Suburban Philadelphia Real Estate News

If You are Planning to Buy in 2010 - Start Preparing Today!

Now is the time to plan and prepare if you are considering buying a home this year.

= Inventory is down after the Holidays but is already building in anticipation of the "Spring Market".
= Interest rates are low but are expected to increase as we go forward in the year.
= You can still take advantage of an up to $8,000 Tax Credit if you are a First Time Home Buyer (or possibly $6500 for existing homeowners).
= If you are in a position to receive a Tax Credit, the property must be under contract by April 30 and settled by end of June.

With the continued focus on the economy and finances, this is a great time to take advantage of the historically low interest rates and available tax credits - but you do need to have a plan and the sooner you start, the more options you will have.

The most important thing to remember as you look at this is that the more you prepare and educate yourself on the process and the options available, the better your decisions will be as you make your way through your purchase.

You are given ample time to review, ask questions, and inspect items at each step of the transaction.  Take advantage of these opportunities and ask questions as they arise.  Don't assume anything.  The laws and forms are designed to make you a fully informed and responsible consumer.  You aren't going to be able to say "I didn't know" in the future.  It seems like a lot of paper work and forms, but these are all designed to protect you.  Read them and understand them.

If you have not purchased before, the process can be broken into basically eight steps:

1 - Commit to the Process and Enjoy It! -

It takes time and commitment from all parties in a real estate transaction.  You may find what you want immediately or it may take time.  Be prepared, if you are not committed and bail, you will be wasting your and other peoples' time and effort.  Time is money - use it wisely.   Conversely, enjoy yourself.  There are many options out there - take advantage of them.

2 - Investigate -

= The Areas:

Where do you want to live?  Why?  What are the advantages and disadvantages?  Think of your lifestyle and expectations.  If you think it through, there are usually several logical options and areas that quickly become apparent.  Before you go out and look at any properties, do your research online.  Get an idea of prices and availability in the various areas.  Then investigate the schools, shopping, traffic, commutes, businesses, and any other items that may be of importance to you.

= The Process:

That's what you are reading right now.  Just ask if you have any questions.

= The Forms:

There are a variety; you need to become familiar with them before you sit down to write your first offer.  As already mentioned, these are designed to protect you.

3 - Get Pre-Approved -

Before you look at any property, you should be pre-approved.  You do not want to waste your time and efforts looking at properties that you will not be able to purchase.  In addition, you will need to have your financing in order before you make an offer.  In today's market, a seller will not accept an offer unless the financing is solid.   You need to do this now! If you need contacts - let me know.

= To break this up a bit, I'll continue with the next step in the next post. =

David Henke
Long & Foster Real Estate Inc - Newtown Square,PA/Bear, DE
Office: 610-353-1199/Direct: 610-359-3853/Cell: 610-618-0808
www.DelawareCountyPennsylvaniaHomes.com

If You are Planning to Buy in 2010 - Start Preparing Today!
(continued...)

Well from the last post - now you have a good idea where you want to live, are pre-approved, and you basically understand the areas, process, and forms that will be needed.  Now you can actually begin your search:

4 - Search -

The fun (and frustrating) part. You've done your research as explained in the previous post.  Now drive the areas, compare, and familiarize yourself with the type of housing available.  Then key in on the homes and areas that may be of interest.  Also look for a Realtor that you are comfortable working with and trust and stay with them. We generally see new listings up to 24 hours before they show up on the public websites.  We also often have information on properties that "could be" listed.  Find a Realtor that you like.   Call me - I could be a perfect choice - but maybe not - you choose.

5 - Buy -

One warning - Don't get caught in the endless search loop. Yes - new homes are always coming on the market, but this goes with your commitment to buy a home.  Set yourself a time frame to make a decision (this is particularly important this year if you want the tax credit!) and buy a home or withdraw from the market and wait for a better time.  Otherwise, you will become frustrated with the process and "the one that got away".  Also familiarize yourself with the contracts.  You do not want to wait until you are ready to write the offer to first lay eyes on the agreement of sale.

6 - Inspect -

If you take a moment to look at the Agreement of Sale, you will see multiple inspection options.  Take advantage of these opportunities.  You are not given a second chance to do them later.  Do the inspections as soon as possible after you have a signed agreement  Nobody likes surprises and you do not want to move into your new home to discover one week later that something is not the way you wanted it or it does not work as you expected.  You may also want to add a home warranty to help handle any unexpected issues.  These all cost money, out of your pocket, today.  This is money well spent and is peanuts compared to the cost of the overall property.

7 - Financing -

This is the second part of your financing job.  You have already been pre-approved, now you have to complete the paperwork to make the purchase.  Again, do it today, do not put it off.  You have loan commitment dates and contract settlement dates.  Lenders will not be rushed.  It is up to you to take these steps in a timely fashion.  Your deposit is on the line.  We will all work with you to complete them as easily as possible..  Again, if you have questions or just don't understand something - ask!

8 - Close & Enjoy! -

Sweet success.  Yes - at the end of the process you will have a new home with no surprises that you will be able to enjoy for years to come.  Sit back, relax, and enjoy the ride.

SO...

This is a great time to be in the real estate market.  There have been many changes over the past year and you can count on them continuing this year, but we are here to help.  With change comes opportunity, now may be one of the best times to buy that we have seen in years.

As always, if you have any questions or are considering buying or selling in the area, please do not hesitate to contact me anytime:

David Henke
Long & Foster Real Estate Inc - Newtown Square,PA/Bear, DE
Office: 610-353-1199/Direct: 610-359-3853/Cell: 610-618-0808
www.DelawareCountyPennsylvaniaHomes.com

Welcome to the Oakview Station on the SEPTA Route 102 Trolley Line located in Upper Darby PA.

The station itself is located at the Creek Rd bridge in Upper Darby.  It is the southernmost stop in Upper Darby just above Darby Creek.  It offers quick access to the Swedish Cabin, Darby Creek, and several residential areas in lower Upper Darby Township.

There is no assigned parking at the stop for commuters but it does have some limited space for dropping off and picking up passengers.  The platforms are also within walking distance of several residential areas.  On a relative basis this is one of the more remote stations on the system and does not have a large commercial, industrial, or residential base from which to draw passenger volume.  The video will provide a better feel for the area:

This station has easy access to several different communities so the local real estate is better covered by stations directly serving those areas.

If you live in the area and need a convenient connection to downtown Philadelphia, Sharon Hill, or any of the spots between, this is a convenient station to connect into the system.  If you are looking for a commuting station with ample parking, there are better options available.

As always, should you have any comments or need any additional information, please let me know anytime.

The Worldwide Travel Agency is our local Upper Darby PA, IATAN Accredited International Travel Specialist.

Since 1994, Kim and Ken Choi of the Worldwide Travel Agency have been helping clients travel the world.  Located in Upper Darby, they strive to provide quality, value, and convenience for travelers from throughout the region as they prepare for vacations and business travel around the globe.  With years of experience, they have the extensive background for meeting all your travel needs but are most active in travel to the Caribbean islands and throughout Asia.

The Worldwide Travel Agency has met the strict IATAN (International Airlines Travel Agent Network) Accreditation Requirements and has received direct appointments from all the major international and domestic airlines including US Airways, American, KLM, Northwest, Korean Airlines, and JAL.  IATAN is a department of IATA (the International Air Transport Association) whose members now comprise over 230 airlines worldwide representing 93% of scheduled international air traffic.  This allows Worldwide Travel direct access to the airline personnel and many additional programs from the airlines increasing the services, help, and expertise they can provide directly to their clients.

Today, Kim Choi of the Worldwide Travel Agency works with discerning international travelers to find the best opportunities to enjoy the travel destination of their choice.  As a full service agency they are able to offer travel services for domestic, international, business, and leisure travelers.  After zeroing in on a location, she can find the best flights, Caribbean cruise, accommodations, island vacation packages, or other travel experiences that any traveler may be looking for.

Worldwide Travel is located at 4 Garrett Road in Upper Darby PA just across from the 69th Street Terminal.  You can stop by their office anytime or contact Kim  by phone: 610-352-5422 or email: wwta@hotmail.com. 

Ready to go?  Need a vacation?  Give them a call.  They can arrange itineraries for any budget, interest, and destination.

If you need any additional information, please feel free to call me anytime.

As a buyer or seller, if you are trying to take advantage of the $8000 First Time Home Buyer Tax credit, eastern Upper Darby Township is one of the key areas in the county that you may want to keep your eyes on.  Sales activity has fallen but remains stronger than in most areas of the county.  Prices have also fallen, making this an excellent time to buy for buyers and a great opportunity to take advantage of the market if a seller.

In general, Upper Darby Township can be split into two areas by zip code: 19026/ Drexel Hill to the west and 19082/ Upper Darby to the east.  Zip Code 19082 generally extends from the Philadelphia City border to the east out to Lansdowne Avenue on the west.  This area contains the commercial hub and SEPTA rail lines centered around the 69th Street Terminal.  The terminal itself is a major regional rail hub and acts as the main transfer point for the SEPTA 101 and 102 Trolleys, the Rt 100 High Speed Line to Norristown,  and the SEPTA Market-Frankford line coming from Downtown Philadelphia.  This is both a popular commuting station as well as a destination station for the local commercial activities.  This terminal also links to many area bus lines.

Zip 19082 / Upper Darby is also home to many well known residential communities such as Stonehurst, Bywood, Highland Park, and Beverly Hills.  This provides a great mix of housing options from smaller row homes, to twins, and larger single family homes.  There are also a few condominiums in the area.  All can take advantage of the great rail connections and the easy road links along State Rd, Lansdowne Avenue, West Chester Pike, and Township Line Road.  It is also a short trip directly down to the Philadelphia International Airport.

Real Estate pricing and actvity in zip code 19082 has mirrored what we have seen in the rest of the county but has seen a bit greater volatility.  Sales activity peaked in 2005 when there were 683 residential sales in the zip code with an average overall sales price of $103,000 - the first year the average sales price had exceeded $100,000.

Pricing continued to rise to an average home sales price of $116,000 in 2006, $120,000 in 2007, and $118,000 in 2008.  Sales were declining during the same time period to 605 homes sold in 2006, 463 in 2007, and 285 in 2008.  So far in 2009, we have seen 121 sales at an average price of $94,000 - falling to a price range that we last saw in 2004.  Today, there are an additional 182 homes on the market listed for an average price of $125,000 and 58 homes are under contract with an average list price of $108,000.

With it's great location, easy rail and road access, and immediate proximity to Philadelphia, the Main Line, and the Airport, this area of eastern Upper Darby should remain popular.  With an average price now less than $100,000, many first time home buyers will be able to take advantage of the historically low interest rates, good prices, and the $8000 credit to make purchases in the area.  As the year progresses, Upper Darby could be a prime beneficiary of any first time home buyer activity as buyers try to take advantage of the $8000 First Time Home Buyer Credit before the scheduled expiration on November 30.

If you need any additional information, need contacts for financing, or are thinking of a move in the area, please feel free to call me anytime.

(All statistics per TrendMLS System and believed accurate but not guaranteed)

So, with four months of the year already behind us, how is the real estate market holding up?  The Delaware County PA market appears to be slowly strengthening.

The background: On a year to year basis looking at the first four months through April, activity slowly increased through 2007, with 2006 units sold in 2004, 2019 in 2005, 2015 in 2006, and 2028 in 2007 with average prices also peaking in 2007 at $252,000 average per home.  Sales fell 22% in 2008 to 1583 sales with a corresponding fall in the average price to $249,000. This continued into 2009 with sales of 1134 units (down an additional 28%) at an average sales price of $235,000.

On a yearly basis sales volume in Delaware County actually peaked in 2005 with 7629 units sold.  This fell to 7262 in 2006, 6786 in 2007, and finally 5142 in 2008 (down 33% from the peak).  The average sales price peaked in 2007 at $267,000 and fell to a yearly average of $262,000 in 2008.  The volume and pricing changes look more dramatic on the four month basis due to large drop in activity and prices last fall.  Also, as noted in previous posts, due to the loan availability the market activity has shifted to lower priced homes.

The good news is that despite the drop in activity and prices, the inventory is not building.  At the beginning of April 2008, there were 4093 active listings.  At the beginning of this April, there were 4109 active listings.  Also, although the total units pending dropped 20%, the average list price rose slightly to $224,000.

Bottom Line: Overall the market is strengthening.  Activity is down 28% but climbing as we continue through the year, prices have dropped but are holding their own, and inventory is basically steady.

Also on a monthly basis, activity has been building nicely in 2009 as buyers recognize the amazing values that can be found when they do the math with the lower home prices and the historic low interest rates.  Now that the stock market has recovered and it appears that the economy is beginning to stabilize, we could see a stable and building market continuing through the year.

(All statistics are from the TrendMLS System and believed accurate buit not guaranteed.)