Market Update ~ Winter 2013

The market in 2012 has improved, inventory is down almost 13%; settled sales are up 14%; median price is the same, $200,000; days on the market are down 8% from a year ago. So why doesn’t everyone feel better? One reason is while TREND MLS shows inventory down, that number does not reflect the actual number of new homes on the market. For instance a builder may show 5 listings in MLS, but it might really represent 100 more houses to sell in that particular job. Also the number of investors buying properties is still great. Another reason, the median price this October was 200,000 in 2007 the median price was 228,000 a 12% drop. There is still almost 10 months of inventory that is still so shows we are in a buyers market. The houses that are selling are the ones with good equity because the buyers are very discerning.

Date	Active Listings	Pending Sales	Median Price
August 2012	54,968	5,459	$204,900
September 2012	53,701	4,852	$199,900
October 2012	52,667	5,331	$200,000
August 2011	62,417	4,619	$199,900
September 2011	61,874	4,055	$199,800
October 2011	60,421	4,385	$199,900

The Essentials:

• Positioning, pricing
• The use of social media is extremely important and print media should be a part of every sellers marketing strategy.
• Open houses – essential, especially in the spring
• Web site presence, 400+ websites
• Social media presence, Facebook, Twitter, use to leverage those networks to share your property information
• Print media – Inquirer, real estate books
• Philly.com and Carousel #1 media site in region
• An upper end brand like Christies and extraordinary properties magazine marketed to upper income property owners
• Target mailings/marketing
• MLS management
• Professional pictures
• Unique websites for your properties
• E-flyers to targeted agents
• E-flyers to large buyer database
• Press releases, property specific, to 125+ newspapers
• A text marketing program that provides instant information about your property

Things to Consider:

• 10,000+ Building lots approved or in approved process
• 30% of purchasers are investors
• Getting a house to appraise is difficult today. Buyers look on sites like eppraisal, Zillow, Trulia to get values.
• “House Lock” (owing more on the mortgage than the house is worth) still keeps millions of potential buyers out of the market especially the under 40 group (nearly 50%)
• The “under 40” group are the move ups and if 50% can’t move it makes a housing recovery difficult
• First time homebuyers are 34.7% of the market, the lowest in years (normally 40+%)
• All cash investors are too much competition for the first time homebuyer. Investors purchased 20% of all homes in October.
• All cash buyers made up 29% of all sales in October
• Housing starts in October hit the highest level since July 2008, BUT the increase was all multi-family apartment starts.
• Apartment construction at a 10 yr high while home ownership levels continue to contract
• There is a thriving on your lot/custom home market that’s all about having someone connect the dots and find the lots

Lot finder + Buyer = New home.

Buyers are frustrated to an extent by dropping inventories and the inability to find the right home. There are 1000’s of lots, 1000’s of frustrated byers and many frustrated builders. That would seem to be a formula for success. The lot finder/positioner is the key. The Outlook for housing will depend on jobs. If unemployment goes down, the housing market will pick up and gradual improvement will happen in 2013. Real estate is “local” neighborhood by neighborhood, street by street. Some neighborhoods or streets are sellers markets and some are buyers markets even in the same township. While housing will improve much more in harder hit states like California, Arizona, and Nevada it won’t improve as dramatically in our market.

 

 

Lots! And lots of them.

Take advantage of the glut of land available. I can provide you with an extensive list of parcels for sale. Building packages available.

Call me at 267-746-0456.

Think you’ll strike good luck with this type of hybrid mortgage?

Lucky Seven — maybe not so lucky.

Edward Memelstein of Edward A. Memelstein & Associates, advises buyers to consider the Lucky 7 loan. He says, “Take advantage of the lower interest rates available with a 7/1 adjustable rate mortgage (ARM), when compared to a fixed-rate 30 year mortgage. The interest rate on a 7/1 ARM is fixed for seven years. In the eighth year the loan resets as an ARM. Just be sure you know what the margin, life cap and periodic caps will be beginning in the eighth year to avoid surprises. Use those seven years to reduce debit and increase your income in preparation for what is likely to be a much higher rate than your starting rate.”

Sounds convincing, right? But don’t’ rush to your lender and ask to be approved of this hybrid loan. You need to learn the pros and cons of it or you’ll soon realize that 7 isn’t a lucky number.

More commonly known as the 30/7 loan, it serves as a security for borrowers who need lower interest rates of the adjustable rate mortgages. It has a fixed rate for seven years and an adjustable rate after hence, the name. What’s good about it is that a borrower can have the option of converting it to a fixed rate loan after seven years. The interest rates that will be used depend on the time of conversion.

If you encounter a loan that’s called 7/1 ARM, bear in mind that it’s still a Lucky 7 loan. The second digit (1) indicates the period between rate changes during the adjustable rate period.

This is advisable for people who intend to stay in their home for more than 10 years, if they do not expect using their home equity during the loan term and if they are comfortable with long-term interest rate fluctuations. The lower interest rate at the initial term of the loan attracts most borrowers. After all, the loan caters to those who can’t decide whether to settle for a fixed rate or an ARM.

But of course, there’s always a downside. How many people have already sought to modify their existing mortgages to fixed rate types these days? It seems Memelstein’s advice can only be more appropriate to those who’d like to take high risks and not mind paying higher monthly fees. That’s something hard to find these days. The Lucky 7 loan’s interest rate is actually higher than that of a standard ARM to compensate the lender for seven years of fixed payments. Those who are planning to take a 7-year balloon loan may also be surprised that the Lucky 7 loan is even more expensive.

Another disadvantage of this loan is the penalty fee that you’d have to pay once you refinance or sell your home before five years. Some borrowers are surprised by the high cost that they have to pay back. If you think about it, they have something to do with it in the first place. Borrowers need to clarify every item in the contract to avoid eventual disputes.

If you are looking for career progress or have plans of moving out of the house before seven years, then the Lucky 7 loan is ideal for you but do not rely on this basis alone. Use it as one factor in determining the best option that your financial status will be most compatible with. This is the main reason why most recipients of hybrid loans are in so much trouble today for they were caught unprepared by the potential for higher payments when interest rates increased.
by Matthew Denton

Five Bad Home Improvement Ideas

When considering adding value to a home, you consistently hear from the real estate industry that updated bathrooms and quality kitchens stand out in a home sale. Those are proven sale closers. There are certain other improvements you can make to your home that will beautify it or create convenience for your family. When it comes time to selling, however, those improvements may do nothing to increase the value of the property and may even turn off potential homebuyers.

Over-the-Top Renovations

Au contraire mon frère, not all renovations will raise the value of your home. Just `cause it’s bigger doesn’t mean it will be perceived as better by future homebuyers. Unless your home is located in Beverly Hills or some other very posh neighborhood, don’t install the bathroom with the supersized steam shower, imported Italian marble and several different spray heads … unless you have the money to do it for your own pleasure and enjoyment only. That kind of improvement doesn’t typically do anything to increase the value of the average home.

On the other hand, if you updated an old bathroom, you could see an increase of several thousand dollars to your home’s bottom line. Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it. If you overdo it, however, you may not recoup your investment.

Swimming Pools

If you think installing a swimming pool in the back side of your home will draw hoards of homebuyers clamoring to make offers on your home at sale time, you’d be wrong. Some may consider it a perk, but others may perceive it as a pain with all the maintenance it will require.

Homeowners have even paid to have their swimming pools buried to create more yard space. If you shell out the expense to build one, don’t expect your home’s value to budge. The only exception to building a swimming pool is if you live in states where they are considered the norm.

Home Office Renovations

Although, a home office is often an amenity appreciated by those shopping for a home, it should be built with frugality in mind. Overhauling an office doesn’t pay off when it’s time to sell your home. Don’t steal usable space from another living area to create a home office. Instead, make sure the space can easily be converted back into a bedroom or other living space if needed. If you decide you just have to have the built-in Curly Maple wood shelves, know that you will only recoup around 50 percent of your cost at sale time.

Unique Builds

Home magazines are always coming up with clever and creative ways to change the look of your living space. Some are exotic and outlandish, but they can pique your interest. Tempted to put a classic disco ball with lights in your bedroom, a constellation ceiling in your family room or a peaceful Koi pond in your back yard? Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner. Don’t be tempted to incorporate these ideas into your own home, unless you don’t plan on selling anytime soon. Homebuyers may not share your enthusiasm.

Roof Renovations

If your roof needs repair, don’t hesitate to have the work done. It will be one less issue you’ll have to deal with when listing your home. If in your pursuit to list your home you think replacing your roof with cedar shakes or clay tiles will increase the value, think again. Although they have the ability to make your home stand out, they probably won’t inspire homebuyers to pay more for them. So, unless you have the money to burn, keep it simple when preparing your home to be listed on the real estate market.

Ki has been an investor in the Austin real estate market for several years. The website has an Austin home search for listings in Austin, Texas. It also has general statistics covering Austin real estate along with several neighborhoods in Barton Creek.

Staging Tips To Sell Fast.

Top 10 Tips for Staging a Home
by Broderick Perkins
Provided your home-for-sale has the curb appeal to get potential buyers inside, keeping them inside for a further look requires a staging strategy that sticks the deal.
HGTV’s FrontDoor.com offers what it considers the Top 10 tips that can turn a languishing listing to a multiple offer attraction.
• Reclaim the yard. First impressions rule. Spruce up curb appeal by maintaining a clean yard, adding plants for a splash of color and applying a fresh coat of paint to the front door.
• Let the foyer flourish. The home portal sets the tone for the entire home. Make the space up-to-date, well-maintained and eye catching — top to bottom.
• Back off beige. Don’t let neutral colored walls dominate a room. Splashes of color liven up boring spaces. Throw pillows, artwork and fresh flowers add pops of color and personality.
• Cure kitchen craziness. Consistency pleases. All countertops and cabinets should match. New hardware, a new backsplash and a thorough cleaning can transform a bleak kitchen into one with smiles.
• Denude the dining room. De-cluttering and depersonalizing is the first rule of home staging. Homebuyers can have trouble envisioning themselves living in a home that’s full of the seller’s personal items.
• Avoid focal point faux-pas. Highlight the great features in a home by positioning furniture to highlight them. Windows, fireplaces and other architectural details will be noticed by a buyer if they are emphasized in the home correctly.
• Perk up the patio. The outdoor space is an extension of the home. Capture a higher selling price by cleaning and adding style to any outdoor space with furniture, lighting and accessories.
• Master the master suite. The best approach to staging is often working with existing accessories. Using what is already in the room and repositioning the furniture will highlight the room’s best features.
• Cure bathroom blues. Older vanities and dreadful wallpaper will make any bathroom feel outdated. Apply a fresh coat of neutral-hued paint and new hardware to modernize and brighten.
• Repurpose extra rooms. The value of a space decreases when homebuyers see a room without direction (think part office, part playroom, part home gym). Though almost every homeowner is guilty of having a “junk room,” take sure to stage each room with a clear purpose before putting the home on the market.

Visit my website for more real estate info and listings:
www.theProAgent.com

Keeping you Up-To-Date on Rates

Mortgage rates ease again Impact of Fed’s MBS exit may be tempered by Fannie, Freddie purchases
By Inman News, Thursday, February 18, 2010.
Inman News

Rates on 30-year fixed-rate mortgages averaged 4.93 percent with an average of 0.7 point this week, down from 4.97 percent a week ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.

The 15-year fixed-rate mortgage averaged 4.33 percent with an average 0.6 point, down from 4.34 percent last week and 4.68 percent a year ago.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loan averaged 4.12 percent with an average 0.5 point, down from 4.19 percent last week and 5.04 percent a year ago.

The 1-year Treasury-indexed ARM averaged 4.23 percent with an average 0.6 point, down from 4.33 percent last week and 4.8 percent a year ago.

Rates surveyed by Freddie Mac are for prime borrowers taking out loans with 20 percent downpayments. Borrowers taking out loans too large or risky for purchase or guarantee by Freddie Mac can expect to pay more.

After hitting a low of 4.71 percent in December in records dating back to 1971, rates on 30-year fixed-rate loans and other mortgages are expected to rise if the Federal Reserve wraps up ongoing purchases of $1.25 trillion in mortgage-backed securities (MBS) at the end of March, as planned (see story).

Economists at the Mortgage Bankers Association last month projected that rates on 30-year fixed-rate mortgages will rise from an average of 4.9 percent during the final quarter of 2009 to 6.1 percent in the final quarter of 2010, 6.3 percent in the last quarter of 2011, and 6.6 percent during the last three months of 2012.

Some observers say the impact of the Fed’s exit from the MBS purchase market may be tempered, at least for a while, by announcements by Fannie Mae and Freddie Mac that the mortgage financiers plan to buy up to $200 billion in delinquent loans from their own MBS and pass-through pools.

“That will buy time, supply, and keep rates down until … ummm … May?,” mortgage broker and syndicated columnist Lou Barnes speculated in his most recent column.

***

…Under all is the Land

Take advantage of the large inventory of land for sale. I have large parcels for sale and can provide you with a list of property opportunities upon request. Building packages available.

Contact me by visiting my website at http://www.thePROagent.com.

…Under all is the Land.

Doylestown Gathering Places

Ok, Kinda fun stuff now. Take the following poll if you are a Doylestown-frequenter.

It may be cold, but I love Doylestown!

I was begrudgingly walking outside to feed my 2 awesome, cutey-pie horses and was not surprised to find my water supply completely frozen.  It shows my dedication as I individually walk 6 buckets of warm tap water from the house to supply them their rations.  I cringe as the frigid breeze smacks me and I struggle to do fine-motor-skilled work with my 5 layer gloves on.

If I need to drive to the grocery store I will pray for the warmth of the engine to blow hot air and will park in the ‘New Mother’s with Children’  spot for a quicker dart.  ( no I don’t do that!)

All in all, even if it ridiculously cold now, I love this town. 

To find out what properties are for sale so you can live here, too, visit:
SellingBucks.com

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And if it truly is too cold here for you call me so I can sell your home!

Beautiful Properties in Bucks County.

www.SellingBucks.com

 Click on the link below and visit my website for my listings in the beautiful county of Bucks.  Also search thousands of homes in the area specific to your needs.  I am always excited for my clients and do all possible to assist them in the pursuit of a perfect property.

http://gwenstopperich.point2agent.com/HomesAuthenticated.aspx?tabid=1837018