New Jersey Real Estate Report

From the Courier Post:

Foreclosure bites South Jersey hard

When first-time home buyer Derrick Hannah saw a three-bedroom ranch home in Willingboro, he fell in love with its spotless kitchen and its expansive backyard with a patio.

But, a couple of years ago, after buying it for $80,500 with no down payment, the father of three lost his computer job and later was served a foreclosure notice. He refinanced his mortgage three times to avoid foreclosure until he owed $185,000 on the same home, valued at $224,000 just two years ago.

This week, he finally sold his home at 48 Edgemont Lane in Garfield East — but for only $130,000 — to a single parent family in a “short” sale, which leaves the mortgage lender $55,000 short of the total loan amount but which allows Hannah to leave his home with no mortgage debt.
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Willingboro, a municipality with lower median incomes, has been especially affected by foreclosures. It had the highest number so far this year in the tri-county area of Burlington, Camden and Gloucester with 330, but even wealthier communities are at the top of the foreclosures list.

Gloucester Township was second in the region with 323 foreclosures so far this year, followed by Winslow at 298, Camden at 256 and Washington Township at 206. Except for Camden, the other three municipalities have higher median incomes than Willingboro.
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The highest number of monthly foreclosures ever filed against property owners in New Jersey — 6,133 — occurred in June and then fell to 5,813 by July, which was still more than in July 2008.

In the tri-county area, the more populous Camden County led with 2,214 foreclosures for the first seven months of this year, according to figures provided by the state Administrative Office of the Courts through July 31. Burlington County had the second highest total with 1,904 followed by the least populated Gloucester County with 1,301.
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Burlington County Freeholder Christopher Brown of Marlton, who owns ReMax real estate and title insurance agencies, said short sales now represent about 55 percent of the home resale market.

From Prudential Fox & Roach:

Greater Philadelphia Housing Prices Decreased 7.4 Percent in the First Quarter of 2009; (no link)

reater Philadelphia region* median home sale prices decreased 7.4 percent to $199,000 in the first quarter of 2009, according to Prudential Fox & Roach, REALTORS’® HomExpert Market Report©. The median sale price in the first quarter of 2008 was $215,000. The region’s median sale price decreased 8.7 percent compared to the first quarter of 2007 when the median sale price stood at $218,000.

In the first quarter of 2009, the region saw 9,162 homes sold, a 26.2 percent decrease, compared to 12,408 homes sold in the first quarter of 2008. The region decreased 45.7 percent compared to the first quarter of 2007 when 16,883 homes sold. The average number of days a home remained on the market increased from 81 days in the first quarter of 2008 to 95 days in the first quarter of 2009. In the first quarter of 2007, homes remained on the market for an average of 70 days. Additionally, monthly average inventory for the first quarter of 2009 was 54,891 compared to 58,553 in the first quarter of 2008 and the first quarter of 54,833 in 2007.

Delaware County performed the best in the region with a 3.1 percent decrease in median sale price in the first quarter of 2009. The county median price of homes sold fell from $194,950 in the first quarter of 2008 to $188,875 in the first quarter of 2009. Philadelphia County and Gloucester County median sale prices both fell 3.7 percent to $128,500 and $192,500 respectively. With a 16.3 percent decrease in median sale price, Mercer County saw the region’s largest decrease in the first quarter of 2009 falling to $220,000, compared to $262,825 in the first quarter of 2008. Burlington County saw the region’s largest decrease compared to the first quarter of 2007, falling 14.9 percent to a median sale price of $199,900 in the first quarter of 2009.
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Center City median home prices decreased 18.2 percent to $326,000 in the first quarter of 2009, compared to the median sale price in the first quarter of 2008, which stood at $398,750. In the first quarter of 2009, Center City saw 149 homes sold, a 50 percent decrease, compared to 298 homes sold in the first quarter of 2008.

The average number of days a home remained on the market increased from 109 days in the first quarter of 2008 to 137 days in the first quarter of 2009. Average inventory decreased 4.8 percent in the first quarter of 2009 to 1,634 homes for sale.
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Main Line median home prices decreased 13.7 percent to $309,500 in the first quarter of 2009, compared to the median sale price in the first quarter of 2008, which stood at $358,575. In the first quarter of 2009, the Main Line saw 344 homes sold, a 22.5 percent decrease, compared to 444 homes sold in the first quarter of 2008.

The average number of days a home remained on the market increased from 82 days in the first quarter of 2008 to 89 days in the first quarter of 2009. Average inventory decreased 0.8 percent in the first quarter of 2009 to 1,687 homes for sale.
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New Jersey Shore Counties (Outside the Greater Philadelphia Region)

Atlantic County median home prices decreased 15 percent to $216,700 in the first quarter of 2009, compared to the median sale price in the first quarter of 2008, which stood at $255,000. In the first quarter of 2009, Atlantic County saw 396 homes sold, a 35.3 percent decrease, compared to 612 homes sold in the first quarter of 2008. The average number of days a home remained on the market increased from 110 days in the first quarter of 2008 to 124 days in the first quarter of 2009.

Cape May County median home prices decreased 19.6 percent to $410,000 in the first quarter of 2009, compared to the median sale price in the first quarter of 2008, which stood at $510,000. In the first quarter of 2009, Cape May County saw 152 homes sold, a 32.7 percent decrease, compared to 226 homes sold in the first quarter of 2008. The average number of days a home remained on the market increased by one day in the first quarter of 2008 to 141 days in the first quarter of 2009.

From Prudential Fox & Roach (no link):

January Pending Home Sales Index© Shows 28 Percent Drop from Last Year’s Greater Philadelphia Region Real Estate Activity

DEVON, PA – February 3, 2009 – The Greater Philadelphia region* saw an 14.8 percent decrease in January real estate activity moving to an index of 65 from the December index of 76.3, according to the Prudential Fox & Roach, REALTORS® HomExpert Pending Home Sales Index©. January’s decrease in the region’s activity follows a 9.4 percent increase in the December index, but is 27.8 percent lower than January 2008 when the index stood at 89.9.

Compared to findings reported by the National Association of Realtors® (NAR) Pending Home Sales Index, real estate activity in the Greater Philadelphia region fell faster than both the Northeast and the National indices. The NAR index showed a 12.7 percent decrease in pending sales in the Northeast and a 7.7 percent decrease across the nation. In December, the NAR index indicated a 1.7 percent decrease in pending sales in the Northeast and a 6.3 percent increase nationwide.

Based on the forward-looking indicator, real estate activity in the five-county Southeastern Pennsylvania area decreased 16.8 percent from an upwardly revised index of 81.5 in December to 67.8 in January. The November index stood at 74.6. Each county in Southeastern Pennsylvania saw decreased activity. Chester County saw the largest decrease, falling 21.7 percent to an index of 53.2, which is the lowest index report since October 2007 when it stood at 47.4. Philadelphia County saw a 16.9 percent decrease in January activity, falling to an index of 86.8. Last month, the county increased to 104.5.

For the fourth straight month, Center City pending home sales activity rose. In January, the index reports a 19 percent increase to an index of 96.8. Meanwhile, the Main Line area decreased 26.6 percent, falling from an upwardly revised index of 87.8 in December to 64.5 in January.

Southern New Jersey pending home sales decreased 16 percent in January. The index dropped to 58.9, from the upwardly revised December index of 70.1. The October index stood at 47.3. Each southern New Jersey county reported decreased activity, however Camden and Salem counties remained about even falling 0.1 percent and 0.2 percent, respectively. Burlington County saw the largest decrease in the 12-county region, falling 30.3 percent to an index of 51.3 in January. This drop comes a month after the county recorded its highest index number since the January 2008 index.

Delaware real estate activity remained about even moving 0.6 percent higher in January to 66.2 from an upwardly revised index of 65.7 in December. Following a large decrease in December, Kent County saw a 11.6 percent increase in pending home sales. Kent County is the only county in the 12-county region to see an increase in activity. New Castle County activity decreased 1.8 percent to an index of 67.8 in January.
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While the January pending homes sales index for the Greater Philadelphia region decreased 14.8 percent, it is 27.8 percent below the January 2008 index, moving from an index of 89.99 in 2008 to 65 in 2009. The Southeastern Pennsylvania index is 31.9 percent below a year ago, Southern New Jersey is down 19.5 percent and the Delaware area fell 21.3 percent below last year’s January index.

From Prudential Fox & Roach (no link):

Unseasonably Cold Weather Leads to Dip in Southern New Jersey Real Estate Market

According to The Prudential Fox & Roach, REALTORS® HomExpert Pending Home Sales Index©, the number of sales under contract was down in March due to winter storms and cold weather

April 30, 2007 – DEVON, PA – Pending home sales in March fell due to continued unseasonable weather throughout the five-county Southern New Jersey region. With several winter storms and a colder than average month, the HomExpert Pending Home Sales Index©, declined 13.2 percent from 99.9 in February to 86.7 in March, according to Prudential Fox & Roach, REALTORS®.

“Unseasonably frigid weather throughout the country and particularly in this region kept the pace slower than what is traditionally expected, “said Steve Storti, senior vice president of marketing for Prudential Fox & Roach. “As we enter the spring and the busiest time of year for buying and selling, we will look for the market to pick up.”

The following is the March 2007 HomExpert Pending Home Sales Index for the five-county southern New Jersey region:

Burlington
March Index 81.0
February Index 88.7
Percent Change -7.5

Camden
March Index 86.2
February Index 103.1
Percent Change -16.2

Gloucester
March Index 83.5
February Index 102.7
Percent Change -15.4

Mercer
March Index 92.6
February Index 107.5
Percent Change -15.6

Salem
March Index 97.5
February Index 111.8
Percent Change -10.1

From the Philly Inquirer:

So much spent, still so far to go
By Dwight Ott

New Jersey taxpayers have bet $114 million on Camden’s recovery. But four years into the state’s ambitious plan to revive the struggling city, progress has been slow.

Camden remains a sump of poverty, crime and lost hope, sucking down increasing amounts of outside tax dollars to maintain city services. The city is still in the clutches of corruption, scandal, high crime and mismanagement.

Oct. 28 marks the fourth anniversary of the state’s Economic Recovery Act. Its state-appointed chief operating officer, Melvin R. “Randy” Primas Jr., who resigned last week, is required to report his accomplishments to Gov. Corzine before he leaves his job and explain what happened to taxpayers’ millions.

But questions remain about whether the Recovery Act is already doomed.

“We need more money from the state today to balance the budget than we did before,” said Kelly Francis, vice president of the Camden Taxpayer’s Association.

The 15-member Economic Recovery Board in charge of saving Camden has spent almost $114 million of the $175 million earmarked for the city’s revival. The money gushes into the city in exchange for control of day-to-day operations, which was Primas’ job.

From the Philadelphia Inquirer:

Condo developer bullish on Camden
By Dwight Ott

Philadelphia region housing starts are sagging, condo projects have stalled, and Camden is taking hits in the news again.

None of it dents developer Carl Dranoff’s optimism. He’s still forging full-speed into Camden, still bullish on building luxury loft condos in America’s poorest and most dangerous city.

This week, the state Economic Recovery Board, which doles out state aid to the distressed city, agreed to pay $1.9 million for environmental cleanup of the condo site to be known as the Radio Lofts, a former RCA Victor building just off the city’s waterfront near a spectacular view of Philadelphia.

The money was delayed but, combined with $2 million from the New Jersey Redevelopment Authority, will cover environmental work needed to start the renovation, Dranoff said yesterday. He expects the Radio Lofts to be ready for occupancy in early 2008.

Dranoff, who renovated the waterfront Victor Building into luxury apartments in Camden, speaks with the same bouncy optimism as when he first envisioned that residential project - one of the first private investments in Camden’s waterfront renaissance. He’s still jaunty despite the state crackdown on the city’s finances, a corruption probe into one of the city’s major politicians, and law enforcement subpoenas that indicate a deepening investigation of city finances.

“Our enthusiasm and confidence never waned,” Dranoff said yesterday in a phone interview. “Persistence wins the race, and we’re persistent.

“I still believe Camden is the next hot neighborhood, a great place to invest.”