Rumson NJ

Peg from Minnesota sent me this link from the NY Post. I built paddle tennis courts in Rumson with Chip Mathewson, many. many years ago, and remember it as a wonderful seaside town. If it’s in trouble now, the real estate market must really suck.

In this economy, it’s not uncommon for whole neighborhoods to be on the market. But Rumson, NJ, a leafy bedroom community of 7,200 residents, nonetheless stands out: It has 100 homes for sale — all for more than $1 million.

“The streets are filled with distracting ‘for sale’ signs,” says one resident. “Lots of husbands are hanging out at the bagel deli. They used to be working and now are picking up bagels. There’s a new class of Americans in Rumson: the formerly rich.”

The glut of luxury homes has lent a surreal quality to the town, and weekends find brokers sitting at open houses waiting for buyers that never come. Many of the properties have been on the market for more than a year

11 Comments

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11 responses to “Rumson NJ

  1. Gwichy

    NJ is worse than CT primarily due to the crushing property taxes. It helps drive people out of their houses even faster and induces steep price drops.

    No matter what bargain you get on the house, you will still have to pay the assessed tax, no?

  2. Retired IB'er

    Grew up on the Jersey shore and Rumson is a very nice, well-healed town. As aside, Bruce Springsteen lives in Rumson.

    I also wouldn’t say that the property tax levels in NJ are a whole lot higher than lower FF county in general, Greenwich, yes, but not the rest of the county. I believe NJ is nothing like Westchester for example…

  3. EOS

    Living in Westchester, I can vouch for the lunacy of property taxes. We bought our current home is 2002 – the tax bill was under $10,000 for a house on 5 acres. We made a modest addition and minor improvements for which we were reassesed. Many Westchester towns did a total reassessment and in one year our taxes went up 24+%. Today our tax load is just shy of $32,000. Eight years it has almost quadrupled. Many of our friends have moved two miles to CT. We may bail and make RI full time. I can understand the frustrations of residents in any state that are gouged by taxes. It’s a crime, truly.
    Rumson may have had an article written about their town but the scenario plays out across the USA – Iowa, California, Florida.
    PS: the ocean is calm, the sky is blue, and worries of Earl are pretty much gone. Can I sue the forecasters for my gasoline to get here?

  4. Anon

    Formerly rich or formerly pseudo rich driven by over-leveraged economy/asset bubbles?

  5. Priapus

    Hey Bruce, eat the rich. Ooops, that means you. Donate all your money yet? Schmuck.

  6. Old School Grump

    Geez, I remember Rumson (in my limited exposure) as a very low-key place. An older man I knew who lived there was part of a group that commuted to Wall Street that paid to have their own private car on the train so they could play cards in peace; that was the extent of his showing off. I would have figured everyone in that tiny town (7,500!) paid off their houses a zillion years ago. Oops, wrong again.

    Sigh. Where did all these more-hat-than-cattle homeowners come from? When you’ve had a few
    good multi-million-dollar years, it’s not that frickin’ hard to buy a gorgeous house in Rumson you can readily afford AND still have years’ worth of a sturdy sizable “f*** you” fund behind it. This is getting really tedious.

  7. Maximus

    Houses are cheaper in Purchase, Harrison and Rye than Greenwich, for example. Would you rather pay more for a house in Greenwich with low taxes or less and live in Westchester?

  8. AZ

    At least the purchase price is fixed and you have the option of paying it off at any time. Real estate taxes increase annually with near certainty and remain until you sell your house. That said, if the purchase price is cheap enough relative to the alternative it can make sense to pay the higher taxes.

  9. burning fred

    Taxing entities are crushing homeowners causing mortgage defaults all over America.