The Real Deal

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Priciest homes in the 'burbs: Burgeoning in Bergen County

907 Scioto Drive in Franklin Lakes sold for $6.9 million.

Bergen County remained northern New Jersey's most expensive real estate market, home to the top 10 sale prices in the region in 2007, mostly within the small exclusive community of Alpine.

In spite of softening in the overall market, the luxury housing market is thriving in northern New Jersey.

Alpine is also one of the nation's most expensive communities and the town of almost 2,200 laid claim to five of the most expensive home sales last year in northern New Jersey. Short Hills in Essex County is also one of the nation's most expensive areas, though no sales there made the 2007 list of closed deals.

While new luxury condos in Jersey City and Hoboken are listed at multi-million dollar prices, none there made the list of top housing prices, either.

Brokers specializing in Bergen County said the high numbers don't surprise them.

Mariola Astman, a broker with Burgdorff Realty, said she has seen some slight drop-offs in the amount of interest, but the luxury market is strong with the subprime mortgage crisis impacting the cheaper areas of Bergen County instead.

"This area has not been affected as other parts of the country by the subprime issue," Astman said. "Home values are high and incomes are high."

Astman primarily works with finance executives looking to move into the suburbs. She said that while some homes could remain on the market for several months, she has sold several in the luxury market in as little as two weeks.

Michael Merzel, a sales agent with Re/Max, said the sellers of luxury homes he deals with are very serious about closing the sale and usually are not dipping their toes into the water to see if there are any bites.

"There is a lot happening in that market," he said. "People in that price range are not as affected as we may think [by the credit crisis]."

Jeffrey Otteau, the editor of a widely-read Garden State real estate newsletter, predicted earlier this year that proximity to a train line will remain one of the main factors keeping markets strong in northern New Jersey. He said homes along train lines in areas like Bergen County and Short Hills will continue to sell faster than non-train-line homes. Statistics Otteau released last year support this view, showing that the luxury housing market in Passaic County, which borders Bergen County on the west but lacks its easy railroad access, was one of the most sluggish in the state.

The top home on the list sold for $8 million: new construction on 2.3 acres at 1 Margo Way in exclusive Alpine. The six-bedroom home was originally listed at $7 million, making it one of only two homes on the list to close for higher than its listing price.

The 25-room mansion is built on a hilltop on a cul-de-sac backing onto county-owned woodlands, providing plenty of privacy. The six-bedroom Colonial boasts a billiard room, library, seven full baths, two half-baths and a three-car garage.

A French manor-inspired 15-room house on 6.4 acres in tony Franklin Lakes, at 394 Saddle Brook Trail, fetched $7.5 million. The home has a pool house, situated by a waterfall that empties into a Greco-Roman pool. The main house includes an 800-square-foot, 12-seat-theater, his-and-hers dressing rooms, and an elevator to all three floors. The six-bedroom home is designed as a "smart house," allowing the owner to use a computer to control its systems.

Coming in at number three is a $7 million house on Rio Vista Drive in Alpine. The 21-room home, set on two acres, includes several reception rooms on the first floor along with a master suite, which includes his-and-hers dressing rooms and bathrooms. The seven bedrooms include two on the third floor set aside for staff.

The home also has a gym, wet bar and tennis court.

Other homes on the top 10 list closed at or near asking price: A 17-room house in Saddle River closed on May 1 for $6.6 million, a drop from the asking price of $6.995 million, while a 12-room house in Alpine closed for $6.5 million, the original asking price, on Sept. 7.

A 20-room house in Cresskill closed for $6.35 million, the original asking price, on Feb. 16.

A 13-room house in Saddle River closed for $6.25 million on June 1, after the asking price fluctuated. The house was originally listed at $6.295 million, and then moved up to $6.495 million, before closing at less than the original asking price.

Two homes in Alpine round out the list, closing at $6 million each. One Alpine house closed on Nov. 19 for $400,000 less than the asking price, while the other closed on July 11 for $450,000 less than the asking price.

In 2006, Alpine posted one of the largest home sale prices in the Northeast at the time, with $32 million being paid for a 40-room house, which was originally listed at $40 million. The property, one of the largest private homes in New Jersey, boasts indoor and outdoor pools, private ponds and a small power plant, amongst other features.

Short Hills, one of the most exclusive enclaves in Essex County, posted sales of between $4 million and $5 million last year and has remained strong, according to agents specializing in the community. Sue Adler, a sales agent with Keller Williams, said Short Hills and neighboring Summit see high interest from Wall Street types who are relocating to the suburbs.

Separate numbers for Summit, part of Union County, were not available. But Summit has long been considered one of the most expensive areas in the Garden State and has routinely ranked in the top several hundred wealthiest communities in the country.


Bring on the bidding

Adler said she has witnessed several bidding wars in the Short Hills and Summit marketplace, especially over homes priced between $1 million and $4 million. She said the market has started to pick up in the early months of 2008, and predicts that the luxury market in her neck of the woods will remain strong this year.

"It's always busy after bonuses," she said. "It's been picking up but there are not crazy bidding wars."

Despite the strong sales, Burgdorff broker Astman had one bone to pick: She said she wishes the media would cover the market differently.

She said that media reports have scared off some buyers in the $1-million-plus price range, and have caused others to approach the buying process more cautiously.

"I wish the media would stop telling people not to invest in real estate," Astman said. "The buyers are there. It takes them longer to make a decision because they hear the media hype."