Will NJ Retirees Continue to Move to PA?

Realtors who sell homes near the Delaware River in Bucks County are accustomed to New Jersey residents seeking to retire and buy homes in Pennsylvania. Historically, their tax burden would be less on this side of the river. This flight to PA may not continue.

In the fall of 2016, Governor Christy signed into law a bill that would significantly reduce the tax burden for New Jersey's retired residents. The state income tax exclusion on sources of retirement income such as pensions, annuities, 401(k) and IRA withdrawals will gradually be increased from $20,000 to $100,000 in 2020 for joint filers. The income tax reduction and the repeal of the NJ estate tax in 2018 make NJ a far more retiree friendly state than it has been in the past.

Property taxes are still higher in NJ than in PA, but that will become a less significant factor now that income and estate taxes have been reduced. While NJ has the highest property taxes in the country, PA has the twelfth highest. Financially, it may no longer make sense for many NJ retirees to move to PA.

Upper Makefield Township Home Sales Through 7/31/2014

What’s happening in the Upper Makefield Township Real Estate Market?

All real estate trends are local and the national statistics on which the media focuses can be deceiving.

The number of homes sold in Upper Makefield increased during June and July, 2014 but the total number sold for the calendar year through July is slightly below the number sold during the same period in recent years.

As of July 31, there were 129 single family homes for sale in Upper Makefield. The average listing price was $1.1 million; however, only seven homes sold for over $1 million from January 1 through July 31, 2014.

Sales activity was stronger for more affordably priced homes located primarily in Washington Crossing with the most sought after price range being between $500,000 and $650,000.

This chart shows the number of single family homes sold in UMT for the first seven months of recent calendar years.



Average Increases and decreases for Upper Makefield sale prices are not a reliable measure of market trends because too few homes sell in the township and, average home prices fluctuate greatly when a few luxury priced homes sell.

Market trends can be determined by county wide sales information which show an increase of 1% during the first seven months of the calendar year, or by sales information for Lower Makefield Township which show and increase of .3%

Average Ages of Bucks County Residents

Here's are some interesting facts about the demographics of Bucks County:

I don't know what the causes are, but I find many older homeowners sell their family homes and move into smaller homes, many of which are in newer over 55 communities. Many choose to age in place or age in the area rather than in warmer areas.

Another factor is that homes in Bucks County are relatively expensive compared to homes in most other counties surrounding Philadelphia; so, younger home buyers are less likely to afford many of the available homes.

A Tip for Septic System Care

I recently attended a septic system inspection.  Unfortunately, the system failed and needs replacing.

It's difficult to say exactly why its condition deteriorated.  The tank had not been pumped as recently as it should have been.  Also, the house has a garbage disposal which generally requires more frequent pumping than houses that do not.

One issue that jumped out at me was when the tank had been pumped, it had been pumped through the air vent.  The proper way to pump a septic tank is by removing the septic tank cover.

I've owned homes with septic tanks for over twenty years.  On two occasions I've caught the pumping company trying to pump the tank from the vent. Doing so will not properly remove all the solids from the tank and could eventually lead to solids getting into the leaching lines. 

The crews for the septic pumping companies sometimes take this short cut because many tanks require significant digging to uncover.  Digging down three or more feet when the ground is either dry or muddy is a nasty job.  It's not surprising that an unsupervised crew would seek a short cut.

When another one of my clients had their septic system inspected, it took a lot of digging for the septic tank cover to be reached.  They decided to add an extension to the tank opening so it could more easily be pumped in the future.

Not everyone can stay home when their septic tank is scheduled to be pumped.  However,
if the ground over the septic tank has not been disturbed, the pumping crew is likely to have taken a short cut. Beware.

Market Conditions Update Through March, 2013

The housing market has picked up and realtors are busy.  The number of homes sold in Bucks County has increased compared those sold in the prior year, and fewer homes are available for sale.

 Most sellers expect prices to have increased, but the statistics do not yet show that to be the case.  As demand increases, prices are likely to follow, but sellers who are hoping for significant price increases are likely to be disappointed.

Price increases over the next few years in Bucks County are not expected to increase at the double digit rates they did between 2000 and 2006.

The chart below shows an increase in home sales, but a decrease in prices compared to a year ago.  Homes generally go under contract two to three months before they are considered sold.  Therefore, statistics for homes that went under contract during the Spring, 2013 market will not be available for a couple of months.  

Upper Makefielt Home Sale Statistics Through 7/30/12

Bucks County Home Sales Through May, 2012

What a difference a year makes!

Check out these home sales statistics comparing May, 2012 home sales in Bucks County with home sales for May, 2011. Statistics are also shown for the first five months of 2012 compared to the first five months of 2011.

Buyers currently have fewer homes to choose from.  The number of homes for sale has decreased by 10.9%, while the number of pending sales and settled sales has increased.

Prices have continued to decrease.  This trend may change as the market adjusts to the fact that the number of homes for sale has decreased.



Bucks County Year to Year Home Sale Statistics

The Bucks County real estate market is improving, but prices are not expected to rise very much in the near future. Prices are now at the levels they were at in 2004.  That is an average, however.  Homes that have been remodeled, maintained well and have the features that are currently attractive to buyers sell for more than do older homes that have not been updated.  

Here's a chart showing the annual appreciation/depreciation rates of single family home prices in Bucks County since 2002.  Price figures indicate thousands.



In general, prices for luxury homes have fallen more than prices for homes more affordable homes.

Upper Makefield Township Home Sales Statistics

Statistically speaking, there are too few homes in Upper Makefield Township to draw definite conclusions, but the information for the first six months ending April 30, 2012 supports the county wide trend that the real estate market is improving.

Here are the Upper Makefield home sales statistics reported by Trend MLS for the six months ending April 30, 2012 compared to sales information for the same period in 2011.  

Homes are selling faster in Upper Makefield than they were a year ago.  Most homes in the Washington Crossing section of Upper Makefield were priced between $400,000 and $600,000 and that price range showed the greatest improvement

Great Time to Buy a Home

The real estate market in Bucks County appears to be picking up.  There has been an increase in the number of sales during the first few months of this year compared to the number of sales during the same period last year.  Real estate agents are finding themselves very busy. With prices lower than they have been for eight or nine years, it is a great time to buy.

Check out this week's interest rates.  With rates this low, buyers are finding they can afford more expensive homes than they could a year or two ago.

If you are, looking for a new home, I will be happy to help you.

Has Bucks Real Estate Market Bottomed Out?

Has the Bucks County Real Estate Market Bottomed Out?

Sales figures during the past few months have definitely increased compared to the prior year, Agents are reporting cases of multiple offers on properly priced properties. While statistics suggest the worst may be over, it will take a few more months before we can draw a conclusion.

Check out these figures for Bucks County  home sales through March, 2012.

It is still a buyers' market, however, and most buyers are looking for homes they can move into without having to remodel.  Sellers are well advised to prepare their homes for sale before putting them on the market. Homes that are in good repair and are neutrally decorated sell faster and for higher prices than others 

Good Home Buys in Bucks County

I recently showed a home to an out of town buyer and we were both grossed out by the condition of the walls and carpet.  After some initial disgust,  we realized the property's faults were cosmetic and the home was a real bargain.The home was a Fannie Mae owned property with Homepath financing available.

The home wasn't suitable for my client, but I thought some more about the property and tried to make an appointment to see it again.  I was thinking of possibly buying it myself as an investment property.  The good buys don't last long, however, and it was already under contract.

Fannie Mae is pricing repossessed homes very attractively.  Most have flaws, so buyers beware, but bargains can be had by those who can see a property's potential.  To move these properties quickly, attractive financing is frequently available through Homepath, and some properties qualify for home improvement financing.  For more information go to  http://www.homepath.com/resources.html#buyersGuide.

 
An experienced real estate agent can help you locate qualifying properties.