The Philly Pretzel

Will Spring Thaw the Frozen Philadelphia Real Estate Market?

April 6, 2011 at 4:55 pm · Filed under For Home Buyers, For Home Sellers, Philadelphia Market Conditions

Get the real story about the Philly real estate market.

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?

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Philadelphia Real Estate Taxes in the News

April 1, 2011 at 1:34 pm · Filed under For Home Buyers, For Home Sellers, YO Philly

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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What is the 90 Day Mortagage Flip Rule?

March 31, 2011 at 2:08 pm · Filed under For Home Buyers, For Home Sellers, Mortgage

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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Philly Mortgage Rate Update: March 14th 2011

March 14, 2011 at 5:26 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

Mortgage rates were lower last week as surging oil prices and tension in the Middle East continue to drive investors to the perceived safety of the Treasury market. High oil costs affect more than just the price at the pump for consumers. Rising fuel prices means higher transportation and shipping costs for everything from food to manufactured products to service-related businesses. Those increases are usually passed on to businesses and consumers, threatening economic growth and corporate earnings. I wouldn’t expect any significant changes in rates until there is some resolution overseas.

Today’s Mortgage Rates:

30 Year Fixed: 4.875% with 0 pts. (45 day lock)

30 Year Fixed: (KW Stimulus): 4.50% with 0 pts. (45 day lock)
(Seller must participate in KW Stimulus Plan…call for details!!)

30 Year Fixed Jumbo: 5.25% blended rate (call for details)

15 Year Fixed: 4.25 % with 0 pts. (45 day lock)

FHA 30 Year Fixed: 5.00 % with 0 pts. (45 day lock)

The bottom line is that even if housing were to drop a little further in some areas, the affordability coming from today’s rates serves as a backstop against any moderate price reduction. Remember, housing will likely be in a much better position in the second half of the year and at that time rates could be a bit higher. Now’s the time to take advantage of the combination of low rates and affordable housing in Philadelphia.

Conventional pricing is with middle credit score >740. FHA minimum credit score is 640. *Income and Asset verification required and must meet DTI guidelines. *This is not a commitment to lend and other conditions may apply.

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