Fed Beige Book Finds NJ Improving, NYC Deteriorating

If NJ is such a dump and hell hole like everyone says, then why has the northern NJ market seen improvement while the NYC market is deteriorating? Could it be that people are fleeing the city? Are foreigners buying McMansions in Bergen County under the radar? Thoughts? Housing markets remained soft throughout most of the District, though there were signs of stabilization in a number of areas.... [more]

If NJ is such a dump and hell hole like everyone says, then why has the northern NJ market seen improvement while the NYC market is deteriorating? Could it be that people are fleeing the city? Are foreigners buying McMansions in Bergen County under the radar? Thoughts? Housing markets remained soft throughout most of the District, though there were signs of stabilization in a number of areas. Contacts in northern New Jersey indicate that the market has a somewhat more positive tone than in recent months: prices, though still down about 15 percent over the year, appear to have stabilized somewhat and volume has picked up moderately. New York City’s market, however, has shown further signs of deteriorating, in both the sales and rental markets. In the second quarter, the median sales price for existing co-ops and condos in Manhattan reportedly fell 26 percent from a year earlier, while the number of sales transactions fell 50 percent; the inventory (number of units listed) was up 9%, though there is reported to be a substantial “shadow” inventory of new apartments-condo units that are unsold but not yet listed. Brooklyn’s and Queens’ markets have also slackened in the second quarter, with median prices of existing apartments reported to be down 15 to 17 percent from a year earlier, and the number of transactions down roughly 30 percent. The city’s rental market has also slackened further, with asking rents reported to be down 8-12 percent over the past year, and actual rents off more than 17 percent, on a per square foot basis. Also, landlords are increasingly offering concessions-free rent for one or more months–in slack neighborhoods. [less]