Bucks County Playhouse

The Bucks County Playhouse is open again and is looking good!  It's wonderful that this gem has been saved and will continue to provide entertainment for the public.

During the holiday season my husband and I attended a performance of "It's a Wonderful Life: A Live Radio Play" at the playhouse, and we thoroughly enjoyed it.  I would rate the play as a "B".  The acting was good, but I found the  premise of the play a little less engaging. 

We were delighted with the newly renovated theater. New hardwood floors and comfortable seating have replaced the formerly shabby interior. The theater has been updated and overhauled with a new roof and many more improvements.

During the 40's and 50's, The Bucks County Playhouse hosted performances by the "Who's Who" of Hollywood and Broadway. In recent years, however, attendance declined and upkeep of the theater suffered. Now the playhouse is back.  I hope attendance will be high so this wonderful resource will become profitable and continue to be an asset to Bucks County.

Information about the playhouse can be found by visiting http:bcptheater.org  or by calling 215-862-2121.

Reverse Mortgages

I'm occasionally asked whether I think a reverse mortgage is suitable for a senior homeowner.  My answer is usually, "It depends." 

The following article, prepared by the Senior Real Estate Specialists Organization, provides an easy to understand explanation of the basic issues involved with a reverse mortgage.

If you are interested in more information about reverse mortgages, please contact me.   I can put you in touch with an experienced mortgage professional.

Holiday Light Show at Shady Brook Farm

 

If you are looking for delightful entertainment for the whole family, don't miss the  holiday light show at Shady Brook Farm. It's open throughout the holiday season from dusk to
10:00 p.m. Enjoy the traditional and whisical displays with thousands of lights.

For more information and coupons, check out their website http://shadybrookfarm.com/

Market Trends

The past several years have been tough for homeowners who were trying to sell their homes or hoping to increase their equity.  Will the next few years be any better?

No one has a crystal ball, but the predictions made by Fiserv's chief economist are in line with the opinions I've heard from others in the field.

According to an article in the December issue of Money magazine, Fiserv predicts a choppy real estate market in 2013 with prices increasing 3.4% from midyear 2013 to midyear 2014. That trend should continue with an annual increase in values of about 3.3% over the next five years. Keep in mind that these are national projections and local markets will vary.

The predicted annual increase of 3.3% may seem modest compared to the double digit increases between 2000 and 2006, but those increases were caused by loose mortgage lending practices and real estate speculation. 

Many older homeowners have been spoiled by the rapid increase in home values since the 1970's when the Baby Boomers entered the housing market.  Much of the rise in home prices between the 1970's and 2000 was due to the increased demand for housing by this large demographic group.  Now that the Baby Boomers are settled in homes, or are downsizing, demand for housing should more closely match the supply, and prices are likely to appreciate more slowly than they did during that period.

Newtown Township Home Sales Through 9/30/2012



  

      

                     

          

 

Lower Makefield Home Sale Statistics

The number of single family homes for sale as of September 30, 2012 significantly decreased by 26.7% compared to the number of homes for sale on that date in 2011.   Some of the decrease is due to fewer sellers listing their properties, but there was also a 7.2% increase in the number of sales during the first nine months of 2012 compared with the same period in 2011. These factors decreased the number of available homes.

Prices are stabilizing.  The listing price as of the end of September was down .6% compared to the end of September 2011.  The average listing price for a home in Lower Makefield is now $470,000 compared to $473,000 for the prior year.

No one is predicting that prices will reach their 2006 levels in the near future, but the current signs indicate the market is stabilizing.

The following chart shows that the number of sales for 2012 has been fairly good compared to the number of sales for prior years.

Bucks County Home Sale Statistics Thru 9/30/12

What a difference a year makes!

The number of single family homes sold in Bucks County during September, 2012 was significantly higher than for September, 2012. The number of homes for sale decreased by 10.3%.  The following chart, provided by TrendMLS shows the statistics

 

It is still a buyers' market, but sellers are gaining more leverage with the decrease in the number of homes on the market.

Prices have not risen. In fact the average sale price of single family homes in Bucks County during the first nine months of 2012 was $275,000 compared to $280,000 during the same period in 2012.

Learn More About Bucks County

People from out of the area frequently ask me about the characteristics of Bucks County and what there is to do here.  The topic is so broad that my response can only hit the highlights.  Here is a great website that provides considerable detail on that subject: 

http://buckscountyalive.com/events/ShowEvents.cfm?webname=bcalive

If you currently live in the area, it's a great website to learn about local services and  special events in the area.  For families with children, the current scarecrow competition at Peddlers Village is a nice activity.  

 

For art lovers, the annual juried art show at Phillips Mill showcases some of the best art currently being produced by local artists.

 

Bucks County Home Sales Statistics Through August 2012

The Bucks County Residential Real Estate Market appears to have bottomed out and is now showing signs of improvement.

Statistics for August 2012 vs. August 2011 show an 8.7% drop in the number of homes for sale and a 23.9% increase in the number of homes that settled.

Sale price information is less conclusive.

Figures for 2012, as compared to August figures for 2011, would suggest prices have risen by 7.4%; however, year to date figures for the first eight months of 2012 compared to the first eight months of 2011 show a very slight decrease in prices. Different periods of time produce notably different figures.

Home prices have leveled out but cannot be expected to rise quickly.  The unprecedented rise in home prices between 2000 and 2006 was artificially created by loose lending practices.  We cannot expect home values to again reach their 2006 levels for many years to come.

Now is a great time for buyers to purchase a home.  Mortgage interest rates are extremely low and home market prices do not seem to be getting any lower. For those waiting for the market to bottom out, this may be it.

Lower Makefield Home Sales Through 7/30/12

The number of homes sold in Lower Makefield Township in 2012 has significantly increased as compared to the number sold during the same time period in 2011. 

Check out this chart to see the monthly and yearly changes in home sales in Lower Makefield Township.

Upper Makefielt Home Sale Statistics Through 7/30/12

Newtown Township Home Sale Statististics

The number of homes sold this year in Newtown Township through July, 2012 has significantly increased.  There was a dip in July but the overall trend is positive.  In fact, there were 32% fewer homes for sale in July, 2012 compared with the number for sale in July, 2011.

Average prices in the township fluctuate considerably due to the sales of new construction homes that are priced above the average sale price of existing homes within the township. 

A better indication of home sale prices for existing homes in Newtown Township is the statistics for Bucks County.  Prices in Bucks were up 1.5% if the average price of sold homes for July, 2012 is compared to the average price of sold homes in July, 2011. However, if home prices for the first seven months of 2012 are compared to the first seven months of 2011, prices were down 1.9%.

It is too soon to tell whether prices have bottomed out, but statistics indicate prices are relatively stable as compared the declining prices experienced since 2006.

This chart shows the month by month and year by year fluctuations in home sales over the last few years. 

Selling an Inherited House

My husband just inherited a partial interest in a property in Massachusetts. Being a realtor, my husband and  his relatives assumed I would be heavily involved in the sale of the property which was fine by me.

The first task was to find a realtor. My relatives and I interviewed three realtors from different brokerage firms.  I shouldn't have been surprised when I found that the way realtors operate in Massachusetts differs from how we operate in Bucks County.  The reason I shouldn't have been surprised is that buyers relocating from other states to our area are frequently puzzled by the differences in how we do business. Where ever you go, you have to adjust to local practices.

All of the realtors we interviewed were good realtors and were qualified to sell the house. Choosing between them was difficult.  A major concern for us was that we do not live close by and it will be difficult for us to maintain the condition of the property. Also, there were a few issue items we needed to address before putting the house on the market. Therefore, we were looking for an agent who would "go the extra mile".

There are some agents that will take a listing and never mention to the seller that repairs might be necessary and that rooms need painting and decluttering.  That was not the type of agent we were looking for. We were willing to do these things ourselves, but we couldn't stay in MA for an extended period of time.  There were some followup issues with plumbers and landscapers that the agent we chose would have to deal with. 

We chose not to interview a high profile agent with many, many listings who hosts an ongoing radio real estate discussion.  She appears to deal in volume and we thought she would not be able to provide the attention we were seeking. 
Talk is cheap and promises are frequently broken; so, we asked for references and called them. The references provided details of their experiences with the agents, and we became comfortable with our final decision on which agent to work with.

Agents are not responsible for the security of a property, but the agent we chose lives nearby and was willing to check regularly that doors were locked, and nothing seemed amiss.  That made us more comfortable leaving the property unattended.  So far, she has exceeded our expectations.

It was important to me that out chosen agent hire a professional photographer to take home photos.  In our area, most agents do.   That was not the norm in the area of our inherited house.  One agent said she does not like to put many photos on the internet because potential buyers feel they have already seen the house and it is difficult to get them to view it in person.  That seemed crazy to me.  With 90% of buyers searching for properties on the internet, numerous high quality photos generally increase the number of showings.  We did not select that agent.

The three agents we talked to estimated the market value of the property. Their estimates varied by 5%.

Sellers should never choose an agent primarily because they provide a high estimate of the value of the property.  Estimating the value of a home is not an exact science.  Agents sometimes overestimate the value, or deliberately provide an estimate as high as can be reasonably justified so as not to disappoint the sellers.  The list price and the marketing abilities of the agent should be separate concerns.  We wound up listing the property for a lower price than our agent suggested.  We averaged the three estimates of market value and listed it at the average amount.

Being absentee owners, we are expecting more from our listing agent than she would have to do if we were living locally.  Therefore, we offered to pay her a higher commission than she had requested.  Our thinking was that we have a difficult house to sell and we are expecting a lot from the agent.  She should be compensated for the extra effort.

Showings start tomorrow.  I'm crossing my fingers that the house will sell quickly.

Buyers' Expectation

Most buyers these days are looking for similar features in a new home.  The list generally includes  fantastic kitchens, hardwood floors, new or remodeled bathrooms, open floor plans, high ceilings and walk in closets in the master bedroom.

These features can be difficult to find in Lower Makefield, Upper Makefield and Newtown for buyers seeking a single family home in the $350,000 to $550,000 price range.

When moving from areas where housing prices are lower than in Bucks County, or from places  where there is a lot of new construction, buyers are usually disappointed. They frequently have to see many homes before they realize they must lower their expectations

The Bucks County communities along the I95 corridor were largely developed before 1995 with many of the homes being 30-50 years old.  These homes can be very nice, but buyers frequently view them as dated and in need of remodeling.  There are some newer homes, but those homes generally command higher prices.  If the buyers are lucky they may find a home that has been significantly updated, but in most cases they make compromises.

What many buyers don't immediately realize is that most of these older homes are well built and comfortable to live in. Updating can be done gradually and may not be as expensive as anticipated.  The area's ease of commuting to different destinations, fine schools and desirable neighborhoods are well worth the tradeoff.

Bucks County Home Sales Through May, 2012

What a difference a year makes!

Check out these home sales statistics comparing May, 2012 home sales in Bucks County with home sales for May, 2011. Statistics are also shown for the first five months of 2012 compared to the first five months of 2011.

Buyers currently have fewer homes to choose from.  The number of homes for sale has decreased by 10.9%, while the number of pending sales and settled sales has increased.

Prices have continued to decrease.  This trend may change as the market adjusts to the fact that the number of homes for sale has decreased.



Preparing a Home for Sale

If you are trying to sell a home, make sure your home looks good on numerous real estate listing websites.

With 85-90% of buyers screening properties on the internet before visiting homes, the appearance of your home on various internet sites and in videos is extremely important. If you want buyers to schedule an appointment to view your home, they have to like what they see on the internet.

Occasionally, I'll see pictures on the internet that appall me.  The pictures of one home were taken during or after a party.  There were streamers in the living and dining rooms and presents and wrapping paper everywhere. Couldn't the real estate agent have come back a few days later to photograph the home when the house was neater?

I just viewed pictures of another home that was actually a very nice property.  Unfortunately for the seller, you had to look carefully at the on line pictures to realize it.  Plants were everywhere with vines winding around furniture and bookcases. I like plants, but when selling a house, "less is more".

 Some people might think, "Well they're not buying the plants", but few potential buyers take the time  to imagine what a home would look like if the decor were changed. Even though the house was priced below market value, it's not surprising  the listing expired without the home selling. 

  More subtle changes that can be made before the home is photographed are removing most items from kitchen counters, removing notes and magnets from refrigerators, closing toilet seats, hiding trash pails and placing attractive towels neatly on racks in the bathroom. Small items should be removed.  Items smaller than a football generally  look like clutter in a photograph. 

Some agents still take their own pictures rather than hiring professional photographers.  If they are skilled amateur photographers with sophisticated equipment, that's okay, but too often they are not.  Proper lighting and  wide angled lenses are necessary to capture the essence of a room.

When choosing an agent, you should discuss with them whether they will be making suggestions on preparing your home for the market.  Will the agent attend the photo shoot, or better yet, come a half hour early to make sure the property is ready for the photographer? 

Some agents work with third party professional stagers and will absorb the cost of a few hours of a stager's services. Whether a stager might help and who pays for his or her services are questions homesellers should ask agents.

 Will the agent hire a professional photographer and videographer?  If not, ask to see that agent's listings on the internet and check out whether photos are well lighted and capture representative views of rooms. The agent can't control the features of the house itself, but with attention to staging and good photography, he or she can help present your home to its' best advantage.

I usually engage a professional stager to provide suggestions on how to maximize the appeal of a home without the homeowner spending a lot of money, and I always hire a professional photographer. If a home doesn't look good on the internet, the number of buyers who will want to visit the property will be greatly reduced making it difficult to obtain the best price within a reasonable time frame. It's just good business to make sure a home looks it's best.

A Fun Evening in New Hope

  

New Hope has always attracted artists and talented theatrical people.  Those talents will soon be showcased at the Phillips Mill Community Center.

On June 8-10 and June 14-17, 2012, the Mill will be featuring its annual stage production.  If this year's show, titled 360 Degrees of Separation is anything like past performances, the evening should produce a lot of laughs.

For information check http://www.phillipsmill.org/drama/.  Doors open an hour before showtime.  It's cabaret type seating, so most people bring their own wine and hors d'oeuves.

Bucks County Year to Year Home Sale Statistics

The Bucks County real estate market is improving, but prices are not expected to rise very much in the near future. Prices are now at the levels they were at in 2004.  That is an average, however.  Homes that have been remodeled, maintained well and have the features that are currently attractive to buyers sell for more than do older homes that have not been updated.  

Here's a chart showing the annual appreciation/depreciation rates of single family home prices in Bucks County since 2002.  Price figures indicate thousands.



In general, prices for luxury homes have fallen more than prices for homes more affordable homes.

Upper Makefield Township Home Sales Statistics

Statistically speaking, there are too few homes in Upper Makefield Township to draw definite conclusions, but the information for the first six months ending April 30, 2012 supports the county wide trend that the real estate market is improving.

Here are the Upper Makefield home sales statistics reported by Trend MLS for the six months ending April 30, 2012 compared to sales information for the same period in 2011.  

Homes are selling faster in Upper Makefield than they were a year ago.  Most homes in the Washington Crossing section of Upper Makefield were priced between $400,000 and $600,000 and that price range showed the greatest improvement

The Local Real Estate Market is Improving

Bucks County home sales statistics through April, 2012 have been released by the local MLS service .  It appears the the local real estate market is improving

Compared to last April, the number of homes sold is up 23%.  The number of homes pending settlement, under agreement of sale, is up 17.5%.  The only statistic that did not show improvement was an increase in the number of days homes were on the market before selling which increased by 8.6%.





Great Time to Buy a Home

The real estate market in Bucks County appears to be picking up.  There has been an increase in the number of sales during the first few months of this year compared to the number of sales during the same period last year.  Real estate agents are finding themselves very busy. With prices lower than they have been for eight or nine years, it is a great time to buy.

Check out this week's interest rates.  With rates this low, buyers are finding they can afford more expensive homes than they could a year or two ago.

If you are, looking for a new home, I will be happy to help you.

Has Bucks Real Estate Market Bottomed Out?

Has the Bucks County Real Estate Market Bottomed Out?

Sales figures during the past few months have definitely increased compared to the prior year, Agents are reporting cases of multiple offers on properly priced properties. While statistics suggest the worst may be over, it will take a few more months before we can draw a conclusion.

Check out these figures for Bucks County  home sales through March, 2012.

It is still a buyers' market, however, and most buyers are looking for homes they can move into without having to remodel.  Sellers are well advised to prepare their homes for sale before putting them on the market. Homes that are in good repair and are neutrally decorated sell faster and for higher prices than others 

Bucks County Home Sale Statistics Through March, 2012

It is starting to look like the home sales market has turned around in Bucks County, PA.  Here is a chart created by the local Multiple Listing Service, TRendMLS, showing single family home sales statistics for March, 2012 compared to March, 2011. It also shows year to date figures.  

• The number of single family homes for sale dropped from 3,702 to 3,413 in the past twelve months.
• During the first 3 months of 2012, 864 homes sold compared to 778 during the first 3 months of 2011. 
• The ratio of Sale Price to Original Listing Price for March, 2012 has increased by .6%.compared to a year ago. Original Listing Price reflects the price of a home when it was first listed under the contract in force at time of sale.  If the price of the home was reduced after its initial listing, the reduced price is not reflected in this number.

For those buyers waiting for the market to bottom out, it may have already done so.  Buyers are fortunate, however, mortgage interest rates are at historically low levels providing those who qualify a lot of buying power.

Good Home Buys in Bucks County

I recently showed a home to an out of town buyer and we were both grossed out by the condition of the walls and carpet.  After some initial disgust,  we realized the property's faults were cosmetic and the home was a real bargain.The home was a Fannie Mae owned property with Homepath financing available.

The home wasn't suitable for my client, but I thought some more about the property and tried to make an appointment to see it again.  I was thinking of possibly buying it myself as an investment property.  The good buys don't last long, however, and it was already under contract.

Fannie Mae is pricing repossessed homes very attractively.  Most have flaws, so buyers beware, but bargains can be had by those who can see a property's potential.  To move these properties quickly, attractive financing is frequently available through Homepath, and some properties qualify for home improvement financing.  For more information go to  http://www.homepath.com/resources.html#buyersGuide.

 
An experienced real estate agent can help you locate qualifying properties.

Bucks County Home Projects with the Highest Pay Back

According to the latest Remodeling on Cost versus Value Report, in the Philadelphia area, the home improvements that provide the highest pay back are deck additions, attic remodeling, minor kitchen remodeling, major kitchen remodeling, bath remodeling and new siding.

This isn't surprising,  I was surprised , however that new fiber cement siding led the list with a 70.6% return on investment.  This is a great product, and home buyers evidiently prefer it to new vinyl siding.

Lower Makefield Home Sales Statistics

Although two months are too short a time period to predict a trend, the Lower Makefield real estate market may be improving.  There seems to be more buyers shopping for properties this year even though the number of sales during the first two months of 2012 were even with the first two months of 2011.   Prices, however, are still eroding, but not as significantly as they had been during the prior few years.

Bucks County Home Sales Statistics 2/29/2012

The housing market appears to be improving in Bucks County.  Statistics for January and February are favorable, but it's too early in the year to draw definite conclusions.  The number of sales are up, but conclusions about pricing trends are difficult to make at this time.

New Hope/Lambertville Restaurant Week

New Hope and Lambertville have many wonderful restaurants and during Restaurant Week, Sunday, March 18th through Friday, March 23rd, you can sample many at a reasonable price.  Participating fine dining restaurants will have a fixed price menu for $29.95 and participating casual restaurants will serve a fixed price menu for $19.95.  For further information and a list of participating restaurants, visit www.VisitNewHope.com and www.Lambertville.org. 

Bucks County Property Taxes

How do Bucks County Property Taxes differ from one community to another?

The school property tax rate varies by school district and township. Here's the county's web reference to the various milleage rates for each community. The milleage is applied to the assessed value to determine taxes.
http://www.buckscounty.org/government/departments/finance/BoardofAssessment/MillageRates.aspx

Be aware that the assessed value of two properties that are both appraised at the same market value can have notably different assessed values. A general county wide assessment has not been performed since the 70's; so, property assessments don't necessarily reflect market values.

Communities with few commercial or industrial properties will have higher tax rates than those with such sites.

Bucks County Home Sales: January, 2012

The number of homes sold and the average price of sales increased during the first month of 2012 compared to January 2011.  We'll have to wait and see whether a trend is developing. 

                                      

              

Credit Scores and Interest Rates

Most people realize that credit scores have a major impact on whether they can obtain loans and whether they can obtain favorable interest rates; but, credit scores can also impact insurance rates and even how you are perceived by a potential employer. A good credit score is key to obtaining a mortgage, favorable insurance rates and maybe even getting a job.

So, what is a credit score? A credit score is a number assigned to individuals and is meant to predict the likelihood of their repaying a loan.  The formula was developed by a company called Fair Isaacs, and the result of the formula is called the FICO score.

The intricacies of the formula remain a company secret, but its general components are well known. Here is the weighting given to each of the factors:

1)      35%  Bill Payment History- If you pay your bills on time you will rate high in this category.  Those who pay late, have had bills sent to collection agencies or have had bankruptcies will be rated lower.

2)      30%  Amount of Debt Outstanding-The ratio of debt to available credit should not be great.  Persons who max out their credit cards will rate lower in this category than someone who maintains a ratio of 10-30%.

3)      15%  Length of Credit History-Being a responsible credit card user over a long period of time increases your score as does maintaining credit with the same credit card issuers for a long time.

4)      10% Credit Mix-If you have had several types of credit, for example, a mortgage, car loans, student loans and credit cards, you will score higher than if you just had credit cards. This factor assumes a mix of credit demonstrates that you can handle various types of debt.

5)      10%  New Credit and Credit Inquiries- A number of inquires about your credit in a short period of time, suggests you may be in financial difficulty and trying to increase your credit limits.  It’s prudent to avoid opening up new accounts unless you need to, and to avoid doing so within a short period of time.

The national average credit score is around 690 and the median score is around 710. 

If you are thinking of refinancing a mortgage or buying a new home and are concerned about your credit score, a good mortgage broker may be able to help you.  Many are knowledgeable about credit scoring and may be able to help with a strategy that will have the greatest impact on improving your score. There is no quick fix, but paying down some debts will have a greater impact on your score than others.

Get A Mortgage Preapproval Before Your Home Search

Most home buyers need to finance their purchase with a mortgage.  Unfortunately, many don't realize they should obtain a mortgage preapproval before they seriously look for a home. Sellers today usually insist on seeing a preapproval before negotiating the sale of their property.

I'm working with a couple now that had an idea of the price of the home they could purchase, but found a home they wanted to look out before getting a mortgage preapproval. They loved the house, but needed a preproval to make an offer. They obtained a preapproved, but found that they can only make a very low offer on the home.  They may get lucky and the seller may accept their offer; but, they were looking for homes above their price range.  I fear they will be disappointed.

To avoid disappointment and wasted time looking at homes above their price range, buyers should get a mortgage preapproval before shopping for a home. 

A mortgage preapproval does not lock a buyer into a specific mortgage company.  Buyers can still shop around for the best rate.  It will help them to know their price limitations and allow them to move quickly when they find the home of their dreams.  

Upper Makefield Township's Top Realtors

Coldwell Banker Hearthside Realtors sold more homes in Upper Makefield Township in 2011 than any other Realtors.  With 28.8% of market share, Coldwell Banker Hearthside Realtors is the # 1 realtor in Upper Makefield.

The Dilemma of the Bucks County Home Buyer

The baby boom generation was fortunate.  During their prime home buying years, home prices were rising. Their starter homes generally increased in value, and they had sufficient equity to purchase their move up homes.

Today's buyers in their 30's and 40's may want to purchase larger homes, but frequently find that their starter homes have lost value and they have insufficient equity to pay for the down payment plus the closing costs required to purchase a more expensive home.

The traditional four bedroom Bucks County colonial may sell for $300,000 to $500,000.

With a conventional mortgage requiring a 20% down payment plus closing costs, a buyer needs about $75,000 to $110,000 in cash to purchase a home. These costs may be prohibitive, but before giving up the dream of a larger home, there are options that should be considered.

 It may be possible to purchase a home with a 10% down payment, or with an FHA mortgage which requires a lesser down payment.   Also, the buyer can  request the seller contribute towards the closing costs. Buyers should discuss financing options with their agent and a good mortgage broker to determine whether the home of their dreams is affordable.

 I've heard some buyers say their current  home needs to appreciate before they can buy a new home, and they are unwilling to take a loss on their current property.  That may be a mistake. If their starter home appreciates, the larger home they would like to purchase will have appreciated as well.  Also, with inflation, mortgage rates generally rise; so, buying power decreases.  Buyers waiting for their first homes to appreciate may find themselves priced out of the move up market.

Buyers wishing to purchase more expensive homes, who can afford the down payment and closing costs, are probably better off selling their starter homes at a loss and purchasing larger homes while prices are low and mortgage rates are at record lows.

 Buyers who would like to purchase a new home, but cannot afford to put 20% down plus closing costs, should discuss their financial situation with their agent and a good mortgage broker before ruling out it out.

Bucks County Single Home Sales Through 2011

The calendar year home sales statistics for Bucks County have just been released by the local MLS service.  Home Sale Statistics through 12/31/2011 are as follows:

Bucks County Single Family Home Sales 2011 Calendar Year Statistics Compared to 2009 and 2010 Statistics
	2009	2010	2011	2009/2010 Change	2010/2011 Change
Settled Units	4,829	4,560	4,423	-5.57%	-3.00%
Average Sold Price	$329,000	$343,000	$324,000	4.26%	-5.54%
Median Sold Price	$284,000	$295,000	$275,000	3.87%	-6.78%
Average Sold Price/ Original List Price*	92.28%	92.35%	90.88%	.08%	-1.59%
* “Original List Price” is the price at which a property is listed under the current listing contract.  If there is a price reduction, it would not be reflected in the original list price.
Source: MLS Trend

Home sales during 2010 were affected by the federal homeowners tax credit.  Sale numbers and prices in that year may have been affected by homeowners seeking to take advantage of the credit.

Short Sale Advise in Bucks County

Many people assumed large mortgages during the real estate boom of the last decade.  When job losses or unplanned expenses occurred, they were unable to keep up with their mortgage payments.

When the mortgage amount exceeds the net proceeds that would result from selling a property, some homeowners can not afford to sell and pay off their mortgage debt. Homeowners who find themselves in this predicament should investigate whether a “short sale” would make sense for them.

 A “short sale” is the term used when a lender agrees to accept less than the full amount owed on a mortgage to satisfy the debt, and the lender writes off the excess.  This process is frequently better for the lender because it can be less expensive than foreclosing on a property.  It can be beneficial to the homeowners because their credit rating may be less affected than it would be if they were subject to a foreclosure.

Until recently, short sales were uncommon in our area, so few local real estate firms have a lot of experience in this specialty.  Coldwell Banker Hearthside is an exception.  We have a short sale specialist who has completed over 2000 short sales during the past 30 years, and another specialist who has completed 400.

In addition to the assistance of an experienced agent, such as our specialists, we always advise a client to seek professional advice from both a financial expert and an attorney before and during the short sale process. 

We can arrange a confidential conversation with one of our specialists who can provide objective information on how the process works and whether it makes sense in a particular situation.  If you are looking for Short Sale Advise in Bucks County, PA, we are happy to help you.

Are Home Prices Stabilizing?

During the past few months, articles have appeared in real estate publications indicating that home prices may be stabilizing. 

The chief economist for the National Association of Realtors has pointed out that recent pending home sales figures have increased over the past few months.  Pending home sales represent homes for which there is an outstanding agreement of sale, but the property is awaiting settlement. http://speakingofrealestate.blogs.realtor.org/2012/01/03/2012-home-sales-positives-on-many-fronts/?cid=WR01052012:38917&ed_rid=2572431

An article in Kiplinger's suggests the negatives in the home sales market are balanced by the positives, and suggests that nationally, average home sale prices may have bottomed out.  Prices are not expected to rise significantly, but the Kiplinger's believes the worst is over. http://www.kiplinger.com/magazine/archives/where-home-prices-are-headed.html.

Real estate markets are local.  We've seen some positive signs in Bucks County, but it's too soon to predict trends and to say our local market will mirror national trends.  For those who plan to stay in a home for several years, it appears to be a great time to buy.  Prices are quite attractive and interest rates are at historic lows.