Market Insights – Page 11

Average U.S. Housing Stock Is Aging

November 10, 2013 by admin

Wallingford PA Housing Stock – Average Price By Age Range In 2013

A recent realtor.com article cited a RealtyTrac study that found that more than 70 percent of the U.S. housing stock was built prior to 1990. On average, homes built prior to 1990 sold for $233,211 this year, compared to $256,292 for newer homes.

Fourteen states were found to have the largest number of homes built prior to 1990 (making up more than 80 percent of its home sales). Nearly all of those states were located in the Northeast, except for Louisiana, New Mexico, and Kentucky.

Whenever presented with data from a national perspective I like to compare it with local Wallingford data to see what similarities or differences can be found.

First of all – the average age of a home sold in Nether Providence Township in 2013 stood at 51.6 years.

In comparison with the national average price for homes built prior to 1990 of $256,292, homes locally in that age category sold for an average of $440,043.

It is no surprise that homes less than 10 years old in our community had the highest average sale price in 2013 at $504,217 with homes in the 11 to 20 year range coming in second at $447,925 – averages are based upon sales data through October 31, 2013.

Homes in the 41 to 50 year range composed the largest number of sales with 40, followed by the 21 to 30 year range with 19. That range is dominated by condos and townhomes in Weston and Putnam Villages, which accounts for the lower average sale price of $171,979.

The oldest housing locally, greater than 80 years old, comes in at an average of $444,247.

Wallingford PA Real Estate – Wallingford, PA 19086

Nearly Half Of Foreclosed Properties Are Still Occupied

November 1, 2013 by admin

When a lender forecloses on a home it is assumed that the homeowner vacates the property, right? Not in the real world – actual eviction can take months or years, even after a lender repossessed a home.

RealtyTrac – a company that specalizes in foreclosed and defaulted homes estimates that 47% of the nation’s foreclosed homes are currently occupied. The percentage actually tops 60% in some hot housing markets, like Miami and Los Angeles.

Locally in Wallingford the foreclosure rate stands at 3% for the first 10 months of 2013. There have been 5 foreclosure sales out of 166 total sales for that period.

Those still living in repossessed homes include both former owners and renters. Either way, their time in the homes is mortgage and rent free.

Even when occupants leave voluntarily, old owners typically take about two months to vacate. With renters, it can take a year or more, when there is a vaild rental agreement that the lender must abide by.

The time it takes to evict a homeowner can vary from state to state, and much depends upon the legal process in place within the state. The timing also varies widely based on the backlog of foreclosure related cases in the courts.

Some states, like Alabama and Utah, have so-called redemption periods of up to a year during which former owners can get their home back if they can find the means to pay off their mortgages.

Lenders are sometimes in no hurry to push people out the front door. They will take their time in markets with a lot of homes for sale and depressed prices. They also see a benefit in allowing homeowners to stick around to help protect homes from abuse, and limit the potential for vandalism.

Wallingford PA Real Estate – Wallingford PA 19086

SEPTA Study Examines Impact Of Rail Stations On Home Values

October 25, 2013 by admin

Wallingford PA Real Estate - Wallingford PA - SEPTA Syudy Indicates Homes Near Regional Rail Staions Have An Increase In Value

Regional Rail Access Increases Home Values According To SEPTA

Prior to the announcement of it’s Service Realignment Plan, also known as the Doomsday Plan, SEPTA commissioned a study to research the financial impact of regional rail service on home values.

The study concluded that on average homes near SEPTA Regional rail lines in Delaware, Bucks, Montgomery, and Chester counties saw an increase in value of $7,900. Homes located near a station with frequent service and capacity for more than 100 cars in it’s parking lot have an increase in value of 10%, while a station with infrequent service and low parking capacity the value amounts to a 4% increase. Service availability was seen as the key factor in larger value increases.

Wallingford PA Real Estate – Wallingford, Pa 19086

Pennsylvania Housing Markets Gaining Statewide

October 20, 2013 by admin

Wallingford PA Real Estate - Wallingford PA - Pennsylvania Housing Market Is Recovering

Statewide The Housing Market Is Recovering

According to a recent Pennsylvania Association of Realtors® (PAR) market analysis report, the housing market across the state of Pennsylvania is showing signs of bouncing back from the housing slump. Closed sales were up 15 percent and new listings rose 12 percent in the third quarter of 2013 over the same quarter a year ago. The statistics are based on MLS data reported to PAR.

This trend is surpassed in the Wallingford PA market with closed sales increasing 41.9% in the 3rd quarter of 2013 over the same quarter 2012.

Across the Commonwealth median sale prices were up slightly with a 3 percent rise to $185,000 in the third quarter this year compared to the third quarter in 2012. Days on market continued to drop, down 14 percent to 80 days in the 3rd quarter, compared to the 3rd quarter 2012.

Pressured by rising interest rates and higher home prices the housing affordability index has fallen nearly 10 percent compared to the third quarter last year with the affordability index in the third quarter is at 165. An index of 120 means the median household income is 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.

Wallingford PA Real Estate – Wallingford, PA 19086

Cash Is Not Always King

August 5, 2013 by admin

Wallingford PA Real Estate - Wallingford, PA - Cash Deposits

Surprise Cash Deposits During The Mortgage Process Can Cause Problems

Cash is the ultimate safe haven right? Well if you are in the process of applying for a mortgage undocumented cash deposits can derail the process, and even lead to a denial of your loan.

Lenders want to see stability, the sources of your income, and all other funds which will support repayment of the home loan. Underwriters, the guys in the backroom who review all of your financial documentation, get really nervous when they see large sums of cash being deposited – particularly when it’s just prior to applying for a mortgage. The same goes for transferring large sums of money between bank accounts. Sometimes, such deposits and transfers are completely legitimate. Regardless, this will raise questions. So… if you make large deposits and/or transfers, you need to be prepared, and expect to not only answer questions regarding these bank transactions, but you must provide documentation as well.

Many many people receive the income from their second job in cash. Even if you deposit the cash in your bank account and declare the extra income on your W-2, lenders may not be willing to consider this income.

For instance if you have $7,000 in the bank, but $3,000 was a counter deposit two weeks earlier, the lender will consider you to have only $4,000, the additional money you deposited from under your mattress does not count – if it can not be documented, also known as sourcing, it does not exist!

Cash deposits can be difficult to document, so the best advice is not to deposit cash into your account during the mortgage application process. Lenders will require that all non-direct deposit payroll deposits be verified and documented.

If you have cash that you are planning to use for your home purchase, deposit the funds in your account at least 60 days before you apply for a mortgage. Your mattress money needs to be in your bank account well ahead of your mortgage application.

Your lender is going to want to source all deposits and transfers into your account to make sure you are not using borrowed funds. If you do transfer money from one account to another, be prepared to submit the statement illustrating from where you transferred the money. This paper trail is going to be documented.

Making large deposits or transfers without legitimate documentation is a BIG mistake!

Wallingford PA Real Estate – Wallingford, PA 19086

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S. Clark Kendus