“How’s the real estate market?”
This is the question I always get asked whenever I meet anyone and I tell them that I am a residential marketing specialist (real estate agent). The answer is a difficult one because the answers are different depending on your perspective. The answer is different if you are looking at the national market, the market as it applies to New Jersey, and even when you drill down right to your home. The market can be depressed in the development next to yours while the market activity is either at normal levels or even very robust in your development. Or it can be vice versa.
What I am going to try to do is summarize the market activity inCamdenCountyand then try to tie it into the specific areas that we market. Those areas areWinslowTownship,Gloucester Township,BerlinBoro & Township,WaterfordTownship, & Chesilhurst. We also market in select areas ofGloucesterCounty, but that’s for another post.
So, how is the real estate market? Not bad if you’re in CamdenCounty. The numbers from the last quarter are very encouraging. Number of homes sold for the year has increased. YTD in CamdenCountythere were 1607 homes that went to the settlement table. Although the average settled price for the year dropped by 1.55% from last year, for the month of June of this year the average settled price actually went up by 4% from last year. The number of homes sales waiting to go to the settlement table also has increased from 316 homes in June 2011 to 340 homes this past June. This is a 7.6% increase from a year ago. Lastly, the total number of homes that settled went up by 13.5% to 370 homes from 326 homes in June 2011.
Another bit of good news, and another key market indicator that we keep a close eye on, is the total number of months of home inventories. As of June of this year there was 15 months of inventory currently on the market. This means that of the total of 4055 homes on the market in June for Camden County, with no additional homes being added to the market, it would take 15 months to sell them all off at the June’s settled number of 370 sold (4055 ÷ 370 = 15). And what has been happening to prices? As I stated before the average settled price for year dropped by 1.55% to $190,000 for this year while in June the average settled price for June increased to $207,000 from $199,000 for an increase of 4%.
Now what is happening in the select areas that we market? But first lets define some terms so you can better understand the market numbers.
- Median settled price is that number that is in the middle of a range of settled prices. There are equal numbers of prices above this number and below.
- Percentage (%) of Original Price (POP) is the average percentage of the original listed price that the home sold for.
- Average Property Marketing Period (PMP) is the average number of days that the homes in the area have been for sale.
- Closed sales is the number of homes that completed settlement and are considered sold.
Berlin Boro (08009) – for Q2 of 2012 the median settled price for homes in Berlin Boro was $225,000. This is an increase of 28.6% from the previous year! The POP remained fairly steady at 89.6% (only a slight increase from last year of 0.1%). But not all the news is rosy for Berlin Boro. Prices may have gone up and the percentage of the list price that they sell for remains stable, the number of days that the homes had to stay on the market (PMP) to yield those prices increased by 26.2% from last year to 176 days. This resulted in a -34.9% drop in the number of Closed sales from last year to only 28 homes.
Berlin Township (08091) – the numbers didn’t fare so well in Q2 of 2012 for the township homes. The median price for homes sold in Berlin Township dropped by 30.1% from last year to $139,750. And on top of that news, the POP dropped by 1.6% which means that the sale prices were less then what was originally asked for. But that’s not all. We now look at the PMP for the sold homes in Berlin Township and find that the number of 160 days, which is an increase from last year of 115.9%. This translates to spending more time on the market for less money. So, it is a pleasant surprise to find out that the amount of Closed sales increased 42.9% from last year. This could be an indication that the homes in this market area may have been over-priced to begin with.
Atco (08004) – the Q2 numbers were not as bad for Atco but there weren’t as good as Berlin Boro. The median price for homes sold dropped by 11.6% to $129,900 but the POP increased to 91.7% which is an increase of 4.3% from last year. This is good news in that the homes here were offered closer to what buyers were willing to pay. Another bit of good news is that PMP has dropped by 21.9% from last year to 125 days. It’s good news because even though the prices of homes are down, they are spending less time on the market. Sellers in this market are more realistic in pricing their homes to sell. This translated to an increase of 25% in the number of closed sales last quarter.
Waterford Works/Chesilhurst (08089) – this market area fared a little bit better then both Atco & Berlin Township. The median price of $150,000 is a 4.5% decrease from the previous year. Prices are still dropping? Yes, but they are getting closer to what buyers want to pay because the POP increased by 4.8% to 91.7% of original asking price. Unfortunately, the PMP also increased by 26.2% to 167 days. You’ll be close to getting your price but you’ll end up on the market a little while longer. Finally, the number of homes going to the settlement table has increased by 25%.
Winslow Township/Gloucester Township (08081) – the market information has stabilized in this market area. The median price of $165,000 is no change from last year. The POP also shows no change from last year at 88.2%. This seems to indicate a stand-off between what sellers are asking for their homes and what buyers are willing to pay. Surprisingly, the PMP dropped by 12.5% to 172 days. Does this mean that the sellers were the ones who were quicker to agree on the sold price? Could be because the number of homes that went to the settlement table in this market area…increased to 85 (a change of +1.2%).
Want to know what your home is worth in today’s real estate market? The Iwaniw Team are the Residential Market Specialists for Lower Camden & Gloucester Counties. For a free home market evaluation report, call us at 856-318-9098 or go to http://iwaniwteam.vsites.com/home-value to order your free report.
The Iwaniw Team at Joe Wiessner Realty, LLC