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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
 
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I'm of two minds on this sort of thing. On the one hand I don't know how so many people have enough money to buy RE at these prices, on the other I look at the RE prices in large cities all over the world and the prices here are cheep in comparison (yes, even NYC prices).
So, I just don't know.
Posted on: 2015/4/27 14:04
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Re: Is Jersey City Real Estate in a bubble?
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Just can't stay away
 
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People are throwing the term "bubble" around pretty loosely here. If prices are rising rapidly, that doesn't make it a bubble, it just makes it a hot market, which could be caused by demand outstripping supply. It's only a bubble if the rising prices are baseless and fueled by speculation/flippers/etc, which I don't think is the case.
Many people are moving to JC from Manhattan and/or parts of Brooklyn where prices are also rising very rapidly, and by comparison, JC still looks like a good deal. Now whether Manhattan real estate represents a bubble, that's a very real possibility, since so much of it is buoyed by international buyers looking to stash cash. If that bubble bursts, then the outlying areas will be similarly affected.
Posted on: 2015/4/27 13:34
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
Joined:
2014/12/21 14:43 Last Login : 2015/11/15 0:07 From Harsimus Cove
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I'm not sure what the opposite of a bubble is, but the price of row houses seems to be pretty flat. In my immediate area, it seems that houses that need conversion to 1 family are going for about 7-800K and moves ins for about 1.2 million. Seems like a bargain compared to what the Thom McAnns are paying for shoe boxes. Yes, I'm basing my observation on very small sample. No, only your mother thinks your John Lobb. Any further insights?
Posted on: 2015/4/26 14:31
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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Quote:
Posted on: 2015/4/26 4:26
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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I agree, but I also am very wary of someone elses renovations. They can be just as bad as that new construction. But not everyone is up to doing major reno themselves. Also, Downtown is built on swamp and the science of foundations wasn't great 120 years ago. Lotta old DT buildings are funhouses with slanting floors and racked doorframes, including mine.
Posted on: 2015/4/26 2:12
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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2006/11/13 18:42 Last Login : 2022/2/28 7:31 From 280 Grove Street
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There will be a rude awakening when SOME of these newly built (in the last 15 - 20 years) residential towers require more financial input from their owners when it comes to maintenance - I'm already hearing stories of soaring maintenance costs that are a direct result of poor initial construction materials being used and even poor standards of workmanship.
I'm aware of one building that has its owners re-sealing and re-tiling all their balconies because of major water damage / leakage - at their own cost. We are taking about over 100 balconies! I've said it before, but the best investment are your post and pre war walk-up apartments (less then 5 stories) that were built to last and not to a price. It makes sense when you hear overseas consortiums target such properties!
Posted on: 2015/4/25 21:31
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My humor is for the silent blue collar majority - If my posts offend, slander or you deem inappropriate and seek deletion, contact the webmaster for jurisdiction.
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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155 Morgan Street sold for a mere 2.2 million. And this address is just up the block from 88 Morgan. Only, this property was a building owned by Queen Latifah, the pop/movie - star/celebrity.
Seems that the sale price on this one was way too low. Like TWICE the sale price might have been too low. 155 Morgan
Posted on: 2015/4/25 11:53
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
Joined:
2014/12/21 14:43 Last Login : 2015/11/15 0:07 From Harsimus Cove
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Quote:
I read it to mean that one penthouse represents 0.01% of the DTJC real estate, not the pool of potential buyers.
Posted on: 2015/4/25 10:43
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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DTJC is in high demand, and there isn't much supply. Apparently, buyers are putting in bids on multiple properties, hoping that something will stick.
It's unlikely this is a bubble. I doubt that we're looking at any artificial conditions that only apply to DTJC. More likely is that prices will plateau at some point, and people who are priced out will look elsewhere.
Posted on: 2015/4/25 10:27
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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It's possible the DT market is getting overheated just a little. According to what's probably Zillow's most accurate stat, large area markets, 07302 is 120% of 2 years ago. But the Heights or JS is more like 110%.
As for the penthouse, the prices of those kind of properties have no relation to reality. They can move 100% up or 50% down very easily depending on what foreign oligarchs are in the market for.
Posted on: 2015/4/25 3:49
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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@jmiz: I think you're missing my point: I don't think that 88 Morgan, the Trump building, is built for the 0.01% (and definitely the 0.1% won't be looking at the trump building). And Jersey City itself, is not for the 0.01% either. Hence, even for a penthouse, is $3.5mil outrages?
I also understand the law of demand and supply, and asking price vs purchase price. But the fact that someone *dared* to even list with such a price, what does that say of the people's mentality right now? If you go take a look at trulia and zillow, there are some outrages prices listed in the market right now. Yes, the 88 Morgan penthouse is on the extreme side, however: - I noted in my original post that there are several 3 bed units in 65 2nd street is in the $1.2+ million range. That's an old building to say the least (it was originally the rental tower, part of Avalon cove. My sister used to rent there 10+ yrs ago); - there was a 1bed + den apartment in paulus hook that I checked out back in 2010 that was sold for $340K. It just came back on the market for $589K; - there are several 1 bed units in Liberty harbor for sale that were asking / sold around $350k in 2010 are now back on the market for close to $500K (asking price); and that's just a handful of examples. Look at the trulia listings: so many are now asking 30%, 40+% more than just 4-5 years ago. Hence, is JC market currently a bubble?
Posted on: 2015/4/25 2:42
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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You're not getting it. You're claiming there's a real estate bubble but you're analyzing real estate that represents something like 0.01% of the market. Also, Listing Price and Sale Price are two very distinct things. I can put my condo up for $5 million but it would not be indicative of anything other than my own stupidity.
Posted on: 2015/4/25 2:27
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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Why not? I understand that a penthouse is in a class of its own, the inventory is limited, it's at the high end of the market, blah blah blah...
Nonetheless, it is still real estate. If I'm not getting it, please enlighten me. Quote:
Posted on: 2015/4/25 1:58
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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You're judging real estate values by the price of a penthouse?
Posted on: 2015/4/25 1:29
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Re: Is Jersey City Real Estate in a bubble?
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Home away from home
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Yes. Now is the time to sell, not buy.
Posted on: 2015/4/25 1:19
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Is Jersey City Real Estate in a bubble?
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Home away from home
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Just saw this on Trulia - 3bed/3bath penthouse unit at 88 Morgan, for $3.5 million. I've seen 3bed units at 65 2nd str (the Portofino?) for $1.2+ mil recently too.
Is this a bubble?
Posted on: 2015/4/25 0:54
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