Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Inquiries & Offers -> Moving/ Relocating
Lakewood- Is it a bubble?



Post new topic   Reply to topic View latest: 24h 48h 72h

amother
Mint


 

Post Wed, Mar 09 2016, 9:36 am
I want to buy a house but the prices are really high! I have a house being offered but I'm terrified that its a bubble and the prices will come crashing down and I'll be stuck with a huge mortgage!
What is everyone doing? Holding out and hoping the prices will go down or do you expect them to continue to climb?
Back to top

freedomseek




 
 
    
 

Post Wed, Mar 09 2016, 9:40 am
Don't think it will go down anytime too soon. Very high in demand as of now. But I'm no expert.
Back to top

Chayalle




 
 
    
 

Post Wed, Mar 09 2016, 9:58 am
I think it depends where in Lakewood. Also if the house has desirable features, it likely won't go down.

I live near the center of Lakewood. The prices are CRAZY. Townhouses are going for upwards of 700K. It's nuts, but I don't think it's going to go down any time soon.
Back to top

doctorima




 
 
    
 

Post Wed, Mar 09 2016, 10:03 am
I agree with freedomseek. Basic laws of supply and demand. Even though people on the margins are moving to the next city over, most people don't want to do that (and many of the locals in those cities are resisting), as they want to be near their kids' schools and the yeshiva. Combine that with many NYers moving there who are willing to pay anything reasonable as long as it's much less than Brooklyn prices (which doesn't take much), and you'll have bidding wars and prices being driven up. I wouldn't see a bubble popping anytime soon.
Back to top

amother
Silver


 

Post Wed, Mar 09 2016, 10:38 am
don't agree, real estate s always a cycle, at the high end now, depending on where/what you want to buy.

still some good deals if you look around that are safer than others, but the market right now is being fueled by investors and the like, not supply and demand.

There is a limited supply of people who can qualify for a mortgage on a 700k house here in Lakewood.
Back to top

Chayalle




 
 
    
 

Post Wed, Mar 09 2016, 10:49 am
amother wrote:
There is a limited supply of people who can qualify for a mortgage on a 700k house here in Lakewood.


Keep in mind that for townhouses, there's a basement rental involved, contributing to the mortgage.

I have a neighbor who is building a monstrosity of a house near Jackson, with 3 apartments in the basement that will contribute to the mortgage.

Personally I'm the type that would rather not be a landlord, so I go for a house that has no rental and I have to be able to afford the mortgage myself, but some don't mind that headache (and lack of privacy). To some extent it drives up all prices, though, when a house is selling for a certain price in a neighborhood.
Back to top

kollel wife




 
 
    
 

Post Wed, Mar 09 2016, 10:53 am
Keep in mind that the monsterousity will also have huge, huge property taxes.

Smaller size, small mortgage, smaller taxes - so it's not so simple.
Back to top

imalady




 
 
    
 

Post Wed, Mar 09 2016, 10:56 am
not to mention, monstrous utility bills.

Also that is not legal, and even if your neighbors don't snitch, you are not being fair.

btw, basement apartments that aren't zoned for, the income won't get calculated into mortgage approvals.
Back to top

debsey




 
 
    
 

Post Wed, Mar 09 2016, 11:06 am
imalady wrote:
not to mention, monstrous utility bills.

Also that is not legal, and even if your neighbors don't snitch, you are not being fair.

btw, basement apartments that aren't zoned for, the income won't get calculated into mortgage approvals.

There are places in Jackson that are zoned for legal rentals, IIRC from when we were house-hunting.
Back to top

amother
Coffee


 

Post Wed, Mar 09 2016, 2:20 pm
11 years ago Lakewood real estate prices were crazy, homes were selling the day they went on market, with bidding wars, without OOT investors, and no one thought it would go down.

It went way down. And then back up again.

but not as many people from NY were moving then.
Back to top

SingALong




 
 
    
 

Post Wed, Mar 09 2016, 8:54 pm
I bought a house in a development for 530 11 years ago. Right after I bought prices stabilized and hardly any houses sold in my area for a few years. The few who sold went for about 489. Recently things ballooned and I can sell my house for 7-8 range. I think the real estate cycle comes and goes. As more land becomes available to build and more houses are being built, the prices go down since there are more sellers. When there are less new houses being built prices go up.

Bottom line...are you looking to invest or live in it? If you are looking to live in it, then you are paying for a place to live regardless of real estate market.
Back to top

Tova




 
 
    
 

Post Thu, Mar 10 2016, 7:26 pm
What's the story with Coventry (asking out of curiosity)? Did that area ever take off? Is it all/mostly frum?

When I lived in Lakewood during shana rishona (well over 10 years ago) my husband wanted to buy a townhouse there (if we stayed) on one of the blocks that were just turning over. I believe they were being listed for $175-190K. I'm curious what's with that area now, and how much the townhouses go for.
Back to top

amother
Royalblue


 

Post Thu, Mar 10 2016, 7:46 pm
I'm also looking to buy and I think that you should give it until August and then prices will start going down. Look in the masa Umatan there are nine pages of rentals that's when prices go down. Right now people are having a hard time finding people to rent their basements and then they can't pay their mortgage. Last year rental prices were so high because you couldn't find a place to rent now it's the opposite. Where I live there are five basements available for two months already and last year a basement was gone before the previous tenant moved out.

There is so much new construction now that there is a lot of rentals. When rentals prices go down then the prices of houses go down because people can only afford crazy prices with their rental.

Also if you look in the bp this week they had advertised for months a property on carasaljo for sale for 500k and now they just lowered it to 459k. One year ago that would have been grabbed overnight so yes even in the prime areas of real estate prices are going down.
Back to top

amother
Tangerine


 

Post Thu, Mar 10 2016, 11:10 pm
My heighbor bought 3 years ago and just moved out and sold it for double now of what they bought it for..
Back to top

Chayalle




 
 
    
 

Post Fri, Mar 11 2016, 11:02 am
Tova wrote:
What's the story with Coventry (asking out of curiosity)? Did that area ever take off? Is it all/mostly frum?

When I lived in Lakewood during shana rishona (well over 10 years ago) my husband wanted to buy a townhouse there (if we stayed) on one of the blocks that were just turning over. I believe they were being listed for $175-190K. I'm curious what's with that area now, and how much the townhouses go for.


It certainly has taken off. I think houses in Coventry are selling now in the lower to mid 200K's, depending on the quality/condition of the unit.

I remember when I bought my house, 15 years ago (I know totally irrelevant to these times) Coventry was going for 80K to 90K.
Back to top

amother
Coffee


 

Post Fri, Mar 11 2016, 11:41 am
Coventry is an excellent example of the bubble. 11 years ago Coventry houses were selling for over 200K. Then they dropped to around 120-150. [A friend of ours bought there then and then couldn't sell when he moved 5 years later because the value had gone down so much - especially because of the 50K hurricane Sandy grant - it makes Coventry homes an obvious choice for those that got the money]. Now they are back up again to the low 200K. (if someone is moving they get a few phone calls from people waiting to buy their house in Coventry).

We bought our home 11 years ago at the height of the market for 300K (it was one of the only normal homes in that price range then). It then fell to under 250K, we couldn't even refinance. Our area didn't go up as much because it became very busy, but it is at least 330K now.

Raintree was an area that was very affected by that bubble then. We looked at houses that were selling in a day for 400K - and then dropped to 250K.

I'm wondering if that will happen in the further areas of Lakewood. In old Lakewood I don't see the prices dropping again.
Back to top
Page 1 of 1 Recent Topics




Post new topic   Reply to topic    Forum -> Inquiries & Offers -> Moving/ Relocating

Related Topics Replies Last Post
The Lakewood clothing exchange 12 Yesterday at 10:48 pm View last post
by rgh
ISO best wig cutter in Lakewood
by amother
9 Yesterday at 10:35 pm View last post
by r3
Wig repairs in Lakewood
by amother
3 Tue, Mar 26 2024, 9:35 am View last post
Best purim takeout lakewood
by amother
3 Tue, Mar 26 2024, 9:17 am View last post
Lakewood benefits office
by amother
5 Mon, Mar 25 2024, 12:14 pm View last post