Located in the heart of the Somerset Hills in Somerset County, Peapack, New Jersey is a small charming small town, says a local Realtor.
"The real estate market still remains steady for homes priced up to $1,500,000 and reflect good value," says Realtor Pauline Derrick. "Condition, location and price determine good value. The number of contracts is matching the number of new listings. This steady market reflects low interest rates and lack of good homes and land."
Explains Derrick, "Freddie Mac states that mortgage rates remain low because of the weak economic idicators and threat of Iraq and Korean wars. Low interest rates increase the purchasing power of prospective buyers. This contributes to the scarcity of homes in certain price ranges. Lack of supply has also been affected by lack of affordable land for builders to purchase and build homes. New zoning restrictions make subdivision of parcels of land more difficult to receive government approvals. In addition, local county and town governments are purchasing large parcels of land for open space. This concept preserves the quality of life for the present owners; however, this contributes to the lack of supply for new housing. Lastly, our New Jersey Governor is proposing a "no growth" policy for the state, again contributing to the lack of supply of buildable land. This is a good solution for present homeowners because their value will continue to increase. This makes it very difficult for customers looking to purchase in the state of New Jersey."
She adds, "The market over $1,500,000 and especially over $2,500,000 is especially vulnerable now. An analysis of the listed properties for 2002 indicates that approximately 35 homes priced over $2,000,000 sold in one year. There are approximately 93 homes over $2,000,000 on the market presently. There is a large supply and small demand. Escalated prices do not support the present market value for these homes."
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Published: January 28, 2003
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