Appeared on 8/29/10
By James R. Marandi
Rumson Resident
jmarandi@e-cxo.com
We hear a lot about superficial news reporting, grabbing headlines meant to shock the readers, based on rumors and slanted facts (or factoids, or half truths).
The article in New York Post, about Rumson real estate market is one such example. In my view the article accentuates the negatives, based on misleading numbers, painting a picture of a town blighted by a glut of houses, yet fails to present the many positives of our town.
So here is a point by point response:
A few inaccuracies just in the 3rd paragraph of the article:
1) Article’s 3rd paragraph starts by asserting “The glut of luxury homes has lent a surreal quality to the town”. Well, there is no glut of homes in Rumson. According to the Borough Hall, there are around 2500 homes in Rumson. According to Monmouth County MLS data, there are a total of 99 homes for sale in Rumson, of which 32 houses are under one million dollars, while 67 are priced between one million and twenty million dollars. Therefore, less than 4% of homes in Rumson are up for sale.
2) The article further asserts that “…weekends find brokers sitting at open houses waiting for buyers that never come”. This does not necessarily apply to Rumson, since no one in the right mind would try to sell a luxury Rumson estates from an open house. Further, due to the expensive furnishings in most estates the showings are by appointment and upon prequalification of the buyers. If your realtor has been trying to convince you otherwise, you need a new Realtor!
3) The article further asserts that “Many of the properties have been on the market for more than a year”. Not true. According to MLS data. Currently, there are only 3 active listings in Rumson which have been on the market for more than a year.
The article quotes Mr. “Ric” Martel Jr., of Prudential Zack Shore, opining that the reason for lack of buyers is attributed to the downfall of companies like Lehman Brothers and Bear Stearns. I disagree with Mr. Martel’s viewpoint as it is a classic case of glass half empty. Let me remind him and the readers that while Lehman Brothers and Bear Sterns were closed down (though the good part of their businesses were picked up dirt cheap by the likes if JP Morgan Chase with Federal subsidies to boot) the other Wall Street firms continue to prosper with bonuses and compensations that even the Federal compensation czar could not touch.
Also, Mr. Martel’s analysis as why people are selling their houses (so they can cut their expenses!) is not accurate in all cases. Traditionally speaking, in Rumson, the owners of estates sell their property after the family has grown and moved on, therefore they move to a smaller piece of property (some times another multi million dollar property in the area). Given that most Rumson residents are in the entertainment business and/ or corporate leadership positions, they relocate due to job requirements and nothing else.
As to a few houses that were pictured, there is no denying that a house has to be priced according to the market conditions and comparables, so if a house is overpriced it is not going to sell quickly, and as such is statistically irrelevant. For example, a ranch that may be worth 1.2 million dollars shall not spark interest amongst buyers at 1.75 million dollars, no matter how long it has been on the market. Furthermore, incremental price reductions are not an effective strategy in such cases.
There is one point in the article that I agree with, and that is the role the banks are playing in today’s real estate market. The banks are not lending, and if they are, the qualification bar is set extremely high with excruciating documentation process. However, this is not a Rumson problem. It is just a matter of time that enterprising entrepreneurs figure out a way to lend by cutting the clutter and pain while capturing a very attractive market (don’t expect the banks to be innovative in this area).
There is also good news all around Rumson:
Our taxes are lower than many of the towns around us. I advise those living in high tax areas such as Westchester NY, or Greenwich CT, to consider moving to Rumson as it will save them a bundle in taxes.
Our Rumson-Fair Haven high school was just reported amongst the top 6% in the country.
We have the best river front scenery along Navesink and Shrewsbury Rivers, a stone throw away from the Atlantic Ocean and a short drive to Colts Neck and Millstone Equestrian centers. Antiquing in Red Bank, or dining at the best restaurants, or clubbing at a few fabulous clubs (Hey you may even get to see the Boss and get an autograph).
And, last, but not least, a house listed for $ 3,950,000 in Rumson, sold for $ 3,850,000 in 46 days.
So stop the doom and gloom and come on down to Rumson. Invest and live in our historic town. I myself am living in a historic estate attributed to one of the original settlers of Rumson, and will not change it for the world.
