The spring home selling season is usually under way by Super Bowl Sunday, but it got a late start this year between the weather and the economy. This wait and the fear of rising interest rates seem to have released the pent-up demand among buyers who have been out in droves lately. We should start to see the back-log of inventory decline for well- priced house that are updated to today’s standards. Buyers’ expectations are also greater. Buyers in today’s market are a lot less willing to commit to homes that need work.

SELLERS: Pricing your Philadelphia home correctly from the beginning is vital. However the spring market may present a new opportunity to aggressive re-price and move a floundering property.

(click on graph for larger view)

HOW MUCH IS MY HOME WORTH

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Potentially Related Posts:

Philadelphia House Prices Currently Back to 2003 Levels
Philadelphia Real Estate: Strong Buyers’ Market Persists
How’s the Philadelphia Real Estate Market?

courtesy of Fix Philly Taxes

In 1981 the Mayor and City Council of Philadelphia entered into a political “deal” that was supposed to correct the systemic problems by equalizing property values over six years.  Over 25 years have passed since the court-ordered deadline in their agreement…and still the system has not been fixed.

I think we all agree that the real estate tax system in Philadelphia is broken. Attempts at fixing the inequities have been by and large dismal failures. With the recent “temporary” tax increase and the Actual Value Initiative on the horizon there has been lots of discussion this week in the news.

Daily News Editorial: Property taxes: Getting past crazy

Philadelphia must justify property-tax projections

Nutter, Council pull off tax-hike switcheroo

Inquirer Editorial: Smells like a tax hike

This Is A Temporary Tax Hike, Right?

Philadelphia eyes a boost in real estate tax revenue

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With the Philadelphia spring housing market upon us I thought it would be a good time to review the guidelines for getting a mortgage on a flipped property. Essentially a flip is when an investor buys a property and then sells it at a profit within a short time frame. Flips tend to make lenders cautious because these types of transactions historically have had higher rates of default – more fraud involved, inflated property values, etc.  These transactions can be difficult to close but if you know the rules it gets easier.
Conventional mortgage flip rules are relatively straightforward – a resale on a property when the seller is owner of record 90 days or less the loan is a decline. A resale of a property when the seller is owner of record 90-180 days is acceptable with 2 full appraisals and will typically be very closely reviewed, especially if the loan requires mortgage insurance.

FHA loans also have a prohibition on buying properties that were bought by the seller in the past 90 days. But there is a waiver in effect through December 31st 2011 that will allow flips to close. There are some conditions – the transaction has to be arms length (meaning not between friends or family) and if the seller is making more than 20 percent of their original purchase price, there are more complicated conditions that need to be met. Read the entire notice: Temporary Exemption from Compliance with FHA’s Regulation of Property Flipping (pdf)

While FHA has waived the rule for one year not all lenders will also waive their flip rules which are often applied to all mortgages. One more reason to use an experienced Realtor who knows the ins-and-outs and who has a good working relationship experienced mortgage brokers. It could mean the difference between buying the home you want or being denied a mortgage.

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 This makes it a good time to buy a home in Philly.

Not such a great time to sell unless you are selling and buying another home – you’ll sell low but also buy low.

The Philadelphia housing market continued its downward trend this past quarter, as both home sales and prices hit new lows. The typical Philadelphia home fell in value by an average of 4.2% on a quality and seasonally adjusted basis this past fall, according to the latest data from the City’s Recorder of Deeds.

With this most recent decrease, the average Philadelphia home has now fallen in value by a cumulative total of 15% since the bursting of the national housing bubble several years ago.

The decrease in house prices was citywide, with no area of the City being spared. From largest to smallest, the average decline in house prices by neighborhood were:

West Philadelphia  -10.1%
North Philadelphia -9.8%
Kensington/Frankford -8.5%
South Philadelphia -7.3%
Center City / Fairmount -5.4%
University City -3.5%
Upper Northeast Philadelphia -2.7%
Northwest Philadelphia -0.8%

Sales activity news was equally negative:

2,817 homes changed hands in Q4 - 15% decrease from Q3.
33% decrease from the same time last year.

However, even with the latest downbeat numbers, Philadelphia continues to weather the current housing downturn much better than most other major U.S. cities. According to Case-Shiller Macro Markets’ composite house price index, house prices have fallen by an average of 31% in the largest U.S. cities since the bursting of the housing bubble, compared to only 15% in Philadelphia. Currently, only two cities—Dallas and Denver— have experienced smaller total declines in average house values than Philadelphia.

Even with this quarter’s significant price drop, Philadelphia remains in third place of the twenty largest cities in the U.S. for the least house price declines.

Download the report (pdf) and Kevin Gillen’s (urban economist, Enconsult Corporation) commentary (pdf).

Potentially Related Posts:

Philadelphia Real Estate: Strong Buyers’ Market Persists

Philadelphia Real Estate: #2 Best Performing City of the Decade

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NAR surveyed people who participated in a real estate transaction between July 2009 and June 2010. The questions ranged from simple demographics, such as age and marital status, to more in depth questions like discovering the primary reason for purchasing a home and how long buyers expected to be in the home they just purchased.

Interesting Facts from the Report:

 In 2010, it took buyers an average of 12 weeks to find a home, which remained the same as in 2009.

57% of people used an agent that was either referred to them or one they had previously worked with.

87% of people would refer their agent or work with them again.

In terms of the tax credit, 93% of first-time buyers and 48% of repeat buyers took advantage of it.

Typically, sellers received 96% of their asking price. Of those that sold, more than half bought a house more expensive than their previous home.

43% of sellers did not reduce their asking price.

36% of all buyers polled looked online for properties for sale.

45% of all buyers walked through a home which they had previously viewed online.

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TREND is the Multiple Listing Service (MLS) for more than 32,000 real estate professionals in and around the Philadelphia metropolitan region. The report is a compilation of TREND data, government data and NAR (National Association of Realtors) analysis. The home sale statistics come from TREND, while the labor and industry data comes from government sources. All of the analysis is written by NAR economists. Complete 2010, 4th quarter report: Economic and Market Watch Report (pdf).

This information has been reprinted from the Economic and Market Watch Report with permission from TREND.

Here are this weeks updates on the Philadelphia real estate market for the week of December 27th, 2010. Keep in mind, these numbers will vary depending on the Price Range and the Specific Neighborhood you are buying or selling in.

** Median list price in Philadelphia this week is $199,900

** 1,654 properties have been on the market for an average of 170 days

** Inventory has been lightening lately and the Market Action Index has been trending up

** Though days-on-market is increasing, these are mildly positive indications for the market

Supply & Demand

Home sales have been exceeding new inventory for several weeks. Since this is a Buyer’s market prices are not yet moving higher as excess inventory is consumed. However, as the supply and demand trends continue, the market moves into the Seller’s zone, and we are likely to see upward pressure on pricing.

Market Action Index shows a Strong Buyers’ market with an index of 14.5. The Market Action Index answers the question “How’s the Market?” by measuring the current rate of sale versus the amount of inventory. Index above 30 implies a seller’s advantage. Below 30 conditions give the advantage to the buyer.

If you’d like more in-depth statistics for a specific neighborhood send us an email. we’ll get the results to you within 24 hours.

posted by janice SEARCH the Philadelphia MLS. No Registration Required!

One more reason that Philadelphia is a great place to live…

REAL FARMERS, REAL FOOD!

Courtesy of Farm to City

This season Farm to City operates 18 farmers’ markets including 15 established markets and three new markets – at the Reading Terminal Market, in Mt. Airy, and in Bala Cynwyd. In addition to a wide variety of fruits and vegetables, many of the markets feature meat, poultry, eggs, and dairy products from pastured animals. The following list also includes an affiliate farm stand operated by the West Girard Community Council and a former affiliate market in Havertown.

Some of our markets are now open, known opening dates for other markets are listed.

Sundays

• Farmers’ Market at Reading Terminal now open!
  Hours: 9 am to 1 pm
  Location: On 12th Street (west sidewalk) across from the Reading Terminal Market.
  Products: organic vegetables, IPM tree fruit, berries, melons, herbs, cut flowers, seedlings, plants for roof gardens; meat, dairy, poultry, and eggs from pastured, certified organic farms; honey, wines, baked goods, and artisan chocolate.
  Local partner: Reading Terminal Market Corporation.
   

Tuesdays

• Rittenhouse Farmers’ Market now open!
  Hours: 10 am to 1 pm
  Location: Walnut Street (south sidewalk), west of 18th Street
  Products: IPM fruits and vegetables - beef and eggs from pastured animals
   
• South & Passyunk Farmers’ Market now open!
  Hours: 2:30 to 7 pm
  Location: On Passyunk Ave, off South Street just east of 5th Street
  Products: organically grown vegetables and berries – IPM fruits - beef, pork, poultry & eggs from pastured animals - artisan bread - John & Kira’s chocolate
   
• Mt Airy Farmers’ Market starting May 25th!
  Hours: 3 to 7 pm
  Location: The plaza of Lutheran Theological Seminary, on the 7200 block of Germantown Ave
  Products: organic and IPM fruits & vegetables – wide variety of meats from pastured animals – cut flowers and herbal teas
  Local partners: Valley Green Bank, Lutheran Theological Seminary.
   

Wednesdays

• University Square Farmers’ Market now open!
  Hours: 10 am to 2 pm
  Location: 36th St at Walnut Street
  Products: Conventional vegetables – IPM fruit & berries – dairy products from pastured animals – Amish canned & baked goods – artisan baked goods
  Local partner: University of Pennsylvania
   
• City Hall Farmers’ Market at Love Park starting June 2nd!
  Hours: 11 am to 3 pm
  New Location: In Love Park, 15th JFK.
  Products: IPM fruits & vegetables – vegetables from the urban farms of Teens4Good – baked goods
  Local partners: City of Philadelphia and Penn State Extension
   
• Fountain Farmers’ Market now open!
  Hours: 3 to 7 pm
  Location: East Passyunk Ave, at 11th and Tasker Streets
  Products: IPM fruits & vegetables - Amish cheese and baked goods – cut flowers
  Local partner: East Passyunk Business Improvement District
   
• Girard & 27th Farm Stand
  Hours: 10 am to 1 pm
  A Farm to City Affiliate Market; the West Girard Community Council is the local sponsor and market operator.
   
• Oakmont Farmers’ Market (Havertown) now open!
  Hours: 3 to 7 pm
  Location: Oakmont Municipal Parking Lot, Darby Road just west of Eagle Road
  A former Farm to City Affiliate Market; please visit their website for more information. 

Thursdays

• Suburban Station Farmers’ Market
  Year-round market!
  Hours: 2:30 to 6:30 pm
  Location: 16th Street Concourse between Market and JFK near the 16th Street elevator
  Products: IPM fruits & vegetables – beef & eggs from pastured animals
   
• Jefferson Farmers’ Market starting May 27th!
  Hours: 11 am to 3:30 pm
  Location: Chestnut Street east of 10th Street
  Products: IPM fruits & greens – beef & eggs from pastured animals – jams & baked goods from seasonal fruit – bread
  Local partner: Jefferson Hospital
   
• Bala Cynwyd Farmers’ Market
  Hours: 3 to 7 pm
  Location: GSB Lot, on Belmont Ave. near St. Asaph’s Rd
   

Fridays

• Roxborough Farmers’ Market starting June 5th!
  Hours: 2 to 6 pm
  Location: Ridge Avenue at entrance to Leverington Avenue parking lot
  more information pending…
   
• East Falls Farmers’ Market starting May 21st!
  Hours: 3:30 to 7 pm
  Location: Midvale Avenue near Ridge Avenue
  more information pending…
  Local partner: East Falls CDC
   

Saturdays

• Rittenhouse Farmers’ Market
  Year-round market!
  Hours: 9:30 am to 3 pm.
  Location: Walnut Street (south sidewalk), west of 18th Street 
  Products: IPM fruits & vegetables – mushrooms – goat’s-milk cheeses – milk and yogurt from pastured cows – beef and eggs from pastured animals – regular and gluten-free bread - honey – artisan chocolate made in Philadelphia - cut flowers
   
• Chestnut Hill Growers’ Market now open!
  Hours: 9:30 am to 1:30 pm
  Location: Winston Road between Germantown Avenue and Mermaid Lane
  Products: organic & IPM vegetables and berries - IPM fruit - goat’s-milk cheeses and yogurt - eggs and meat from pastured animals – honey – artisan chocolate made in Philadelphia
   
• Manayunk Farmers’ Market starting May 22nd!
  Hours: 10 am to 2 pm
  Location: Canal View Park, on Main Street near Gay Street
  more information pending…
   
• Swarthmore Farmers’ Market starting May 22nd!
  Hours: 9:30 am to 1:30 pm
  Location: In municipal building parking lot, across from the Swarthmore Co-op
  Products: IPM vegetables & fruit - mushrooms - meat and eggs from grass-fed animals - artisan chocolate and soap
  Local partner: Swarthmore Town Center, Inc.
   
• Bryn Mawr Farmers’ Market now open!
  Hours: 10 am to 2 pm
  Location: Municipal Lot 7 on Lancaster Avenue, in front of the Bryn Mawr train station, across from Ludington Library
  Products: Organic & IPM vegetables - IPM fruit – cows’ and goats’ milk, yogurt, and artisan cheeses – meats and eggs from pastured animals - European-style and gluten-free bread and baked goods - honey – artisan chocolate – plants and cut flowers

*Note the term IPM used to describe the fruits and vegetables available at some of the markets. IPM stands for Integrated Pest Management. The National IPM Network defines IPM practice as “a sustainable approach to managing pests by combining biological, cultural, physical and chemical tools in a way that minimizes economic, health, and environmental risks.”

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Technorati: philadelphia farm markets, philly summer 2010, living in philly, farm markets, farm to table

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

The most recent home sales data indicate a solidifying of the local housing market’s condition after several years of both declining sales and prices.

 
After two years of falling prices, prices held steady for the third consecutive quarter in 2009 Q4. The typical Philadelphia home rose in value by 0.5% on a quality- and seasonally- adjusted basis this past fall, according to the latest analysis by Econsult economist Kevin Gillen [pdf]. From the housing market’s peak in 2006 to the recent trough of last winter, the average Philadelphia home had fallen in value by a total of 10.5%. But with the market’s apparent stabilization in the latter part of 2009, the average Philadelphia home has recovered 3.5% of its lost value, thereby reducing its total loss to only 7% since the bursting of the national housing bubble several years ago.

Download the report and Kevin’s commentary.

Price changes across the city’s neighborhoods were essentially flat, with slight increases in some neighborhoods being offset by slight decreases in others.

Center City / Fairmount +1.6%
West Philadelphia +1.5%
Lower Northeast Philadelphia +1.2%
Upper Northeast Philadelphia  +0.8%
Northwest +0.1%

 University City -13.1%
South Philadelphia -0.6%
Kensington/Frankford  -0.4%
Northwest Philadelphia -0.1%

Philadelphia’s housing market continues to significantly outperform other major U.S. cities during the current economic downturn. 

According to Case-Shiller MacroMarkets’ composite house price index, house prices have fallen by an average of 30% in the ten largest U.S. cities since the bursting of the housing bubble, compared to only 7% in Philadelphia. Of the twenty largest cities in the U.S., all but one (Dallas) have experienced more severe house price declines than Philadelphia.

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Technorati: housing market, philly housing, buyers market, appreciation by neighborhood

posted by janice SEARCH the Philadelphia MLS. No Registration Required!

 SUBTITLE: WHAT EVERY PHILADELPHIA HOME SELLER SHOULD ASK THEIR AGENT BUT DON’T.

 Or is your home just listed for sale. Has your agent made it impossible for other agents to show?

 One of the questions we are asked at every listing appointment is: How are you going to market our home? What is your marketing plan? Of course we have a comprehensive marketing plan. BUT what every seller should be asking: How will other agents be able to make appointments?, how will you track the appointments?, how will you get feedback?, how will I know what’s going on? No one ever asks this. I think that sellers feel it’s just part of the process and they don’t have to worry about it. Well read on.

I have out-of-town buyers coming into town this weekend to look at homes. They are only going to be here Saturday and Sunday, they have identified 20 homes they would like to see. They need to buy quickly, every sellers dream.

I divide the homes by neighborhood and day and start to make appointments. The 1st two appointments go smoothly, the agents use eshowings, which is a professional showing service for Realtors. Eshowings tracks appointments, calls sellers if necessary for confirmation, sends out requests for feedback, and also sends the sellers weekly activity reports. Why wouldn’t every Realtor use eshowings you ask? Ahhhh because they have to pay for it!

The next three are okay. They all use the office receptionist and it goes pretty smoothly, only one is rude. What you should be asking yourself at this point is: If they use the office receptionist how does one make an appointment after hours? Eshowings is available 7 days a week, 360 days a year and also one can make an appointment online.

NOW on  to my favorite type of agent. Under appointment phone number nothing is entered. I call the office and the snotty receptionist tells me to call the appointment phone number. I tell her that there isn’t one and she transfers me (without telling me) to the agents voicemail. Does he answer? Hell no I get my most favorite message:” I’m not available but your call is very important to me so please leave a detailed message and I will get back to you as soon as it’s convenient.  “Convenient to whom? But wait there’s more. He then proceeds to say: “If it’s an emergency you may call my cell phone”. I just leave a message and hang up knowing there will be no call back. What constitutes an emergency to a Realtor? Yes it’s an emergency I might want to sell one of your listings, oh wait it’s probably your only listing.  Hang in there it gets better.  The only reason I’m showing this house is that it’s 2 doors down from a home my clients have requested to see, it’s priced similar so I think we should see it. Not that I know that from the pictures because he hasn’t bothered to have any (that post ranting about no pictures is coming soon). AND I notice that he is related to the sellers…whoops. I can’t say this enough, do not hire your brother, sister, aunt, cousin to sell your home unless they are good at what they do and can prove it.

I have to email an agent to make the next 2 appointments and a few back and forth emails later I’m all set. I think online appointment centers like eshowings are more efficient and easier but I understand the personal touch and hey she gets back to me in 10 minutes.

The next one I think is my personal favorite of the day. In the Multiple Listing Service under Realtor remarks: “vacant, easy to show”. I go to make an appointment on-line…so far so good…and this is what I’m confronted with:

Well obviously there are no weekend showings and the possibility of getting in anytime looks slim so I just filed that one.

The next time I am asked about our Marketing Plan I’d like to say: forgetaboutit we actually make it possible for agents to show your home and that is our #1 marketing strategy. Yes it takes more than that but think about how important this is.

SELLING YOUR HOUSE? MAKE SURE YOU HIRE PROFESSIONALS

Technorati: philly home sellers, homes for sale, how to sell your home, hire the right agent

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!