Buyers expected to go smaller and greener in 2009
January 8, 2009
A few news articles recently have discussed the idea that prices on “green” properties are holding up better in today’s real estate market. As the current economic climate encourages home buyers to look deeper into their finances before buying a property, they are choosing to go with smaller homes and condos that don’t exceed their needs. They are also willing to spend extra on an energy efficient property, knowing that their choice will save them money over time.
Another trend that is expected to grow in 2009 is the migration from the suburbs back into cities. Last summer, the New York Times wrote an article about the economics of living in the city versus living in the suburbs, given the high price of gas. Although the financial incentives are not so strongly aligned now that gas prices have fallen, it still seems likely that young professionals will choose urban living and the downtown culture over long commute times.
Read more about these trends:
Nashville Business Journal: Builders go lean, green as buyers seek less space.
Philadelphia Business Journal: Green condos are still attracting buyers at listing price.
Home Design for 2009
January 7, 2009
It’s only a few days into the new year and already newspaper columnists and real estate professionals are predicting what will be hot and what’s not in home design for 2009. While some of these home decorating trends are more relevant to houses rather than condos, there’s still much to learn for condo owners and buyers.
The Arizona Republic article predicts that navy blue and charcoal will be popular colors, (some) wallpaper will find its way back onto walls, you’ll find bamboo as a wall covering in addition to a floor covering, and dark kitchen cabinets will make a comeback.
Examiner.com predicts that eco-friendly, environmentally conscious products and rooms will be hot, wall murals will be big, and color schemes will grow beyond mere neutral colors.
Newsday went with a different spin on the story, instead creating a photo slideshow of the bad design trends they hope will die in 2009. I don’t know if I agree with all of their choices, but you are free to make up your own mind. Here is the link.
Housing market is not the stock market
January 4, 2009
With all the turbulence and losses in stocks and bad economic news in the headlines lately, you can easily lose perspective on what’s really going on in the real estate sector.
For example, new mortgage applications increased last week by 12 percent, according to the Mortgage Bankers Association. Applications from people looking to buy houses with FHA loans were up by 15.3 percent, while applications from purchasers seeking conventional mortgages rose by six and a half percent.
How could that be, with all the grim economic news? Well, remember that there is a huge pent-up demand simmering away out there for housing — especially from first-time buyers who want to scoop up low-priced deals.
When fixed interest rates drop — and last week they were down by a quarter of a percentage point — those buyers start doing the math and getting into the market with offers.
So here’s the key point to keep in mind as you try to make sense of the headlines: The stock market is NOT the housing market. It’s on a whole different set of tracks. And it’s been in a highly volatile state for more than a month.
Housing, on the other hand, has already endured its painful correction for two and a half years … is now pretty much stabilized … and is slowing moving toward its cyclical recovery.
REALTY TIMES - 11/18/08
Tax Abatement Plan Promotes City Development
November 15, 2008
Both the Pittsburgh Post-Gazette and the Tribune-Review covered Mayor Luke Ravenstahl’s visit to the condos at 941 Penn Avenue, where 16 of the 17 condominium units have sold. The condos are part of the city of Pittsburgh’s ten year tax abatement, which waives up to $6,200 a year in city and school taxes each year for ten years. The abatement lowers the assessed value of properties by up to $250,000.
The program is designed to provide incentives for development in the city (and select surrounding areas). Buyers in the news articles report that the property tax abatement has been a part of their decision to live downtown.
Here are the articles:
Tax abatement plan shows promise, city leaders say - Pittsburgh Tribune-Review.
Pittsburgh tax break for new housing is working, mayor says - Pittsburgh Post-Gazette.
PA Median Home Prices Holding Their Own
July 16, 2008
PA Median Home Prices Holding Their Own
– by Austin J. Jaffe, Ph.D.Published in
The Pennsylvania Realtor®
Everywhere we look we see the expected rising median house price phenomenon coming to an end. Some never would have predicted it; indeed, for many real estate enthusiasts, housing markets always rose year after year, just like clockwork. These days there’s a new reality, one which might last for some time, experts predict, and national media reports continue to reflect READ MORE median-home-prices.doc
Will gas prices drive homebuyers away from suburbs?
July 7, 2008
As he gassed up his 2002 Honda Civic recently, David Underwood found himself at the intersection of two priorities: transportation costs and housing.
Paying $53 for a tank of gas to commute from his Kirkland rental condo to his Seattle job, Underwood realized that price set a “personal best” he’d rather not repeat.
That’s why after much discussion, he and his partner, Kali Kuwada, decided to buy their first home in Seattle, as close to their jobs as possible.
“We found ourselves talking more and more often about house prices READ MORE
Selling Your Home In a Market Full of Foreclosures
July 2, 2008
Take a look in just about any neighborhood and you may find the sign of distressed times. Foreclosures are on the rise and that can cause a lot of panic for sellers who aren’t in the same financial crisis.
“We’re in a very price-sensitive market and obviously in any buyers’ market that’s the case,” says Chris Heller, President of The Heller Real Estate Group, Inc. at Keller Williams.
The increase of awareness about foreclosures is stimulating buyers to keep fishing and pushing for even lower prices for homes.
“So the sellers who are not in foreclosure or who are not in distress have to compete with those properties with the same pool of buyers. So there are two things that they can do; the two things are: pricing the property READ MORE
Disclose, Disclose, Disclose
July 2, 2008
Sure it can be frustrating, exhausting and time-consuming to sell a home in some markets, but don’t try to cut corners by failing to make the proper disclosures.
Not only is it illegal for you and your agent not to disclose certain material facts that can affect the value, desirability or salability of a home, most savvy buyers will quickly walk away if he or she suspects deceit.
If you lie by omission and get caught, not only can you face both local and federal charges, you’ll still have a home to sell in a less-than-hospitable market. The extra time to sell your home and your day in court could stigmatize the property.
Of course, if you honestly don’t know READ MORE
Homeowners can seek help when faced with foreclosure
June 23, 2008
Count Heather Hoye of Homestead among the lucky ones when it comes to the national mortgage foreclosure crisis.Thanks to help from Pennsylvania’s new Refinance to an Affordable Loan program, Hoye and her 7-year-old son, Andre, remain in the home she could have lost when she found herself facing hundreds of dollars more in monthly payments when her adjustable rate mortgage reset at a higher interest rate.
Hoye is one of an estimated 25,000 homeowners in Pennsylvania who could face foreclosure — potentially 5,000 in Allegheny County — READ MORE