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| Speak Out! |
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 Want to know what’s HOT in Oaklyn? Find out here on Speak Out! It's your opportunity to share opinions, neighborhood news, event details, or share whatever exciting is happening in your life! If you're not comfortable posting, just drop me an email at katling@comcast.net and I'll add your news!
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Oaklyn Real Estate
Posted on: 2009-11-13
As a Realtor for Prudential Fox & Roach, I follow area real estate statistics very closely. I'm sad to report that Oaklyn has taken a significant hit this year. The average home is currently selling for $173,030, or 13.4% BELOW this time in 2008. To put the numbers in perspective, Oaklyn is down 8.2% from this same time period in 2005! It could be worse... Barrington is down 15.1%, Camden is down 23.6%, and Runnemede is down 12.4%. Some other areas with significant drops include Haddonfield, down 11.7% and Pennsauken, down 11.2%.
There are a couple of forces driving home values down in Oaklyn: 1) property taxes are out of sink with home values, and 2) short sales (where the homeowner owes more than they can sell their home for).
Oaklyn is past due for a re-assessment. As much as that brings fear to many homeowners' hearts, it's the only way to even out the discrepancies between home values and the amount of property taxes homeowners are paying.
Consider this... I have a short sale home listed in Oaklyn for $155,000. Taxes are $5471.15 based on an assessment of $98,900. The problem? Buyers in that price range cannot afford to pay $5471.15 a year in taxes. Even if this home were worth $180,000, the taxes are too high.
It’s expensive to re-assess property values, which is probably why Oaklyn has postponed the process. But I think it goes further than just the COST to re-assess. Property taxes are currently at $5.532 per thousand dollars of assessed value. When a re-assessment occurs, typically, a home is assessed for double the former assessment and the tax rate is reduced 50% For example, when Haddonfield re-assessed home values, the tax rate went from $4.892 per thousand in 2007 to $2.310 in 2008. It increased again in 2009 to $2.338.
Here's the BIG problem... in many cases, Oaklyn homes are not going to appraise for twice their current assessed value. For example: consider my Oaklyn short sale for $155,000. The home is assessed for $98,900. If needed repairs were made, it would be worth $180,000 in market value. If Oaklyn cut their tax rate in half to $2.766, the new property tax bill would be $4979 or a loss of $492/year in tax revenue to Oaklyn. And not for nothing, but if Oaklyn's tax rate is $2.766, it would be $0.428 HIGHER than Haddonfield. Ouch!
Comments welcome!
PS: Email me if you would like a copy of the monthly home statistics I compile.
Website: kathiboggsshaner.gmragent.com
Email: katling@comcast.net
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| 2010 Real Estate Market
Posted on: 2010-01-12
Another year is behind us… what’s on the horizon for the 2010 housing market? Is this the year we finally turn the proverbial corner? Will mortgage rates rise? Will borrowing standards get even tougher?
From my little corner of the world (e.g., the 31 towns I’ve been following all year), there is hope. Here’s what my research reveals:
· Towns with increased home sales: 38.7%
· Towns with increased pended units: 54.8%
· Towns with increased listed units*: 19.4%
· Towns with increased average list prices: 9.7%
· Towns with increased average sold prices: 12.9%
*Sales and pending units are up compared to new listings. This generally creates a greater demand for housing, which translates into higher sold prices.
With only 12.9% of my research area reporting an increase in sold prices, what’s the real damage to home values? The two towns posting the most significant losses (23+%) were Camden, and the once impenetrable Medford Twp. Collingswood had the lowest loss in value at only 1.6% and, I believe, is poised to take off in 2010. When averaged, the net loss comes out to 7.6% for my research area. Here’s how the 87.1% that lost value break down:
· 35.5%, or 11 towns reported a loss in average sold price of 10% or higher
· 16.1%, or 5 towns reported a loss in average sold price of 6% - 9.9%
· 35.5%, or 11 towns reported a loss in average sold price of 0% - 5.9%
Some highlights of 2010 projections by Fannie Mae, Freddie Mac, Mortgage Bankers Associate, National Association of Homebuilders, and the National Association o Realtors are:
· The housing downturn will come to a close in 2009
· Look for 9.6% increase over 2009 existing home sales
· The 2010 median home price will increase 0.6% over 2009
· 30-year mortgage rates will average 5.7% in 2010
· 2010 new home sales will increase by 25.4% over 2009
· Mortgage originations are projected to decrease 22% to $1.731 trillion in 2010
Dana Gounaris of Trident Financial reports that in 2009, mortgage approval requirements continued to tighten. Buyers who may have qualified in years past were unable to meet current credit requirements. Dana believes this trend will continue through 2010, citing that Fannie Mae recently lowered their allowable debt to income ratio to 45%, which will force more conventional buyers into FHA mortgages and limit real estate investors. He cautions that in months ahead FHA guidelines are poised to become more restrictive... Underwriters and appraisers will continue to be under increased scrutiny... and imposed RESPA regulations will change the way mortgage information is disclosed to the consumer. These changes will have a significant impact on our business in 2010.
Personally, I believe 2010 is going to be an exciting, busy, but very challenging year. Every aspect of a home sale/purchase will be a little bit tougher than 2009 – which makes working with a knowledgeable, pro-active Realtor© more important than ever. As always, I’m available to assist you with any questions, concerns, or real estate needs you may have. May the coming year bring you the best of everything!
Website: kathiboggsshaner.gmragent.com
Email: katling@comcast.net
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| South Jersey News!
Posted on: 2009-11-13
Stay on top of pertinent issues to our area!
Website: www.southjerseynews.typepad.com
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