The Residential Real Estate Market Sees A Reduction in Both Foreclosures and New Construction
As we all know, New Jersey continues to be plagued by both a troubled real estate market and economy. Our real estate market remains awash in homes either in foreclosure, or having gone through a foreclosure and subsequent sheriff's sale. It also remains awash in unsold new construction, and an essentially non-existent new construction pipeline. October's figures show a "mixed bag" as they say. First, construction of new homes in the New Jersey region fell 18.8%. This included a nearly 10% decline in the construction of single family homes.
Second, and on the other hand, for the first time in 2009, the number of residential foreclosure filings was lower than it was over the same period in October 2008. Lenders started 4,991 foreclosures against New Jersey homeowners in October 2009, down from 5,262 during October 2008. The October 2009 figures were also less than a height of 6,138 filings, from June 2009. These two relate via home builders' likely reluctance to erect new homes in the face of the existing inventory of homes, much of which stemming from the availability of foreclosed homes.
The extent and progress of these foreclosures appears to be slowing as well via the numerous state and federal programs designed to help owners avoid foreclosure. More than 2,600 New Jerseyans have received counseling through New Jersey's foreclosure mediation program. Of the 2,600 that received counseling, about 1,450 cases have been completed and roughly half of those were able to remain in their homes. The federal government reported recently that approximately 22,100 New Jersey homeowners have reworked their mortgages through the federal loan modification program.
