Thursday, March 22, 2012

#213 sells for 40% of original price

Unit #213, a 2nd fl 3/2 sold to Richard Grath of Point Pleasant Bch, NJ for $68,500. It was purchased from EMC Mortgage/Fannie Mae and it is the old Brian J. Clark condo which was originally purchased 5/21/07 for $169,900. 

The recent sale is $101,400 less than the 2007 price and is 40.3% of that price.

We have approx 15 units in various stages of Foreclosure at NCC, most will sell at 40-50% of their original sale price.  For those attempting to sell their own condo you will have to have it on the market at around the 50% of price you paid for it in order to generate any interest among buyers. 

Those with mortgages may not find their lender interested in doing a short sale and such sales often either fall through or take so long that the buyer just gives up.  Those few who paid cash really have no option but to remain or take a 50% loss on the original purchase price.

In the short term it is a buyers market, prices are attractive and even here at NCC we see investors buying several units to rent out, of course they are buying the distressed and foreclosed units that the banks and mortgage companies have in their inventory and they are not buying the developer units or units that individual owners have put on the market. 

This will not change for the rest of the year considering the amount of foreclosed units now in the system and another 8-10 heading for foreclosure later in the year.