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.

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.

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.

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.

Has the Real Estate Market Bottomed Out?

Whenever I go to a social event, I am asked, "How's the market?" or, "Has the real estate market bottomed out?"

Nobody has a crystal ball that can precisely predict a turn in the real estate market, but the national press has been publishing articles that view the market more favorably than it has in years.  Among other sources, the National Association of Realtors is guardedly optimistic.  CNBC recently published a positive article, http://www.cnbc.com/id/45816002/, citing encouraging signs in the housing market.

No one would suggest that you start flipping houses, but today's market with it's low mortgage interest rates and historically affordable prices, may offer opportunities for home buyers who are likely to stay in a property for seven to ten years. 

The housing market gets a lot of attention in the national press, but, for us in Bucks County, it is the local market that  matters.  While home prices did continued to deteriorate in 2011, there were some positive signs such as a noticeable decrease in the number of homes on the market in Bucks County in November, 2011 compared to November 2010.  We'll have to wait a few months to see whether positive trends continue.

Lower Makefield Township Home Sales Statistics

Lower Makefield Township Home Sales Statistics through November 30, 2011 are now in.  Here are facts in a nutshell for single family home sales:

·         The number of homes on the market increased 5.2% in the past year from 194 in November, 2010 to 204 in November, 2011.

·         The average price of homes for sale decreased 2.2% from $499,000 in November, 2010 to $489,000 in November, 2011.

·         The number of homes sold during the the first eleven months of 2011 decreased 10.3% from 291 in 2010 to 261 in 2011. 

·         The average sold price to original listing price percentage was 93% for the first eleven months of 2011 and 92% for the first eleven months of 2011.

The statistics indicate we are in a buyer's market as compared to Lower Makefield Home Sales Statistics for prior years.

	2011	2010	2009	2008	2007
JAN	15	16	14	21	18
FEB	13	11	8	12	22
MAR	22	23	12	14	28
APR	16	28	14	18	25
MAY	23	29	18	23	23
JUNE	38	57	31	39	46
JULY	26	24	34	30	56
AUG	31	39	36	31	37
SEPT	36	26	24	23	30
OCT	15	16	24	19	35
NOV	24	22	25	7	31
DEC		14	15	14	28

 Source:  Coldwell Banker Hearthside Realtors Market Research and TRend MLS Data

  Homeowners wishing to sell their homes should understand current market conditions and not expect to sell their homes for prices that homes sold in their neighborhoods at the peak of the housing bubble. For buyers, home prices and interest rates make homes quite affordable compared  to prior years.