Collingswood Market Watch
COLLINGSWOOD BORO real estate STATISTICS
All homeowners should monitor their local real estate market! For many, their property is their largest investment. Staying educated on the local market trends, community developments, and how it impacts their asset is important!
I study many communities in both NJ and PA. This page is to share information with my Collingswood neighbors. If you would like data for another neighborhood in the Greater Philadelphia Region, you may request that here:
CURRENT MARKET DATA YTD: (updated 11/20/24)
AVERAGE SOLD PRICE: $435,383
AVERAGE DAYS ON MARKET: 23
MARKET DATA
Below is a chart showing the Collingswood Market Data. Note the ongoing decline in Units Listed/Sold. This is where we are seeing the continued concern regarding LOW INVENTORY. Also note the steady increase in SOLD PRICE. In looking at historical averages, we typically would expect homes to appreciate somewhere around 3-4% year over year. In recent years, our neighborhood has continued to see home values push higher than historical averages.
INTERESTED IN DATA FOR ANOTHER COMMUNITY? REQUEST MARKET INFORMATION
*DATA DERIVED BY BRIGHT MLS
HOW DO INTEREST RATES IMPACT HOME BUYERS?
The wild swing in mortgage interest rates has kept us on our toes! It also has those who have been hunting for a new home on edge. The most important number to a home buyer is the monthly payment. Interest rates can have a significant impact on their monthly budget!
In 2021, the average 30 year mortgage interest rate was 2.96%. In 2022 the average interest rate was 5.34%. In 2023, the rates were around 7.25%. Let’s look at how that impacts a principal + interest mortgage payment on a $400,000 home loan.
2.96% = $1,678/month
5.34% = $2,231/month
7.25% = $2,729/month
This increase has put a strain on buyer affordability. When rates were lower, home buyers had more flexibility to compete with rapidly rising home values. Now that rates are higher (and values continue to rise), home buyers have to adjust their budgets OR are much more cautious with their offers.
Sellers need to be aware of this shift when preparing their home for sale, pricing their homes, and reviewing offers.
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What’s happening in the current market?
In 2023 we saw the FED rapidly increase rates in an effort to combat the inflation in our country. Mortgage rates adjusted to 20 year highs after recent years of historic lows. This increase in rates impacted home buying power. Some buyers hit the pause button to reevaluate their finances, while others have simply adjusted their budgets accordingly. Even with recent news of the FED cutting rates, the mortgage rates are not seeing that relief.
Here is an article that explain this better than I: CNBC Article - November 7, 2024
Is it still a Seller’s Market?
The traditional economic expectation is that when the mortgage interest rates increase, housing prices should come down. The challenge with that concept is that supply and demand is still dramatically skewed.
When looking at housing inventory, we like to see around 6-7 months of inventory to consider the market balanced.
When we have more than 7 months of inventory, it is considered a Buyers Market. This is because there are more properties available than needed to meet the Buyer’s Demand.
Less than 6 months of inventory is considered a Sellers Market. This means there are not enough properties to meet the Buyer’s Demand.
THE CURRENT HOUSING MARKET SUPPLY IN COLLINGSWOOD NJ HAS BEEN HOVERING AROUND 2 MONTHS SUPPLY! This is extremely low and is creating a challenge for home buyers who are anxious to find a new home.
Property Value Assessments!
Property Taxes and how they are calculated is a bit complex! There are varying factors that go into the calculation. I am not the best resource to discuss those details and I encourage you to reach out to your local tax assessor with specific questions.
Residents in some towns where I live and serve are working through the process now (2024) and are trying to wrap their heads around why their values or tax burden changed.
For a snapshot on the increase in property values, click here to jump to that section!
The state of NJ requires municipalities to re-assess the values of all properties within their jurisdiction every 5 - 10 years. The assessed value is then applied to the local tax rate (which is determined based on the municipalities budget needs) to determine the property taxes for a particular parcel.
An appraiser will determine the value of a property. They are looking at things such as the square footage of the home, size of the lot, number of bedrooms/bathrooms, and condition of the property. They consider the current market conditions and recent comparable sales in your neighborhood.
In an assessment year, the property’s assessed value is most likely to coincide closely with its current market value. Market value is the price the property will likely sell for in the current market.
Photo from ‘Images of America - Collingswood’ by Janet M Spavlik
For Collingswood, we are behind on our assessments, so many homeowners are being taxed on outdated values. Remember, home values typically increase over time with or without major updates! This is why it is such a desirable investment. Of course it would be lovely to be taxed on a value from 20 years ago, but it would not be fair to your neighbors!
In an assessment year, homeowners can expect adjusted property values. With the incredible inflation over recent years (due to many economic factors), there is a high likelihood that many neighbors will see an increase in their assessed value.
If your tax burden goes up or not will depend on both the assessed value AND the local tax rate. The tax rate for a municipality can change from year to year depending on the local needs and budget as it relates to the total value of taxpaying properties.
The goal is to fairly balance the tax burden across all tax payers in the municipality.
It is my understanding that the 2025 budget for Collingswood Borough is not increasing at this time, but you still may see an adjustment to your taxes as the property values are balanced.
Questions, concerns, or information on how to appeal your assessment can be directed to the borough/local tax assessor: LINK TO COLLINGSWOOD REVALUATION INFO
MARKET SHIFT WATCh
Sellers need to recognize when a market shifts and they should be strategic when preparing and pricing their home.
REMEMBER… A BUYERS #1 CONCERN IS THE MONTHLY PAYMENT!
When rates were historically low, buyers had the ability to push the purchase prices up while staying within their monthly budgets. This resulted in rapid inflation in housing prices.
Rates are normalizing. We may never see the day of 3% or below rates again. The challenge is that the low inventory is holding the prices high. Many Buyers are feeling squeezed having to compete at the higher price points with the higher interest rates.
The current environment is adjusting the Buyer Perspective when evaluating their finances and discussing offer terms.
Pricing a property correctly for the current market is critical! Just because your neighbor’s home sold for a certain price last year DOES NOT mean yours will sell for the same today. Talk to your real estate professional to discuss the current market!
It is also critical to PROPERLY PREPARE YOUR HOME FOR SALE.
Accepting an offer is only the beginning of a transaction. One of the top reasons a transaction falls apart is because of issues that arise during inspections. Many times Sellers are not aware of these major defects until they are discovered by a professional home inspector. We strongly recommend getting ahead of any issues before listing the home!
Woods Properties, LLC
Your home is likely one of the most important assets you own! Many homeowners are unaware of property defects that could be impacting their home’s efficiency, safety, and value. We offer a service for homeowners where we bring in a professional inspector to evaluate the property, identify defects, obtain estimates from licensed contractors, manage the repairs, and organize the documentation for your records. LEARN MORE HERE
Home Prep Project management
Getting ready to sell? Your home is a product on the market! It’s critical to properly prepare the property before listing it for sale. We have a service available where we bring our professionals to evaluate the home to identify major defects which would likely deter buyers. We then will gather estimates for you and manage the repairs.
This Pre Listing Project Management Service allows you to focus on your move!
When a property is in good condition, priced correctly, and in a desirable location (such as Collingswood), I expect we will continue to see strong interest.
Interested in discussing more or learning what your property’s value is in the current market?
Reach out to Emily to schedule a call or to request a Professional Home Valuation Analysis!