South Jersey Real Estate Blog

Will NJ Property Tax Rebate Get Cut?

With Corzine's new budget plan, it's a high probability.  NJ is already known to have some of the highest property taxes anywhere in the nation.  The new budget plan has the intention to eliminate the property tax deduction next year on state income taxes for everyone but seniors.  Property tax rebates would be maintained at current levels for seniors, the disabled and those earning less than $50,000 a year. Households making $50,000 to $75,000 a year would only receive two-thirds of the rebate they received last year.

The following is via NJAR -

NJ REALTORS^®: BUDGET PROPOSAL IS AN ASSAULT ON PROPERTY OWNERS

(Edison, NJ) Responding to Governor Jon Corzine's proposal to eliminate the property tax deduction next year on state income taxes for everyone but seniors, New Jersey Association of REALTORS^® (NJAR^®) Executive Vice President Jarrod C. Grasso, RCE issued the following statement:

"As NJAR^® has said over and over again, the real estate industry is a major economic engine driving our state's economy. Governor Corzine's proposal to eliminate the deduction of property taxes on state tax filings is counterintuitive and ill-advised. At a time when efforts are aimed at revitalizing this crucial industry, the elimination of this important deduction will further slow down New Jersey's economic recovery.

"Tax deductions that residents receive from owning a home are powerful incentives to get people into the housing market. Efforts to do away with incentives such as these send the wrong message about the importance of homeownership and the strength of New Jersey's real estate industry.

"Property taxes continue to have a devastating and long-lasting impact on the real estate industry and residents of the Garden State. In fact, a recent survey commissioned by the NJAR^® Governmental Research Foundation found that 89.7 percent of people believe property taxes to be too high. While NJAR^® understands the budget constraints facing the state, Governor Corzine and the Legislature, as a means of jumpstarting the economy, should be focused on reforming our property tax system. Instead of looking for ways to hike taxes, lawmakers should  reduce taxes and fees on real estate and property owners, including rolling back the realty transfer fee."

 

Burlington County Real Estate Year End Market Report

2008 has finally come to end and for many it was a bumpy ride.  With the volatility in the stock market and changing mortgage landscape, many home buyers and sellers struggled to keep up with the housing market.  Despite what you hear in the media on a national level, locally we have maintained a relatively stable market.

Here are some 2008 market statistics for Burlington County so you can see for yourself:

  

The median price in Burlington County for the month of December is flat when compared to 2007.  You see seasonal adjustments but for the most part, the median price has hovered in the $230k ballpark.  Yes, these numbers are down compared to the past few years, but many would be glad to see that we've stabilized.  

  

I believe the same can be said for the amount of homes that have sold.  As you can see from the trend line, home sales have remained flat once you take into account seasonal changes.  I see this as a welcome sign as many areas around the nation are still seeing downward declines.  

Some other stats to consider:
Average Days on Market has remained stable at just over 3 months.  What this means is that for homes that are priced correctly, they sell in about 3 months.  
The amount of homes that are for sale at year end dropped to just over 4,400.  This may seem like a lot, but consider that during the summer, this number was up over 5,400.  So supply has dropped down which points to another positive sign going forward.  

All in all, based on 2008 performance in Burlington County, we can only hope that the toughest times are behind us.  One would hope that we continue to see stable performance with an upswing as time moves on.  If you have questions about buying or selling in today's market, don't hesitate to contact us.  We'd be happy to discuss your situation and how to achieve your goals in our current climate.      

      

Data deemed reliable but not guaranteed.  Information from Prudential Fox & Roach AgentMetrics from 1/13/09

Burlington County Real Estate Market Report: Nov 08

Here are some market stats for Burlington County from November 2008. 

Median Price for November was $210k, which is down about 10% from this time last year.   

At the end of November, there were 4,907 homes for sale in Burlington County which is down slightly from last year which saw 5,155 homes for sale.  So it continues to be buyers choice when out looking for a home. 

The number of homes selling continues to drop - homes that sold is down 25% to 217 and pending sales fell 42% to 337.  Roughly, less then 7% of homes available are selling each month.  As I continually say, if you are selling right now, pricing your home competitively is more important now then it ever was.

Here is a chart showing median price over the past two years...

   

Data deemed reliable but not gauranteed.  Information from Prudential Fox & Roach AgentMetrics from 12/04/08

Mortgage Rates Falling

Yesterday I received the following information from Christian Emmel over at Trident Mortgage -

"Today the Fed announced that it will purchase $600 Billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac, an Ginnie Mae. This should help increase the availability of credit, while also lowering fixed mortgage rates. In addition, the Fed will allocate $200 Billion to create liquidity in the auto, student, and small business loan markets. 

The immediate impact of this was about a .5% decrease in interest rates today alone.  Current 30 year fixed rates with zero points are now about 5.750%!! 

This move is geared directly to bringing buyers out and buying homes, allowing current home owners to refinance, lowering their payments or consolidating debt as well as alleviating some of the pressure on the rest of the credit industry.  This could prove to be the absolute perfect time for those who have been on the fence to move forward & unlock this market."

So now the question is...will this be the trigger point to help move the housing market back in a positive direction?

Somerdale NJ Real Estate Market Report

I recently received an email asking how the market looks in Somerdale.  For those not familiar, Somerdale is located in Camden County, NJ.  I decided to post this information here in case others happen to be looking as well.  This information is as of 3rd Quarter 2008 - September. 

Sold Prices

The chart below shows median sale price over the past two years.  As you would expect, you see a downward decline from last year into the summer months of this year.  What did surprise me was that there has now been an upward tick the past couple of months.  Comparing points in time, September 2008 shows a 4% increase from 2006.  In September 2006, the median sale price was $182,650.  2007 it inched up to $187,500 and now sits at $190,000.  I'd be curious to see how this trend plays out with the recent stock market volatility, but this is definitely a sign that things are stabilizing.

Asking Prices

For the most part, asking prices have remained relatively stable as well.  Asking prices continue to hover around $200k.  The last two months we do see a downward trend starting however.  In September the median asking price is $189,900 which is roughly a 5% drop. 

   

I'm sure different people will interpret this data differently however I see the market in Somerdale very stable right now.  Asking prices have inched down as sold prices have inched up and both are almost perfectly in line right now. 

If you have any specific questions, or would like some other data points, please don't hesitate to contact!

Burlington County Real Estate Market Update

Well, the 3rd quarter is in the books.  So how is the real estate market doing right now in Burlington County?  Below is a couple of charts that should summarize all the available data.

First is the median price over the past two years. 
Compared to 2006, prices have dropped about 10%.  Compared to 2007, prices are down about 6%.  

The next graph shows the amount of homes sold over the past two years.  As many are aware, we are way off from two years ago in 2006.  However, when you compare 2007 to 2008, sales are only down 5.5% for September which isn't too bad after the 21% drop from 2006 to 2007.  You have to believe that this is a good sign considering how bad you hear about the market nationally.  

  

So overall prices and home sales have continued to drop, but at a much slower rate then what we've seen in the past.  Also, compared to national news, Burlington County is fairing much better.  This continues to be a buyers market as interest rates continue to stay at low levels.   

Data deemed reliable but not gauranteed.  Information from Prudential Fox & Roach AgentMetrics from 10/13/08

National vs. Local Market Stats: It's not all gloom and doom

Yesterday the National Association of Realtors released second quarter market statistics and of course the media jumped all over it touting more gloom and doom.  But is it really that bad? 

CnnMoney.com had this to say (note the usage of the words steep and plunged):  "Real estate prices continued to post steep year-over-year declines during the three months ended June 30, according to a new report from the National Association of Realtors (NAR).

Nationwide, the median existing single family home price plunged 7.6% to $206,500 in the second quarter, down from $223,500 in the same period of 2007"

They then go on to focus on all the areas that had the biggest drops.  Where is the good news?  They didn't mention any. 

What they failed to mention was that existing-home sales rose from the first quarter in 13 states.  Also In the second quarter, 35 out of 150 metropolitan statistical areas showed gains in median existing single-family home prices from the second quarter of last year, while 115 had price declines.  No it's not great news, but it's not all gloom and doom out there!

How do we compare locally to the plunging 7.6% median price?  Like always, we do much better.  Again it's not great news, but it's not all bad either.  From the Prudential Fox & Roach, HomeEpert Market Report - in the five-county Southern New Jersey area we only saw a 2.2% decrease in median price to $225,000, down from $230,000.  Comparing to the first quarter of 2008, this is actually an increase from $212,700.

So remember, when you hear market information in the media, you need to get past the sensationalized headlines and get to the real data.  Traditionally, Southern New Jersey is ahead of the pack as this continues to be a desirable place to live along with thriving businesses like Lockheed Martin, PHH, Virtua and many more!     

Burlington County Real Estate Market Update - 2Q 08

Burlington County Real Estate Market Update through 2nd Quarter 2008

Supply and Demand

If you read through my Camden County update, then the chart below should look very familiar.  Burlington County had been fairing pretty well until the summer hit.  As you can see, the number of homes for sale jumped way up and has been hovering just over 5,500.  This is the highest it has been in two years.  The number of homes selling continues to be at 500 or less on a given month.  Looking at percentages, only 6% - 9% of homes are selling and the ones that do sell, generally do so in about three months. 

Price

As I've said before, when supply is up and demand is down, down goes prices as well.  Below is the median price over the past two years and I believe the trend line says it all.  While you typically see seasonal adjustments over the summer, this summer is down compared to the past two summers about 4%. 

Bottom line - if you're trying to sell your home right now - you need to be in the top 10% of over 5,500 other homes.  There is much to choose from for Buyers out there and they know it.  Homes must show well, be available to be shown and must be priced accordingly! 

Information based on Prudential Fox & Roach AgentMetrics reports on 7/22/08
Information deemed reliable but not guaranteed

Camden County Real Estate Market Update - 2Q 08

Camden County Real Estate Market Update through 2nd Quarter 2008

Supply & Demand

I believe the chart below speaks volumes and provides a nice visual as to the market in Camden County.  It all comes down to basic supply and demand.  As you can see, supply is way up!  At the end of June 2008, there were about 5,800 homes for sale which one of the highest points in the last two years.  Demand on the other hand is way down!  In June, only 455 homes sold which is one of the lowest points in the past two years. 

 Price

What generally happens to price when supply is up and demand is down?  That's right, price comes down also.  Below shows median sold price for the past two years.  As you can see from the trend line, prices are still coming down. 

If you would like to see details on a particular township in Camden County, please let me know.  I can provide the same charts and additional market information for any township in Camden County. 

Ravi Shah, REALTOR^®
South Jersey Real Estate Blog
Prudential Fox & Roach
O: (856) 222-0077 x153
C: (609) 760-7852

Information based on Prudential Fox & Roach AgentMetrics reports on 7/16/08
Information deemed reliable but not guaranteed

Burlington County Real Estate Market Update Thru 1Q 2008

Burlington County Real Estate Market Update for Q1 2008

How is the real estate market in Burlington County right now?  Well, after a relatively stable 2007, the market has been showing downward trends again the past few months. 

Median Price

As you can see from the chart, the median price of homes sold has been showing a downward trend since last fall.  This trend has continued through the first quarter of 2008 as the median sold price for March was $226k.  This is about a 4% from March of 2007.  The median price of homes for sale has also been showing a downward trend which may indicate that homeowners are starting to price their homes more aggressively.

Supply and Demand

Looking at the supply and demand of homes in Burlington will give you a little more insight into the price trends as well.  Generally, prices drop when supply is greater then demand.  Well, supply is much greater then demand right now!  By the end of March 2008, there were 5,001 homes for sale.  On the flip side, the demand is still low as 309 homes sold in March and another 415 went under contract.  How long is it taking for these homes to sell?  On average...just under 3 months. 

It's a Buyers Market

If you're trying to sell your home right now in Burlington County - it's going to come down to price and marketing.  With over 5,000 homes for sale and only a handful selling each month, you really need to set yourself apart from the competition.  You need to price your home aggressively and make sure it gets the widest marketing exposure you can get it.  It's a buyers market out there - and potential buyers know it.

If you have any questions about the current real estate market...please don't hesitate to call or email

Information based on Prudential Fox & Roach AgentMetrics reports on 4/23/08
Information deemed reliable but not guaranteed