Bergen County Real Estate News: December 2008 – Week 2

Bergen county news with an emphasis on aspects affecting real estate, residency and community issues.

December 2008 – Week 2 Issue

Stronger luxury real estate network in Bergen County
Difficult times form multifamily projects
Winter remodeling projects rise
Housing projects postponed in Bergen County
Housing development in Wood-ridge

Stronger luxury real estate network in Bergen County

A new significant merger in the luxury real estate fraternity will now create a larger luxury real estate network. In new developments, a real estate agency based in Tenafly has purchased its competitor to form a ten office large and 350 agents-rich luxury real estate network. The Classic Realty of New Jersey thus purchased its rival to create a network that will serve the regions of Bergen, Hudson, Passaic and Morris counties. Employees working for the two agencies of the Classic Realty Group and Prominent Properties will now work together and operate as a franchise of the Sotheby’s International Realty Affiliates LLC. The operation will be headquartered in Tenafly at the 90 County Road while branch offices would operate fromAlpine, Fort Lee, Franklin Lakes, Saddle River and Wycoff to name a few. The Classic Realty brand name will be dropped for all future developments. As Prominent Properties has been associated with Sotheby’s before, it will further benefit from the brand recognition. While Charles Oppler (former owner of the Classic Realty group) will serve as the Chief Executive Officer for the new agency, Randy Lyn Ketive will serve as President. Dennis McCormack and Keith Alliotts, previous owners of Prominent Properties will serve as senior vice presidents.

Difficult times form multifamily projects

Given the slowdown of the housing industry across Bergen County and the neighborhood, many housing projects are now experiencing delays or being called off. With a reduction in sales, many such housing projects are also cutting costs in order to keep up with the times. Multifamily housing has been the hardest hit as once started, these projects are difficult to stop. Statistics from the National Association of Home Builders reveal that builders’ confidence in the condo market is at the lowest level since the creation of this index in 2003. Nationwide also, October housing starts were noted to be at the lowest level since the government started to track them in 1959. The US Census Bureau permits for constructing five family or bigger buildings reduced to the average figure of 315 houses a month for the July- September period. This has been a dramatic reduction from an average monthly rate of approximately 900 houses in the first half of the year. Many housing experts and builders have revealed that these are difficult times for builders. However, this also represents an opportune time for home buyers. Lower prices translate into a greater choice of homes and property for potential buyers. Also with more and more home sellers offering attractive incentives, buyers can avail upgrades for their kitchen cabinets, flooring etc at no added costs. Despite all benefits, home buyers are cautious too, as they are unable to get mortgages. Some buyers are also concerned about the security of their jobs while there is also the segment that is waiting for prices to fall further.

Winter remodeling projects rise

The commencement of winter is now proving to be a strong reason driving many residents of Bergen Countyto remodel their homes. As the winters keep many residents inside their homes, people have started to consider the various indoor spaces in their homes and check the areas that are either underused, or those which have scope for better utilization. Noting the trends over recent years, experts state that winters have most people getting renovation work such as painting, plumbing, electrical work, installation of walls, floors, basement repair and crown moldings. Kitchen remodeling is however not usually done during this season, as many opt to entertain guests in the festive season. Experts also add that contrary to the popular belief that remodeling is expensive, this exercise actually helps raise the prices of a home during resale. As per the cost vs. value survey conducted by the Remodeling magazine for 2008 to 2009, moderately priced upgrades get their money’s worth at the time of resale. The survey also showed that while the housing market has slowed down by 7% across the nation, remodeling has slowed down by 3.8% only. This comes as many contractors offer attractive discounts for the so called winter home improvement projects.

Housing projects postponed in Bergen County

Given the slow conditions of the housing market, many developers have slowed down construction on their various housing projects. Experts state that the main reason for this is that developers do not want constructions to be done much faster than sales. With more and more houses in the market, developers want their constructions to be most recent, a factor which is noted to drive up profits. One example where constructions have been slowed down is that of the Crossings Town House community in Tenafly. Taken up by Alliots construction company, this project comprises of 44 luxury town houses. While the initial home prices were estimated at $759,000 and the project was slated to be complete by the middle of 2008, the housing conditions have altered that. The project may now complete by the middle of 2009 and the housing prices may range at approximately $669,000. Builders also state that given the times, housing constructions and home sales at prime locations like the Hudson River waterfront and in high rated school districts have been held up. Other constructions that have been put on hold include a 483 condo development in Jersey city and the third of Trio condo towers in Palisades Park. Besides this, home sales in Bergen County have been healthy and steady, as the region continues to be a desirable location.

Housing development in Wood-ridge

While construction has slowed down almost everywhere, there are still a few places that are still building new homes. A new mixed use development in Wood-Ridge is being looked forth to as a profitable venture. This $500 million project will house rental apartments, condominiums, shops and restaurants to the region. This brainchild of Somerset developers is expected to complete construction by the end of 2010 or early 2011. It will include approximately 800 condominiums and rental units. Located at the former region of the Curtiss Wright bomber factory, the development also includes the construction of an NJ Transit rail station. Situated on the Bergen County Line, the station is slated to cost $37 million, an amount that would be divided between the developers and NJ Transit. Officials from the project state that planning for the construction had begun six years ago, a time when the housing market presented a very different scenario. However even today, thanks to the collaboration with NJ Transit, there is much to hope from the construction.

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