Upper Makefielt Home Sale Statistics Through 7/30/12

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.

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. 

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.