Real Estate Investing Market Update - New York and New Jersey

This week we are running real estate investing events in the following locations:

The following is our market analysis for the NY/NJ area:

Many students may have thought that residential or investment properties in the New York/ New Jersey area were out-of-reach, or that there were fewer opportunities due to prices usually above the national average. But today’s market provides the savvy buyer in the area with more opportunities for profit than ever - and even bigger profits are on the horizon for those ready to invest. This week’s news shows that:

• Home prices nationwide have dropped more quickly than expected recently, even as sales have risen

• Some experts believe another wave of foreclosures is imminent due to a still-soft job market; negative equity may also increase even further

• Home prices in New Jersey and New York - usually insulated from fluctuations by high demand - have tumbled 12% over the past year, and are widely considered to be far above their floor. Some estimates have them sinking another 35-58% before they rebound

With drooping prices, successive rashes of foreclosures, and banks more desperate than ever to turn properties into money, even at a loss, the time to invest (profitably!) in NY/NJ real estate is here. Read on to find out details...

Nationwide
Under normal circumstances, when home sales speed up, it means prices go up, too. These are far from normal circumstances, though - even accelerating sales haven’t slowed the nationwide drop in prices. Some analysts believe that unless the unemployment situation in the U.S. improves quickly, another wave of foreclosures is around the corner as more workers find themselves with more debt than they can or are willing to pay.

The huge and number of American homes in negative-equity situations are creating an incentive for families to allow banks to foreclose on their property and seek cheaper housing. This means the inventory of bank-owned properties is set to increase even further, and which will in turn increase the incentive for banks to sell properties at a loss. Buyers who can take advantage of short sales and foreclosures are set to profit in the long run.

New York and New Jersey

An assessment by Deutsche Bank has found that New York City home prices will likely fall an amazing 35% under their present-day levels before they begin to rebound. Goldman Sachs’s estimate is even higher - 58%.

Prices in NY/NJ have dropped 12% since last March, and they’re going down more quickly now than ever. Some analysts suggest that prices will continue to fall for a while at a rate of roughly 1% per month. Foreclosures are still increasing in New York and New Jersey, creating a huge inventory of undervalued properties. Another major source of concern is the “shadow market” - the large pool of homeowners who are merely biding their time before selling.

Foreclosures in Long Island have risen, and are at 3.7%, which is 0.4% higher than the rest of the New York/New Jersey real estate market.

Home sales in the Northeast have fallen more than in any other region since April. Prices have fallen 4.6% overall since April 2008, the most shallow drop of any region in the nation. Despite the price dip, New York home prices are still over 73% higher than they were in 2000.

Related Training:
Real Estate Investing
Real Estate Coaching
Foreclosure Deal Source