Posts Tagged ‘Buyer Resources’

Experts from Keller Williams Realty explain and discuss real estate trends, market statistics, and the impact of the economy on home buying and selling.

Intersting article today at NY Times.

Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers. Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage…

You can read the full article here.

You might also want to read my post about timing the market.

The current loan limit for FHA financing is $420,000 set by the 2008 Stimulus Package which was signed into law in February 2008.  Effective January 1, 2009 the new FHA loan limits for loan limit for a single family house in Bucks, Delaware, Montgomery and Philadelphia Counties will decrease from $420,000 to $379,500. However, the conventional conforming loan limit will remain the same at $417,000. 

If you need to check loan limits for other counties, this is the link: https://entp.hud.gov/idapp/html/hicostlook.cfm 

Effective January 1, 2009 the minimum down payment and required funds into the transaction for FHA will change as well.  The current required down payment is 2.25% and a total of 3% into the transaction with a maximum sellers assist.  Starting January 1, 2009 any deals that do not have the FHA case number ordered by that time will change to 3.5% down and 3.5% into the equation with a maximum sellers assist. 

If you are “on the fence” with little down payment money, you will need more money if you wait after the new year.

When the Federal Reserve cuts the rates, many buyers and sellers call their mortgage representatives expecting a lower interest rate.  Others who have been waiting to refinance are confused as to why mortgage rates have not moved lower during the recent Fed rate cutting spree. 

Is a Fed rate cut really good news for mortgage rates?  Contrary to the media and general publics understanding, history has proven that the Fed Rate cuts typically have an adverse affect on mortgage rates.  This is the due to the fact that when the Fed cuts the rates, it is to spur on the U.S. financial markets and the stock market.  When this is done, our dollar typically weakens which causes inflation.  Inflation leads to negative movement for mortgage bonds which means mortgage rates tend to increase rather than decrease.

Dave Jenks and Jay Papasan explain and discuss real estate trends, market statistics, and the impact of the economy on home buying and selling.

httpv://www.youtube.com/watch?v=yIWeDeI9Do4

In my entire career, I have never seen a better time to buy in Center City, Philadelphia. It is a Buyer’s Market! There is an excellent selection of properties, sellers are willing and eager to negotiate and interest rates are nearing an all time low! Act now, especially, if you are throwing away your money in rent and not receiving tax deductions or equity.

Wharton School’s nationally renowned real estate scholar, Kevin Gillen,  recently released a report indicating that Philadelphia is as a whole stable and its real estate value continues to see gradual increases.  Furthermore, he does not see any factors that would indicate that values would take a dramatic downturn in the future. 

Moreover, we discovered that due to extremely low interest rates now, even  if values did dip precipitously, buyers would still fare better paying more now with lower interest rates, than at lower prices with higher rates later.

Despite what you hear on the news, the Philadelphia real estate market is still showing resiliency.  However, the inventory still stands at all-time high levels and the number of homes sold are much less than the boom years. The properties are also on the market for average of 67 days, about 25 days more than a healthy market. Remember the real estate is local business so pay attention to your local region statistics. A severe contraction in the national economy, however, could mean both higher unemployment and tighter credit conditions for both buyers and sellers that will inevitably affect the local markets and would continue to exert additional downward pressure on house prices. Nobody has a crystal ball but the next few quarters will be watched very closely and will determine how deep the rabbit hole goes for Philadelphia region.

You can reach the full article here at Hallwatch. Be sure to read this to help you make sense of the data. Also note that this report does not include condominiums/co-ops.

This quarterly market report is provided by Dr. Kevin Gillen, an economist at the Real Estate Department of the Wharton School and Fellow of the University of Pennsylvania. He analyzes the Philadelphia real estate market using the city’s real estate database through Hallwatch. He publishes his result in a research paper called Philadelphia House Price Indices each quarter as a public service to the Philadelphia real estate community.

Your First Home is packed with inspiring stories and the wisdom of thousands of successful first-time home buyers, it’s a must-read for anyone aspiring to buy a home. It’s a must-have in my library and I always give a copy of this book to my first-time buyer clients. It breaks down the buying process into eight simple, easy-to-follow steps.

Your First Home provides proven, practical guidance on how to:

• Hire a great real estate agent
• Determine what you can afford to buy
• Secure the best financing
• Recognize the right home for you
• Craft a winning offer and negotiate with sellers
• Spot serious issues at inspection
• Close on your new home and maintain it

You’ll also learn about successful creative financing strategies and ways to overcome less-than-perfect credit.

Highly recommended!

Below is courtesy of our own Sarah Schneider from KW Center City office:

Of late there’s been much ballyhoo over this new promised land called “Newbold”, down here in the South Philly 19145 zip. Well I’m being told that it’s like this:

Washington Ave. south to Snyder, and Broad St. west to 18th is called “Newbold”, and Snyder Ave. south to Wolf St., and Broad to 18th has been christened “Newbold South”.

They do exist in the area list on the MLS, although, no one seems to be using them much because due to the lack of awareness of the boundaries. Unsexy a name as it is, it (finally!!!) gave some ambiguously defined neighborhoods in the area a much needed identity other than just, South Philly, which real estate philistines STILL insist on calling Center City South….yeah, and Orlando, Florida is Miami north!!!!!

With luminary Stephen Starr having bought the Broad Street Diner, the gang at SPTR (that’s, uh, South Philly Tap Room for those of you just sinking your teeth in) putting a coffee shop at the corner of 15th and Mifflin, and Noah’s Ark bar at 16th and McKean undergoing an overhaul and yupping-up to a microbrew-and-burger taproom in it’s own right, well, you can fill in the blanks. Add that the area is served by major SEPTA routes in either direction and that pretty much seals the deal.

Better bone up on your trivia, kids…I see major Quizzo wars in our future.

I’m up for Happy Hour this Friday 7/18 around 5:30 at the SPTap…come on down!

Hope this shines a new light on a very desirable South Philly neighborhood and buyers out there will finally get what all the fuss is about. Me, I’m personally banking on ‘Bold to be the next big thing down under (Washington Ave., that is).