MOVEPHILLY

First-Aid Guide For Furniture

2011-09-03T09:45:00.000-04:00

When furniture arrives in your home, it's factory-issued, perfect and clean. From that day forward, however, accidents can happen, causing damage to your pieces. Sometimes the damage is permanent.
Know how to react when the inevitable spill or scratch occurs and you can "save" your furniture and extend its useful life.
From Martha Stewart, these "first-aid for furniture" tips should come in handy.
Wood

Moisture "rings" : Pour table salt on the white rings/haze and cover with a terry cloth. Apply hair dryer on low setting until rings are gone.
Alcohol spills : Blot spills immediately, do not rub. Apply small amounts of ammonia to damage.
Wax spills : Allow to cool and harden, then freeze the wax with an ice cube in a sandwich bag. Use a butter knife to gently scrape off wax.

Fabric

Red wine stains : Cover wine with table salt and let sit until salt has wicked up the wine. Vacuum salt and repeat, as necessary. Blot remaining stains with damp cloth and dish soap.
General spills : Repeatedly blot with a damp white cloth. Use white cloths to prevent dye transfer.
Oil spills : Cover spill with baking soda and vacuum once absorbed. Blot remaining stains with rubbing alcohol

Leather

General stains : Blot with all-purpose household cleaner. To prevent fading in the upholstery, avoid products with bleach or bleach alternatives.
Scratches : Apply saddle soap to a damp cloth and rub the scratch to help it "blend in". It won't go away.

The tips on leather furniture also makes mention that you should never bother with touch-up kits or colored markers. It's nearly impossible to match leather colors and your repair work will only make the scratch more noticeable.

If You're A Landlord, You Need A Landlord Insurance Policy

2011-09-01T09:03:00.000-04:00

The ranks of the landlords are growing. Along with an increasing number of "accidental landlords", real estate investors now account for close to 20 percent of all home resales, according to the National Association of REALTORS®.
If you plan to buy a rental property in Bensalem , or to convert your current residence for long-term rental, make sure your home is properly insured.
A traditional homeowners insurance policy may be unsuitable for landlords.
A landlord insurance policy typically covers the home itself; the owner's possessions in the home; structures on the land including garages and sheds; and, minimal liability coverage in the event of injury or lawsuit.
It's common for landlords to increase that minimal liability coverage, adding an umbrella policy for $1,000,000 or more. Umbrella policies protect your home from an unfavorable lawsuit related to just about anything -- housing-related or not.
Optionally, a policy may includes provisions for "lost rental income".
Annual premiums for a landlord insurance policy are often 20% more costly than for a standard homeowners policy. This puts the average landlord insurance premium near $950 per year.
Premiums vary by state, too. The top 3 most expensive states in which to insure a rented home are:

Texas : $1,752 per year
Florida : $1,668 per year
Louisiana : $1,386 per year

At $464 per year, Idaho is the least expensive state in which to hold a landlord insurance policy.
Talk with your insurance agent about your insurance options as a landlord. There are tens of choices and coverages from which you can choose. Let a professional help you pick the best choice.

What Perks Does Your Favorite Credit Card Offer?

2011-08-30T09:16:00.001-04:00

Last week, the Federal Reserve pledged to leave the Fed Funds Rate near 0.000 percent until at least mid-2013. For credit card holders in Pennsylvania who carry a monthly balance, this is good news. Because of the Fed's call, credit card rates are unlikely to rise before mid-2013.
But cardholders can save on more than just interest costs, as you'll learn from this two-and-a-half minute piece with NBC's The Today Show. In the interview, you'll hear about "built-in" perks offered by most credit cards and ways by which you can save on everyday goods and services.
For example, did you know your everyday credit card might offer:

Travel perks : Automatic trip cancellation protection and car rental insurance.
Shopping perks : Discount admission to concerts and museums; free shipping from overseas.
Consumer perks : Price protection against a drop in price; insurance against theft; extended warranties.

And it's not just "high end" cards that offer these options, either. Credit cards of all types do what they can to improve consumer loyalty. Offering free perks is just one way in which they try.
Most credit cards offer websites detailing cardmember perks and benefits. Visit the site of your favorite card and see where you might save on everyday items.

Make Better-Tasting Food On Your Grill

2011-08-29T09:45:00.000-04:00

Labor Day is nearing; the unofficial end of summer across New Jersey. If you're among the many Americans planning an end-of-season barbecue, you'll want to make sure your grill is clean.
A clean grill makes better tasting food.
There are several ways to clean a grill but, for owners of gas grills, the first step always is to disconnect the gas source.
Next, open your grill and remove its metal pieces. This includes grates, trays and flame guards. Take these pieces to your kitchen. If the oven has a self-cleaning mechanism, place the items in your oven and let it "self-clean". As the temperature reaches 900 degrees or more, residue will literally fall off your grill parts.
Be sure to wipe clean your oven once the cycle completes.
If your oven is not self-cleaning, wash the grill parts in your sink using hot water and detergent. You'll want to soak the parts in soapy water if they're especially dirty. Once clean, allow the parts to air dry.
Then, return to your grill and using a wire brush, scrape the residue from the sides, top and bottom of the appliance. Again, using a soapy hot water mixture, wash and wipe down the inside of the grill. Rinse it clean once the residue is removed.
Re-assemble your grill.
Lastly, reconnect the gas source (if applicable) and allow the grill to burn for 5 minutes. This will burn off any lingering residue from the cleaning process, including soap and detergent.
And that's it!
Plan on cleaning your grill at least twice annually with heavy use.

Ranking The Best Places To Live In The U.S. (2011 Edition)

2011-08-26T10:37:00.000-04:00

CNNMoney recently released its Best Places To Live 2011 list.
The annual survey is based on data from Onboard Informatics. Using Quality of Life factors such as education, crime and "town spirit", and focusing on towns with between 8,500 and 50,000 residents, the CNNMoney survey ranks the country's best "small towns".
To be eligible, towns must be have a median household income greater than 85 percent, and less than 200 percent of the state median income; must not be a categorized as a "retirement community"; and must be racially-diverse.
From a list of 3,570 eligible towns nationwide, Louisville, Colorado was ranked #1.
The complete Top 10 Best Places to Live as cited by CNNMoney, and their respective average home listing prices :

Louisville, Colorado ($383,569)
Milton, Massachusetts ($577,008)
Solon, Ohio ($291,162)
Leesburg, Virginia ($486,018)
Papillion, Nebraska ($218,520)
Hanover, New Hampshire ($643,500)
Liberty, Missouri ($177,678)
Middleton, Wisconsin ($347,770)
Mukilteo, Washington ($345,487)
Chanhassen, Minnesota ($418,607)

Rankings like these can be helpful to home buyers nationwide, but it's important to remember that the Best Place To Live survey is subjective. You may find none of the above towns to be to your liking.
You may also find the lowest-ranked city to be your favorite.
In other words, before making a decision to buy, connect with a real estate agent who has local market knowledge. That's the best, most reliable way to make sure you get the housing data that matters to you.

Beatles Tribute Band at Florida REALTORS Convention

2011-08-26T01:18:00.001-04:00

New Mobile Search of the MLS

2011-04-25T10:00:00.000-04:00

I'm excited to announce that our company has partnered with Smarter Agent, the nation’s leader in mobile real estate technology, to provide mobile search capability to ALL of our clients!

CENTURY 21 advantage Gold's custom mobile App allows consumers to search homes for sale anytime, anywhere - right from their cell phone! The App works on standard cell phones and smartphones across all mobile carriers. The public can download the app to their phone to view all homes for sale in Southeast Pennsylvania, South Jersye and Delaware - the region covered by Trend MLS.

Now consumers will have easier access to property information no matter where they are or what they're doing, including rentals, and properties sorted by location using the GPS features of your phone. Whether driving, or walking around looking at properties, consumers have access to all of the MLS information on the homes for sale around you, with just one touch of a button on your cell phone. Hit “Call to See” and you will be put right in touch with our call center where you can get even more information to assist you in your home search.

The App is free and easy to obtain. Just text C21AG to 87778, and the application will be sent to your phone by text message. Just click on it and the application downloads right away.

With all of us relying on our phones more and more for valuable information, I know our consumers will love this great new way to look for homes. So don’t delay – start searching for your dream home TODAY!

Home Inventory Dwindles Into The New Year

2010-12-26T08:59:00.001-05:00

Existing Home Sales jumped another 6 percent in November, the report's third month of improvement since bottoming in July.
According to the National Association of REALTORS®, a quarter-million more existing homes were sold during the annual period ending in November as compared to October. An "existing home" is a home that cannot be considered new construction.
Additionally, the national housing supply dropped by a full month. At the current pace of existing home sales, the complete stock of homes for sale will be exhausted in 9.5 months.
November's strong housing data is yet another signal to buyers in Palmyra that the housing market's foundation has been rebuilt, and that a rebound is imminent. It's helped that there are great "deals" on which for buyers to pounce.
In November, short sales and foreclosures accounted for one-third of all existing homes sold, and carried an average price discount of 10 percent and 15 percent, respectively, as compared to non-distressed sales.
Repeat buyers continue to power the market, too, representing more than half of all home buyers.

First-time buyers : 32% of all buyers
Investors : 19% of all buyers
Repeat buyers : 51% of all buyers

This breakdown suggests that housing has regained its footing. First-time buyers can't support a market long-term like repeat buyers can and, as compared to 12 months ago, the percentage of repeat buyers is now up 14 points.
Home buyers take note. Raw sales volume is rising and available inventory is dropping. Basic supply-and-demand tells us that this will lead home prices higher. Furthermore, mortgage rates are rising quickly, increasing the cost of homeownership.
If buying a home is a part of your plan for 2011, consider accelerating your purchase time frame. Existing homes account for more than 80% of homes sold nationwide. If the market keeps improving like this, your home affordability will worsen.

Happy Holidays with a Song!

2010-12-24T06:30:00.000-05:00

Its Holiday Time for everyone - and for the holiday here is a little piece of animation from years gone by to make you smile. May this holiday season bring happiness to you and your family!

Toys Come to Life

2010-12-22T09:43:00.000-05:00

OK, this is my last toy video for the week , but I needed to post this. I'm not sure if it was a creative commercial, a great example of creative advertising for its time or a scary prehistoric version of "Toy Story"- You decide...

More Silly Toys

2010-12-20T09:33:00.002-05:00

I really enjoy sharing silly videos - and with the holidays upon us, toys are right at the top of my mind - so here's another toy that belies the idea that children had complex toys 50 years ago... My favorite part - the look on the boy's face!

Silly Toys or Silly Kids?

2010-12-19T10:40:00.001-05:00

Last night I was shopping for toys for toys for the little kids in my family. I saw the traditional board games and toys, and action figures but l;ots of involved toys with electronics and lights and intellectual engagement with small special purpose computers. Then today, browsing on my computer, I came across this old TV commercial from (I guess) the early 60's - and it just makes me wonder what would happen if you showed up on Christmas morning with one of these as a gift.

Consumer Alert: The jingle is really catchy, and I'm not responsible if it gets in your head and stays there :-)

Happy Thanksgiving from My Family to Yours!

2010-11-25T10:26:00.000-05:00

There is always a lot of conversation bout the Turducken at this time of year. This amazing entree deserves an amazing dessert and to that end I present to you "Charles Phoenix's Cherpumple: The "Monster" Pie-Cake"
Hope you and your family have a wonderful Thanksgiving!

NAR debuts new e-PRO® certification course

2010-10-30T14:28:00.000-04:00

Next week is the REALTORS Conference and Expo in New Orleans. The event is incredible on so many levels. National committees conclude their 2011 business and new chair and vice chairs gear up for 2012 . There are tons of great learning sessions, and wonderful social opportunities. But this year is really special for me and the gang at SMMI because we have been privileged to re-write the technology course for the NAR, the largest trade association in the country. On November 4th , the course will be kicked off, with a train the trainer session featuring Amy Chorew, Ginger, my son Hal and I, at the same time the nationally renowned Terry Watson teaches the inaugural course.A panel will also be part of that course, consisting of Stefan Swanepol, Ginger, Todd Carpenter, and myself).
Its so exciting I need to write this blog post to convince me that its really happenning :). Hope I see you there!

Phillies Phind a Way to Survive!

2010-10-22T05:31:00.001-04:00

Image by reeltor99 via FlickrIts not easy being a Phillies Phan. (No that's not a missspelling - that's just how we roll in the city of brotherly love!)

After sweeping their series with the Cincinnati Reds , it phelt like the Phillies triumph in the championship series and another World Series appearance was a phoregone conclusion. But when the Phillies split the home games and lost the phirst two games in San Phrancisco it seemed like we were once again doomed to be a city living with phailure.

Last night the Phillies managed to pull victory phrom the jaws of depheat and phound a way to phoil the Giants and phorce game six. I'll be at Citizens Park to watch, and I hope that they can prevail and have a threepeat of the world series. And maybe, just maybe be the phinal victor. There's always hope - as Phillies Phans, that's just what we do!

Go Phillies!

Dan and Dan are still here and so am I

2010-09-28T07:10:00.001-04:00

Like Dand & Dan - I'm still here - Its been awhile since I stopped by to post, but really I've been busy - real estate, speaking, writing the new ePRO course, and travel has kept me from posting here as frequently as I should. But sharing this clever video should count for something - Don't you think?

A Few Fathers I wanted to Thank

2010-06-20T12:46:00.000-04:00

Its not a big holiday - there are no religous or historical overtones, and it was always a little embarassing for me after my son became a man but today , for some reason, without plan or deep thought, I wanted to take a minute to highlight a couple of fathers for their impact on my life.

Meet Isadore Lublin, my dad's father who left Russia at the start of the last century to escape the pogroms that victimized his people and his family. He never spoke about his experiences there, but found a new start in this country, where his three sons ( my dad, my Uncle Paul, and my Uncle Harry) grew strong and capable starting businesses and families of their own. He passed away when I was only 7 , but the memories of him persist to this day as a kind and warm man whose family was all important to him.

This is David Krasno, my mother's father. David came to the U.S. as a master watch mechanic in the early 19th century, and after living in New york where he met his wife, moved to a small town in Pennsylvania where he started a jewelry business, and raised 3 girls, all of whom attended college and became successful in their chosen fields, my Aunt Ruth, my Mom, my Aunt Bette. And all of this at a time when women were not as liberated as they are today. From him I learned that life can be a long and curvy road, but the line to your family should always be a direct one.

This is my father, George Lublin. Born in Philadelphia, he suffered from Polio as a child, though he persevered through and became a physically strong young man after being a sickly child. The oldest of three sons, he left high school during the depression so that he could work and help the family through the tough time. During World War II, physically limited by his encounter with polio, he worked in the Brooklyn Navy Yard, where he built ships and endured antisemitism while his younger brothers went to war .

After the war he began a career as an insurance agent, building a business and a family with my mom, enduring the loss of a child between the births of my sister and myself. And in the midst of life, he endured another blow when in 1961, he was left a widower with an 11 year old son and a 17 year old daughter. He changed careers in the late 1960's to real estate at the urging of his brother Paul, and worked at the same company for the remaining 8 years of his life, until he struggled against lung cancer to the inevitable end.

It is impossible to tell you what I learned from my dad. I don't know if I can attribute my bizarre sense of humor to him, but I'm pretty sure I can attribute my love of books and art to him since I was surrounded by both growing up. I know that I learned a lot about dealing with people and facing adversity from him and he is still the standard for me. I know that he is a presence in my life and that I still miss him even today. I know that while he was a fallible individual as we all are but to me he was a great dad - and I know that he did the best he could with what life gave him to work with.

This picture is a pretty special one to me. Its the only picture I own that shows my dad with my son. My son Hal was born on January 9, 1997. My dad George died on August 11, 1977. They had very little time together, and Hal obviously can't remember his grandfather, but my dad knew my son and loved him very much. I still remember taking Hal to the Fox Chase Cancer Center, where my father could join Hal for an impromptu "picnic" on the grass outside his room - a point of happiness in a difficult time.

And of course, here's the reason I get to participate in father's day - my son Hal. No reason for adding this picture here except I really like it. And no son could ever be more super than mine to me :-)

Just a quick jump to a new limb of the family tree - Here is my son's Father-In-Law, Ernest Kelley. (along with Sheila and the lovely Janet Kelley - Hal's Mother-In-Law) . Ernest is a Father who deserves to be mentioned with the guys I'm assembling here. He and Janet are exceptional people who were an absolute bonus to a great daughter-in-law. But in our conversations on many long walks, Ernest has shown me that even though we come from different backgrounds, we meet on the values that make a parent - and a man. (Though I would be remiss if I didn't point out that he ,llike Hal and me married wayyyy over his head!)

And this picture is just one of my favorites. Though I miss my lovely wife, I still have my kids - Hal and Jennifer - and through them the circle of life (thanks Disney) continues - and like every Father everywhere today - they are the greatest gift anyone could ever have. I hope your gifts are just as great!

Buying a Home before You're Married or After - What's the diff?

2010-06-15T08:36:00.005-04:00

Change Your Air Filters Monthly (But Don't Go Cheap)

2010-06-14T15:05:00.000-04:00

As the mercury rises into the summer months, don't forget to change your home's air filters regularly. It not only extends the life of your HVAC unit, but can help keep your energy costs down, too.
Not all air filters are created alike, however. Don't go cheap.
Your local hardware store carries a variety of air filters ranging in price from less than a dollar to $20 or more per filter. They're all purported to do the same job, but after watching this 1-minute video, you'll see why cheaper isn't necessarily better.
Airborne particles are smaller than most mesh filters. Pleated filters are recommended instead.

Most high-quality air filters start around $11 and can be purchased in bulk from Amazon at discounts of up to 20 percent. 3M's Filtrete line of products is a popular, well-selling brand and can last up to 3 months.
If your home has shedding pets or is dust-prone, consider changing them monthly.

Relocate America's Top 100 Places To Live (2010 Edition)

2010-06-12T09:45:00.000-04:00

Relocate America recently released its 2010 list of Top 100 Places To Live In America. The rankings are topped by some cities you may expect, and some you may not.
According to Relocate America, the rankings highlight communities "moving in the right direction", defined as having a combination of strong leadership, job opportunities, improving real estate markets, recreational options and a good quality of life.
It's not a bad formula and topping the list of Top 100 Places To Live In America is Huntsville, Alabama. Huntsville was chosen for its low levels of unemployment, stable housing stock, and low cost of living. Last year, Huntsville placed fifth on the Relocate America list.
The Top 10 cities in which to live, as selected by Relocate America are:

Huntsville, AL
Washington, DC
Austin, TX
San Diego, CA
San Antonio, TX
Tulsa, OK
Charlotte, NC
Raleigh, NC
Boulder, CO
Minneapolis, MN

View the complete Top 100 Places To Live In America 2010 list at the Relocate America website.

Your Microwave Wastes $70 Per Year And Other Vampire Energy Facts

2010-06-10T09:09:00.000-04:00

Even when they're not "on", a multitude of everyday home appliances continue to draw power from the grid, raising home energy bills and increasing atmospheric emissions. These so-called "Energy Vampires" cost U.S. homeowners $4 billion, collectively, in 2005.
In 2010, that figure is likely higher.
In the video above, some of the more common Energy Vampires are highlighted. As an example of how costly standby power can be, researchers show that idle microwave ovens consume enough energy each day to pop an entire bag of microwave popcorn. Annually, the kind of energy consumption wastes close to $70 per household.
Other household Energy Vampires include:

Idle battery chargers
Computers in "standby" mode
Remote control sensors

Simply being aware of home energy-suckers is one easy way to reduce your electricity bill and do something good for the environment. The video shows you how you can both.

How To Clean Your Grill For Better Tasting Food

2010-06-09T08:45:00.001-04:00

A well-maintained grill is the key to great tasting food, season after season -- chicken, meats, fish or other. And keeping your grill clean is simple.
In this 4-minute from Lowe's, you'll learn basic, pre-grilling cleaning tricks, plus how to breakdown your gas grill completely and clean its parts.
Some of the pointers from the video:

Clean your grill before every use using the grill's own heat and a wire brush
Don't try to clean rusted and/or broken grill grates -- replace them
After long periods of non-use, check your burners for insects and pests

The video is geared at beginners and includes a step-by-step tutorial. Even the most seasoned griller could probably pick up a tip or two.

Should You Refinance Your Mortgage?

2010-06-07T09:06:00.001-04:00

Because of strife in Greece, Spain and North Korea, conforming mortgage rates are back to all-time lows. They're at levels not seen in 50 years. For homeowners that missed the Refi Boom of November 2009, it's a second chance.
In this well-presented, 3-minute video from NBC's The Today Show, you'll get tips getting low rates and choosing the best time to lock in.
Some of the topics covered include:

Why were the experts wrong about rates moving higher this summer?
How much money can you save with a 1 point drop in your interest rate?
Should you buy a bigger home now that rates have fallen?

The advice in the piece is matter-of-fact and centered. There is no cheerleading and the message is honest. Mortgage rates are low and they likely won't stay that way. If you've been thinking about a refinance, talk to your loan officer as soon as possible.

A Dual-Edged Roller Knife To Make Your Chopped Salads Easier

2010-06-05T17:13:00.000-04:00

With the Oxo Salad Chopper, making chopped salad for the family and/or friends is both faster and safer.
Using a dual-blade roller knife similar to a pizza cutter, the ergonomic Salad Chopper cuts lettuce, vegetables, fruits, meats and nuts with just a few rolls. There's no need for a separate cutting board (and no worries of slicing a finger).
Made from stainless steel, the angle-handled roller is built to trace the curves of the accompanying Oxo bowl. The blades remain in constant contact with the plastic and the rim has a built-on grip to help you get a handle on your work.
The 5.5-quart bowl is big enough for 6 servings and is dishwasher-safe. Oxo says you can serve in it, too, but that's up to you.
Trade in store-bought salad bags and opt for something fresher. Oxo's Salad Chopper sells on Amazon.com for $25.

Markets Ignore The April Jobs Report And It's Good News For Mortgage Rates

2010-05-18T09:07:00.000-04:00

On the first Friday of every month, the U.S. government releases its Non-Farm Payrolls report.
More commonly called "the jobs report", Non-Farm Payrolls is a major market mover. The number of working Americans is directly tied to the health of the economy which, in turn, drives the stock and bond markets.
In general, when jobs numbers improve, it's good for stocks and bad for mortgage bonds. It follows, therefore, that conforming mortgage rates in New Jersey rise because rates always move opposite of mortgage bond prices.
Conversely, when jobs numbers worsen, it tends to be bad for stocks and good for mortgage bonds. Mortgage rates fall.
Today, markets are behaving a bit differently.
Despite 290,000 jobs created in April 2010 -- nearly twice the expected amount -- and a 40 percent upward revision of March's numbers, mortgage rates are essentially unchanged.
In a normal environment, rates would be higher. Today is not normal.
Today is a departure because, for all of the jobs report's import to Wall Street, it's less important to markets than what's happening in Greece right now.
Greece is struggling to meet its debt obligations and its citizens are rioting.
Until a debt solution for Greece is made that sticks, unrest in the region will drive safe haven buying both domestically and abroad. U.S. mortgage bonds will gain on that movement because mortgage bonds are "safe", and mortgage rates will fall.
Indeed, this is exactly what's been happening since the start of April. Mortgage markets have been rallying for 5 weeks.
So, Friday's jobs news is terrific for the economy and mortgage rates should be rising because of it. But, they're not. Consider taking advantage -- lock in a rate.

NAR makes history in a vote to amend the Code of Ethics to include sexual orientation - vid...

2010-05-17T09:05:00.001-04:00

This video makes me really proud to be a REALTOR, but even prouder to have been part of the process that led to what is a historic moment for the National Association of REALTORS and our 97 year old Code of Ethics.

Last year, during my term as Chairman of the Interpretations and Procedures sub-committee of the Professional Standards Committee, this amendment to the Code prohibitinh discriination based on sexual orientation was suggested by state associations. The sub-committee discussed the matter, and began the process needed to move this forward.

The change to our Code is significant because it is the first time in the history of the code that REALTORS have set a standard against discrimination that is higher than the law in many places. And did it quickly, unanimously and with little discussion at the meeting. (Though I did love the woman who suggested that we should just say "REALTORS shouldn't discriminate")

The people in this video from left to right are Linda Paige, Steve Roscoe, Domenic Cardone, and Rodney Ganshoe. They are the Chairman of the Professional Standards Committee, the Chairman of the Interpretations and Procedures sub-committee, the Vice-Chairman of the Professional Standards Committee, and one of the best association staff people on the planet. Oh, and yes, I am the Bill Steve mentions in the video (and I was paying attention before he said "sex" )

Thanks to all of the members and staff who made this possible so that we can as an organization move forward in such a positive manner.

(NOTE: Though this was approved by the Committee and the Board of Directors, it also needs to be approved by the Delegate Body at the Annual Meetings In New Orleans in November 2010.)

Interview w/Bill Lublin - REtechSouth

2010-05-16T12:10:00.000-04:00

I Google myself regularly as part of my own reputation monitoring. I just came upon this video taken by Ricardo Bueno when I was in Atlanta speaking at the ReTechSouth Event 2010. SInce I hadn;t seen it for a while I though I might share it here. It does however raise a question in my mind - is the picture fuzzy because I was tired or Ricardo wasn't focused? Anyway, hope you enjoy it.

Fannie Mae Tightens Guidelines On ARMs And Interest Only Products

2010-05-12T09:01:00.001-04:00

For the first time this year, Fannie Mae announced significant updates to its mortgage underwriting guidelines.
The changes include newer, harsher ARM qualification standards, the elimination of a once-popular loan product, and tighter rules for interest only mortgages.
Fannie Mae made its official announcement April 30, 2010. The changes will roll out to home buyers and homeowners in Philadelphia and everywhere else over the next 12 weeks.
The first guideline change is tied to ARMs of 5 years or less.
Mortgage applicants must now qualify based on a mortgage rate 2% higher than their note rate. For example, if your mortgage rate is 5 percent, for qualification purposes, your rate would be 7 percent.
The elevated qualification payment will disqualify borrowers whose debt-to-income levels are borderline.
The second change is Fannie Mae's elimination of the standard 7-year balloon mortgage. Balloon mortgages were popular early last decade. Lately, few borrowers have chosen them, though. Mostly because rates have been relative high as compared to a comparable 7-year ARM.
And, lastly, Fannie Mae is changing its interest only mortgages guidelines.
Effective June 19, 2010, Fannie Mae interest only mortgages must meet the following criteria:

The home must be a 1-unit property
The home must be a primary residence, or vacation home
The borrower's FICO must be 720 or higher
The mortgage must be a purchase, or rate-and-term refinance. No "cash out" allowed.

Furthermore, borrowers using interest only mortgages must show two full years of mortgage payments "in the bank" at the time of closing.
Earlier this year, Fannie Mae-sister Freddie Mac announced that as of September 2010, it will stop offering interest only loans altogether.
Between Fannie Mae, Freddie Mac, the FHA, and other government-supported entities, the U.S. government now backs 96.5% of the U.S. mortgage market. So long as mortgage default rates are high, expect approvals for all borrower types to continue to toughen.

Housing Starts Data Hints That Housing Will Expand Even After The Tax Credit Expires

2010-05-11T09:01:00.000-04:00

As a real estate broker whose company's largest concentration is on the existing housing market in Philadelphia and South New Jersey, I only pay a little attentionb to the new housing market. Especially since that market has really been in more of a clean up than expansion mode for the past several years. After all, the existing inventory needs to shrink before we worry about about creating new inventory doesn;t it? It seems that there are indicators that the inventory has been shrinking and that the market has been changing. After a strong March showing and a surprise upward-revision for February, Housing Starts are, once again, trending better.

It's a significant signal that the housing markets in Philadelphia, Mount Holly and nationwide are stabilized.
A Housing Start is a new home on which construction has started and, over the last 6 months, home builders are averaging one half-million starts per month.
This marks the highest 6-month average since 2008 and a reading one-fifth percent better from 12 months ago. Revisions to prior data have all been higher, too.
Even more interesting, though, is that the number of newly-issued building permits is exploding. Permits were up more than 5 percent last month and have climbed back to the levels of late-2008.
Housing permits are an important data point in housing because permits are precursors to actual housing starts. According to the Census Bureau, 82% of homes start construction within 60 days of permit-issuance.
Therefore, because March's housing permits increased, we should expect Housing Starts to continue to rise into the early months of summer.
This, too, reflects well on housing because the federal home buyer tax credit won't be in existence this summer. The simple fact the homes are being built now shows that housing is likely to expand even now that the tax credit expires. And, as you may have noticed in my other posts, I sort of think that's happening as well.

March Pending Home Sales Point To Stronger Spring Market

2010-05-09T08:09:00.000-04:00

The Pending Home Sales Index moved higher in March as home sales were spurred by low mortgage rates and an expiring tax credit.

A "pending home" is a property that is under contract to sell, but not yet closed.
March marks the second straight month in which the Pending Home Sales Index improved after a series of weak showings this past winter.
March showed a 5 percent increase over the month, but the Pending Home Sales Index is still off its October 2009's peak. October 2009 is a comparable period to March 2010 in that it marked the 1-month deadline before the home buyer tax credit's initial expiration date. The credit was later extended to April 2010, of course.
That said, March's surge in sales is being felt on the street.
Home buyers in Philadelphia no doubt noticed the change in activity. Both locally in our company and around the country, anecdotally, multiple offer situations were more common last month and "right-priced" homes tended to go under contract quickly.

The increase in March's Pending Home Sales is diminishing the nation's home supply which, in turn, should cause prices to rise in most markets -- including Philadelphia and surrounding counties including New Jersey.

Today's buyers should consider making an offer sooner rather than later. We will probably see the trend continue as activity in the month on April as measured by our firm was even higher than in March, but for an offical number, we'll have to wait until next month. But looking at the data, it appears the best time to have found a "deal" on a home may have been in February, when snow kept many homebuyers off the streets, giving the hardy souls who braved the weather a competitive edge.

The I.D.E.A. of real estate investing

2010-04-30T10:00:00.000-04:00

What Happens After the Tax Credit is gone?

2010-04-23T16:03:00.003-04:00

Image by reeltor99 via Flickr

With less than a week to go before the tax credit is over, I've been thinking about what the real estate market in Philadelphia will look like for the rest of the year. I was thinking specifically about the real estate market here, because real estate is too local for me to have a sense of what the national scene will look like in May and after.

The tax credit has certainly sped up the market so far this year. All of our offices have outpaced their production for the same period last year (when we were ranked as the number Century 21 company in our area, and number 3 for the state), so its obvious that the tax credit has had some impact. The question is whether is has driven the market or enhanced the market, and my opinion leans towards enhancement. Investors seem to have re-entered our market, and that (to me) is a sing that they percieve value in our real estate. Though activity is speeding up as we near the deadline, my sense is that the market will slow but not stall after the tax credit, because all of the basic reasons to buy a home are in place.

1. Prices are stable and gaining ground. According to Trend MLS, in the first qiarter of this year, closed transactions were up almost 10% (9.6% actually) and the average sale price actually increased over the same period in 2009.
2. Interest rates remain historically low - I don't think I really have to explain this one. Articles speak about rates going up from 5 to 6% as if that were a lot. People wouldn't be happy unless the bank paid them, but frankly, anything under 9% has always been really indicative of inexpensive money.
3. The financial benefits of home ownership are undeniable in the current market. In a recent article, the New York Times once again published its rent vs. buying calculator, and in our market, with no appreciation and no rental increases, a home buyer still makes out better after only 5 years of home ownership - and any prudent landlord would certainly increase the rent at least a few percent over 5 years!

With all of that going for us, it would seem that we have reason to believe that there will be reasonable activity for the rest of the spring market. Certainly if more jobs are created, and we avoid any major economic body blows, it would seem that we might be headed towards the recovery we have heard so much about.

Home Resales Boom Into The End Of The Tax Credit; Home Values Seen Rising.

2010-04-23T08:59:00.002-04:00

Existing Home Sales rose in March, as expected. U.S. home buyers closed on 7 percent more homes as compared to February.

Furthermore, versus March 2009 -- a month many people equate to the low point of the U.S. economy -- sales volume was up 16 percent.

"Existing home sale" is the technical term for a home resale; a home previously inhabited by a person. It's the opposite of a "new home sale" which is a sale of a newly-constructed home.

Existing Homes Data is tracked by the National Association of Realtors® and a closer look at the March data reveals some other interesting notes:

Year-over-year sales are higher for the 9th straight month
Real estate investors represented 19 percent of all homes purchased
First-time home buyers account for 44 percent of all buyers

Also worth noting is that the supply of available homes is down on a broader basis. At the current rate of sales, the existing home inventory will be exhausted in 8 months.

Despite banks releasing foreclosures and REO into the Palmyra market, that's still one half-month less from February.

When supplies drops, home prices tend to rise. It suggests an underlying strength in housing that should support home prices through the next few months -- especially as the home buyer tax credit finishes working its way through the system.

That said, real estate markets are local. You shouldn't assume that what's happening on the national level is also happening here at home. Be sure to check with your real estate agent about local market conditions before making a decision to buy or sell.

Do Your Spring Cleaning Like Martha Stewart

2010-04-02T09:00:00.000-04:00

Spring is here and Philadelphia homeowners are starting their respective Spring Cleaning rituals.

In some households, Spring Cleaning is best tackled in a single weekend filled with rubber gloves, ratty clothes, and sweat. In other homes, it's a less serious undertaking. Either way, to clean a home from top-to-bottom, you need to have a plan.

If you've never used the Martha Stewart, 9-step Spring Cleaning Organizer, check it out. It covers the basics:

Cleaning shades and windows
Sorting through wardrobes for "old" clothes
Cleaning and rotating mattresses and cushions

For most of the cleaning, everyday household cleansers and a vacuum or rags will do the trick.

There are a few items on the list, however, that require heavy-duty appliances; ones you may not keep at-home. For example, cleaning carpets is best-handled with a steam cleaner. You can choose to rent cleaning equipment from a local hardware store, or considering hiring an Angie's List contractor to do the job. It'll be more expensive, but the job will be done properly.

Also on the list is a reminder to check batteries in smoke alarms, carbon monoxide detectors, and flashlights.

15-Minute Fixes For Around The Home

2010-04-01T08:45:00.000-04:00

Home maintenance is an ongoing project. There's always something to do around the house, or something to fix. The problem is, you may not have the time, or the skills, to get it done yourself.

In this 4-minute piece from The Today Show on NBC, you'll see some projects are quite simple.

Dubbed "15-Minute Fixes", see how simple it can be to handle 3 common household chores:

De-alcification of a shower head
Clearing hair from the inside of a bathroom drain
Sealing a granite counter-top

Each clean-up job is cheap, quick, and can be handled sans handyman. As Spring Fever sets in, put these fixes on your To-Do List.

Get Your FHA Mortgage Application Started -- Fees Increase 1/2 Percent Starting Monday, April 5, 2010

2010-03-31T08:15:00.001-04:00

Starting Monday, April 5, 2010, getting an FHA mortgage in Philadelphia and throughout the nation will be more expensive for borrowers. Combine that with the short period of time left for the tax credit program and its shaping up to be a busy week for buyers.

In new guidelines set forth earlier this year, the FHA announced plans to raise additional revenue and reduce the overall risk of its mortgage portfolio.

The changes include the following:

Increase Upfront Mortgage Insurance Premiums from 1.75% to 2.25% for everyone
A plan to reduce seller concessions from 6 percent to 3 percent
An increase in minimum downpayment for FICOs 580 or lower

For your own loan, to avoid being subject to higher loan costs, make sure to have your FHA Case Number assigned prior to Monday, April 5, 2010. That means you'll want to give a full mortgage application before the weekend so your lender can register your loan in time for the deadline.

But don't leave your application to the last minute.

Friday is Good Friday so most banks will be closed. Your true FHA deadline, therefore, is Thursday April 1.

Also worth noting is that the FHA isn't done with its changes.

In its policy statement, the group also announced its plans to petition Congress to raise monthly mortgage insurance premiums. The FHA's formal request, in summary:

Raise monthly premiums by roughly 0.30%, or $25 per $100,000 borrowed per month
Lower upfront mortgage insurance premiums by 1.25%, or $1,250 per $100,000 borrowed at closing

For now, the request is neither approved nor acknowledged by Congress. It's merely a request. And in the event that Congress does approves it, the FHA reserves the right to change its projections. Either way, it means higher costs for consumers.

The best plan, therefore, is to get your FHA mortgage into underwriting ahead of the switches because borrowing money will be harder, and more costly.

CNNMoney.com Predicts The Best And Worst Real Estate Markets For 2010

2010-03-29T10:19:00.000-04:00

CNNMoney.com recently published its 2010 forecast and projections for home prices in the country's largest metro markets.

Listed as "Top 25" and also comprehensively by state, CNNMoney.com's home price forecasts puts Santa Rosa, California at the top of 2010's home appreciation list and Hanford, California at its bottom.

The 10 cities projected for highest home appreciation in 2010 are:

Santa Rosa, CA : +6.0%
Cheyenne, WY : +4.7%
Kennewick, WA : +4.6%
Merced, CA : +4.4%
Bremerton, WA : +4.2%
Fairbanks, AK : +4.2%
Corvallis, OR : +4.1%
Tacoma, WA : +3.9%
Anchorage, AK : +3.8%
Bend, OR : +3.3%

The Pacific Northwest is the region most heavily-represented among price gainers. The Southeast and Middle Atlantic are most represented on the under-perform list.

However, just because a city's homes are expected to appreciate (or depreciate) in 2010, that doesn't mean that every home within its limits will follow suit. Real estate cannot be grouped on a city level like CNNMoney.com tries to. There will always be areas in demand within city limits in which prices rise, just as there will be out-of-demand areas in which prices fall.

Real estate data can't be grouped by city or even by ZIP code, really.

Real estate in Mount Holly is more local than that.

When we say "real estate is local", it means that every street in every town has a distinct set of traits that drives its home values. Homes that are one block closer to the train; or, homes that are facing north; or, homes that are made of brick. Each of these characteristics can affect a home's desirability which, in turn, can affects its sales price.

National surveys can't capture "essence" like this. They only report on the aggregate.

For local real estate data, look to established, publicly available websites and to active, local real estate agents. Both will have data and insight that can help you. National surveys often make for good headlines, but do little to help homebuyers find good value.

Cool Tools : Color This! Shows How Paints And Colors Will Make A Room Look Good

2010-03-15T08:45:00.000-04:00

Visualizing a home in different colors can take a good eye and strong imagination -- especially when you're house-hunting and the home's effects are of someone else.

Yet, we wonder:

What would the bedroom look like in blue?
How would the kitchen look in yellow?
What if the foyer wall was accented in red?

At the Better Homes and Gardens website, you can answer those questions and see the results for yourself. Using the Color This! tool, website visitors can mix-and-match swatch colors, then apply them to a room's walls, floors, trim, cabinets and accessories.

Don't just get a mental picture of a room -- get an actual picture.

The Better Homes and Gardens site requires a basic, non-intrusive site registration to use the Color This! product suite. It's also available for home exteriors and window treatments, too.

How To Properly Screen A Prospective Tenant

2010-03-14T08:56:00.000-04:00

According to the the National Association of Realtors®, "distressed homes" represented nearly 2 of every fifth home sold in January 2010. Clearly, real estate investors in Mount Holly and around the country are taking advantage of good deals on cheap property. But there's risk involved.

This NBC Today Show interview first ran in March 2009, featuring real estate expert Barbara Corcoran. Despite its age, the message remains relevant. Today may be a terrific time to buy a bank-owned home -- just make sure you do your research first. There's plenty of ways for investors to get burned.

Some of the tips in the video include:

Buy in your own backyard
Start small, then build to a bigger portfolio
Watch receipts -- rent rolls don't matter if tenants aren't paying rent

Corcoran also gives pointers on how to evaluate a prospective tenant.

Foreclosures should represent a large number of 2010's total home sales and will offer interesting opportunities to bona fide real estate investors. Before you jump in, make sure to watch the video. The rents you save may be your own.

Remember, the stats and the data are from 12 months ago, but the advice stays meaningful. Real Estate investing, when you apply sound principles is still a great way to build income and acquire wealth. You just have to take time and investigate it completely.

7 Weeks Remain To Find A Home, Claim Up To $8,000 In Tax Credits

2010-03-12T08:57:00.003-05:00

In November, Congress extended and expanded the First-Time Home Buyer Tax Credit program to include a subset of "move-up" buyers -- homeowners that have owned and lived in their home for 5 of the last 8 years.

The credit ranges up to $8,000 per buyer. There's now just 7 weeks left to take advantage.

To be eligible, home buyers must be under contract for a new home no later than April 30, 2010, and must be closed no later than June 30, 2010.

In addition to meeting the deadline dates, there's a basic set of requirements to be tax credit-eligible:

You can't purchase the home from a parent, spouse, or child
You can't purchase the home from an entity in which the seller is a majority owner
You can't acquire the home by gift or inheritance
Each buyer in the purchase must meet eligibility requirements

There's other criteria, too.

For one, the sales price on the subject property cannot exceed $800,000. Homes sold for more than $800,000 are ineligible for the tax credit. Furthermore, households earning more than $125,000 as single-filers, or $225,500 for joint-filers, are ineligible.

You can read the complete eligibility requirements at the IRS website, or, you may just find it simpler to speak with your accountant about it. There are some nuances in qualifying for and claiming the tax credit on your returns and getting a professional's opinion is always wise.

And lastly, don't forget that government's tax credit program is a true tax credit. It's not a tax deduction. This means that a tax filer whose "normal" tax liability is $3,500 and who is eligible for $8,000 in credit will receive a $4,500 refund from the U.S. Treasury.

If you're currently in the House Hunt, mark your calendar for April 30, 2010. It's 7 weeks away and you can be sure that as the date gets closer, buyer traffic is going to increase. You may find sellers more willing to negotiate today than several weeks from now.

Foreclosures Per Capita | February 2010

2010-03-12T08:57:00.002-05:00

According to foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 12th straight month last month as 1 in every 418 U.S. homes received a foreclosure filing.

It's a small improvement from January and a just 6 percent increase over February 2009.

On a per-capita basis, foreclosure density varied by state:

Nevada : 1 foreclosure filing per 102 homes
Florida : 1 foreclosure filing per 163 homes
Arizona : 1 foreclosure filing per 163 homes
California : 1 foreclosure filing per 195 homes

Also, as in January 2010, foreclosures across the country were concentrated. 10 states beat the national Foreclosure Per Capita average; 40 states fell below. Like everything else is real estate, it seems, foreclosures are local.

For today's Palmyra home buyers, foreclosures represent an interesting opportunity.

Homes bought in various stages of foreclosure are often less expensive than other, non-foreclosure homes. It's one reason why distressed home sales account for 38 percent of all resales. However, less expensive doesn't always mean less costly. A foreclosed home may be in various stages of disrepair and they're often sold as-is, as policy.

Buying new or used in Philadelphia or surrounding counties can be cheaper than buying broken-down. Buying foreclosures is attractive, and I've been selling bank owned properties since 1988, but you can create a problem for yourself if you chase the "deal" instead of looking for the house that suits your needs.

Therefore, if you're in the market for a bank-owned home, make sure you know what you're buying before you sign a contract. Have qualified professionals review and inspect the property, as needed. Damage to pipes or the property's structure, for example, may not be so obvious on a walk-though and you'll want to know about it before you buy. If you want to look at foreclosure properties, just visit our website.

Also, foreclosed homes are federal tax credit-eligible. Buyers must be under contract by April 30, 2010 and closed by June 30, 2010.

How To Remove Stickers And Adhesive-Based Price Tags From Just About Anything

2010-03-04T08:50:00.000-05:00

Sometimes, price tags just don't want to unstick. No matter how hard you scrub and scrape, tacky residence stays behind. Turns out, getting "the stick" off your stickers isn't so hard when you have the right tools.

In this 2-minute video from eHow.com, you'll learn how to remove stickers and adhesive-based price tags from common household items including:

Wooden furniture
Glass vases and other glassware
Plastic pieces
Cardboard boxes

The best part? All the supplies you'll need are already in your home.

Separating FHA Fact From Fiction : Mortgage Insurance Premiums

2010-03-03T09:45:00.000-05:00

The mortgage lending landscape changes a lot. Rates and guidelines are in constant flux, and it creates preparedness challenges for buyers in Mount Holly that aren't paying in cash.

The loan you get today won't always be the loan you get tomorrow.

Because of how frequently bank rules are changing, it can be hard for laypersons to distinguish between mortgage fact and fiction of "what's coming next".

Recently, we saw this with respect to FHA home loans.

January 20, 2010, the FHA issued a press release with new lending guidelines. Specifically, it announced 3 changes that will be effective starting April 5, 2010:

Upfront mortgage insurance premiums increase from 1.75% to 2.25%
Allowable seller concession reduced from 6% to 3%
FICO scores of 580 or lower are subject to a minimum 10% downpayment

But, also in its official statement, the FHA announced it would ask Congress for permission to raise monthly mortgage insurance premiums. This is where the rumors started.

Nestled on page 348 of the Budget of the United States Government, Fiscal Year 2011, in a section titled Special Topics, there is a 1-paragraph notation that details the FHA's petition.

Raise monthly premiums by roughly 0.30%, or $25 per $100,000 borrowed per month
Lower upfront mortgage insurance premiums by 1.25%, or $1,250 per $100,000 borrowed at closing

For now, the request is neither approved nor acknowledged by Congress. It's merely a request. And in the event that Congress does approves it, that doesn't mean that FHA has to stand by its initial projections.

Truth is, about the only thing we know about the future of FHA lending is that, come April 5, 2010, borrowing money is going to be tougher, and more expensive. These are the facts as we know them today.

Homebuyers should plan accordingly.

As The Supply Of New Homes Grows, So Does The Opportunity For A "Good Deal"

2010-03-02T08:57:00.000-05:00

The housing recovery showed particular weakness in the New Homes Sales category last month -- good news for homebuyers in Philadelphia, New Jersey, and around the country.

A "new home" is a home for which there's no previous owner.

New Home Sales fell 11 percent from the month prior and posted the fewest units sold in a month since 1963 -- the year the government first started tracking New Home Sales data.

Right now, there are roughly 234,000 new homes for sale nationwide and, at the current sales pace, it would take 9.1 months to sell them all. This is nearly 2 months longer than at October 2009's pace.

The reasons for the spike in supply are varied:

The original home buyer tax credit expired in November
Weather conditions were awful in most of the country in January
Weak employment and consumer confidence continue to hinder big ticket sales

Now, these might be less-than-optimal developments for the economy as a whole, but for buyers of new homes, it's a welcome turn of events. Home prices are based on supply and demand, after all.

As a result, this season's home buyers may be treated to "free" upgrades from home builders, plus seller concessions and lower sales prices overall.

It's all a matter of timing, of course. New Home Sales reports on a 1-month lag so it's not necessarily reflective of the current, post-Super Bowl home buying season. And from market to market, sales activity varies.

That said, mortgage rates remain low, home prices are steady, and the federal tax credit gives two more months to go under contract. It's a favorable time to buy a new home.

There Are No Jeans in the Pyramid Club

2010-02-25T10:43:00.003-05:00

Having a great time teaching the CSM class for SMMI at the Pyramid Club in Philadelphia. The room is awesome, the venue is great (52nd Floor of the Mellon Bank Building), and the dining is very classy.

Too classy in fact to allow our lovely students to wear jeans in the dining room. However the lovely folks at the Pyramid have been kind enough to set up a special room for us to dine privately. Gotta give them credit for keepin' it classy while they keep it real !

Thanks Guys!

The Best And Worst Cities For Commuters (2010 Edition)

2010-02-22T08:50:00.000-05:00

According to the Census Bureau, 2.8 million people commute to work 90 minutes or more each day, in each direction.

Now, your daily commute may not be as long, but time spent in cars, trains and buses is time away from work and from family. Drive-time can affect a person's Quality of Life and it's one reason why Forbes Magazine's Best and Worst Commutes is worth reviewing.

Measuring travel time, road congestion and travel delays in the 60 largest metropolitan areas, Forbes ranks city commutes from best-to-worst with Salt Lake City topping the list and Tampa-St. Petersburg finishing it.

The Top 5 Commutes, as compiled by Forbes:

Salt Lake City, Utah
Buffalo-Niagara Falls, New York
Rochester, New York
Milwaukee-Waukesha-West Allis, Wisconsin
Albany-Schenectady-Troy, New York

The bottom 5 are Tampa-St. Petersburg, Detroit, Atlanta, Orlando, and Dallas-Forth Worth.

Long commutes shouldn't deter you from moving to a particular city, but the potential commute should be consideration. Before making an offer on your next home, make a rush-hour commute to work from your potential new neighborhood. Then imagine doing it every day.

You can read the complete Forbes list of Best and Worst Cities for Commuters on its website.

Mortgage Rates Spike On The Federal Reserve's January 2010 Meeting Minutes

2010-02-18T08:51:00.002-05:00

Mortgage markets reeled Wednesday after the Federal Reserve released the minutes from its January 26-27, 2010 meeting. Mortgage rates in New jJersey are now at their highest levels since the start of the year.

The Fed Minutes is a follow-up document, delivered 3 weeks after an official FOMC meeting. It's a companion piece to the post-meeting press release, detailing the debates and discussions that shaped our central bankers' policy decisions.

The Minutes is a terrific look into the Fed's collective mind and, yesterday, Wall Street didn't like what it saw. Specifically, the report disclosed that:

The Fed plans to break support for mortgage markets after March 31, 2010
Raising the Fed Funds Rate will be a key part of the Fed's strategy to tighten monetary policy
The fundamentals behind consumer spending strengthened modestly

Furthermore, the Fed Minutes said that there is a growing risk of "higher medium-term inflation". Inflation, of course, is awful for mortgage rates.

Overall, the Fed's economic optimism appeared stronger after its January meeting as compared to its December one. A stronger economy should lead to better job growth and higher home prices throughout 2010.

Mortgage rates were up yesterday but they remain historically low. And many analysts think that after March 31, 2010, rates will rise even more. Therefore, if you're buying a home in the near-term, or know you'll need a new mortgage, consider moving up your time frame.

Every 1/8 percent makes a difference in your household budget.

Mortgage Approvals Are Getting More And More Scarce

2010-02-15T09:02:00.000-05:00

The economy's improving but lending standards are not. Nationally, banks are making mortgage approvals harder to come by.

Underwriting guidelines are tightening.

The data comes from the Federal Reserve's quarterly survey to its member banks. The Fed asks senior bank loan officers around the country to report on "prime" residential mortgage guidelines over the most recent 3 months and whether they've tightened.

For the period October-December 2009:

Roughly 1 in 4 banks said guidelines tightened
Roughly 3 in 4 banks said guidelines were "basically unchanged"

Just 2 of 53 banks said its guidelines had loosened.

Combine the Fed's survey with recent underwriting updates from the FHA and generally tougher standards for conventional loans and it's clear that lenders are much more cautious about their loans than they were, say, in 2007.

Today's Philadelphia home buyers and would-be refinancers face a bevy of new borrowing hurdles including:

Higher minimum FICO scores
Larger downpayment requirements for purchases
Larger equity positions for refinances
Lower debt-to-income ratios

So, if you're on the fence about whether now is a good time to buy a home, or make that refi, consider acting sooner rather than later. It doesn't necessarily matter that mortgage rates are low, or that there's an up-to-$8,000 home purchase tax credit for households that qualify. With each passing quarter, fewer and fewer applicants are eligible to take advantage.

7 Ways To Protect Your Credit Score For Better Mortgage Rates

2010-02-13T09:59:00.000-05:00

As mortgage lenders tighten approval standards in Pennsylvania and nationwide, the importance of a good credit score is rising. Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage note rate.

In the 3-minute piece, the NBC Today Show talks about 7 ways that homebuyers ruin their credit -- often by accident. Some of the highlighted mistakes include:

Closing open credit cards
Making appliance buys on credit prior to closing
Asking creditors to lower credit balances prior to closing

In general, a 740 FICO will insulate a borrower from the higher costs and/or rates associated with low credit scores. Below 740, though, every 20 points adds to the damage. Watch the video and apply what you can to your own situation. The more you know, the more you can save.

The True Picture: Half of all Foreclosure Issues in Only Four States

2010-02-12T08:50:00.000-05:00

Foreclosures stories dominate the national housing news. It seems at least one foreclosure-related story makes its way to the front page or the nightly news every week.

But for as much as the foreclosure filing statistics can be astounding -- over 300,000 homes were served last month alone -- the prevalence of foreclosures depends on where you live.

As reported by RealtyTrac, just 4 states accounted for more than half of the country's foreclosure-related activity last month.

California : 22.7 percent of all activity

Florida : 14.9 percent of all activity

Arizona : 6.7 percent of all activity

Illinois : 5.7 percent of all activity

The other 46 states (and Washington D.C.) claimed the remaining 49.9%.

However, just because foreclosures are concentrated geographically, that doesn't make them less important to homebuyers in Philadelphia, Palmyra and around the country. There's been more than 1.4 million foreclosure filings in the last 12 months and that's a figure that can't be ignored.

Distressed properties now play a role in one-third of all home resales.

Therefore, if you're in the market for a foreclosed home, here's a few things to keep in mind.

Properties are usually sold "as-is" and may not be up to living standards. Be sure to physically inspect the home before buying it.

Buying a home from a bank is rarely as streamlined as buying from an individual homeowner. Be prepared for delays and long closings.

Foreclosures aren't always listed for sale publicly. Ask your real estate agent how to access the complete foreclosure inventory.

In order to use the federal homebuyer tax credit, you must be under contract for a home by April 30, 2010 and closed by June 30, 2010. That doesn't leave much time to find a bank-owned home and make it to closing. In Philadelphia we also face specific issues regarding the time needed for settlement because the deed obtained from the foreclosure sale often takes a longer time to record than in other counties. So if you're serious about buying foreclosures, it's probably best to start your search soon.

Pending Home Sales Predicts A Stronger Spring Market

2010-02-08T08:50:00.001-05:00

After the snow storm this weekend, its hard to think about the spring market, but that is what we're entering, and the condition of the market is of interest to potential home buyers and sellers in Philadelphia and Surrounding areas. One of the indicators is the Pending Home Sales Index which rose slightly in December, climbing 1 percent from November.

A Pending Home Sale is a home that is under contract to sell, but not yet sold. It's a figure compiled by the National Association of Realtors® using sales data from over 100 regional listing services and more than 60 large brokerages around the country.

Because each pending sale is a true measure of sales activity, the Pending Home Sales Index is purported to be the most reliable forward-looking indicator for housing.

Recent data supports this hypothesis.

After Pending Home Sales plunged 16 percent in November, Existing Home Sales fell by 17 percent in December. Based on the most recent Pending Sales Index, therefore, we can expect January's closed sales to be similarly level.

For home buyers in Philadelphia and Palmyra , this is all a bit of good news. Home prices are based on the supply-and-demand balance that exists between buyers and sellers. When buyers outnumber sellers, like they did through most of 2009, home supplies dip and, in fact, the national home inventory nearly halved during the 12 months ending November 2009.

With fewer homes for sale, multiple-offer situations were almost commonplace and home values rose as result.

Activity has since slowed, however, and fewer buyers are in today's market. The supply-and-demand equation has shifted back some. In December, home supplies rose for the first time in 7 months and January will likely show the same.

The net result: Home buyers have more homes from which to choose and that can create negotiation leverage for better prices and better concessions. As people begin to take advantage of the remaining time for the home buyer tax credit though, we have been seeing activity start to increase in our offices.

With mortgage rates still low and a looming deadline on the homebuyer's tax credit, market activity should be strong between now and April. Take your time and bid right. And when you're ready, be ready. The best deals likely won't last.

Throw Out Your "Chip Clips". Get The Banana Seal.

2010-02-06T08:48:00.000-05:00

If you've ever used a plastic Chip Clip and been miffed that your chips went stale anyway, you have to see the Banana Seal. Its beauty is its simplicity.

Similar to the tongue-in-groove seal created by zip-top bags, the Banana Seal creates an airtight seal on bags of all sizes. Chips stay crunchy, vegetables stay fresh, and freezer-burned food becomes a problem of the past.

The people of Banana Seal made a promotional video that shows the product in action. It's a little bit over-the-top in "sales mode", but gives some good ideas on how the Banana Seal works. Aside from the obvious refrigerator, freezer and pantry uses, the video shows how Banana Seal can be used outside of the kitchen, too.

Buy an 18-pack of Banana Seal for less than $20 from Amazon.com.

Simple Real Estate Definitions : Short Sale

2010-02-05T08:50:00.000-05:00

A "Short Sale" is when a home seller sells his home for a lesser amount than what is owed on his mortgage, and the mortgage lender agrees to accept the lesser amount in lieu of a full payoff.

By way of example, a Short Sale may be appropriate for a Philadelphia home seller whose mortgage balance is $250,000 but whose home wouldn't sell for more than $220,000. Rather than pay the $30,000 difference to the lender at the time of sale, the seller enters into an agreement with the lender by which all sale proceeds are paid to the bank and the deficient balance is forgiven.

Short Sales are a preferable alternative to foreclosure but the process still harms both parties. For one, the seller is penalized with a derogatory tradeline on credit for not fulfilling a mortgage obligation. And, two, the lender is forced to take a loss on a mortgage loan. Versus an executed foreclosure, however, Short Sale damages are relatively limited on both sides.

For this reason, Short Sales are sometimes considered "the economical alternative" to default.

The process of getting a Short Sale approved varies from lender-to-lender and can be time-intensive. Home sellers should not go at it alone -- speaking with a real estate agent about the proper protocol is usually the best place to start. And sellers should be aware of how a Short Sale on their credit can impact future borrowing.

Current Fannie Mae guidelines prevent short-selling homeowners from obtaining new mortgage financing for a period of 2 years.

Conserve More Energy With Motion-Sensored Light Switches

2010-02-04T08:45:00.000-05:00

Courtesy of Black & Decker, energy-conscious homeowners in Philadelphia now have another way to conserve natural resources.

Introducing the Lights Out Autoswitch, a 135-degree, motion-detecting device that turns the lights on when people enter a room, and subsequently turns them off after everyone has left. The timer can be set at 1 minute, 5 minutes, 15 minutes, or 30 minutes.

Use it in bedrooms, home offices, children's playrooms and anywhere else a person may leave the lights on.

Best of all, the device is easy to install.

The Lights Out Autoswitch runs on 3 AA batteries and slips right over an existing toggle light switch. There's no electrical wiring or assembly required and the product ships with a 2-year warranty.

The Lights Autoswitch is available on Amazon.com for $23.

Interesting Homes : The Skinniest Home In The City Sells For $2.1 Million

2010-02-03T08:46:00.000-05:00

The next time you think you've outgrown your home, imagine what life would be like in New York City's "skinniest home". It's barely wider than your wingspan.

In Greenwich Village, there's a single-family, 3-story residence in which the interior living space width measures just 8 1/2-feet. By way of reference, that's 4 inches more narrow than the Smart Fortwo electric automobile.

Even the home's USPS street address hints at its size. Built on an alleyway, nestled between 75 Bedford Street and 77 Bedford Street, the diminutive home is officially known as 75 1/2 Bedford.

It just sold for $2.1 million.

Meanwhile, big price tags for little homes is nothing new. In 2008, the "Little House" in Toronto sold for the equivalent of $511 per square foot.

(Image courtesy: Wikipedia)

Home Values Rose In November 2009 By Another 0.7 Percent

2010-01-29T08:50:00.002-05:00

Reporting on a two-month lag, the government said home values rose 0.7 percent in November.

National home prices are at their highest point since February 2009.

But before we look too much into the FHFA's Home Price Index, it's important that we're cognizant of its shortcomings; the most important of which is its lack of real-time reporting.

According to the National Association of Realtors™, 80% of purchases close within 60 days. As a result, because of its two-month delay, the Home Price Index report actually trails today's market data by an entire sales cycle.

This is one reason why home values appear to be rising even while new data shows that both Existing Home Sales and New Home Sales fell flat last month. The home valuation report is using data from November; the sales reports are using data from December.

The Home Price Index is a trailing indicator and next month, as the Spring Market gets underway, the government will be reporting data from the holidays.

The same is true for the Case-Shiller Index. It, too, operates on a 2-month lag.

All of that said, however, long-term trends do matter in housing and the Home Price Index has shown consistent improvement over the last 10 months. In many markets, home sales are up, home supplies are down, and values have increased. This trend should continue into the early part of 2010, at least.

If you're wondering whether now is a good time to buy a home in Philadelphia , consider low prices, cheap mortgages and an available tax credit as three good incentives. By May, none of them will likely be available.

Less Than 100 Days Left To Claim The Homebuyer Tax Credit

2010-01-26T08:49:00.001-05:00

November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program. There's 100 days left to claim it.

The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring homebuyers in Philadelphia and New Jersey to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.

In addition, "move-up" buyers were also added to the program's eligibility list meaning you don't have to be a first-time home buyer to be eligible for the tax credit. If you've lived in your home for 5 of the last 8 years, you meet the IRS requirements.

Move-up buyers are capped at a total tax credit of $6,500.

In our marketplace, that's a substantial amount of money. Areas with much higher priced homes see onyl a moderate impact from these tax credits, but in our market, which has always been a more balanced market economically, these amounts can mean a significant benefit to the homebuyer lucky enough to qualify and smart enough to take advantage of the program.

The tax credit's basic eligibility requirements remain the same:

You can't purchase the home from a parent, spouse, or child
You can't purchase the home from an entity in which they're a majority owner
You can't acquire the home by gift or inheritance
All parties to the purchase must meet eligibility requirements

The new law includes some notable updates, however.

First, the subject property's sales price may not exceed $800,000. Homes sold for more than $800,000 are ineligible. And, also, household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.

And lastly, don't forget that the program is a true tax credit -- not a deduction. This means that a tax filer who's eligible for the full $8,00 credit and whose "normal" tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.

The complete list of qualifying criteria is posted on the IRS website. Review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.

There's less than 100 days to go.

New 2010 FHA Guidelines Give Buyers Reasons to Act NOW!

2010-01-25T09:54:00.001-05:00

Securing an FHA mortgage in Pennsylvania and New Jersey is about to get more expensive.

In a statement issued last Wednesday, the Federal Housing Authority outlined policy changes to its mortgage assistance program. The shift is meant to both reduce the government group's portfolio risk while strengthening its overall financials.

For consumers, the changes mean higher costs.

As listed in the official announcement, there are 3 major guideline updates for the FHA:

Upfront mortgage insurance premiums are increasing to 2.25% from 1.75%

Minimum downpayments for applicants with sub-580 FICOs are rising to 10 percent

Seller concessions are being limited to 3%, down from today's allowable 6%

Furthermore, the FHA has appealed to Congress to raise an FHA borrowers' monthly mortgage insurance premiums.

To read the FHA's statement, it's clear what the group is trying to balance. On one side, the FHA wants to provide affordable financing to families that need it. That's its mission statement. On the other side, though, the FHA must manage the risk that comes with insuring lesser-quality loans.

To that end, the FHA is stepping up its enforcement of "bad lenders" in hopes of stopping problems where they start.

Also in its new policies, the FHA is introducing a "termination clause". If banks or loan officers that produce more than their fair share of bad loans, they lose their right to originate FHA mortgages.

As a result, homebuyers in Philadelphia and surrounding areas should expect tougher FHA underwriting in 2010. Not because the FHA says so, necessarily, but because banks don't want to do "bad loans". Lenders are incented to turn down at-risk applicants and, already, we're seeing examples of this. Despite FHA allowing 580 FICOs and lower, many banks have made 620 their minimum.

Some have other guideline overlays, too.

Even with these changes, the issues surrounding conventional loans made by lenders who are risk adverse and being scrutinized by federal regulators make FHA loans a pretty good alternative. Since the FHA's new guidelines don't go into effect until spring buyers have another reason to act quickly duting the next few months. First there was the tax credit program which ends April 30, 2010. Add to that the fact that between now and the spring, the old guidelines will apply. Therefore, if you know you're going to buy a home to take advantage of the tax credit, and you think you may need an FHA home loan in the next few months, consider moving up your time-frame.

If nothing else, you'll save some money at closing.

The Right Way To Make Your Bed When Your Home Is Listed For Sale

2010-01-25T08:49:00.002-05:00

Well-made beds aren't just for comfort -- they're for presentation, too. Especially when you're selling your home. A pristine bed conveys an image of cleanliness and order to potential home buyers and that can help you get more of your asking price at the point of negotiation.

When homeowners don't take the time to make a bed, buyers wonder what else around the home is getting neglected.

And there's a proper way to make a bed, too.

In this 15-step video from Howcast, you'll learn how to start with a stripped down mattress, add bedding, pillows and a blanket, and end with the hotel-quality look that today's home buyers expect. The alternative is to leave a bed sloppy, reducing your home's overall appeal.

To make a bed the right way takes less than 2 minutes. When your home is listed for sale, make making the bed a part of your daily routine.

Upon Closer Inspection, The Federal Reserve Isn't 100% Positive About The Future Of The Economy

2010-01-20T08:47:00.000-05:00

Both mortgage rates and home affordability took a turn for the better in Philadelphia and surrounding areas last Wednesday after the Federal Reserve released its December 15-16, 2009 meeting minutes.

The Fed Minutes is a follow-up piece to the post-FOMC meeting press release. But whereas the press release is succinct and to-the-point, the minutes are lengthy and often meandering.

As a comparison, December's press release contained 535 words. December's minutes had 6,260.

But these "extra words" aren't superfluous. They're actually very important to homeowners. Because the Federal Reserve's internal debates help to shape Wall Street expectations, it doesn't take much for those conversations to have a trickle-down effect on Main Street.

For example, after the December meeting, the Fed said that economic growth is steady, inflation is in check, and an orderly wind-down of mortgage market support was underway. A look at the minutes, though, showed some disconnect.

Some Fed members believe rising commodity prices could lead to stronger-than-expected, and others think that improvement is housing could be "undercut" by a pull-back in government stimulus.

Overall, the Fed appears optimistic about the economy, but not as optimistic as on December 16. Mortgage markets responded favorably to the minutes and mortgage pricing improved.

Although rates remain higher as compared to early-December, pricing has been on a good run this week. If you're under contract for a home in Pennsylvania or just looking to refinance, now may be a good time to lock.

Home Buyers Get A Green Light : Pending Home Sales Plunge In November

2010-01-19T08:47:00.000-05:00

Just one month after touching a 3-year high, the National Association of Realtors® Pending Home Sales index plunged in November. A "pending" home sale is a home that is under contract to sell, but has yet to close.

The 16 percent drop marks the first retreat in Pending Home Sales since January of last year.

The weak Pending Home Sales data is an indication that Existing Home Sales data will be soft this month. This is because, historically, 80 percent of Pending Home Sales convert to "closed sales" within 60 days, and most of the rest close within 120.

Even with Pending Home Sales down, the Philadelphia housing market should not lose much of its momentum. For today's home buyers, this "lack of slack" can represent both a concern and a terrific opportunity. Though the weather keeps some buyers inside, the tax credit provides a real incentive to get out and participate in the market. Acting now allows you to get a financial benefit and to deal with sellers who have possibly held their homes into the winter.

Home prices are a function of supply and demand; of buyers and sellers. When buyers outnumber sellers, competition leads to bidding wars, ultimately, and higher home prices overall. The imbalance can also create a sense of urgency that results in over-paying for a home.

When buyers are sparse, on the other hand, the psychology of real estate shifts.

Home sellers are keenly aware of foot traffic and requests for second and third showings. Without buyers, their homes can't sell. They also note a lack of general feedback from the market.

It's at this point that seller fear can creep in and it becomes a buyer's best time to buy.

Based on November's Pending Home Sales data, it's clear that home sellers are in abundance right now. Home buyers have leverage.

It may not last.

With mortgage rates easing lower this week, the federal home buyer tax credit still in effect, and the Holiday Season officially over, buyers are getting back to business in Mount Holly and everywhere.

Plus, with the tax credit deadline of April 30, 2010 fast approaching, buyer activity should increase over the next 4-6 weeks.

The market looks ripe for a buy but don't rush it. Take your time and bid right. But when you're ready, be ready -- once the market momentum shifts back to sellers, you might lose all that leverage you built up through the winter.

2010 FHA Loan Limits Released

2010-01-18T08:47:00.000-05:00

FHA home loans are federal assistance mortgages made by lenders, and backed by the government. The FHA doesn't make loans to New jJersey homeowners -- it insures loans made to homeowners by federally-qualified lenders.

By all accounts, FHA home loans are surging in popularity.

2006, FHA insured 3.3% of all mortgages made
Q2 2009, FHA insured 19.2% of all mortgages made

A major reason for the increase can be tied to guidelines.

As compared to its conforming mortgage cousins Fannie Mae and Freddie Mac, FHA home loans have lower downpayment requirements and looser credit standards. The FHA allows downpayments of 3.5 percent for homes in Palmyra and Fannie Mae and Freddie Mac do not, as an example.

Another reason is that FHA home loans aren't subject to credit score fees the way that conforming mortgages are. Through Fannie or Freddie, a home buyer with a 650 FICO and 20% down is subject to 3% in risk fees. Via the FHA, the fee is zero, making FHA the better "deal".

The FHA published its 2010 loan limits. There's no change from 2009.

The base 2010 FHA loan limits are:

1-unit : $271,050
2-unit : $347,000
3-unit : $419,400
4-unit : $521,250

We say "base" because these loan limits don't apply to all areas equally. Higher-cost regions get higher loan limits, based on typical home values. Homes in Los Angeles County, for example, can be FHA-insured up to $729,750 in 2010, and there are special exceptions made for Alaska and Hawaii.

The official FHA announcement included a complete, county-by-county FHA loan limit list. The first spreadsheet shows each county at or above the $729,750 maximum; the second list is everyone else.

If your home's county is on neither list, use the "base" numbers above.

RealtyTrac's 2009 Foreclosure Report Gives Reason For Optimism

2010-01-17T08:48:00.000-05:00

Like real estate, it appears that foreclosure activity is a local phenomenon, too.

As reported by RealtyTrac.com, more than half of all foreclosure-related activity in 2009 came from just 4 states:

California
Florida
Arizona
Illinois

More than 1.4 million filings made in 2009 are attributed to the above states. Furthermore, each ranks in the Top 10 for 2009 Foreclosures Per Capita.

The other states are Nevada, Utah, Georgia, Idaho, Michigan and Colorado.

Versus 2008, foreclosures are up 21 percent nationwide and that's a big number, but a deeper look at RealtyTrac's annual reports reveals a more positive undertone on the housing market.

40 states fell below the national Foreclosures Per Capita average in 2009
Foreclosure activity fell on an annual basis in 10 states as compared to 2008

Foreclosures are still prevalent, though, and buying homes in foreclosure in Philadelphia continues to be big business. Having been active in selling foreclosures for over 22 years, our firm sees this activity on a day to day basis in the inquiries from the Lender's web sites sending buyers to us. First-time buyers, move-up buyers, and real estate investors each are bidding aggressively.

Distressed homes account for one-third of home resale activity, according to an industry trade group.

That said, buying foreclosures can be tricky.

First, properties are often sold "as-is" and the cost of repairs may unwind the home's status as a "value buy". Furthermore, a lender may require specific fixes to be made prior to closing and that, too, costs money.

Second, buying a foreclosed home in Pennsylvania isn't as streamlined as buying a "normal" home. Closing on a foreclosure can be a longer process if the sherriff deed is not yet recorded, though many foreclosures can settle much faster. But you need to know the time frame since a 4-month time-frame may not fit your schedule.

And, third, finding foreclosures can be difficult. Despite the growth in foreclosure search engines, it still takes a good real estate agent to uncover the best homes at the best prices. Luckily, being such a vendor, we can make it a little easier. You should still concentrate on finding the best house for you, even if its not a foreclosure.

Read the complete foreclosure report and take a peek at RealtyTrac's foreclosure heat maps. If you like what you see, talk to your real estate agent about what to do next.

There's still good deals in the foreclosure market -- you just have to know where to find them

Retail Sales Dropped In December And Now So Are Mortgage Rates

2010-01-16T10:48:00.000-05:00

Mortgage rates are dropping this morning on weaker-than-expected Retail Sales data from December. Lower rates means more bang for your home-buying buck.

Excluding motor vehicles and parts, December's "ex-auto" sales receipts were down roughly $500 million from November. Analysts had expected receipts to grow.

The relevance of Retail Sales to home affordability isn't obvious, but it's definitely logical.

Retail Sales is directly related to consumer spending and consumer spending accounts for the majority of the U.S. economy. When consumer spending slows, the economy often does, too. It leads investors to seek out "safe" investments.

It's the reason why stock markets often drop on weak economic data -- stocks are among the riskiest investment classes available.

Conversely, the best place to find safety is in the market of government-backed bonds. This world includes products like U.S. Treasuries and many of the mortgage-backed bonds that help set mortgage rates for people in Philadelphia. Weak economic data puts mortgage bonds in demand.

For rate shopper, this is good news. More demand for mortgage bonds causes mortgage rates to fall. Mortgage rates are lower this morning because Wall Street is shedding some risk.

December's Retail Sales report closes out a year of generally-weak data. 2009 marks just the second time that Retail Sales fell year-over-year since the government started tracking it 40 years ago. The other year was 2008.

For home buyers in Philadelphia and around the country, though, today may represent an opportune time to lock a mortgage rate. Housing data is still improving and other economic indicators are showing strength. Soon, Wall Street will shift from a "safe" mentality and move toward risk.

When it does, mortgage rates will rise.

10 Cities For Home Bargains

2010-01-13T09:48:00.003-05:00

As the housing market improves across the country, certain cities are emerging as relative bargains. Some areas, like Miami, were hit hard by the recession, and other areas are buoyed by good school systems and strong labor markets.

In this 5-minute video from The Today Show, 10 cities are highlighted for their home prices. And they're not "small towns", either.

Among the featured cities:

Miami, Florida
Akron, Ohio
Tuscon, Arizona
Minneapolis, Minnesota
Trenton, New Jersey

Now, this piece is about finding gems on a national scale. They exist locally here in Philadelphia , too. In fact with our traditionally moderate prices combined with the Tax credit, the market place is ripe for buyers. You just need to know what to look for.

With mortgage rates low and tax credits available, it's not likely that bargains will last.

Looking At The 2010 Predictions For Housing Markets And Mortgage Rates

2010-01-06T08:47:00.000-05:00

2010 is just a few days old and already the "experts" are making predictions for the year.

Housing calls and mortgage rate predictions run the gamut:

Home prices will fall in 2010
Home prices will rise in 2010
Mortgage rates will rise in 2010
Mortgage rates will rise by a lot in 2010

Given how varied their outlooks, it's clear that the professionals have no better view of the future than the amateurs. An expert can make an educated guess, but it's a guess nonetheless.

Last year, Wall Streeters predicted a 25% pullback in home prices. 12 months later, we know prices didn't fall. Wall Street also predicted higher mortgage rates for 2009. That prediction was fulfilled.

In a recent article in Real Estate Trends, it was predicted that the Philadelphia market would appreciate at a rate that would make it one of the top 20 markets in the country. And based on the early activity this year, demand for our moderate priced housing may well lead to increased prices.

There's a lot of talk on CNBC and elsewhere about what's coming in 2010. Before you take those predictions to the bank, just remember that analysts do a much better job interpreting data from the past than projecting it into the future.

The only thing that's certain right now is that mortgage rates are historically low, the government is giving tax credits to qualified buyers, and there's a lot of good "deals" in housing. Make the most of what's out there today because it will take 12 months for us to look back and know which predictions were right and which were wrong.

Until then, predictions are just opinions and guesses.

How To Make A Self-Watering Plant Container

2010-01-05T08:45:00.000-05:00

Self-watering plant containers are the ultimate in laziness or convenience, depending on your perspective. You can buy them on Amazon.com for $26 a piece, or you can watch this 3-minute, step-by-step video from Video Jug and build one all on your own.

You'll only need a few basic supplies in addition to fresh soil and some tools:

Hydroton (also known as LECA)
A large pot
An irrigation pipe and float from a garden center
Porous membrane

The video is broken down with easy-to-follow instructions. You don't need handyman skills or a green thumb to finish the job. Your end-result will be well-functioning self-watering pots and plants that require less time and attention.

Moving To A New City? Check The Local Cost Of Living First.

2010-01-01T09:47:00.000-05:00

It's not only the real estate markets that differ from town to town -- the Cost of Living does, too.

Insurance costs, tax bills and just plain, day-to-day living will dent a household budget differently depending on where that household is. It can be a nerve-wracking fact for families moving from New jJersey across state borders.

As an aid for the budget-aware, Bankrate.com keeps a Cost of Living Comparison Calculator on its website. The calculator asks 3 questions: (1) Where do you live now, (2) To where you are moving, and (3) What is your salary. It then spits out a detailed, 58-item cost comparison list between the two cities.

Some of the key costs compared include:

Everyday groceries
Energy bills
Routine healthcare
Home ownership
Clothes
Sporting goods

The Cost of Living Comparison Calculator is thorough, with data culled from the ACCRA. You'll be surprised at how granular the list can get. On the ACCRA website, you can buy a similar report for $5.

On the Bankrate.com site, the data is free.

Happy New Decade - A 7 Minute review

2009-12-31T09:14:00.000-05:00

The end of 2009 is also the end of the first decade of the century - and that makes it a good time to get some perspective on the last 10 years.

This video, courtesy of our friends at Newsweek that gives you a quick overview of the decade - it might surprise you to realize that even something as ubiquitous as the Ipod is less than 10 years old.. seems like those white earbuds have been around forever doesn't it?

Anyway, here's best wishes from our family to yours,for a better decade ahead!

Kepping A Front-Loading Washing Machine Free of Mildew Smells

2009-12-30T08:45:00.001-05:00

Image via Wikipedia

The front-loading washing machine is a popular home appliance choice. As compared to its top-loading counterpart, a front-loader can handle larger clothing loads, is gentler on garments, and uses about 1/3 less water. In situations where stacking the washer and dryer is needed, the front loader is the winner.

However, because its design prevents water from fully draining, a front-loading washer can be a haven for mold and bacteria if not cared for properly. I have a front loader in my second home, and even though I leave the door open after use to dry it out, there sometimes persists and odor. It's the story the salesman doesn't often talk about and is the reason why products like Affresh exist. An all natural product is smellywasher.com which can be ordered online or bought locally.

If you own a front-loading, here's some steps to keep in-washer mildew at bay and your clothes smelling fresh.

Leave the door slightly open after every cycle. This allows water to evaporate.

Use low-sudsing, high-efficiency detergent. If your local store doesn't carry it, try Amazon.

Every week, pull back the rubber seal and wipe the inner ring with a cloth.

Clean the drain pump filter monthly, at least.

Run a bleach-and-hot-water cycle monthly, at least.

Front-loaders are good products, but require special care. Follow the steps above and your washer should remain mildew- and mold-free.

Better Housing News Flashes - From 1935

2009-12-29T07:46:00.004-05:00

75 Years ago, in 1935 a suffering housing market was being returned to normal through a new housing stimulus package based upon the creation of the Federal Housing Administration and the use of mortgage products that allowed people to pay off the debt during the term of the loan.

From the Internet Archive's Prelinger Archives comes this reminder that housing always recovers first, and that even in times that seem to be challenging financially, recovery begins when people take advantage of new programs to get the benefits of home ownership.

I hope you enjoy this film as much as I did - whether its watching the construction process, the latest amenities in the house (like the built-in ironing board and cabinets in the kitchen) or the billboard at the end showing the price, down payment and monthly payments for a new detached single family home - and remember, 75 years from now people may be just as amazed at the values in our housing market!

A Holiday Treat - Rudolph The Red Nosed Reindeer

2009-12-25T01:05:00.002-05:00

Over 60 years ago, this classic song was made into a] Christmas Cartoon Classic by Max Fleischer who is perhaps best known for Betty Boop, Popeye the Sailor, and the famous Superman comics staring Bud Collier in the role of Clark Kent/Superman.

From a kinder and gentler age, perhaps you'll find some memory of your childhood, or maybe you can show this to one of the children in your family and create some new memories.

In any case, whether Christmas is your holiday, or you just enjoy the season and the spirit of giving as I do, please enjoy.

A Holiday Message

2009-12-24T07:25:00.002-05:00

From my childhood - a Holiday message by R.O. Blechman for CBS created in 1966 - at a time when we bemoaned the commercial nature of the holiday without knowing how much more commercial it was going to get - Have a wonderful Holiday - enjoy your time with your family whether you're spending it at a traditional Christmas dinner or going to the movies and having Chinese food - This time of year is about family and rebirth - old times and new beginnings

Best Wishes to you and your family from me and mine!

A Simple Explanation of the Last Federal Reserve Statement

2009-12-23T08:26:00.002-05:00

Image via Wikipedia

The Federal Open Market Committee voted last week to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.

In its press release, the FOMC noted that the U.S. economy "has continued to pick up", that the jobs markets is getting better, and that housing market has shown "some signs of improvement" lately.

It's the fourth straight statement in which the Fed speaks optimistically about the U.S. economy -- a signal that the worst of the recession is likely behind us. Which doesn't mean that things are better, just that they are getting better.

Just as there was speculation about the end of the last "boom" before the impact of that end was felt, there is always a lot of conversation about recovery before its impact is completely felt. People who are struggling now may be feeling some relief, but they may continue to struggle for a while longer - though they can do so feeling that things are getting better, and should continue to do so.

The economy isn't without threats, however, and the Fed identified several, including:

Tight credit conditions for consumers

Businesses are reluctant to hire new workers

Lower overall housing wealth

The impact of each is obvious. Without more liquid credit, larger purchases like homes, cars, and business equipment may be stalled (or at least slowed) even though the demand or need for those purchases is growing. Until more people are employed, many families will be more conservative in their spending, delaying some of the benefits of the recovery. And finally, with less equity in their homes, people have a harder time releasing that equity for education, purchases, or opening new businesses. At least in our market area, since our price adjustments have been very moderate in comparison to the national averages, people have not lost as much housing wealth as in other parts of the country.

The message's overall tone remained positive, however and inflation appears to be held in check.

Also in its statement, the Fed confirmed its plan to hold the Fed Funds Rate near zero percent "for an extended period" and to honor its $1.25 trillion commitment to the mortgage bond market. That plan -- due to expire at the end of March 2010 -- should be noted by today's homebuyers. Fed insiders estimate that the program suppressed rates by 1 percent through 2009.

Mortgage market reaction to the Fed press release is negative. Mortgage rates aincreased after the annoucnement.

The FOMC's next scheduled meeting is January 26-27, 2010.

Fannie Mae Makes it Tougher for Buyers - Again!

2009-12-21T08:23:00.002-05:00

Fannie Mae raised the bar for mortgage applicants last weekend. Getting approved for a home loan just got harder, as if loan liquidity weren't already the biggest problem facing home buyers.

In its official announcement, Fannie Mae says the updates minimize long-term lending risks. If that's the case, this won't be the last guideline change Fannie Mae makes -- especially with loans defaulting at an above-normal clip.

The immediate changes are major. The first pertains to credit scores.

Effective December 13, 2009, the bulk of Fannie Mae's loans require a 620 credit score minimum. There are very few exceptions. As a result, buyers with damaged credit may need to make repairs to their credit to qualify.

A second relates to loans with private mortgage insurance.

Homeowners whose loan-to-value exceeds 80 percent now have a choice:

Pay higher mortgage insurance premiums month-after-month

Pay a one-time fee paid at closing to compensate for higher risk

Both options result in higher consumer loan costs. This change probably has less impact since rates are so low, the monthly increase will probably be bearable for buyers, though it does result in less "bang for the buck" in the new loan - since the total payment is the target for most buyers, the increase in the amount of PMI means a decrease in the portion of the payment needed to handle the actual loan.

A third change concerns maximum debt-to-income ratio. Fannie Mae will no longer approve loans with debt ratios exceeding 45 percent except with very strong assets and very high credit scores.

In no case whatsoever may debt-to-income exceed 50 percent.

There are other changes, too, including the elimination of seldom-used mortgage products and additional risk-based fees for "expanded level" mortgage approvals. These updates affect just a small part of the population.

The National Association of REALTORS took a lot of heat from people who thought their ad campaign "There's Never Been a Better Time to Buy a Home" was too optimistic. However, the ad campaign may have been nothing but the truth. Home prices are rebounding, mortgage rates are low, and -- for 5 more months at least -- there's a federal tax credit for qualified buyers. You don't have to buy a home now, but with mortgage guidelines sure to tighten in 2010, now may be a better time than later.

The best "deal" won't matter if you can't get qualified on your mortgage.

Simple Real Estate Definitions :APR

2009-11-25T07:44:00.000-05:00

APR is an acronym for Annual Percentage Rate. It's a government-mandated calculation meant to simplify the comparison of mortgage options.

A loan's APR can always be found in the top-left corner of the Federal Truth-In-Lending Disclosure.

Because APR is expressed as a percentage, many people confuse it for the loan's interest rate. It's not. APR represents the total cost of borrowing over the life of a loan. "Interest rate" is the basis for monthly mortgage repayments.

The main advantage of APR is that it allows an "apples-to-apples" comparison between loan products.

As an example, a 5.000 percent mortgage with origination points and fees will almost certainly have a higher APR than a 5.500 percent mortgage with zero fees. In this sense, APR can help a borrower determine which loan is least costly long-term. In other words, the APR is an artificial index that can be compared to determine which loans have higher or lower APRs, thus indicating the higher or lower cost to the consumer.

However, APR is not without its shortcomings.

First, different banks includes different fees into their APR calculations. By definition, this spoils APR as a choose-between-lenders, apples-to-apples comparison method, though the total cost to the consumer is still accurately determined.

More importantly, when calculating APR, "life of the loan" is assumed to be full-term. When a 30-year mortgage pays off in 7 years or fewer -- as most of them do -- APR comparisons are rendered less accurate. It is possible that a loan with a lower APR might be more expensive if the loan is not carried to the full term and would have had a higher APR if the shorter term had been used in the original calculations.

In other words, APR is just one metric to compare mortgages -- it's not the only metric. The best way to compare your mortgage options is to review all the loan terms together and determine which is most suitable.

2 Days to Thanksgiving - Do You Have Menu?

2009-11-24T08:59:00.000-05:00

Thanksgiving is Thursday. If you're cooking for group (or a crowd) and you haven't yet put your menu in order, click on through Bon Appetit's Thanksgiving Menu Planner.

Answer 3 basic questions and Bon Appetit serves up a list of dishes and their respective recipes.

For how many people are you cooking?

How much time do you have to cook?

What's your style?

The dishes range from the simple (Pumpkin Pie with Spiced Whipped Cream) to the sophisticated (Herb Roasted Turkey with Apple Cider Gravy). There's even a menu for vegetarians.

It's not too late to host a delicious Thanksgiving dinner. Bon Appetit can get you moving in the right direction.

Or if you're a lucky guy like I am, maybe someone else will be cooking and all you'll need to do is show up, be thankful, and eat! What ever you're doing though - be thankful for what you have - its probably much more than some others have. And if you really want to be grateful - how about helping some one else? All you need to do is to click on the link to the right and change the world for someone by making a small donation - maybe give up a couple of movies so a little girl can go to school - or don't - its your choice.
I've already made mine.

Should I consider a 15 Year Mortgage?

2009-11-23T19:39:00.000-05:00

For today's home buyers and homeowners that can manage the higher monthly payments, 15-year fixed rate mortgage rates look attractive as compared to comparable 30-year products.

The 15-year/30-year interest rate spread is near its 5-year high. As a result, the savings afforded by the 15 year mortgage is at its 5 year high also.

Despite lower rates, however, homeowners opting for a 15-year fixed mortgage should be prepared for its higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half the years as with a standard, 30-year amortizing product.

As compared to 30-year terms, 15-year products repay 3 times as much principal each month. It is this difference which makes the payment so much larger.

Versus a 30-year, 15-year fixed mortgages have a few downsides worth noting. The first is that, because 15-year mortgages are heavy on principal and light on interest, homeowners who itemize tax returns may have to claim a smaller mortgage interest tax deduction at tax time. Balanced against that of course, is the benefit of making much larger principal payments and retiring your debt earlier.

Another negative is that the sheer size of the payment. If you run into fiscal trouble down the road, the only way to reduce the monthly obligation is to refinance into a 30-year product and that costs money to do.

In other words, be sure you can manage the payments over the long-term before you opt for a 15-year term. If you can manage it, though, the rewards are tangible.

At today's rates, a 15-year fixed and 30-year fixed costs $230 extra per $100,000 borrowed.

Help Change the World..

2009-11-11T11:54:00.010-05:00

I'm not the greatest person to participate in fundraising activities.

Don't get me wrong I'm a very charitable guy, but I tend to be the guy who makes the donation more than the guy who asks for them . I always feel like I'm imposing on someone when I ask them to support the fund raising efforts of one of the causes that are important to me like the American Cancer Society, or Easter Seals, or the Lupus Foundation, so when I am asked to be part of a group making the effort to raise money , I am reticent about asking others for their help. Maybe its a character flaw, but that's just how it is. This time I'm making an exception to that behavior because my friend Rocky Turner has allowed me and my son Hal and daughter-in-law Jennifer the privilege of helping Rocky in her constant efforts to raise money for children in Kenya.

You may know Rocky because she's married to Jeff Turner and is busy raising 6 kids, or because she has achieved so much recognition for her work with Mothers Fighting For Others, or maybe because she's just a really smart and beautiful person. Doesn't matter how you know her or if you're just hearing about her for the first time. She does stuff that some people just talk about, and other people just dream about. She works hard to make a difference - a real difference for real people.

One of those people is Irene Mwihaki, the newest member of our family. Our family has taken on the task of raising money to help her obtain an education. According to Rocky:

Irene is an extremely bright girl. She had the highest marks of all the
girls entering HS this term. She is determined to make herself proud this
school year.

I've never been to Kenya and know embarassingly little about the country. So I took a few minutes to find out what life might be like there. According to Kenya-advisor.com, life in Kenya is challenging beyond our expectations

A 2005 report by the United Nations ranked Kenya as 154th out of a list of 177 countries, in terms of life expectancy, literacy levels and overall gross
domestic product. Just three years earlier, the country had ranked 134th. For
comparison, Uganda was ranked at 144th, and Tanzania was 164th. Both are immediate neighbors of Kenya.

But we're struggling too right? Our economy is terrible weak, and everyone is feeling a pinch - but even at its worst is it this bad?

So is making a donation to Irene going to help? Surely going to school is basic. Even the poorest child in the US has that opportunity.

School fees are often out of reach for poor families, leaving each generation to continue trying to find work while lacking the education to advance. Cultural biases towards women create further limitations for the growing number of female-led households.

I look at Rocky's pictures of Irene and I see a pleasant bright eyed young girl who should have a great future in front of her. After all if you are smart, hard working and pleasant, shouldn't you have a reasonable chance be able to achieve happiness if not greatness? My Grandparents and Great Grandparents left countries where they could not achieve to come to this country. That's just not possible for everyone. But because they did, their children and their children's children had the chance to achieve and succeed. Irene deserves that too.

So help me show the power of community on-line, where a small donation from a lot of people can make a huge difference in a person's life. I'm going to depart from my norm and ask you to make that small donation. If you can, just click on the widget on the side of the page, and gove whatever you can - if you can't make a small donation, feel free to make a larger one - and if you don;t have $5 or $10 or $20 (or more) to give, forward this post to someone who might - take a minute to make a real difference in somone's life - a real some one - a smiling bright eyed girl who lives in a poverty stricken country who shouldn't be forced to loose that smile or waste the intelligence that is so obvious when you look at her eyes.

Honor your loved ones and your life by helping someone today- Please... Make a difference in the world with a little donation by making a big difference in this little girl's life -

Home Buyer Tax Credit is Extended and Expanded!

2009-11-07T09:57:00.002-05:00

Image via Wikipedia

In my last market statistics post , I mentioned that an extension of the $8,000 first time home buyer tax credit would be a real incentive for people to continue buying even in this traditionally slow time of year.

Congress must have been paying attention (or I tripped on something that other people agreed with!) and the $8,000 Tax Credit was extended this week. In addition, people who have owned their homes for 5 consecutive years (out of the last 8 years) can now get a $6,500 tax credit when they buy a new home.

With the threat of higher rates in the first quarter of 2010, and affordable houses all over the Philadelphia marketplace (which includes South New Jersey and the surrounding counties) , now may be that perfect moment - if people don't get too complacent about the housing market and assume that they'll still be able to reap the maximum benefits from the convergence of rate, price, and tax credits. I guess the only way to find out what the public's reaction will be is to wait and see -

Philadelphia and Surrounding Counties Market Statistics

2009-11-05T05:54:00.005-05:00

Image by reeltor99 via Flickr

As Congress discusses a 6 month Extension of the First Time Home buyer Tax Credit with an additional credit for repeat home buyers, the results of the initial credit seem to be obvious when we look at the Pending Sales Market statistics from September for Philadelphia and surrounding counties.

Pending Home Sales	Sept 2009	Sept 2008	% Change
Philadelphia	1287	941	36.77%
Bucks	582	414	40.58%
Montgomery	739	571	29.42%
Delaware	526	366	43.72%
Chester	492	354	38.98%

With such substantial increases in the pending sales for all five counties, its obvious that our housing market has recovered substantially. Though its tough to know exactly how much the tax credit influenced this, logic tells us that it has had a substantial impact. When we add to this the decrease in inventory, we see what would be defined as a recovering real estate market.

Current Home Inventory	Sept 2009	Sept 2008	% Change
Philadelphia	9,704	10,559	-8.10%
Bucks	4,011	4,262	-5.89%
Montgomery	5,276	5,718	-7.73%
Delaware	3,542	3,697	-4.19%
Chester	3,924	3,997	-1.83%

So what does this mean for the next 6 months?

With a tax credit extension, motivation for first time home buyers will continue
A tax credit for repeat buyers will increase motivation for a new group of buyers
Shrinking inventory generally means competition between buyers for more desirable homes and possible upward pressure on prices.
Though the tax credits are significant, the 6 month window is still a limited window off opportunity.
The limited opportunity provides substantial additional motivation for buying even at a time of the year which is traditionally slower because of the retail market.

So though there is still uncertainty about the unemployment numbers, and we have not seen a great resurgence in consumer confidence yet, it does seem that in the house buying arena, there are substantial reasons for potential home buyers to get off the fence and take action now to benefit from the combination of affordable prices, low mortgage rates, and tax benefits that may not be extended again in the more active spring market.

Charging Your Phone(s) Without the Clutter

2009-11-01T07:49:00.000-05:00

Tired of "wire clutter" where your mobile phones, MP3 players and gaming devices compete for outlet space?

The Powermat may be your solution.

The Powermat is a 12-inch long wireless battery charger that's conspicuously missing "plugs". Instead, it uses magnetic induction to safely recharge up to 3 devices at once.

Just place your phone(s) on the pad and they charge automatically.

The Powermat debuted at the 2009 Consumer Electronic Show and was reviewed in video. The reviewers had many positive comments on the Powermat, but highlighted some negatives aspects, too. Give a look and see what you think.

Powermat retails for $99 on Amazon.com and is usually shipped for free.

Can You Still Catch the Buyer's Market?

2009-10-31T07:54:00.000-04:00

The national housing supply fell to a 2-year low last month, according to the National Association of Realtors®.

At the current sales pace, existing home inventories would sell out in 7.8 months -- 30 percent faster versus November 2008.

For a 10-month window, that's a major housing supply reduction and it helps to explain why multiple-offer situations have been so common lately.

Moreover, the same report from NAR showed sales activity reaching its highest point since July 2007, too.

If you're looking for evidence that the long-standing Buyers Market is ending, this month's Existing Home Sales report might be it.

Even median sales prices -- typically dragged lower by distressed and foreclosed properties -- declined at its slowest pace in a year. The market may have turned a corner.

Home prices are rooted in the basic economics of supply and demand.

When supply outweighs demand, home prices fall
When supply lags demand, home price rise

Since March 2009, the market has been moving in the right direction. Low mortgage rates, ample housing supply and a first-time home buyer tax credit fueled buy-side demand so that home prices are now rising in many U.S. markets.

If home supplies stay on this path into 2010, expect home prices to rise even more.

Happy Day! Phillies Win & The Senate Moves Towards a Tax Credit Extension

2009-10-29T05:44:00.003-04:00

Image by reeltor99 via Flickr

Its hard to decide what to write about this morning. Last night the Phillies faced the Yankees in the World Series for the first time since 1950 (when the Whiz Kids took on the New York Team) and they won - even though the game was in New York. That's really exciting for a city where sports are such an important part of our history and our culture, not to mention that it was an auspicious start for a historic series, the first World Series repeat in the team's history.

If that weren't enough, there was news yesterday that the Senate had reached agreement on extending the $8,000 first time homebuyer's credit until June of 2010 - with a potential $6500 tax credit for people that had bought and owned homes for 5 years or more. In our city, where prices are moderate, first time home buyers are a major part of the real estate market, and those amounts are significant to home buyers that news is incredibly good.

We have already seen the real estate market improve every quarter of this year to date, stimulated by the tax credit, great mortgage rates, and moderate prices. Though the lack of mortgage liquidity negatively impacted the attempts of some buyers to gain entry to home ownership, on the whole , the true worry was whether the gains in the market would be sustainable - with the extension of the tax credit through the spring, that question would be answered.

Now the next question for buyers is whether they will be smart enough to act early and avoid the inevitable upward pressure on price that such activity should create, and whether the mortgage market will increase credit liquidity amid the signs of economic recovery.

Of course for this week in Philadelphia,more people may be worrying about whether the Phillies can sustain their early lead this evening in New York, and then Saturday and Sunday night when they return to Philadelphia ;-)

Housing Starts Post 8th Gain in 9 Months

2009-10-26T08:57:00.000-04:00

Housing Starts on single-family homes gained last month, marking the 8th time that's happened this year.

A "Housing Start" is a home for which the foundation has been excavated and, considered alongside other key market metrics, September data suggests that the housing market stabilization is complete.

Momentum in housing is overwhelmingly positive:

Homes under contract are soaring
National home supplies are way down
Home values are up in a lot of markets

Despite the positive news, the press is calling September's Housing Starts data a "bummer". Citing a drop in monthly building permits, the media purports that housing will slow in the months ahead.

The conclusion may be right, but the rationale may be wrong.

The probable cause for fewer permits isn't that the housing market is overdone. It's that home builders are choosing to exercise caution given the pending expiration of the First-Time Home Buyer Tax Credit and a still-growing number of foreclosed homes.

It's unclear what housing demand will be beginning in December and the last present a builder wants for the holidays is an excess of inventory.

It makes sense that building permits are down, in other words. In our marketplace, where new homes are not the most significant part of the housing inventory, unlike primarily new home communities like areas of Nevada, a Florida, the increase or decrease of housing starts may be less significant in any case.

Looking back at February of this year, there's a host of signs that housing is on the path to recovery. Now, that path won't be a straight line and there's bound to be setbacks, but September's Housing Starts is not one of them.

Housing Starts are up 40 percent on the year. WHich does indicate that ate the very least we have passed the bottom of this contraction.

Everybody Thinks the Real Estate Market has Recovered

2009-10-24T08:19:00.002-04:00

Image by reeltor99 via Flickr

Well maybe not everybody, and maybe not quite recovered yet, However a consensus of several major real estate groups says that 2010 is the time for the expansion of the real estate market. According to several studies, the market of 2009 will mark the end of the real estate "contraction" and next year will mark an expected increase of almost 10% with a projected total of 5.403 million units closed in 2010 compared to an estimated 4.929 million units registered in 2009.

The compilation of housing forecasts released was released earlier this week on Real Estate Economy Watch.com. The Web site , operated by former NAR economist David Lereah presented the September housing forecasts of the National Association of Realtors, the National Association of Homebuilders, the Mortgage Bankers Association, Fannie Mae and Freddie Mac and then calculated the consensus (mean) prediction for each major housing measure for the group as a whole.

Of course the impact of foreclosures on the market, and the renewed activity of investors and home buyers looking to take advantage of the well priced inventory, combined with the $8,000 tax credit have positively impacted the market this year. Local tracking indicates that each quarter this year so far has seen increases in sales activity. However the tax credit is currently due to end in November, and if it is not extended, the impact on the marketplace will have to be seen to be judged.

The article goes on to say "At present, the housing sector is experiencing a recovery in home sales and housing starts. Both measures are meaningfully above their January cyclical lows. Home price movements are also improving. Home price declines on a year over year basis have decelerated in monthly reporting, while home prices have increased in recent months on a monthly basis." In our local market area, where prices were not reduced as drastically as some parts of the country, this impact is good news for homeowners and a caution for home buyers that want to take advantage of the current combination of low rates and attractive prices.

In the meantime, as things seem to get brighter, we can't forget that miracles do sometimes happen. After all the Phillies are in the World Series for the 2nd year in a row!

The Phillies Make History!

2009-10-23T19:37:00.002-04:00

I'm not a real baseball fan.

I lost my taste for baseball in 1964 during the Phillies famous meltdown and never really recovered. But last year the Phillies captured my imagination and when they won the world series in game 5 I was there (for both parts of the game on both nights)

It was an interesting experience. I had been at an NBA final in 2001 when the Sixers played the Lakers, and at the Superbowl in Jacksonville when the Eagles played the Patriots, so last year wasn't the first time I saw a Philadelphia team try for a championship. It was however the first time I actually saw them win one. It was exactly like the other two times, except that last year, in the world series there wasn't a sense of sickening loss at the end of the game. It just felt good!

Now, for the first time I can remember, the Phillies have won the National League championship for a second year in a row. In fact, according to Wikipedia, its the first time in the team's history that they ever won two pennants in a row!

I've been a fan in Philadelphia too long to be too excited, but their success does lead me to be an optimist. I guess we'll wait and see what happens, but at least I know I'l be watching and hoping that they break another record

Tighten Up Your Loose Towel Racks

2009-10-23T08:21:00.000-04:00

Over time, towel racks tend to come loose from sheetrock walls. And, sometimes, they separate completely. The good news is that making repairs is easy -- it's something you can do yourself with a little instruction.

In this 2-minute video from ExpertVillage.com, a professional contractor shows that with just a drill and some butterfly anchors, re-securing a towel rack can be a basic handyman job.

So, before you call a professional to rehang your towel rack, watch the video and consider making the repair yourself.

SImple Real Estate Definitions: Escrow Account

2009-10-22T08:55:00.000-04:00

An escrow account is a designated savings account into which funds get deposited for a specific purpose.

With respect to real estate and home loans, escrow accounts are used to pay real estate tax bills and homeowners insurance payments.

Escrow accounts are managed and disbursed by lenders.

When a homeowner "escrows" his mortgage, along with his scheduled monthly mortgage payment, he must also send an additional payment to the lender equal to 1/12 of the home's annual real estate tax bill plus 1/12 of the annual homeowners insurance bill.

By sending a pro rata portion of the tax and insurance bill each month, the homeowner's escrow account will always, in theory, have enough funds to make payments in full as tax bills and insurance premiums come due.

Philadelphia's Magic Garden Dazzles South Street

2009-10-19T13:15:00.003-04:00

I had the pleasure of attending the kickoff of a new local charity called

Image by reeltor99 via Flickr

Making a Progressive Philadelphia (MAPP) - the name is quite a mouthful, but its acronym is also the last name of the founder Brett Mapp. The organization wants to raise money so that they may give micro-grants to worthy organizations in the city that have financial needs too small to be addressed by most grant giving organizations. I don;t know Brett well, and was there because I was invited by my social media buddy Gloria Bell who is very active with non-profits in Philadelphia. Though I am intrgued by the organization's stated goal, and they seem like really nice people, I really don't know much about them, so you can check out the organization later if you wish to get involved with them.

What I will say though is that Brett and company really know how to choose a venue! Their event was held at Philadelphia's Magic Garden on South Street, a building and a lot that has been converted to an amazing work of art. The artist is Isaiah Zagar a 7- year old artist who has this to say about his work;

It is an impossible place, but strangely you can visit it and smile at that which you knew existed somewhere. Now you know that place is in Philadelphia, and you knew it all along, didn't you?

I have to admit , I didn't know that such a place existed, but I certainly hoped it did...and I'm really pleased that it does exist here so that we can all experience his vision,

Is It Better to Take a 15 Year Mortgage?

2009-10-12T05:04:00.003-04:00

For today's home buyers and homeowners that can manage the higher monthly payments, 15-year fixed rate mortgage rates look attractive as compared to comparable 30-year products.

The 15-year/30-year interest rate spread is near its 5-year high. That means that the cost of money during the term of your loan is much much lower if you choose a 15 year term.

As compared to 30-year terms, 15-year products repay 3 times as much principal each month, which accounts for the greatest part of the payment difference.

In other words, be sure you can manage the payments over the long-term before you opt for a 15-year term. If you can manage it, though, the rewards are tangible. Building equity in your property faster can have a number of benefits, including making a move up easier later on.

At today's rates, a 15-year fixed and 30-year fixed costs $230 extra per $100,000 borrowed.

Philadelphia Social Media Bowls Over Charity

2009-09-28T08:48:00.000-04:00

I don't usually write about social media on this blog. I reserve it for my Blog at the Social Media Marketing Institute, or BuzzBuilderz, or REreflections. But people in Philadelphia are working hard to make things in our city better and they're using social media accomplish these changes.

Local Social Media personalities like Gloria Bell of Red Stapler Consulting worked hard to hold a local event at Lucky Strike Lanes on Chestnut Street called Twestival Philadelphia. This event was only one of a number of events held around the world , all to benefit local charities.

A Twestival or Twitter-Festival is a global series of events organized by volunteers around the world under short timescales, which bring people offline for a great cause. Twestival is run 100% by volunteers and independently from any not-for-profit; although the organizing teams do work closely to outline an achievable and measurable fundraising target.

In Philadelphia volunteers sold tickets and sponsors donated raffle prizes all to benefit Gift of Life Family House, The house is a non-profit organization that provides temporary lodging and supportive services to transplant patients and families seeking transplant treatment at Philadelphia transplant centers. During the event members of the organization, and even individuals who had received the gift of transplants participated together to make our community stronger.

As of last week local Twestivals had raised $233,960 and that does not include 40+ cities whose tallies are still not collected. Congratulations to all of those who donated time or prizes for all of these worthy causes, who proved that twitter, and facebook, and the people who populate them are more then a passing fad, and that social media has a place in the communities of the city of brotherly love.

I can't Blog about Hank Baskett

2009-09-17T15:57:00.002-04:00

Image by reeltor99 via Flickr

In a classroom today I was speaking with Kim Wood, who told me that she had just completed a post on her blog about Hank Baskett leaving Philadelphia for the Colts.

During our class on Social Media, I needed to write a blog post and was going to use that when the strict, and authoritarian Ms. Wood said I was not allowed.

Therefore this post is now over.

Long Term Trends Indicate Good News for Housing

2009-08-25T05:19:00.000-04:00

It seems that this may be another in what is appearing to be a string of articles about the possibly recovering housing market. After years of continuous bad news, the housing market continues to surprise. Last week, the latest good news came in the form of the monthly Existing Home Sales report.

An "existing home" is a home sold by an existing owner as opposed to a developer. It's non-new construction property, and in our market in Philadelphia and New Jersey, it is overwhelmingly the largest portion of the housing stock

The data on Existing Home Sales was noteworthy for its trends:

Sales volume rose over four straight months for the first time in 5 years

Sales volume rose year-to-year for the first time in 4 years

Median home prices fell for the first time since April

Furthermore, first-time home buyers and buyers of "distressed" homes accounted for nearly one-third of the market activity each.

But, before we declare a bottom in housing, it's important that we remember the First Rule of Real Estate -- All Real Estate Is Local, and Philadelphia and the surrounding areas have always been more resilient than most markets throughout the country.

The Existing Home Sales report is not neighborhood-specific. It lumps cities like San Diego and Saint Paul into a giant sample set and fails to account for regional differences in real estate, let alone neighborhood ones.

This is the primary reason why on-the-ground real estate agents are better sources for a market pulse versus a report from a national trade group. The national group can't know the happenings of every street and every home in a market, and our market has not had some of the issues wuth fraud found in other states, nor the huge amount of speculative building that was part of the market problems in others.

That said, however, the national data isn't completely useless.

Looking a

Image by Thomas Hawk via Flickr

t the long-term patterns in the Existing Home Sales report, we can infer that ample supplies, low mortgage rates and tax credits are spurring home sales in a lot of U.S. markets. As a result, our offices are seeing more activity, both from our agencies and other firms, and we see properties going under agreement more rapidly, with multiple offer situations again being created.

Eventually, this will lead home prices higher.

Shrinking Inventory May Indicate Housing Recovery Start (movephilly.blogspot.com)

July Home Sales Soar to Largest Monthly Increase in 10 Years (abcnews.go.com)

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Get Your FHA Mortgage Application Started -- Fees Increase 1/2 Percent Starting Monday, April 5, 2010

CNNMoney.com Predicts The Best And Worst Real Estate Markets For 2010

Cool Tools : Color This! Shows How Paints And Colors Will Make A Room Look Good

How To Properly Screen A Prospective Tenant

7 Weeks Remain To Find A Home, Claim Up To $8,000 In Tax Credits

Foreclosures Per Capita | February 2010

How To Remove Stickers And Adhesive-Based Price Tags From Just About Anything

Separating FHA Fact From Fiction : Mortgage Insurance Premiums

As The Supply Of New Homes Grows, So Does The Opportunity For A "Good Deal"

There Are No Jeans in the Pyramid Club

The Best And Worst Cities For Commuters (2010 Edition)

Mortgage Rates Spike On The Federal Reserve's January 2010 Meeting Minutes

Mortgage Approvals Are Getting More And More Scarce

7 Ways To Protect Your Credit Score For Better Mortgage Rates

The True Picture: Half of all Foreclosure Issues in Only Four States

Pending Home Sales Predicts A Stronger Spring Market

Throw Out Your "Chip Clips". Get The Banana Seal.

Simple Real Estate Definitions : Short Sale

Conserve More Energy With Motion-Sensored Light Switches

Interesting Homes : The Skinniest Home In The City Sells For $2.1 Million

Home Values Rose In November 2009 By Another 0.7 Percent

Less Than 100 Days Left To Claim The Homebuyer Tax Credit

New 2010 FHA Guidelines Give Buyers Reasons to Act NOW!

The Right Way To Make Your Bed When Your Home Is Listed For Sale

Upon Closer Inspection, The Federal Reserve Isn't 100% Positive About The Future Of The Economy

Home Buyers Get A Green Light : Pending Home Sales Plunge In November

2010 FHA Loan Limits Released

RealtyTrac's 2009 Foreclosure Report Gives Reason For Optimism

Retail Sales Dropped In December And Now So Are Mortgage Rates

10 Cities For Home Bargains

Looking At The 2010 Predictions For Housing Markets And Mortgage Rates

How To Make A Self-Watering Plant Container

Moving To A New City? Check The Local Cost Of Living First.

Happy New Decade - A 7 Minute review

Kepping A Front-Loading Washing Machine Free of Mildew Smells

Better Housing News Flashes - From 1935

A Holiday Treat - Rudolph The Red Nosed Reindeer

A Holiday Message

A Simple Explanation of the Last Federal Reserve Statement

Fannie Mae Makes it Tougher for Buyers - Again!