An Economic Act of God
Despite its quiet backwater charms, Hudson County in The Garden State used to be nicknamed “The Gold Coast” due to its proximity to the financial district of neighboring New York City. Yet because of the current economic malaise, real estate in the area has been tough to sell, even with consecutive price discounts.
It’s true that local properties are being sold regularly, if not rapidly. However, the backlog of inventory for condominiums and single-family houses is tremendous. An analysis of sales statistics reveals that even if no new units were listed for sale, it would take up to two years to sell those already listed, assuming the current pace of purchases being made!
Compare that to the typical six-month inventory that industry professionals consider the sign of a healthy market.
Naturally, we are speaking generally here: it’s certain that at some times, some particular places in this area have done pretty good. However, in no area is there genuinely positive news to be found, from premium developments to affordable properties in Jersey City, Hoboken, or Weehawken – never mind communities such as West New York or Guttenberg.
Indeed, local trends have mirrored national ones reported from Portland, Oregon and Dallas, Texas to Minneapolis, Minnesota and Cleveland, Ohio, despite the proximity of Hudson County to New York City and its world-class economy. And in a sign of how bad things will continue to be, even though foreclosures continue apace and vacant homes only depress prices all the more, no one’s buying. It’s a singular situation that even professionals such as real estate developer Isaac Toussie are confounded, that despite the great deals sales should actually decrease!
But of course, what person in his or her right mind would sign up, never mind give, a multi-decade loan in this kind of an economy?