multiple Listing Service, Inc. for the period of 1/1/2009 through 12/14/2009. |
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You have got to be kidding with this stuff. NJ real estate is the most overvalued and still vulenerable to a significant correction from here. Maybe explain to people why it is an extra 150 basis points for a loan above 729,000 rather than comparing apples-to-oranges numbers.
http://www.nytimes.com/2009/12/30/business/economy/30econ.html?pagewanted=1&_r=1&adxnnl=1&ref=business&adxnnlx=1262174893-aE1/Q%20hsPK8621yF4oErcg
apologies for the typo. should be “still vulnerable to a significant correction”
let me guess, your next title will be ‘wall street bonsuses to the rescue’
this type of mentality is what got us here. As an agent, you are supposed to provide guidance not present numbers so as to convince buyers ‘you are an idiot if you don’t buy now.’ that is just irresponsible.
apologies again for they type, you just have fired me up. should be ‘bonuses’ of course
LaLaLand,
Thanks for commenting. Although I don’t agree with your feedback – I do appreciate it. Everyone is entitled to their opinion. The NYT article is decidedly bearish but they are in the minority. Most of the hard data points to a recovery in housing already being underway. No one can be sure of where the real estate market is heading just as no one can be sure where the stock market is heading.
For the economy’s sake, I hope I am right and you are wrong – but if I am wrong I will be the first to admit it.
Happy New Year.
-Al
lalaland has it right. But instead of trying to “convince” us to buy you’re really trying to connive us into buying with half truths. Why don’t you break down the number via price range etc so it’s not a distorted picture.
There is no recovery, just a stabilization if that, and who knows how long it will last. Furthermore, sales may be up but the real numbers show that there was a 3 year down turn. So being “up’ only means up from the year before, which was down from the previous year and was down from the year before that and the year before that. The word recovery suggests that we’re getting back to normal…and thats a snow job, and irresponsible
Barney Rubble/Stoneman – You are entitled to your opinion and even though I don’t agree with it I am happy to publish it. Obviously I don’t appreciate the personal attacks, especially since you don’t know anything about me or my business, but I still defend the right for you to say whatever you like. So if attacking me makes you feel better – have at it. If you are a local guy/gal I’d be happy to buy you a cup of coffee and discuss further.
the comment wasn’t meant towards you in general, because no i don’t know you. Sorry for that!
It was meant for the industry as a whole, who always skew things to create a less than real view on housing.
Case in point: the business week article as it relates to interest rates was commented on as kind of a scare or rush tactic to get people to buy for fear of higher rates…namely a 2% increase was used. First, interest rates when they do go up will be gradual, so to avoid panic and it may take years for that to happen. No furthermore, no one knows if the market has stabilized in ridgewood or anywhere else for that matter. Several months of positive numbers doesn’t wipe out the past 3 years of losses, especially at levels above $1 mil.
All i’m saying is that everything has to be transparent and not looked at in a bubble. To point out an article in a national publication that speaks in generalities for the country doesn’t necessarily mean it works locally.
But i do applaud your blog, because it’s the best one i’ve seen from any realtor in bergen county.
Sorry, blogs welcome comments, even if we don’t like them, just sometimes they’re taken in a voice that it wasn’t meant to be.
here is a fresh update on the market, looks like the huge housing recovery may have stalled before it started.
http://www.msnbc.msn.com/id/35560806/ns/business-real_estate/
Here is the deal on real estate agents, they make money when they sell homes so they are always upbeat about the market and clients must act fast or lose out. That said, stats show that realtors sell their own houses for more than their clients (freakonomics, pick it up at amazon) because all they really want is liquidity from which to skim.
Al sounds like a good guy and there are exceptions. That said, the profession is a joke and in combination with appraisers and ratings agencies is probably more to blame for the bubble then those that took the blame. Al, keep up the good work and when the market actually does turn barney / I will let you know. In the case of Bergen county, it is going to be a long, long time.
Al,
With all the vacant buildings in downtown ridgewood, who is going to pay all the property taxes?
Barney and La La Land,
I did not take offense (well not very much anyway). I know what the general public’s opinion is of real estate agents. In fact, I have written about it on this blog. Click here to see:
http://ridgewoodfrontporch.com/2008/09/27/attention-self-loathing-realtors-top-4-reasons-everyone-hates-youincluding-me/
I was VP of sales at an internet start-up and then held a senior sales position at Reuters before getting into real estate. When I told my mother I was leaving my job to become a real estate agent – she cried. She felt the same way everyone else does about real estate agents. That said, my son had developed a seizure disorder and I needed to work closer to home so I didn’t much care about anything other than being closer to home. I was always interested in real estate so it was a perfect fit for me. Being in real estate allows me to be home to eat dinner with my children every night and coach their sports teams and I love what I am doing so I don’t worry too much about the general perception of real estate agents. I can only control what I do and anyone that knows me will tell you I am an ethical, principled business person.
You do make some valid points. None of us knows where the market is headed for certain but I never intentionally misrepresent anything. I believe in real estate as a long term investment. I believe Ridgewood is the real estate equivalent of a blue-chip stock. It may go down temporarily, and every investment has risks, but you can’t get much safer than Ridgewood when it comes to real estate. And to be brutally honest, I do make my living selling real estate so I think readers should assume that, all things being equal, I am probably going to lean toward publishing the more bullish articles.
Thanks for commenting. I welcome all comments – positive and negative. At least you are reading what I write and that is all I can hope for.
“With all the vacant buildings in downtown ridgewood, who is going to pay all the property taxes?”
La La Land – I bet the answer you are looking for is that homeowners will have to pick up the slack and you are probably right. I am not sure what % of tax revenue comes from businesses vs. homeowners but have a feeling you might. Can you share your info?
Given the number of households in Ridgewood I can’t imagine the small % of small Ridgewood Ave. stores that have gone out of business will even register a blip on the tax radar but if we see more large businesses like Brogan Cadillac go out of business, or move out of town, that will be a different story.
I respect your decision to be closer to home and spend more time with your family. The fact that I don’t respect your business is my own issue. That said, be careful with believing that ridgewood is any different than any other place. It may simply be one of the last to fall and fall it has yet to do. As i am sure you learned at your internet stat-up, the good eventually fall with the bad in a correction. Ridgewood may get interesting at that time but not before.
My point about downtown commercial real estate is as much about community as it is money. Have you been downtown lately? Its more than a ’small %’ and it is growing rapidly. Yes bigger will fall, altho i don’t know the cadillac dealer situation. Downtown won’t ever be the same, it is slowly becoming an eyesore rather than a selling point.
PS NJ teachers union wants more money to educate our children, who is going to pick up that tab? Did you see the head of the teachers union makes $270k plus a pension, according to sunday’s local paper? maybe we both should find a gig like that…
LLL
LaLaLand,
As you already know, I respect your opinion and realize that you are a very bright person. But believe it or not I disagree with some of your points.
I do believe that Ridgewood is different. Not better or worse – just different. Real Estate is very local and some individual countries, regions, states, municipalities, etc. will always thrive while many others decline. Real Estate and stocks are similar in many ways but all real estate will not rise and fall in unison like certain stocks do. All bank stocks may fall when new regulations are announced and all chip stocks may fall in sympathy when Intel reports bad earnings but it does not work this way in real estate.
Ridgewood has taken a hit but not nearly the hit that other places have because of its excellent school system, proximity to NYC, unique housing, great downtown, family oriented cultural and sports programs, train station, etc.
I am definitely an optimist and will always lean that ways but I feel pretty strongly that Ridgewood’s Downtown will be fine. Yes, there are some vacant stores but it doesn’t amount to a ton of square footage. It is mostly the smaller storefronts that are gone and they will eventually be replaced by a new crop of entrepreneurs. The large store closings are a bit more troubling but there are not many of them and they will eventually be rented as well.