In demand
With all the 'For Sale' signs that have popped up throughout town, one could be forgiven for thinking that homes in Teaneck are not the hot commodity they once were. Indeed, with recent statistics pointing to a cooling residential real estate market nationwide and mortgage rates climbing, one might expect Teaneck to become strictly a buyer's market. With all the added uncertainty of the upcoming revaluation shaking the confidence of home shoppers, it could be extra difficult to sell properties in Teaneck.Not so fast. While the total number of detached units in Teaneck currently listed on the Multiple Listing Service and a popular site for homes for sale by owner is 275, this represents a relatively low percentage of the available housing stock in that category at this time. In order to estimate these percentages for Teaneck and neighboring towns, I divided the total number of listings across the two services mentioned above by the total number of single family owner-occupied homes as recorded in the 2000 U.S. Census. As the numbers below demonstrate, there is not a glut of homes available in Teaneck right now, at least relative to the surrounding area.
Estimated % of homes for sale
Englewood 5.6%
Bergenfield 4.3%
Ridgefield Park 3.7%
Hackensack 3.5%
Bogota 3.3%
Leonia 2.9%
Teaneck 2.8%
Paramus 2.6%
River Edge 2.5%
New Milford 2.3%
Bergenfield 4.3%
Ridgefield Park 3.7%
Hackensack 3.5%
Bogota 3.3%
Leonia 2.9%
Teaneck 2.8%
Paramus 2.6%
River Edge 2.5%
New Milford 2.3%
Obviously such a simple analysis raises almost as many questions as it answers. Might these figures simply be a consequence of the fact that Teaneck has experienced more turnover over the past few years than the towns with a larger proportion of homes currently for sale? If so, these figures might just reflect pent-up supply that is just coming on the market. Indeed, if one juxtaposes this table to age group population figures from the 2000 Census, one sees that the towns with the smallest inventories of unsold homes are those who had the highest proportion of residents 65 and older in the 2000 Census. Those older residents may have taken advantage of the booming market conditions of the past half-decade to sell to younger people who are now unlikely to sell again for a while.
While I don't claim to have the information or the insight to know for sure, at least one other explanation readily suggests itself to me. It could very well be that it is not just a question of supply, but rather a question of both supply and demand. While the Township may have its share of problems, Teaneck residents are sticking it out. Even at a time when home ownership in Teaneck is not at its most affordable, the town's considerable charms are winning out. All the more reason to work extra hard to repay the residents' good faith with leaner, more efficient, and friendlier municipal government and services . . .
While I don't claim to have the information or the insight to know for sure, at least one other explanation readily suggests itself to me. It could very well be that it is not just a question of supply, but rather a question of both supply and demand. While the Township may have its share of problems, Teaneck residents are sticking it out. Even at a time when home ownership in Teaneck is not at its most affordable, the town's considerable charms are winning out. All the more reason to work extra hard to repay the residents' good faith with leaner, more efficient, and friendlier municipal government and services . . .
posted by Teaneck Blog @ 12:02 PM
6 Comments:
As the weakening of Teaneck's real estate market was a subject that arose in the recent Municipal elections, it's good to finally see some hard facts.
As documented by TeaneckBlog, Teaneck seems to have a relatively strong market compared to neighboring municipalities. Teaneck's 2.8% rate places it among the lowest on-market percentages, and would indicate an average homeowner residency duration over 35 years. Though, as the adage attributed to Aaron Levenstein states, "Statistics are like bikinis. What they reveal is suggestive, but what they conceal is vital."
There is a whole range of additional statistics that might help fill in the answer to the actual state of Teaneck's real estate market. How does the percentage of properties on the market compare to past data? Are houses taking longer to sell? Are sale prices dropping as a percentage of asking price?
It's hard to believe that prices in some areas of town are sustainable, particularly if rising prices are combined with rising mortgage costs, and higher property taxes are thrown into the mix.
Based exclusively on drive-by analysis, the trend seems to be more homes for sale, with signs lasting longer on lawns than they had in the not-too-distant past. While the word "revaluation" may be on the minds of most residents, the actual impact on homeowner psyches will be unknown until the new assessments, and the new tax bills, start appearing in mailboxes.
Our elected officials will have a significant impact in this issue in the near to medium turn, as the level and growth rate of taxes -- both School and Municipal -- and management of the revaluation start coming into play among existing property owners and prospective home buyers.
All very true, and thank you both for your moderate statements which are taking actual facts and information into consideration, rather than adding to the rumor mill and innuendo that Teaneck seems to sometimes feed on. Here are some more facts: Teaneck is one of the most populous towns in Bergen County and the third largest in square miles, with Mahwah and Paramus beating it. It has about 10,000 housing units, and is primarily (approx. 84%) residential, which gives the impression that more properties are on the market.
Finally, despite the town ordinance that requires agents to remove signs from properties that are in contract, many signs remain up, giving the appearance of more properties on the market -- why? Because it is difficult for the police and township to keep tabs on which houses are still active on the market, and because many residents don't know they can complain to the police or manager and have the signs taken down once the house is in contract waiting to close...
Teaneck will always have a good market value, because of its location surrounded by three major highways, proximity to NYC, diverse housing stock, pretty neighborhoods, the appeal of the religious diversity and yes, the school system.
I would also add that the softening of Teaneck's real estate market reflects a regional and even national slow down. Many commentators have been saying that residential markets along the east and west coasts are overvalued. Some have used the term "bubble". Many predicted that it was only a matter of time before the market reached a plateau, or even declined. So far we've seen a gentle deflating rather than a burst.
It's probably a good thing, as high house prices make it difficult for communities to attract essential workers. High housing prices also make it difficult for local businesses to compete with regions that have a more affordable cost of living.
As the weakening of Teaneck's real estate market was a subject that arose in the recent Municipal elections, it's good to finally see some hard facts.
Yes, the Gussen-Rudolph flyer that came out bemoaning the "For Sale" signs up in Teaneck was not one of the more endearing points in their campaign.
For those seeking a skeptical perspective on the North Jersey real estate market, check out http://nnjbubble.blogspot.com/.
Very pretty site! Keep working. thnx!
»
Post a Comment
<< Home