What's Real Estate Weather Like in Philadelphia Area Today?

As a Realtor, I have this love/hate relationship with media. I love to be informed and I strongly object when the information is not accurate and local experts are not consulted. Remember, Real Estate is like weather, it is local and it has cycles.

Great example:  Five years ago, good news about the real estate market was exaggerated. Now the statistics from the worst market in the country are generalized as if they were occurring everywhere.
Here’s a quiz…

TRUE OR FALSE:

1. Home prices have come down over 50%.

2. Over 6% of households are in foreclosure.

3. The suspension of foreclosures by major financial institutions will delay recovery of the real estate market.

The answer for each is – IT DEPENDS.

In Las Vegas, Nevada prices have come down an average of 58%. In the Prudential Fox & Roach market area, prices have declined an average of 7% from the peak of the market until now – a very moderate number.

In addition to having the distinction of experiencing the greatest price declines, Las Vegas also has the highest foreclosure rate at 6.6%. Less than ½ of 1% of households in our market area are in the foreclosure process – one of the lowest rates in the country. Because foreclosures make up such a small percentage of households in our market, if some were suspended the impact would be insignificant.

As our clients in Philadelphia area you must understand that real estate markets are local, that our prices have not taken a nosedive, and that our market is not flooded with foreclosures. You may think differently because you, our clients have been inundated with a continuous stream of negative news from the press because extremes, whether booms or busts, get attention.
Here’s another quiz:

TRUE OR FALSE:

Now is the best home buying opportunity of a lifetime.

The answer for our marketplace is TRUE!

Here’s why:

1. The Market

• We have clearly seen the bottom of the market. Unit sales have dropped after the April 30, 2010 expiration of the home buyer tax credit, but annual sales have been stable for three years.

• Prices have been stable this past year.

• There is a great selection of homes and sellers have become more realistic.



2. Interest Rates

• Interest rates are at generational lows. It is hard to believe they will go much lower, and they will definitely rise as the economy begins to improve. We would normally think of 5.5% as a terrific rate but at the current rate of 4.25% is outstanding. A buyer borrowing $250,000 over 30 years will save $2,700 each year over the life of the loan. That’s a total savings of $68,000!



3. Quality of Life

• It’s not unusual to hear conversations about the rent versus buy scenario. There are some advantages to renting but in reality, the Philadelphia area has never been a rental market. The best communities are made up of owners who care about their properties. Owning a home is one of the best ways to take control of our future.

• Houses are more affordable than they have been in years. Stable prices and incredibly low interest rates allow buyers to purchase more for their money so they can enjoy living in a house that better meets their lifestyle needs.



4. Long-term Investment

• Owning a home has been the best long-term investment in our area, far outperforming the stock market. In the past ten years, the value of Philadelphia area housing rose an average of 91%, while the S&P 500 lost 22.5%.

Right now, many people are carefully considering whether or not to buy a home. Lack of confidence in the economy and the job market are holding them back. But there is only so long to wait before this opportunity ends. If life circumstances dictate a move, it’s best to act now! I can’t imagine that conditions will improve for potential home buyers in this area!

In five or seven years, many of you my clients will look back and either be glad that you bought a home or be sorry that you didn’t. It’s my job to provide you with the expertise and knowledge to make the right choice now, or else you will look back and say, “I should have.”

After all, the true value of what I do goes beyond showing houses or writing contracts. It is in helping people make their dreams come true!

7 REASONS WHY ACTIVE ADULTS MOVE

1. Move for Lifestyle
2. Move for Work
3. Move to Flee Dissatisfaction
4. Turn Second Home into First
5. Move for Health Reasons
6. Move to simplify life
7. Move for Family

Could your home have been purchased from a Sears catalog?

Can you imagine buying your home from a catalog?  From 1908 – 1940 Sears Modern Homes program offered over 500 ready to assemble “designs” from bungalows to mansions.  A quaint, three-room and no-bath summer cottage called the Goldenrod could also be purchased. The outhouse was sold separately. The details of construction and completion of the home was enclosed with a shipping schedule and mailed to the customer. The pre-fab houses were sent by rail and arrived pre-cut with a set of specifications and instructions on how to put it together.
There is a large collection of Sears Modern Catalog Homes still in existence. The Crescent Hills section of Hopewell VA has 44 homes. Elgin, Illinois has the largest known collection of over 200 homes. There are some homes in Pennsylvania as well.
If you want to learn more about these homes go to the Sears Archives website. Sears no longer has records but has suggestions on how to find out if your home might be from Sears. Rosemary Thornton, the author of The Houses That Sears Built offers this “How to Identify a Sears Home Kit” at wikihow.com.

So how's that for some fancy catalog shopping?

Active Adult Housing Trends - “Lifestyle without Maintenance”

Active Adult Housing Trends - “Lifestyle without Maintenance”

The 50+ market is the fastest growing segment of the housing market and is expected to account for over 100 million by 2012. In Pennsylvania the 55-74 age group accounts for 17% of state population and it is the 4th highest in US.

Our active adults are well informed, well educated, internet savvy and value conscious.

Some of the key reasons “Active Adults” consider moving to a “Life Style Community” are: relief of home owner maintenance, to simplify their life and to have freedom to leave for a trip or a vacation without worry.

Most of the year my first contact is a motivated wife, but about the time the leaf racking and snow removal come around, I get more husbands to make that first call, send that initial email inquiry or visit my Open House.

In our further conversations most often we arrive at the same additional reasons why they wish to move: To simplify their life, to be able to “Lock and Leave” or “Pick up and Go” without much preparation or complications.

Baby boomers are not like the previous generations, they are continuing to update and to renew. They are growing and trying new things; still full of wonder and curiosity; continuing to re-invent themselves; love new adventure and thrive when forced to have a new beginning. Baby boomers are the “sandwich generation” who move when urban sprawl forces them, or when their neighborhood no longer reflects their lifestyle. It is often that baby boomers convert their second home into their first; they move to simplify life. Baby boomers move for family and also they stay for family. They still move for work and health reasons and they do move for “Lifestyle reasons”; many wish to “right size”which does not necessarily mean down size.

When my active adult clients ask for a home most of the time they have clearly defined expectation. In addition to a good value and all financial consideration they wish to have access to a health and fitness facility; an easy access to tennis, walking, running, nature trails, swimming facilities, natural recreation areas and they wish to have the freedom of a worry free lifestyle, to have the ability to pick up and go.

Many 55+ Buyers wish to be in a close proximity to their present location and look for “green” life style as it relates to the value.

This is a discretionary purchase and the decision is made carefully with the advice of the right professional who will assist them through a maze of protocol and procedures and make the process simple and safe. Survey shows that most satisfied “Active Adults” or “Life Style Buyers” are those who have been represented by a well trained, informed and reputable Senior Specialist Realtor.

Branka Doych

Realtor, SRES Senior Real Estate Specialist