By AUBRIE GEORGE | The Moorestown Sun
Even with federal tax incentives ending this April, local real estate experts say the current market still presents a multitude of advantages for those looking to purchase a home.
William J. Labree Jr., president of the Burlington County Association of Realtors, said the local market is improved over last year. Tax incentives did a nice job of generating interest in the marketplace, he said, while affordable homes and interest rates continue to drive a buyer’s market.
Labbree said a large number of short sales and distressed properties are keeping home values lower, providing some very affordable homes.
“It’s definitely a buyer’s market. From a seller’s standpoint, there is a lot of competition on the market and not as many buyers. It’s also a little more difficult for buyers because of increased requirements for lending — lenders are much more strict in their qualifying requirements,” Labbree said. “But for those that are qualified buyers, it is certainly the time for them to make a move. They have the benefit of having a large selection of properties to choose from at a good price.”
David Lewis, broker and owner of B.T. Edgar and Son Realtors, said the real estate market in Moorestown is improved not only over last year, but also over the last several years.
“It’s a really good market,” he said. “About five years ago, there were under 100 homes for sale in Moorestown.”
Today, Lewis said, there are about 261 homes for sale in the township with the average listing at about $655,500. There are 23 more homes on the market than there were at this time last year and 31 more than the year before.
“There are 54 more homes on the market over a two-year period,” Lewis said.
Even though the market is prime for qualified buyers, experts suggest getting qualified by a lender before heading out in search of a home.
“The important thing that a buyer interested in going out into the marketplace can do up front is get qualified by a lender so they can determine what their eligibility is. They can determine how much they can afford,” Labbree said. “You want to stay within a comfortable margin so you don’t become what we call ‘house poor.’ You want to make sure you price yourself at a comfortable area as far as income is concerned.”
At the same time, sellers can attempt to stay afloat in this market by keeping in mind the importance of competitive pricing and selling the property in excellent condition.
“You’ve got to be very competitive on your pricing and make sure your house is in top shape,” Lewis said.
Labbree also said pricing was key for sellers.
“The main thing in any market comes down to the pricing,” Labbree said. “You just always have to be aware of what the market is doing.”
Labbree said many sellers are going to have to price their properties lower than they’d like, due to market conditions. But, he said, for those who need to sell, all hope is not lost. Sellers have the option of doing a short sale in order to save a property from going into foreclosure.
Even though federal tax credits ended this spring, Labbree said the buyers should be on the lookout for similar programs that are being implemented by the state in the near future.
“The state is working on some programs that will not exactly replace the tax credit directly, but will do similar things as far as creating incentives for purchasers of properties,” he said.
