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Check out 297 Summit House under the featured listings section of my site. This is a mint condition 2 bed, 1.1 bath townhome in popular Summit House with an asking price of $179,900. 297 Summit House had been completely updated and has a great floorplan! Call 610.692.6976 for a private tour.
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Believe it or not, the most wealthy borrowers are having many of the same mortgage issues that plague the industry. According to Les Christie of CNNMoney.com, 12% of U.S. mortgages of $1 million or more were late in the fall, which is twice the rate for loans under $250,000 and almost triple the default rate on million dollar mortgages 12 months earlier. A few years ago, it was very easy to get a jumbo loan (loans over $417,000) and the jumbo loan premiums were as low as 0.2%. Today, the premiums are about 0.8% and were as high as 1.8% in 2008. Now, underwriters are looking for far more than the traditional 20% down (some lenders ask for loan-to-value ratios closer to 60% or 50%), meaning higher down payments. These new requirements are not surprising, especially given the current financing climate. Even consumers with large cash assets (in the millions) are having trouble qualifying if their taxable income does not support payments. These homeowners and buyers are getting turned down for loans. Many underwriters are sticking with their strict guidelines rather than looking at the whole application. I do not expect this to change anytime soon.
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In 2009, homeowners recouped an average of 63.8% of the investment in 33 different home improvement projects according to REALTOR Magazine. The cost recoup was down from previous years, but in line with the national decline of home prices. The majority of the remodeling projects with the best return on investment are a testament to sensibility. Six of the 10 projects (siding and window replacement using a variety of materials) involve home maintenance that costs less than $14,000. Two more (adding an attic bedroom or a wood deck) reinforce the belief that increasing the amount of livable space in/around your home will attract Buyers who want more room for their money. Lastly, the six siding and window replacements in the top 10, combined with the project that had the biggest return on investment (replacing the main entry door) prove what many Realtors tell their clients - first impressions count! The analysis of many upscale projects, such as a mid-level kitchen or bathroom upgrade, show that their is money to be recouped, but the real reason to invest in that type of project is for the use and enjoyment of the home owner. Additionally, the report shows that there is no guarantee a Seller will recoup all the money you put into a home when the property is sold. For a full copy and more in-depth analysis, call me directly at 610.692.6976.
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After surging 10% in October, sales of existing homes were up again in November, growing 7.4% according to the National Association of Realtors. Many feel, including NAR chief economist Lawrence Yun, that this uptick in sales was the result of the rush of first-time home buyers to take advantage of the government tax credit. As you may know, November was originally going to be the last month first-time home buyers could qualify for the federal tax credit. An estimated 51% of November 2009 closed sales were by newcomers to the market according to a NAR survey. Lower mortgage rates also contributed to November's increase (the average fixed rate loan was 4.88% according to CNNMoney.com). Many in the industry feel that December will be slower. One reason for this was the rush to close transactions by the end of November, which effectively stole sales from December. However, NAR feels that sales will continue to be steady because many Buyers who had been sitting on the fence now feel that the market is at or near the bottom. As always, the market will determine where values go next...
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As posted in the RE/MAX Times Online, a 45 agent Keller Williams office recently joined RE/MAX in Framingham, Massachusetts in the 4th quarter of 2009. Annette Norton, Broker/Owner of the firm, chose RE/MAX because of its powerful brand name and the tools, culture, and support offered by the RE/MAX network. The changeover marked an $86 million market share boost in Framingham for RE/MAX!
One of the firm's top producers, Jim Coady, is already seeing a boost in his business. He says, "RE/MAX is synonymous with top producers and it is a well known fact that RE/MAX agents do more business...nothing compares to the support and technology that RE/MAX offers." Please contact me for a copy of this article, or if you would like to see the points of difference that RE/MAX has to offer.
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Pending home sales rose again in October, marking the 9th consecutive month this figure has risen according to the National Association of Realtors. The Pending Home Sale Index, which is a forward looking indicator based on the number of contracts signed in October, rose 3.7% in October and is 31.8% higher than the October 2008 figure. However, pending homes sales may dip in the coming months. The expanded tax credit has only been available for a few weeks and it takes the average Buyer 3 to 5 months to find identify the property they will purchase. Chief NAR economist Lawrence Yun shares this view. There are still many concerns, such as the weak job market and the usual year end decline in pending sales. Regardless, this is great news and should lead to a self-sustaining market in the middle of 2010. Price should begin to firm then also.
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The real estate market received a boost earlier in the month once HR 3548 was passed. The extension on the first time home buyer tax credit and the creation on the repeat buyer credit was the news many people have been waiting for over the past few weeks. Ideally, this legislation will push those buyers who have been sitting on the fence to a purchase before the expiration of the bill on April 30, 2010. The other great piece of news is the new adjusted gross income limits, allowing Buyers who would not have qualified previously to take advantage of this great incentive! I foresee this bill giving the market a nice boost in the first and second quarters of 2010. If you have any questions about the new rules, please call or email me. I would be more than happy to help.
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Whether you are in West Chester, Malvern, Media, Phoenixville or Conshohocken, everyone is exciting for the Fightin Phils! Anytime one of our local sports teams goes deep into the playoffs, it seems to light up the greater Philadelphia area. Everyone is smiling and feeling good. Times like these only come around once in a while, so make sure to enjoy it! Hopefully, the Phillies can repeat as World Series Champions!!
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Over the past day or two, Buyers have been able to lock in a 5% interest rate on a 30 year fixed loan! These historically low rates, combined with the high inventory (creating lots of choices for Buyers) make the end of 2009 an excellent time to buy. I have seen investors scoop up great opportunities, most of which only last a short time. Those who are nervous may miss out on this excellent time to invest in real estate, whether it is intended to be a home or a rental property. I make it a point to listen to those with a greater business pedigree and more experience. Warren Buffett is one of those men. His famous quote, "Be nervous when everyone is buying, and buy when everyone is nervous," really applies to today's real estate market.
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Sellers within the 2009 market are concerned with their net proceeds if they do decide to move, as they should be. However, the savvy Seller will quickly recognize that even though he or she will really see a benefit years down the road on the purchase of a new and better home. When my past clients contact me in the future to sell and remind me that they purchased in 2009, I will know their investment will have done well. The market does not reach the type of bottom we see today very often, so if someone can buy in during this time, he or she will see a very positive return in the future. Not to mention, these Buyers will enjoy an upgraded residence and a sound investment. Here is a link to an article from CNNMoney.com that gives advice if you are considering making a move in the near future: http://money.cnn.com/2009/09/28/real_estate/real_estate_market.moneymag/index.htm?postversion=2009092810. If you are curious about these opportunities in our local market, please call or email me. They are out there waiting for you!
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With rates still hovering in the low 5% range and the 1st time home buyer tax credit about to expire, activity in the sub-$400K price range is strong. It is still a GREAT TIME TO BUY, especially in Philadelphia and the surrounding counties. However, despite the increase in showing traffic, pricing is as important as ever. If a home is not priced right, it will still not sell, no matter how many people take a tour. Ideally, once the lower priced homes go under contract, we will see this activity in high price ranges. Inventory liquidation will be the key. Please check back for updates! If I can help you in any way, do not hesitate to contact me.
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