Housing Trends – Page 10

Wall Street Journal – “An Excellent Time To Buy A House”

October 23, 2011 by admin

The signs have been there: record-low interest rates and reasonably priced homes. This week, the Wall Street Journal presents two factors that make now “an excellent time to buy a house.” First, the ratio of home prices to yearly rents is close to its pre-bubble average. Second, when mortgage rates are considered, houses are the most affordable they have been in decades.

The article goes on to explain that whether or not buying is a better deal than renting depends on the relationship between prices and rents, the cost of financing and other factors. The good news is that the numbers all seem to be heading in the right direction.

According to Moody’s Analytics, the nationwide ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble. With all things being equal, a lower ratio means buying is preferable to renting. Even though the price/rent ratio is not as low as it has been, house payments are more affordable than they have been in decades because mortgage interest rates are so low.

– And, despite public opinions otherwise, mortgage money is available according to information in the article attributed to Stan Humphries, chief economist at Zillow, a home and real estate consumer website.

The article closes with this advice: “When prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

Wallingford Real Estate, Wallingford, PA 19086

Mortgage Rates Average Below 4% For First Time Ever

October 6, 2011 by admin

: Average Rates Break the 4% Mark For 1st Time

Although it might sound like a broken record mortgage rates have reached another all time low. Today Freddie Mac announced that the average rate for a 30 year fixed mortgage fell below 4% for the first time ever to an average of 3.94%.

Rates on a 15 year fixed loan, which is a popular option for homeowners who are refinancing, fell to an average of 3.26%, which is also a record.

Mortgage rates have reached lows that were last seen in the early 1950’s when the average 30 fixed rate dipped to 4.08% for a few months.

This offers yet another opportunity for buyers to capitalize on historically low rates. Low rates coupled with declining prices along with abundant home inventory offer buyers market conditions unknown in the past – the confluence of low rates and declining prices.

The establishment of recent lows in the recent past have not created any significant uptick in buyer demand, and real estate pundits and economists are skeptical about the efffect that lower rates have on the sluggish housing market. Rates are not seen as an impediment to buyers, but the sluggish economy, uncertainty about jobs, and meger pay raises are deterring many prospective buyers.

But if you are in the market, especially as a first time home buyer, conditions keep improving for you as a buyer. Take advantage of this opportunity!

Wallingford Real Estate Review – June 2011

July 1, 2011 by admin

WALLINGFORD REAL ESTATE

At the mid point of the year real estate in the Wallingford, Nether Providence Township can be characterized by a abundant supply of inventory and weak buyer demand. The year began with 91 homes for sale, and the inventory has steadily risen through the year, reaching a peak of 145 earlier this week. It is discouraging to pass through the Spring market with an increase in inventory, and as basic economics teaches- a large supply of inventory coupled with weak demand drives prices down, and the numbers support that lesson.

Sales are down 30% as compared to the first 6 months of 2010. With first half sales historically representing the majority of yearly sales, the market is looking at annualized sales of under 100 homes versus 125 in 2010, and well below the peak sales year of 2007, which recorded 219 sales.

The average sales price is also down by 8.6%. The numbers also show that initial asking prices of area homes has continued to be out of step with the market, with selling prices representing only 88.3% of original list prices, compared with 92.47% in 2010.

SALES AT MID YEAR 2010 VS 2011

	*SALES*	*AVERAGE*	*DOM*	*STL TO ORIG*	*STL TO LAST*
2010	80	$325,856	174	92.47%	95.63%
2011	56	$297,724	182	88.3%	93.07%
	– 30.0%	– 8.6%	8.0%	-4.17%	-2.56%

There were 18 Wallingford homes sold during the month of June 2011.

WALLINGFORD HOMES SOLD – JUNE 2011

Address	Bed	Bath	Price	Settled
832B Putnam Blvd	2	1.0	$120,000	06/01/11
711 Devon Lane	4	2.1	$260,000	06/01/11
114 Maple Road	3	1.0	$140,000	06/03/11
210 Willow Road	3	1.0	$145,000	06/03/11
510 West Brookhaven Road	4	2.1	$340,000	06/09/11
219 Sykes Lane	4	2.0	$350,000	06/13/11
835 Manchester Avenue	4	1.1	$180,000	06/14/11
410 West Rose Valley Road	4	2.2	$500,000	06/15/11
110 Walker Lane	4	3.1	$590,000	06/15/11
115A Beech Road	3	2.1	$260,000	06/15/11
725 Kincaid Mills Lane	3	2.1	$435,500	06/17/11
707 Harvey Road	3	2.0	$248,000	06/20/11
900 Heathdale Lane	4	2.1	$470,000	06/22/11
817 Parkridge Drive	4	3.1	$360,000	06/23/11
13 Kershaw Road	4	4.1	$872,500	06/24/11
300 Colonial Drive	5	3.1	$435,000	06/24/11
3 Chatham Place	5	3.1	$313,000	06/29/11
104 Quaint Road	4	2.0	$347,500	06/29/11

These 18 Wallingford homes were on the market an average of 245 days, with the average sold price representing 87.4% of the original asking price, and 93.07% of the last asking price.

3 Chatham Place was only on the market for 7 days, While 13 Kershaw Road was on the market 807 days.

Conventional financing was utilized in 10 transactions, Cash in 5 transactions, and 3 used FHA financing. There were no distressed homes sales – Short Sales or Foreclosures reported.

A Seller Assist was popular during June with 11 of 18 Wallingford homes sold having one, ranging from $400 to $16,650.

711 Devon Lane – $7,000

832B Putnam Blvd – $7,200

210 Willow Road – $800

114 Maple Road – $400

510 West Brookhaven Road – $9,000

110 Walker Lane – $16,650

510 West Rose Valley Road – $5,568

725 Kincaid Mills Lane – $5,500

707 Harvey Road – $10,000

900 Heathdale Lane – $1,500

104 Quaint Road – $1,450

June 2011 Activity vs June 2011

	*SALES*	*AVERAGE*	*DOM*	*STL TO ORIG*	*STL TO LAST*
2010	26	$382,871	152	93.5%	95.85%
2011	18	$353,964	245	87.4%	93.07%
	– 30.8%	– 7.6%	61.2%	-6.1%	-5.78%

There were 12 Swarthmore homes sold during the month of June 2011.

SWARTHMORE HOMES SOLD – JUNE 2011

Address	Bed	Bath	Price	Settled
334 Rutgers Avenue	3	2.0	$385,000	06/04/11
7 Village Green Lane	4	3.0	$312,000	06/08/11
438 Riverview Road	5	3.2	$890,000	06/09/11
404 Rutgers Avenue	5	4.2	$490,000	06/15/11
210 Dartmouth Avenue	3	3.0	$350,000	06/15/11
508 Harvard Avenue	5	2.1	$425,000	06/16/11
625 North Chester Road	4	3.1	$355,000	06/20/11
801 Yale Avenue #714	2	2.0	$140,000	06/21/11
318 Brighton Avenue	4	2.1	$425,363	06/24/11
137 Rutgers Avenue	5	3.1	$305,000	06/30/11
60 Dogwood Lane	4	3.2	$599,000	06/30/11
405 Dickinson Avenue	5	4.0	$592,000	06/30/11

These 12 Swarthmore homes sold for an average price of $439,030, and were on the market an average of 111 days, fetching 90.81% of original asking price, and 96.15% of last asking price.

To emphasize the point that real estate is local in nature, in this case hyper-local, Swarthmore sales through the first half of 2011 have increased over last year for the same period. There have been 27 sales at the mid point of the year compared to 26 units last year at the same time. For the same time period the average Swarthmore sales price rose from $345,058 in 2010 to $388,521 through June 30 of 2011.

Mortgage Corner – To Buy Or Not To Buy?

April 19, 2011 by admin

: To Buy Or Not To Buy?

Should I buy now or just wait? In the spring of 2011, those of us in the business hear that question frequently. There was the mortgage meltdown, foreclosure crisis, high unemployment and many other very unsettling economic issues. The country is still trying to work our way out of these problems. What does this mean to the average person today who might be contemplating a home purchase? I think it means opportunity. Home prices have come down from the record highs of 2006-2007. Interest rates are still near 40 year lows. There are still some great first time buyer programs out there. The real estate market in 2011 has both low prices and low interest rates which is a rare combination. In fact, the last published Home Affordability Index – Feb 2011 – was the highest on record.

Many people believe that you cannot get a mortgage today without perfect credit and 20 percent down. That is not true. You do need to demonstrate a steady income stream and a fairly decent credit history. However, it is not as difficult as many people believe.

Will prices fall further? No one knows for sure. Home prices have seen declines in prior decades. The 70’s & 80’s had price dips. Nationally, real estate prices have appreciated at an average of 6% a year for the past 50 years. Prices will go up once again. Real estate is a long term investment. If you keep a house for 18 months, you will likely lose money. However, if you keep it for 10 years, you should see the average historic appreciation. Remember that real estate is local. The Delaware Valley typically does not have the severe highs & lows like many other parts of the country.

In the past 18 months, I have done loans for people whose monthly mortgage payment was only $200 more than their rent. After you take the tax deductions into consideration, the cost of the mortgage is actually cheaper. Many renters are surprised to find out that the mortgage interest, property taxes and mortgage insurance are fully tax deductible.

If you are curious to find out about the current market, meet with a reputable lender and a licensed Realtor. Most will give you a free consultation where you can determine if the time is right for you.

Steve Madonna

Weichert Financial Services

610-566-2045

NMLS #140438

Housing Trends Of The Future

November 21, 2010 by admin

1. Big builders are wringing the extras out of construction costs and dropping the national average cost-to-build 36 percent to $52 per square foot.

2. Starting in 2011, Energy Star will ramp up its efficient design and quality installation standards. To get Energy Star certification, builders will have to install the right insulation, HVAC systems, and other features related to energy efficiency correctly every time.

3. Sheds are the next evolution. As homes get smaller, a separate shed will become a popular home addition.

4. There are 81 million “Echo Boomers” who were born from 1981 to 1999, compared to just 78 million Baby Boomers born from 1946 to 1964. These children and grandchildren of Boomers will drive home-building for years.

5.By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).

6. Make room for the “Sandwich Generation” – Baby Boomers living with both their kids and their parents. These families like having two master suites, a second cooking area, and lots of storage.

7. Baby Boomers want to keep working and continue to live where they have always lived. They want a first-floor master bedroom near the washer and dryer and lots of convenient storage.

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Wallingford Real Estate, Wallingford, PA 19086

WALLINGFORD REAL ESTATE

WALLINGFORD HOMES SOLD – JUNE 2011

June 2011 Activity vs June 2011

SWARTHMORE HOMES SOLD – JUNE 2011

S. Clark Kendus