Philadelphia Area New Home Blog

Designers Unite

2009-02-09T21:29:00.002-05:00

Any Philadelphia-area Bloggers and/or Wordpress fanatics? You know who you are. Show off all your design skills right here...

9 housing-market head winds for 2009

2009-02-07T14:04:00.001-05:00

With home prices having dropped a painful 21% from their 2006 peaks, property owners everywhere could use a splash of good news in their New Year's Eve cocktails. But as a nasty recession is now part of the picture, the chances of an aggressive housing-market rebound in 2009 are dim. "A lasting recovery in the housing market?" says Mike Larson, a real-estate analyst at Weiss Research. "I don't see it in the cards until the back end of the year -- if that."

Here's a look at the factors that will be weighing down the housing market in 2009:

1. Recession
After months of speculation, the National Bureau of Economic Research made it official in early December 2008, announcing that the U.S. economy entered into a recession in December 2007. The only question now is: How painful a recession will we have? In a Nov. 21 report, economists at Goldman Sachs revised their previous forecast to reflect a more significant economic contraction and higher unemployment. "We now estimate that real GDP is falling at a 5% annual rate in the current quarter, and we expect this to be followed by declines of 3% and 1% in the next two quarters," the economists said. "This deepens and extends the expected recession, bringing the drop in GDP close to the decline seen in 1982 (2.3% in our forecast versus 2.7% then)." The recession will exert downward pressure on the housing market in a number of ways.

2. Higher unemployment
The shrinking economy will result in additional layoffs, which will work to smother housing demand. The unemployment rate has already been climbing -- in early December it was at 6.5% -- but many expect it to increase significantly in the coming year. Goldman Sachs projects the unemployment (more)

A $15,000 gift for homebuyers?

2009-02-07T14:01:00.002-05:00

A $15,000 gift for homebuyers?

The U.S. Senate approves an amendment to the economic stimulus package that would provide a tax credit of up to $15,000 for homebuyers who purchase a primary residence in the coming year. But economists are skeptical tax credits will prove stimulative.

Home Affordability Calculator

2009-02-07T13:58:00.001-05:00

Home Affordability Calculator

http://realestate.msn.com/BuyAndSell/Tools/HA_CALC.aspx

6 signs of a strong housing market

2009-02-07T13:56:00.003-05:00

http://pahousingnews.wordpress.com/2009/02/07/6-signs-of-a-strong-housing-market/

Senate readies $780 bln stimulus plan for vote

2009-02-07T13:41:00.001-05:00

Senate readies $780 bln stimulus plan for vote

http://www.marketwatch.com/news/story/senate-debates-details-780-billion/story.aspx

Five reasons to buy a home this year

2009-02-07T13:38:00.002-05:00

Five reasons to buy a home this year

CHICAGO (MarketWatch) -- People are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.

Ask for price reductions, improvements, closing costs -- whatever -- and the seller, desperately trying to get a contract, is very likely to work with you, said Jay Papasan, one of the authors of the book "Your First Home." When the market starts improving, your negotiating power starts to diminish, he added.

Read more here...

Buying A Home Is An Investment

2009-02-07T11:46:00.001-05:00

A couple of days ago I came across a very interesting post by Danny Thornton. In that post he examines some of the fundamentals of how one approaches and evaluates home ownership. Oftentimes economists and personal finance professionals look only at something as either an asset or a liability. There is of course no absolute black or white when one looks at homeownership; there is the interplay of the two. I think this article quite effectively examines some fundamental questions about home ownership.

The Home You Save Could Be Your Own

2009-01-28T14:34:00.003-05:00

More people are representing themselves - pro se - in their home foreclosure cases. The trend's details are here.

Home items that need your attention

2009-01-26T23:39:00.004-05:00

You know it’s a funny thing. When you buy a toaster, a car or even a lawn mower, you get an owner’s manual. But when you purchase a home about all you get is surprises, bills and a big fat mortgage.

Now I am a firm believer that a well-maintained home is one that is more pleasant to live in and one that is of higher value. The other fact is, that regular maintenance of certain systems in your home is fairly easy and costs little to do. If not attended to, you can wind up with hefty repair and replacement bills. Below are five common issues in a home and some advice on what to do and how to keep them running and working smoothly.

1. Water heater: Here are some facts about that tank sitting in your basement or mechanical room. The average life of a tanked water heater in the U.S. is seven years. Now, I know there are some of you reading this thinking that you have a water heater that is older than 20, and that’s great! But know that a tanked heater starts out at about 75%-80% efficient when new and after about five years their efficiency levels can be as low as 50%, --- read more here ---

Helpful Tips to Help Move Your House

2009-01-26T18:34:00.003-05:00

Housing trends sail by faster than most of us have time to notice, but when it comes to selling your house, you might suddenly wish you’d sat up and paid attention before. Some styles can be put down to the vagaries of fashion and are easily fixed — gaudy wallpaper isn’t difficult to replace, but moving a laundry room above ground or fitting a proper staircase is another story entirely.

One bathroom

We don’t want to wait to use the bathroom. Not any more. With so many people used to the luxury of multiple bathrooms, it is a hard sell to get them to take a step backward in time.

No air conditioning
Installing central air to your house will cost you about $10,000-$12,000, but if there was ever a juicy bone to get a buyer interested, this is it.

Fuse boxes
Fuse boxes? People expect circuit breakers nowadays, and if you want to modernize your electrics, consider spending $2,000 to replace those outmoded old fuses.

Read further for additional tips.

10 Real Estate Myths for Buyers and Sellers

2009-01-26T14:26:00.005-05:00

The truth about the housing market
In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.

Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.
When buyers ask, “How long has this property been on the market?”, they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.

Buyer myth No. 2: The sellers today are desperate.
Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than “We’d like to find something bigger.” The first homeowner is hot to trot.

Read more here...

THP Photo Gallery

2009-01-26T11:57:00.001-05:00

Existing Home Sale Increase in December

2009-01-26T11:43:00.002-05:00

http://www.msnbc.msn.com/id/21134540/vp/28856350#28856350

5 Money-Saving Ways to Heat Your Home

2009-01-26T11:18:00.003-05:00

As winter hits its full swing you can still take a few steps to winterize your home. Adding some insulation here, a little plastic window film there can save you real dollars. Here are a few ideas:

Install a programmable thermostat
There are many different brands on the market that range in price from $40 to $100. You can program one to lower the temperature while you're at work or sleeping and save up to 30 percent in a well-insulated home. What's more, outdated thermostats are the weakest link in conserving energy. According to the government's Energy Information Administration, only about 25 percent of U.S. homes are equipped with modern programmable thermostats. They are easy to install; using low-voltage currents, you just attach the color-coded wires from the wall to the corresponding terminals on the back of the unit (W means white, R means red and so on).

Read more here...

Personal Finance Refresher

2009-01-08T09:42:00.004-05:00

Need a great resource to help with preparing for your new home purchase? Look no further than CNBC's On The Money.

Please follow here.

The Real Estate Marketplace Glossary (free PDF)

2009-01-07T17:00:00.009-05:00

The better prepared one is for life, the better the outcome. Courtesy of the FTC (Federal Trade Commission), we are happy to share this real estate market glossary.

From Annual Percentage Rate (APR) to Walk-Through, Escrow Analysis to Right of First Refusal, this PDF will serve as a huge resource to those new to the housing market and those who just might need a refresher.

THP wants all of our Buyers to be educated Buyers...plain and simple. Take this with you when you speak with a THP Sales Associate, Hendricks Mortgage, or Hendricks Abstract.

Enjoy!

Get it here (ftc real estate glossary).

The Top 5 Housing-Market Hopes for 2009

2009-01-07T15:01:00.002-05:00

In the face of an intractable credit crisis and a recession that could be the deepest since World War II, economists are expecting another downcast year for housing in 2009. Mission Residential Chief Economist Richard Moody, for example, projects home prices to continue along their downward slope for the entire year before hitting bottom in early 2010. But while there's no shortage of gloomy data—rising unemployment, higher mortgage delinquencies, increasing foreclosures—glass half-fullers do have a number of hopes to cling to. And while these more optimistic factors might not be enough to spring housing back to life in 2009, they could—with a few lucky breaks—prevent the market from declining as sharply as it otherwise might.

Here are the five best reasons to be hopeful about housing in 2009:

1. Cheap mortgage rates: With inflationary pressures easing and economic concerns mounting, shell-shocked investors are seeking the protection of government securities, such as 10-year treasury notes, driving down yields. The lower yields, coupled with the Fed's recently announced plans to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac have dragged mortgage rates to multi-year lows. Thirty-year, fixed mortgage rates hit an average of 5.47 percent last week, the lowest they've been since 2004, according to Freddie Mac.

To be sure, not everyone will be able to take advantage of these attractive rates: Tougher lending standards will prevent many would-be buyers from getting into the market, while homeowners whose houses are now worth less than what they owe on their mortgage won't be able to refinance. Still, the rates present a welcome incentive for qualified borrowers to step up to the plate. "Lower mortgage rates mean more people with those credentials will be able to qualify," says Patrick Newport, a U.S. economist at IHS Global Insight. While that might not make a dramatic impact on the market, it could be enough to keep home sales from declining as much as they otherwise would, Newport says.

2. Lower prices: Home prices at the national level have already fallen 21 percent from their 2006 peaks. And in certain bubble markets, the crash has been even steeper—prices have fallen more than 30 percent in Phoenix and Las Vegas over the past year alone. Although that's a big blow to homeowners—the housing bust is expected to wipe out more than$2 trillion in home values in 2008—lower prices do help stimulate buyer demand, which is badly needed to mop up the excess housing inventory. And while home prices are expected to drop further in 2009, values in certain markets are already at levels low enough to tempt bargain hunters. "Falling home prices aren't part of the problem, they are part of the solution," says Mike Larson, a real estate analyst at Weiss Research.

More? Read here.

Rent Growth Still Expected

2009-01-07T11:12:00.002-05:00

Thomas K. Shelton, CAPS, CPM, is the new president of Western National Property Management, the multifamily management arm of Western National Group. Western National Property Management currently oversees the management of over 20,000 residential units, valued at more than $3 billion. In his new position, Shelton will lead a team of real estate professionals who supervise a portfolio of assets owned by Western National Group, as well as assets owned by third-party clients.

Shelton previously served as regional partner of Greystar Real Estate Partners where he supervised a portfolio of 26,000 units throughout the western United States. He is also a past president of the National Apartment Association (NAA) and a member of the National Multi Housing Council (NMHC).

Shelton talks to Online News Editor Anuradha Kher about the challenges of taking on the role of president at such a difficult time, his plans for the company, and why the Obama administration creates uncertainties about investment strategies.

What challenges do you face as president of the company in such troubled times?

The challenges in this position at the present time are similar in nature to those of my peers across the country. Fortunately, the balance of our portfolio is located in Orange County, Calif., one of the more stable markets in the country, as evidenced by the fact that we intend to see some rent growth in our portfolio next year. So, while we are not immune to the softness of the overall economy, the overall stability of our portfolio will allow me an opportunity to focus on operational excellence, the continued development of our people, continued opportunities for revenue growth and expense reduction, as well as business development.

More...

Will Tax Credit Drought End In 2009?

2009-01-07T03:08:00.003-05:00

Over the weekend, the San Francisco Chronicle provided a good article on how the credit crunch has impacted the market for tax credits and their use in financing various housing projects with a specific focus on California. The article entitled, Lack of tax-credit market hurts building trade, profiles a Napa Valley Senior Housing Project that cannot sell the credits to raise the equity. Considering that Fannie Mae and Freddie Mac purchased almost 40% of the tax credits available in 2007, it seems that the agencies (now under government control) need to begin purchasing them en masse again. However, with the amount of tax loss carry forwards that they will have from the write downs, it seems that they won’t have a major financial need to purchase the tax credits. However, if they continue to fulfill their mission of enabling affordable housing, the government will have to figure out how to make it financially worthwhile for the agencies to continue those purchases in their new role. Other proposals have included that major financial institutions will be required to purchase tax credits if they receive federal assistance under the Troubled Asset Relief Program (TARP) or that purchased tax credits could be refundable if investors don’t have adequate income to make use of them. Any way you look at the tax credit program, a government “bailout” or restructuring is most likely in the program’s future.

Source

Consumer Reports Suggests To Retirees: Don’t Abandon Moving

2009-01-07T00:18:00.003-05:00

Consumer Reports National Research Center recently ran a survey of more than 19,000 Consumer Reports online subscribers between the ages of 55-75. The latest Consumer Reports Retirement Survey which has a plethora of generic and common sense retirement advice provided this bit of advice on moving out of the current home:

“Don’t abandon moving plans. Your $400,000 home may have lost $100,000 in value, leaving you with less to spend on housing elsewhere. But values are down in many areas, and moving to a lower-cost area might still be worth that trade-off.
You can do a side-by-side comparison of crime statistics, climate, and cost of food and housing in pairs of cities, at www.bestplaces.net, a site produced by Fast Forward. It also has a cost-of-living calculator you can use to determine how much you’ll need to maintain your current standard of living elsewhere. The Retirement Living Information Center Web site, at www.retirementliving.com, has a “Taxes by State” guide that lets you do state-by-state comparisons of income, property, sales, estate, and other tax rates. “

Additionally, the tone of the article is fairly negative on reverse mortgages and provides little overall insight other than common sense ideas. For the full press release from Consumer Reports, click here.

Source

$500K is the new $1 million

2009-01-03T07:24:00.005-05:00

More home is now within reach as the economy resets and things settle down. Half a million dollars is, by almost any standard, a lot of money. But during the past few years, when credit was easy and regulations were loose, for many Americans it didn't seem like all that much.

That's because they were able to borrow huge amounts of money to buy new homes, often with little or nothing down. And while most homes sold in the United States, even at the height of the housing bubble, were $500,000 or less, rising prices in many major cities and affluent suburbs around the country pushed the cost of a three-bedroom home into seven figures or more.

Continue reading here...

Slideshow

Biltmore Estates in Skippack, PA

Northgate in Quakertown, PA

A look at where rates on home loans are headed in the new year

2009-01-03T01:42:00.006-05:00

7 things to know about mortgage rates in 2009

It wasn't too long ago that mortgage rates were expected to move sharply higher in the coming months thanks to rattled investors and mounting inflation. But while falling home prices and jittery financial markets have done little to assuage investor fears, a number of recent developments have combined to create a decidedly optimistic mortgage-rate outlook for 2009. "The preponderance of forces that would typically operate on mortgage rates — the economic backdrop, the inflation backdrop and, in this case, government policy — are all pointing towards lower interest rates," says Mike Larson, a real-estate analyst at Weiss Research.
Rates have already become increasingly attractive. The average national rate for 30-year fixed mortgages fell to 5.57% in the week of Dec. 5, from 6.61% just seven weeks earlier, according to HSH Associates. Here's a look at where mortgage rates are headed in the new year, the forces that will be influencing them, and how consumers can take advantage of the trends.
1. 2009 rate outlook: Thirty-year fixed mortgage rates should begin 2009 at around 5.5%, says Keith Gumbinger of HSH Associates. From there, they will "wax and wane" in the 5.5% to 6% range, before closing out the year somewhere between 6% and 6.25%. "That's still very attractive," he says. "There is no reason to think that rates are going to go up so substantially so as to erode the marketplace." (However, should the economic outlook improve more quickly than expected, mortgage rates could trend higher, Gumbinger says. In addition, new government programs unveiled next year could alter the projection.)
Read more here.
THP, partnered with Hendricks Mortgage, can help you match your housing needs with the house and price range "built" just for you.

9 housing-market head winds for 2009

2009-01-02T17:03:00.002-05:00

Here's a look at the factors that will be weighing down the housing market in 2009:

New Home Discussion Group on Google Groups

2009-01-02T16:35:00.004-05:00

Check out the new home discussion group on Google Groups.

We will discuss anything from builders to resale, mortgage rate to refinancing, the housing market to the rebounding economy.

8 easy (and cheap) ways to prevent home theft

2009-01-02T16:00:00.002-05:00

Given all the frightening headlines about exotic mortgage products and under-water home loans, it's easy to forget about the old-fashioned threats to property. But in 2007 alone, there were nearly 2.2 million burglaries in the United States, according to FBI estimates. While that's down slightly from 2006 levels, the figures represent a 1% increase from five years earlier. Even worse, more than two-thirds of all burglaries in 2007 involved residential properties.

Read more here...

New - Google Group set-up

2009-01-01T16:46:00.000-05:00

http://groups.google.com/group/new-homes-market

The signs of a housing turnaround

2008-12-22T21:39:00.004-05:00

Signs of Housing Turnaround

THP
T.H. Properties
Hendricks Mortgage

Buy your 1st home in a year...with this plan.

2008-12-22T16:34:00.005-05:00

Buy your first home in a year

Check the rates available to you here

5 Ways to Save at Closing

2008-12-22T16:17:00.001-05:00

5 ways to save at closing

THP Mortgage Rates

20 do-it-yourself jobs that take 20 minutes

2008-12-21T22:18:00.004-05:00

20 do-it-yourself jobs that take 20 minutes

1. Jazz up the cabinets

One of the quickest, most affordable ways to update the appearance of a kitchen or bathroom is to upgrade all the knobs and drawer pulls.

But before you head out to buy the new hardware, remove the existing pulls and carefully note their size and screw positions. The replacements of two-screw handles should have the same space between holes. If you can't find pulls to match existing holes in the drawer fronts or doors, find hardware that has a decorative escutcheon or back plate to cover up the old holes.

Before installing the new hardware, give the doors and drawer faces a good scrubbing. It'll be much harder to clean them after the knobs and pulls are installed.

2. Quiet rattling doors
When latched interior doors rattle, it's usually because of a poor fit between the lock set, strike plate and doorstop molding.

Settlement Preparation: early year-end mortgage payments

2008-12-21T18:32:00.004-05:00

Early year-end mortgage payment could cut taxes

A little year-end attention to your mortgage could lower your upcoming IRS bill.

Unlike rent, which you pay beforehand (i.e., your Jan. 1 bill covers your stay in the rental unit for that coming month), your mortgage payments are made at the end of your occupancy period. That means your Jan. 1 mortgage statement represents interest for December, making it a tax-break-eligible bill for this year.

Read more of the article here.

Bracing for winter: 5 tips to hold down heating costs

2008-12-21T08:13:00.004-05:00

Bracing for winter: 5 tips to hold down heating costs

If winter hits hard in northeastern Iowa, Jake Schmitt knows that his heating-oil customers aren't going to be happy.

Schmitt, an energy specialist with fuel provider New Century FS Inc. in Traer, Iowa, has already heard consumers griping about the cost of residential heating oil, which is projected to rise about 25% nationwide from last year.

"Some of them don't know how they're going to be able to pay for it," he said.

Read more here...

Getting ready for settlement: 19 Ways to slash your utility bills.

2008-12-21T05:58:00.005-05:00

19 ways to slash your utility bills

Insulation in the attic is not enough; warm air is sneaking out of your house in dozens of places. Here’s how little fixes can build up to big savings.

Where George Scott sees red, his clients are bleeding green.

Scanning the outside of a ranch home in Longmont, Colo., the energy auditor’s infrared camera registered blue and aqua in spots where heated air stayed put.

That’s what the homeowner expected. “He thought he’d done everything right,” Scott said, because he had tackled obvious stuff like adding insulation. “But he was baffled by his high gas bills.”

10 weekend projects to improve your home's value

2008-12-21T00:43:00.004-05:00

10 weekend projects to improve your home's value

You don't have to shell out big bucks to get a better price for your home. These easy, inexpensive fixes will add value to your home without breaking the bank.

Fetching top dollar for your home in today's tough market doesn't require an $80,000 kitchen remodel or an expensive landscape redesign.

Real-estate experts say your best bet is to invest a little sweat equity into a series of small weekend jobs — $300 or less — that boost your home's appeal and eliminate buyers' biggest objections.

Record low mortgage rates...so what?

2008-12-20T22:38:00.001-05:00

What does it mean for me...?

Help is here.

Re-sale Help...more tips for getting your home ready.

2008-12-20T22:35:00.003-05:00

21 Instant Home Updates

Check out the ultimate resource for simple remodeling ideas that you can try today.

Bedroom Furniture

4. Try positioning your bed opposite the entry to the bedroom. This will focus the room on its most important function: being a place to rest.

5. Pull small tables or chests of drawers from other rooms to use as bedside tables.

6. Use angle to freshen up your space. Place furniture in a corner diagonally to open up the room and give it a different feel.

30-Year Mortgage Rates Sink to Lowest on Record

2008-12-20T21:02:00.002-05:00

30-Year Mortgage Rates Sink to Lowest on Record

Interest rates on 30-year fixed rate mortgages dipped to their lowest level in at least 37 years after the Federal Reserve this week reaffirmed its commitment to a program designed to loosen consumer lending, according to a closely watched weekly survey released yesterday.

The average rate fell to 5.19 percent, down from 5.47 percent the previous week and 6.14 percent at the same time last year, according to mortgage financier Freddie Mac, which polled lenders the first three days of this week. The rate is the lowest since the firm started tracking such data in April 1971.

For borrowers, that means the monthly principal and interest payment on a $200,000 mortgage at this rate is $1,097. That's $35 less than it was at last week's rate and $120 less than it was a year earlier. The previous low in Freddie Mac's survey was 5.21 percent in June 2003. In the 1960s, 30-year mortgage rates were generally between 6 and 8 percent. More...

Follow this link to find out what rate are available to you!

Treasury, mortgage rates keep tumbling

2008-12-20T20:27:00.006-05:00

Treasury, mortgage rates keep tumbling

Investors poured more money into Treasurys on Thursday, sending yields to record lows again even as the Treasury Department said it would sell record amounts of notes next week.

Usually, a boost in supply would dampen prices and raise yields. However, after the Federal Reserve said Tuesday that it was considering buying long-term government debt, investors are not yet worried about a drop-off in demand.

The 10-year Treasury note's yield sank as low as 2.04 percent, and the 30-year bond's yield dropped as low as 2.52 percent. Low yields are good for borrowers with rates tied to Treasurys, but bad for investors in funds that are swarming to Treasury issues for safety.

"Yields are just at jaw-dropping levels," said Kim Rupert, managing director of global fixed income analysis at Action Economics. "Obviously at some point it comes to an end, but it's not clear where ... If this market has told us anything, it's don't underestimate the powerful demand for Treasurys."

More here...

THP

Re-sale Help...getting your home ready for sale.

2008-12-20T19:55:00.003-05:00

8 ways to make your home more charming.

1. Add a picket fence

The big idea: Frame your home by installing a picket fence around your lawn. Anchor posts with bright flowers for a pop of color, or plant a climbing vine that spills over the top.

Notice the details: Pickets come in a variety of shapes and sizes. Four feet is a standard height, and the tops can sit side by side or form a gently sloping pattern.

Read more here.

Purchasing a new home - where do I start?

2008-12-17T14:15:00.003-05:00

Step I...watch this video on how to begin. THP outlines the 7 steps to buying your new home!

THP in SecondLife...?

2008-12-17T07:11:00.005-05:00

Even THP knows how to have fun! SecondLife is the on-line world for fun, business, and meeting people across the globe.

Who is THP?

The Faces of THP

2008-12-17T00:35:00.001-05:00

Who are some of the people that make up the Delaware Valley's largest privately-held builder? Look no further than Linkedin!

Some of THP's Faces...

THP's in Wikipedia!

2008-12-16T23:05:00.001-05:00

Helpful Home Ownership Tips

2008-12-16T16:01:00.002-05:00

From paint touch-ups to nail pop repairs, we all need help and "pointers" on what to do with new-home settling and seasonal changes. THP has created videos to help...check it out.

New Homes for Sale in Greater Philadelphia Area

2008-12-16T13:59:00.000-05:00

Pennsylvania Home Price Heat Map

2008-12-16T07:30:00.001-05:00

Trulia has a great tool to understand current pricing trends in Pennsylvania.

The 2010 Census

2008-12-16T04:00:00.002-05:00

Gearing up for the 2010 Census...what are the Housing Alliance of PA's plans...? As members of the affordable housing community, we're all aware of the importance of an accurate and complete United States Census. That's why we're passing on this call for help and participation in the upcoming 2010 CENSUS.

Obama Taps NY Housing Chief

2008-12-15T20:21:00.003-05:00

President-elect Barack Obama has picked New York City housing commissioner Shaun Donovan to be secretary of housing and urban development, a post that Obama said would play a lead role in his administration's efforts to stem the rising tide of foreclosures and rebuild the nation's efforts to expand homeownership.

Speaking yesterday during his weekly address, Obama also said that he had asked his economic team to develop a "bold plan" to dramatically increase the number of people who can stay in their homes despite being threatened with foreclosure.

National Home Prices by Metro Area

2008-12-15T15:08:00.003-05:00

U.S. home prices fell 2.7% in the third quarter and have dropped 4% over the past 12 months, according to data released Tuesday by the Federal Housing Finance Agency. That's the largest four-quarter drop in the history of the index, which dates to 1975.

"Prices continued their retreat in most areas in the third quarter," agency chief economist Patrick Lawler said. "While housing affordability has improved and may have drawn in some new buyers, it seems that high inventory levels and buyer uncertainty have had the dominant impact on prices."

Philadelphia Area Housing Stats

2008-12-15T14:04:00.004-05:00

The average home price in Philadelphia, PA, is approximately $224,000.00. This average price has steadily risen for many years.

Read more information here.

Number of first-time home buyers is increasing

2008-12-07T21:10:00.003-05:00

Falling prices and lower interest rates allow for a very buyer-centric housing market. The first-time home buyer has the opportunity to shop without having the additional concerns of selling their current home.

Low home prices and excess supply helped drive a rise in first-time U.S. home buyers and reduce excess inventory, according to a study released Saturday by The National Association of Realtors.

According to the survey, which was released at the 2008 Realtors Conference & Expo, the number of first-time buyers rose to 41 percent from 39 percent of all transactions in 2007.

"First-time buyers are much more flexible in entering the market because they aren't concerned about selling an existing home," National Association of Realtors Chief Economist Lawrence Yun said in a statement.

Read the entire article here.

Homeowners refinance and stash savings away

2008-12-07T19:45:00.003-05:00

As rates drop like the prices at the gas pumps, people re-evaluate the choices between staying in their current home and purchasing a new one. You can maintain control over your options as long as you know, understand, and follow the trends.

When mortgage rates dropped to the lowest levels in almost a year, Warren Zeger seized the opportunity to slash $720 off his monthly mortgage payment by refinancing his home in Potomac, Md.

Just don't expect him to spend the savings.

"I'd love to tell you I'm going to spend it to help prop up the economy, but we've tightened our belts," said Zeger, 61, a retired attorney. "I plan on holding on to it."

Zeger echoed homeowners The Associated Press interviewed nationwide who have taken advantage of lower rates since Nov. 25th. They planned to stuff the money they saved under the mattress or pay off bills. Refinance activity has surged as interest rates tumbled about 1 percentage point to around 5.5 percent in response to the Federal Reserve's plan to scoop up $600 billion of mortgage-related securities.

Read the entire article here.

Housing and Economic Recovery Act of 2008

2008-12-07T00:10:00.000-05:00

I thought it would be a good exercise to look back at the summer, around the time of the $300 billion infusion to help "cure" the ailing market. Let this serve as more of a tool to educate, as we close out 2008 and approach the winter housing market of 2009. An educated consumer is [still the] our best customer - I think I just dated myself?

The Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, 122 Stat. 2654, enacted July 30, 2008) designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008. It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It's intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States will be authorized to refinance subprime loans using mortgage revenue bonds. It also establishes the Federal Housing Finance Agency (FHFA) out of the Federal Housing Finance Board (FHFB) and Office of Federal Housing Enterprise Oversight (OFHEO).

For additional information please click here.

FAQ's from the U.S. Department of Housing and Urban Development can be found here.

Mortgage Applications More than Double

2008-12-06T20:26:00.004-05:00

Mortgage applications more than doubled in the holiday week ended Nov. 28, the Mortgage Bankers Association said Wednesday, as government bailouts led to sinking interest rates.

In the weekly report, the Market Composite Index - the association's measure of mortgage loan application volume - surged 112.1% on a seasonally adjusted basis from the week earlier.

On an unadjusted basis, the index increased 51.4% from the previous week; it was down 21.9% from a year earlier, the report said. Results include an adjustment to account for the Thanksgiving holiday.

Rates plummeted following the Fed's announcement that it would buy debt and mortgage-backed securities from mortgage finance companies Fannie Mae and Freddie Mac, according to Orawin Velz, associate vice president of economic forecasting, in a statement.

Read the entire article here.

Lower Rates Could Open the Door to Your New Home

2008-12-06T20:07:00.003-05:00

Proposal Could Drop Mortgage Rates to 4.5 Percent

Silicon Valley mortgage brokers could barely contain their enthusiasm as news leaked from Washington of a proposal to reignite the dormant housing market by driving down mortgage rates to the 4.5 percent range.

The plan, which reportedly could be announced as early as next week, has the potential to dramatically boost the housing market and the faltering economy by stimulating stagnant home sales and significantly lowering monthly mortgage payments for millions of Americans.

"It would be a dream come true," said Cathy Warshawsky of Bay Area Loan in San Jose, the president of the Silicon Valley chapter of the California Association of Mortgage Brokers.

At rates of 4.5 percent for a fixed, 30-year loan, "We would have everybody and their brother who had equity in their homes coming to refinance. That would be an amazing influx of loan applications. It would keep things going for a long, long time."

Read the entire article here.

Brighter Skies Ahead

2008-12-06T19:51:00.009-05:00

The silver lining in a cloudy economy; a real estate view, focused on the multifamily market.

How is the credit crisis impacting multifamily, regarding both the approval of new renters and getting new projects financed?

An obvious casualty of the present dislocation/risk aversion in the real estate capital markets is the apartment supply pipeline. Financing for new apartment construction has become considerably more difficult to secure. Thus, following net completions of about 140,000 units in 2008 and 120,000 units in 2009 across the PPR54 (the 54 largest metros in the U.S.), expected deliveries in 2010-11should be extremely modest. On the resident side of the equation, payroll losses and high levels of home foreclosures mean that landlords are facing a pool of renters who have a more challenging credit background.

Read the entire article here.

New Home Purchase Questions

2008-11-14T11:16:00.000-05:00

Buying a home can be a complicated process. There are many areas to consider when purchasing a new home. Asking the right questions can help you decide where to purchase and how to build your new home. Some are obvious and some are more complicated.

Questions you should ask yourself before searching for a new home:

How far am I willing to commute to work?
Would I be willing to drive further to save money?
What monthly payment would I be comfortable with?
Will I plan to have more kids or need room for an expanding family?
What do I like / dislike about my current living situation

Questions to ask homebuilder sales agent:

Are there any current builder incentives with the community?
What features set your home apart from other builders?
What other communities have you built in the past? (then visit those communities)
How long do you project this site to be under construction?
How long will it take to build my home?
What does the typical person spend on upgrades? Can I see a list of your upgrades?
What are you standard features?
How much money is needed for down money?
What are typical closing costs?
Is there a Home Owner’s Association (HOA) and if so how much are the HOA fees?
I have a home to sell. Do you offer a contingent agreement of sale? (Not all builders offer this. Contingencies allow you time to sell your home and provide no risk for losing your down money).
Lastly, ask to look at all documents including HOA documents, site plans, agreement of sale, and any other pertinent documents before signing the agreement of sale.

Where to look for a new home

2008-11-14T10:44:00.000-05:00

Whether you are relocating or just looking for a new home in your current town. Here are some general rules when searching for that right community.

I have broken down the new construction housing market into 5 main areas:

City Center
Immediate Suburbs
Outer Suburbs
Exurbia
Rural Living

As a general rule of thumb for new construction: Your city centers and immediate suburbs are going to be the highest priced areas. The farther out you go from a city center, prices definitely drop. Consider looking for new home construction a little further out you’re your normally would. Often times for an additional commute time of 15 to 20 mins longer, you can save any where in the range of $100,000!

For example, the builder I work for T.H. Propertes once had an ad in Lansdale, PA for a Pennsburg, PA community that read, “Driving 20 mins could save you $100,000 or more.” Rural exurbia is sometime closer thank you think and could save you lots of money. Additionally, these homes have the greatest potential for higher resales. Most of these areas are “up and coming areas” and will increase in value as more people move to the area. Lastly, you will have less traffic congestion, a more scenic surrounding, and a bigger home for less money! Areas to consider in the Philadelphia market are northern Montgomery, Northern Bucks County, Eastern Camden County, and Western / North Western Chester County.

Once you find that area you want to live in, visit every sales center possible even if you think it is out of your price range. Home Builders are offering ridiculous incentives right now and the home of your dreams might less expensive than you think!

New First-Time Home Buyer Tax Credit Overview

2008-07-31T16:32:00.000-04:00

President Bush signed into law yesterday the First-Time Home Buyer Tax Credit http://www.foxnews.com/story/0,2933,394304,00.html. This is monumental for those people that were on the edge of the buying. If ever there was a time to buy, now is the time to do it! Prices are as low as they will ever get, most builders are offering great incentives, and this new $7,500 tax credit will only sweeten the deal. All first time home buyers that settle or have settled on their home between April 9, 2008 and July 1, 2009 will be eligible for this tax credit. Of course there are income requirements which I have listed below:

Single or head of household homebuyers with an adjusted gross income (AGI) less than $75,000 will be eligible for the full $7,500 rebate.
Married couples filing joint returns have an increased limit of $150,000.
Partial payments are available for single / head of household taxpayers with incomes between $75,000 - $95,000.
Partial payments are also available for married couple filling jointly between $150,000 and $170,000.

Things to note:

The tax credit must be repaid, but over a 15 year period and get this…. it is interest free!
Probably the single biggest change is the elimination of down-payment assistance programs. However, this will not be eliminated until September 30, 2008! Visit a homebuilder now to take advantage. Many builders are able to provide assistance with little or no money down. The company I work for, T.H. Properties, currently has an offer to get people in their homes with less than $1,000 down before October 1, on top of the $7,500 tax credit, cash incentives as high as $25,000, and they'll even cover your closing cost.

I can't stress enough that this is the time to buy. At the very least, visit a local builder and see what they have to offer.

For more information, visit http://www.federalhousingtaxcredit.com/

Buying a new home?

2008-07-24T17:16:00.000-04:00

Building a new home can be one of the best financial and personal decisions you will make in your life. We’ve all heard the horror stories of some homebuilders taking advantage of their customers. However, by being an informed consumer and asking the right questions you can be well on your way to owning a new home that is comfortable, well-built and proud to show your friends and family. Benefits of building new construction over a resale home are:

Being able to choose your own floor plan and options to match your style and needs
Not having to worry about the maintenance costs of an older home
Having the comfort of an extensive warranty that provides comprehensive protection for one to two years and provides structural protection for five to ten years
Relying on the builder customer service team that will typically fix anything that goes wrong in the first year if not first two years
Finally, it’s never been lived in! No used toilet seats, no worn down carpet and no scratches in the countertop – everything is brand new

This blog will cover the ins and outs of buying a new home. We will cover common mistakes and how to avoid those mistakes. Additionally, we will reveal how to get the most for your money. You should never settle for anything but quality, no matter what your price range!