WOW!  What a Week!  A real cliffhanger! But it looks like we won’t slide over the edge, now that we’ve swapped unfettered markets for socialism.   Who says you can’t teach an old dogma new tricks?

I look forward to working with Congress to pass necessary legislation to remove these troubled assets from our financial system. When we get through this difficult period, which we will, our next task must be to improve the financial regulatory structure so that these past excesses do not recur. (September 19th, Treasury Secretary Paulson)

Reaction from the National Association of Realtors’ Chief Economist, click here.

Next week we’ll see.  Today a few notes on home prices – which is at the root of the national economic problems  This graph conveys the dramatic shift in prices in 20 metro areas.

Lower home prices are an underlying cause of the current financial mess (and lax regulation) but also a key part of the solution.  A return to job growth, affordable and available credit and affordable homes are the three key elements to bringing the housing market back into balance .

In Hunterdon County, things have never been as bad as the much of the rest of New Jersey, never mind other parts of the country.  Here’s what average prices have looked like in Hunterdon (and in one township) since 2001:

Average Clinton Township & Hunterdon Home Prices 2001-2008

Over the past seven years, prices rose pretty dramatically then dropped.  We’re now at or below average 2005 prices but that’s partly a reflection of larger lot sizes leading to larger homes at higher prices, which off-set overall lower prices.

A  comparison of the same house or neighborhood from year to year would show a steeper decline in home prices.  Looking at similar homes in Clinton Township, which I know best, prices in most neighborhoods have returned to the levels of about 2003, 2004.

The downward trend in prices continues, but the trend line is not as steep.  If the financial sector can resolve the bad mortgage debt problem, then late 2008 early 2009 will probably be when real estate prices hit bottom.

OK, so what would your Hunterdon home sell for in today’s market and tomorrow’s?  What can we do to make it sell at its best price?  Give me a call for a free consulation.

(908) 303-8130 of email me don(at)clintonrealestate.com

Don Sherblom
RE/MAX Town & Country
44 Leigh Street
Clinton, NJ 08809

Taking the pulse of home sales in Hunterdon County, New Jersey

The fall is generally the second best time to sell a house.  After Labor Day, suddenly people get serious about moving on with their lives.  This release of pent-up demand and increase in the number of buyers is good news for home sellers.

Of course, it’s still a strong buyers market, demand is still soft and prices continue to slide downward.  But if you’re thinking of selling, you should note that sales generally reduce the inventory in early fall, September and October, before it moves up again at the end of the year.

[Inventory Index = Number of months to sell every home on Read the rest of this entry »