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Prices of Home Auctions for Sale and Other Dwellings Declined in NJ

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By : John Cutts    99 or more times read
The prices of home auctions for sale, new dwellings and other types of residential properties declined in certain areas of New Jersey during the period January-June 2010. Although average home prices have been declining since 2007 and the first half of 2010 recorded further declines, analysts have reported that the rate of drop has slowed down.

Prices of foreclosed homes for sale in Newark, NJ and other residential types from other cities of the state have been dropping since the start of the housing market crisis. In Morris County, the decline has somewhat eased down to around 1.5%, the slowest it has been since the first few months of 2007.

According to analysts, although the volume of New Jersey foreclosed homes and bank owned properties are hindering market recovery, first time homebuyers are still eager to take advantage of the low prices of houses and the low rates of mortgages. Between the first quarter of 2007 and the first quarter of 2010, analysts have estimated that prices of homes in the area have declined by over 15%.

In the current year, home auctions for sale and all types of dwellings sold during January-June in Morris County produced an average selling price of over $470,000. Houses sold during the period totaled 2,050. Analysts are blaming huge supplies of foreclosures and bank properties for the decline of prices. They also claim that short sales are contributing significantly to the low prices of houses in the county.

Local real estate experts have asserted that until homebuyers buy foreclosures for sale in volumes that will be enough to reduce inventories to manageable levels, the market will not take any significant step towards recovery. They stated that foreclosures and bank-owned houses are clogging the flow of normal real estate activity.

Experts also stated that a big number of homebuyers are staying away from foreclosed properties due to the complicated process involved in the sale. They reveal that the effort required to unravel credit lines and the negotiations involved slow the process down considerably, leading to homebuyers getting discouraged and opting for home auctions for sale and other types of dwellings with clean titles and financing.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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