I completely agree about the home prices in NJ. Many realtors I speak with tell me that prices are stabilizing, but the reality is much different. But what is a realtor to do, I guess?

BTW, I rent. I used to own but when I went back to grad school it was too much being a long distance land lord. I am pretty confident that prices will come down over the next few years in NJ. The fundamentals don’t support current prices and besides the banks are going to be scrutinizing their loans more intensively. A house in my development was purchased in 1999 for $255,000 it sold in 2005 for $495,000. The price in 1999 was up from the low in 1995 after our previous bubble in housing. I think the 1999 price is about right for the year, maybe a tad low for now but add in inflation and I think that is realistic. So in short, in the near future you will see downward pricing, how low? Who is to know but the recession that is coming will probably necessitate it.

There is always the alternative to move to another region, which I am considering. The quality of life in NJ has deteriorated and the government has some serious problems to face in the long term.