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The real estate market is heating up…

April 24, 2013 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

 … and we’re expecting the healthiest spring season since 2007.

Freddie Mac is projecting an increase in sales of 8-10 percent compared to 2012. Nationwide, we’ve seen 20 consecutive months of sales increases over the previous year, and prices have increased for 12 months in a row.

In the Philadelphia region, sales are up 26% January 2013 vs. January 2011, and inventory levels are down 22%. Things are no different here in Bucks County – we’re experiencing a marked change in the pace of the market so far this spring.

The number of houses selling is up, prices are up, inventory levels are down and the shift from a buyers market to one more equally distributed has already occurred in most price ranges. Properties that are priced right and in good condition are selling at a rapid pace, often in a matter of days and some with multiple offers.

A word of caution here, lest you think we’re back to the days of old, when you could ask whatever you wanted and some desperate buyer would actually pay it. Those days are gone, thanks to cautious appraisers and loan underwriters who work under strict guidelines to prevent lenders from getting burned again.

Buyers too are skittish – everyone knows someone who overpaid for a home that is now in foreclosure or a short sale and they don’t want to find themselves in the same position.

If you’ve been thinking of selling your home you could be pleasantly surprised. If you’re thinking of selling your home and buying a new one, the timing will never be better.

And if you’re thinking of becoming a homeowner again or for the first time, this fabulous window of opportunity that’s been open for the past few years may be slowly closing – did you know that a 1% increase in interest rates can cut your buying power by 10%?

No matter how you look at it – if you’ve got real estate on your mind, now is the time to act on it!

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Filed Under: Newtown Gazette Columnists, Spring Home & Garden 2 Tagged With: , , , , ,

Which remodeling moves provide more bang for the buck?

March 20, 2013 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

Other than “how’s the market?” one of the most frequently asked questions I get from people relates to home improvements and which ones provide the best return-on-investment (ROI). Fortunately, Remodeling Magazine’s Annual Cost vs. Value Report for 2013 was recently released and provides some hard numbers by region.

While not technically a remodeling project and therefore not covered in the report, wallpaper removal, fresh paint and new carpet top the list for providing the biggest bang for the buck.

Pay no attention to those home decorating shows that say foil wallpaper is in vogue – believe me, they’re not talking about the stuff that graces the walls and ceiling of your powder room. And no – orange shag carpeting isn’t making a comeback, nor is it “retro.” It’s just plain ugly, I don’t care how many times you’ve raked it. 

That being said…

For the Philadelphia region, entry and garage door replacement top the list for cost recouped, coming in at 79.8% and 76.7% respectively. A wood deck (75.6%), vinyl siding replacement (68.6%) and attic bedroom remodel (68.5%) round out the top five best ROI.

Next comes wood replacement windows (68.1%), composite deck addition (67.5%), minor kitchen remodel ($20,894 – 67.3%), major kitchen remodel ($60,558-65.9%), two-story addition (64.4%) and basement remodel ($72,141-63.3%).

A home office remodel (42.6%) and a sunroom addition (48.5%) were found to have the lowest ROI.

Keep in mind that that the ROI is based on specific job specifications and cost calculations used in the report, which can be found at www.costvsvalue.com.

Your costs could vary widely, thereby affecting how much you recoup. You may want to consider asking your REALTOR about how the project you’re considering could impact the resale value of your home down the road.

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Filed Under: Newtown Gazette Columnists Tagged With: , , , , , ,

Is that the sound of recovery?

February 19, 2013 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

SHHH….Can you hear it?  For the first time since the real estate market hit the skids, 2012 brought the first signs of a long awaited recovery.

Conversations have slowly but surely changed from the gloom and doom we heard on a daily basis, to a sense of hope and concrete signs of stability. The worst is behind us and we’ve turned the corner for sure.

Bucks County reported an increase in Pending Sales in every month of 2012, with a resounding 27% increase in December.

Settled properties followed suit, ending December with a 3% increase. Inventory levels were down 8% at year end, both median and average sale prices are up and the months supply of inventory – the time it would take to sell current inventory levels at the current rate of sale – is down 20%.

Hallelujah Chicken Little – the sky is no longer falling!

Another record that was set in 2012 was the Affordability Index. According to the National Association of Realtors, a score of 100 means a median-income household has exactly enough income to qualify for a median-priced single family home. In November 2012, the number clocked in at an incredible 198 – which busted the 2011 record of 186. 

The bottom line is this – the worst is over and we’re on our way back.  Not a reversion to the days of old – we’re talking slow and steady here, not off to the races.

The bulk of the activity is in the lower end of the market – most indications are that this will be a bottom up recovery, with high end properties taking longer than average to sell.

Home prices have stabilized and appreciation is expected to continue into 2013.

It truly IS an ideal time to buy or sell a home!

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Top eight list of showing “DON’TS” for home sellers

December 11, 2012 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

  1. Don’t follow buyers through the house and try to “sell” them on all its wonderful features – get outta Dodge! 
  2. Don’t leave out your bowling trophies, stuffed dead animals or plastic encased doll collection complete with certificates of authenticity. The goal is for prospective buyers to look at your space, not your stuff.
  3. Don’t dismiss the importance of staging – it’s a critical step in a successful home sale.
  4. Don’t dismiss the importance of a deep clean – both inside and out. It is probably the single most important factor when showing your home.
  5. Don’t think that just because you can no longer smell it, your house doesn’t stink! Ask a good friend to come over for a “smell test” as unpleasant odors are a deal killer.
  6. Regarding personal photo’s – Don’t keep up your wedding picture with the bad hair from the 70’s – or worse yet, the glamour shot with the provocative draping on the fake bear rug that hangs in your bedroom. 
  7. Don’t make it difficult to show your home! When you refuse a showing and ask that they come at a different time, it often isn’t possible to re-route the entire itinerary and you’ll be taken off the list.
  8. Don’t think a “lived in” look is going to cut it. Piles of dirty laundry, globs of toothpaste stuck in the sink, toilet seats in the up position and unmade beds are unacceptable.
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HAMP program extended to help troubled homeowners

November 26, 2012 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

The Homes Affordable Modification Program (HAMP) has been extended until Dec. 31st, 2013, and the program’s eligibility criteria have been expanded.

HAMP allows qualifying homeowners with Fannie Mae or Freddie Mac mortgages made prior to June 1st, 2009 to refinance to a better rate and more favorable terms. It also provides incentives to participating mortgage lenders that reduce principle for qualifying borrowers. Millions of additional homeowners may be eligible for HAMP to reduce their homeownership costs and avoid foreclosure.

Originally, the program was designed to reduce mortgage borrowers’ debt ratio to 31% of their incomes, and those below that threshold were not eligible. These borrowers may now apply for HAMP consideration, as can borrowers struggling under the weight of other liabilities, such as medical bills.

Eligibility also has been extended to owners of rental properties – as many as 700,000 landlords may qualify for loan modification under HAMP.

Moreover, borrowers who were approved for a HAMP trial period, but did not make the payments as scheduled, would now be eligible for consideration under new guidelines. Also, homeowners who missed payments under an approved HAMP modification would be eligible to reapply under the new rules.

The Obama administration announced it would triple balance-reduction incentives to lenders, paying up to 63 cents for every dollar lenders take off mortgage principal. The administration also said it would offer incentives to Fannie Mae and Freddie Mac to reduce principal on loans.

Previously, the government had only offered incentives to private lenders and banks.

If your mortgage is owned, insured or guaranteed by Fannie Mae, Freddie Mac, FHA, VA or USDA you may be eligible for HAMP consideration.

Contact your mortgage servicer for details.

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The reality of a dream home

November 2, 2012 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

Everyone has their idea of a “dream” home. The problem occurs when it has no basis in reality.

Budget constraints, differing priorities, limited inventory and unrealistic expectations can all influence the home buying experience.

While buying a new home is never without its stressors, there ARE steps you can take to make sure your experience is as fun as it should be.

First – realize that a dream home is as much about the vision of the life you will lead there as it is about the bricks and mortar. Put aside how many bedrooms and baths you want for a moment. Are you looking for the peace and serenity of the countryside or do you want to walk to town? Must it be move-in ready or are you looking for a someplace that requires renovations so you can mold it into your own vision? Do you love to garden and want a big yard or is a ¼ acre fine so your weekends are free?

Second – if this is a joint venture, make sure each party knows the others vision… and be willing to compromise! Life gets old quickly when one person railroads the other into a property. Resentful partners aren’t fun at the neighborhood block party. They tend to drink too much and could end up embarrassing you.

Third – Make sure you communicate your vision to your REALTOR®!

Fourth – Be realistic. The homes shown on the TV show “Cribs” are out of your price range! Unless you’re in the NBA (or maybe an NFL referee) you’ve got to manage your expectations.

Fifth – Stretch if you have to. I hesitate to add this because it doesn’t mean “buy more house than you can afford.” Most people are qualified to purchase more than they’re comfortable with. What I mean is this – if by stretching a tad beyond your comfort zone means you may be able to live in the home longer, then do it. Your payment is locked and hopefully, your income will only increase.  This is especially true at today’s incredibly low rates.

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The real estate recovery has begun

September 7, 2012 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

How many times have you looked back and said “Dagnabbit, I should have…” or “Jeez-o-man, why didn’t I….” or “If only…” when thinking about a missed opportunity?

Well, if you’ve been thinking about buying, selling or investing in real estate, you’ll be kicking yourself once again if you don’t get off the fence and take some action, as the current environment of low prices, low interest rates and large selection is slowly but surely starting to change.

As we all know, hindsight is 20-20 and the only way to know when the market has hit bottom is when it starts going back up. Once that happens, the advantage slowly starts to shift from buyers to sellers and the opportunity is lost.

We’re currently in that first phase, where excess inventory levels are starting to tighten and the number of pending sales are on the rise. Depending on where you live, prices are starting to rise ever so slightly and will continue to do so, although very, very slowly.

So, if you’re a buyer – even if you have a house to sell first – do so before the end of the best era to buy a home in a generation is over.

If you’re an investor, or considering becoming one – you should be jumping up and down! Money is cheap, prices are low and the rental market is HOT – it’s a landlords market for sure.

What else are you going to invest in – Facebook?

Even if you’re a seller – if life dictates a move is in order, don’t hold out another year or two because you think you’ll get more money.

The anticipated 1%-3% appreciation most experts are predicting may not be worth it when you factor in continued living expenses, repairs and the impact the delay may have on your life.

Don’t be the one saying, “Gosh darn, why didn’t we do this sooner,” whether it’s about being close to your grandkids, moving to that vacation or retirement home or buying the house of your dreams.

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Could it be true? The worst is over?

July 31, 2012 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

“The housing market has turned – at last. The U.S. finally has moved beyond attention-grabbing predictions from housing “experts” that housing is bottoming. The numbers are now convincing.”

This from the July 11th Wall Street Journal article by David Wessel.

“The housing market is starting to recover. Prices are rising. Sales are increasing. Home builders are clearing lots and raising frames.” So says Binyamin Applebaum in the June 29th issue of the New York Times.

That certainly seems to be the case here in Bucks County, where inventory levels in June were down 11.7% and sales were up 11%.  Year-to-date sales are up 15%, while the average sale price is down 2.5% to $317,000.

It would seem that at least for now, the housing market is slowly gaining a bit of momentum, despite the recent slow down in the already sluggish economy.

According to the WSJ article, their survey of forecasters found 44 of 47 believe the housing market has finally reached the bottom.

Several key factors will determine whether housing continues its fragile recovery.

The pace of the overall economic recovery, the unemployment rate, consumer confidence and the size of the so-called “shadow inventory” of unsold homes – those not yet on the market because they are worth less than what’s owed on them, those to be foreclosed upon, and those already owned by lenders.

Uncle Sam has taken steps to delay foreclosures and assist in re-financing, but if that changes, this inventory could flood the market and stall any recent growth.

Is the housing market still walking on eggshells? Heck yes! But at least it’s back on it’s feet and moving forward…for now.

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Tips for getting your home sold quickly and for more $$$

June 27, 2012 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

1. First impressions count! Buyers determine whether or not your home is a contender when they pull up at the curb. A buyer’s perception of your home becomes their reality and expectations are set within the first 30 seconds. Hide your trashcans, put away your kids toys, clean up your landscaping, paint that peeling trim, brush the cobwebs away from the front door and put some potted plants on your front stoop.

2. Pack away – or better yet, throw away – all that excess “stuff” you’ve had hanging around forever and a day! Lose the wedding or graduation pictures with the really bad hair, dismantle the curio with all your cutesy figurines, take down the heavy drapes from the windows and remove every knick-knack from every surface. Then go back and de-clutter again. Then again once more! People need to imagine their stuff in your home, which is hard to do when they’re distracted by all YOUR treasures.

3. Neutralize where you can. Paint and carpet give you the biggest return on investment by far! If you’re lucky enough to have wood floors under that orange shag carpeting, for heavens sake take up the carpet and expose the floors.

4. Clean, clean, clean and clean again! An immaculate home demonstrates that the home has been well cared for and can help neutralize other objections.

5. Price your home to reflect its condition, what’s happening in your immediate market and taking your competition into consideration. You need to be priced so that by comparison, your competitors help you sell your home, not vice versa! Buyers shop for homes like they do for cars – by comparison. You need to be perceived as the bet value on the market in your price range, period.

6. Negotiate with the end goal in mind – not emotionally. Easier said than done, I know! That’s where the experience of your agent comes into play – be sure to align yourself with someone that has the experience to help you close the deal.

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It seems that perhaps the real estate market has turned the corner

May 22, 2012 By

submitted by Kathleen Layton, Prudential Fox & Roach, Realtors – Newtown Office

First quarter sales results are in and the numbers look promising. Prices seem to be stabilizing, inventory levels are decreasing and sales are increasing, all of which provides a glimmer of good news in what continues to be a sluggish economy.

Nationally, total existing home sales increased 4.7% and inventory levels were 21.8% below the first quarter close of 2011, with median prices remaining stagnant. Pending home sales, a forward-looking indicator based on signed contracts not yet settled, rose 4% in March, well above 2011 levels.

According to Lawrence Yun, chief economist for the National Association of Realtors, 1st Quarter closed sales were the highest 1st quarter closed sales in five years. He expects 2012 to be a “year of recovery” for the housing industry and believes total home sales should rise 7% to 10%.

There’s been a noticeable uptick in activity here in Bucks County, all the more obvious because of how slow the market has been. While 1st quarter results show little increase in home prices, the number of homes for sale has decreased by 13.5%, while the number of units sold has increased by $13.5%.

The average time it takes a home to sell has decreased 5.7% and the month’s supply of inventory, which is the amount of time it would take to sell the current inventory, is down 22%.

What’s it all mean? Times are a-changing folks!

Properties that are in good condition and priced to reflect current market conditions are selling – and selling quickly! It’s not unusual for homes to sell in a matter of days, often with more than one offer.

Why?

Because there are still far too many homes languishing on the market that are not priced to reflect the market and their condition. 

We’re at the tail end of a “buyers market” and slowly but surely transitioning into a more “normal” market where supply and demand are equalized.

If you’re a potential buyer – whether you’re a first timer or a move-up – it’s time to get off the fence and take advantage of the final days of this golden era.

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Filed Under: Newtown Gazette Columnists, Spring Home & Garden 2 Tagged With: , , , , ,
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