Just today the United States House of Representatives voted 403-12 to extend and expand the Home Buyers Tax Credit.

The National Association of Realtors has provided this helpful document summarizing the details of the new Home Buyers Tax Credit.

Following the 48-0 vote by the United States Senate yesterday, and remembering our civics lessons, the Home Buyer Tax Credit will become law effective on the date that President Obama signs the bill.

Home Buyer Tax Credit Extension – Highlights of Changes:

*First Time Buyer Tax Credit is $8000 ($4000 if married/filing separately)

*+Tax Credit For Current Homeowner of $6500 ($3250 married/filing separately). Eligibility requires home being sold was principal residence for consecutive 5 years of the previous 8 years

*Credit Terminates for purchases After April 30, 2010. For the Extension Credit there needs to be a written, binding contract in effect on April 30, 2010. Purchasers will have until July 1st to close.

*You’ll note that the income limits have increased to $125,000 for a single purchaser and $225,000 for a married purchaser AND there is a limit of $800,000 on the cost of the home being purchased.

*The effective date of the Home Buyers Tax Credit Extension will be the date that President Obama signs the bill.

Be sure to save the the paper work from your purchase. Your documentation must be attached to your tax return. Check with your Accountant, but I’m guessing you will need your fully executed Agreement of Sale and your HUD-1.

This should bring a breath of fresh air to our housing markets and a smile to our piggy banks. Don’t miss out! Call me today, Judy Peterson 610-889-5509,  so that we can get started finding the right home for you!

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The Senate is working on approving  The First Time Home Buyer Tax Credit Extension. Part of the proposal is to Expand The Home Buyers Credit for existing home sellers/home buyers but so far there is no Senate Vote. Possibly next week there may be a vote ready to go to the House and from there who knows?

From Soap Operas like Days of Our Lives  (”tune in tomorrow for the next exciting episode”), to Dallas, we’re drawn to cliff hangers. Who didn’t tune in  to find out, Who Shot JR?

Remembering Saturday afternoon at the movies…return on deposit money pennies were saved from collecting empty Coke bottles, and then spent on Saturday afternoon movie adventures. We were transported by the story, as only children can be, until these words popped onto the screen …”To Be Continued”. They were delicious seconds of anticipation. But even before I could read, I’d cover my ears from the hoots and hollers, catapulting me back to reality as the lights came up.

Oh, how the good guys (white hats) and bad guys (black hats) would live on in our imaginations . . . until next time. We were children play acting with simplistic viewpoints.  What did we know of the flip side pain and agony of some real life cliff hangers?

First Time Home Buyers and their Real Estate Agents, are following the real life cliff hanger that’s become the “perfect storm” of our economy. It will take more than help for just First Time Home Buyers to improve the housing market. Expanding the Home Buyer Credit could be a positive place to start.

However, unless unemployment and confidence improves, we may just be giving money to those who might have purchased a home anyway.

Are The Good Guys In The House The Senate or Both?

The Senate has not approved a proposed extension of The First Time Home Buyers Tax Credit or yet voted for an expanded Home Buyer Credit. Doesn’t mean they won’t, but it’s not done yet.

I like this image. While it shows risk, it also shows something we all need right now skill, courage and hope!

Hold onto your hoots and hollers! I’ve received several emails saying that the Senate Proposal is a done deal and as far as I can tell, we’re not there yet.

. . . To Be Continued . . .

Want some reliable help with your real estate questions? Ready to buy a new home or need to sell a home? Contact or call me, Judy Peterson 610-889-5509 with all of your real estate questions and concerns.

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The Third Quarter Tredyffrin Real Estate Absorption Rate is looking more like a normal real estate market instead of one drowning in inventory.

Some months I have felt like I needed a huge mop to soak up the excess inventory. And in some markets that’s still the image that resonates.

But here in Tredyffrin Township for the Third Quarter Real Estate Market, we’re showing signs of recovery. The months supply of inventory is down to 5.6 months.  Keep in mind that the MSI and the Absorption Rate is based on the assumption that no new inventory is coming on the market, which is never the case.

The Months Supply of Inventory and Absorption Rates are averages, so there are definitely properties selling within days and even some with more than one offer and others, especially in luxury home price ranges, that are languishing.

MSI and it’s second cousins, Days On Market and Interest Rates, are the only numbers we like to see coming down in real estate market statistics.

The MSI for September 2009 is down to 5.6 months in Tredyffrin compared to an MSI of 7.7 months in September of 2007. The Days On Market in September of 2009 is 81 DOM which is up from 34 DOM in September of 2007.

The DOM indicator is up 139% and the Months Supply of Inventory is down 27%.

Contact or call Judy Peterson Realtor 610-889-5509 Prudential Fox and Roach Devon Home Marketing when you need a professional Market Analysis for your home in areas like Tredyffrin Township, Chester County Philadelphia Main Line Pa.

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2009 l Climate Change

Today is Blog Action Day 2009 l Global Climate Change is the topic that Bloggers around the world have agreed to write about with the goal of raising awareness on one critical issue that impacts each of us.  Climate Change and Climate Control are big issues! Big enough to be overwhelming. But we need to resist the temptation to do nothing. We each need to accept responsibility for the future our planet in big and small ways.

I’m a proud Mom who’s often inspired by my two children and 3 precious grand children. As a real estate agent I spend my professional life helping families. And so it’s no surprise to me that our children and young people are the hope of our future. We need to educate ourselves as well as support and follow the efforts of our Children For Climate Change.

When my children were young they loved the children’s literature  from a series called, “The Borrowers” by Mary Norton. The Borrowers were a secret society of subterranean little people who were responsible for  all of those “things” that seemed to mysteriously disappear. You know, like the disappearance of just ONE of all the matching socks from the dryer.

Children delight in the antics of The Borrowers,  in part because the little people became the heroes because “the big ones” had messed up. First they are charming stories. And second,  they satisfy our human desire to avoid or shift responsibility, to point a finger and say, “it’s not my fault”.  As a Mom, I loved the message of personal responsibility in these well written stories.

The National and International Climate Change Debate in Copenhagen 12/7/2009:

• The Pew Center For Global Climate Change has lots of information to help us get up to speed on the issues and to be informed about the National and International debate on Climate change that’s taking place in Copenhagen December 7th 2009.
• Learn about individual States Climate Change Initiatives and see what your State has done or is doing to reduce Green House Gas Emissions and this recent update by The Pew Center.
• Follow the meetings in December at Copenhagen to ensure that we reach a Global Climate Pact.

Global Climate Control In Small Pieces:

• Support State and local environmental initiatives.
• Find ways to be Green in our personal family living.
• Use environmentally safe products.
• Support “Green” practices in our own community.
• Support Sustainable Farming in our community.
• Recycle, redesign, reinvent.
• Help those who can’t help themselves.

“Lead, follow, or get out of the way” is another way of saying that nature abhors a vacuum. We can no longer wait for the emerging nations or “someone else” to take a stance on GHG Emissions. Our own National leadership needs to lead the way and support the work that many States have begun. It’s time to do the right thing.

The enduring popularity of The Borrowers illustrates to children, and each of us Adults, that the road to personal responsibility is, at times a difficult road to travel. Today we face a bigger challenge of losing life itself.

What to do with a big problem like Global Climate Change?

Make it smaller…many pieces smaller.

Join together with others in a world wide community of  awareness and action.

Pick up your personal piece of the Global Climate Change challenge.

Think small but start walking!

Vote Earth!

“A journey of a thousand miles begins with a single step” Confucius

Let’s be good “human beans” and not “witless” borrowers of the future of our children and grandchildren.

#BAD09

#VoteEarth

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I will say that I’ve never seen anything quite like this market in my 18 years as a Realtor.  More than usual, the Buyers and Sellers appear to be marching to the beat of a different drummer. This is apparent in the disconnect between the August increase in the Median For Sale Price and the drop in the Median Sold Price and Under Contract Price.

From the 5% median For Sale price increase of $439,900 over the August 2007 Median For Sale Price of $419,500 to the 6% Median Sold price drop ($435,000) in August 2009 as compared to August 2007 Median Sold Price ($462,450), it appears that, at least here in Tredyffrin Township, Buyers and Sellers perceive the market direction very differently.

This month, I waited to do our August Real Estate Market Update, to make sure that every transaction for August 2009 was in and recorded in the MLS, just in case there were some Under Contract transactions with longer settlement dates.

The Under Contract transactions dropped in Median Sale Price by 26% from $439,900 in 2007 to $324,935 in August 2009. The August 2008 Under Contract Price was $370,000.

How about the Supply and Demand numbers for Tredyffrin? Do they support the belief that the Median For Sale Price should increase by 5% over August 2007? The number of homes sold in August 2009 (45) has dropped 30% over the number sold in August 2007 (64). While those under contract are up only 4% from 25 UC in 2007 to 26 UC 2009.

So maybe the good news is in the Months Supply of Inventory? The current MSI is 7 Months compared to 7.3 Months in August 2007. While the Days On Market DOM has increased 84% from 52 DOM in 2007 to 95 DOM in August 2009.

August 2009 is not as pretty as the prognosticators were predicting. It’s still a Buyers Market or maybe the Buyers just stayed at the Shore for the September low rates.  Either way, we’ve now tied up the lose ends of Summer. And from here, good, better and best pricing is still a critical issue, together with impeccable showing condition. You know, just in case you get a 90% or a 92% offer? I’m just sayin. You heard it here.

Do you need to know what the right price for your Tredyffrin home is? Or what impeccable home showing condition means for your Tredyffrin home? I can help you. Contact or call me, Judy Peterson 610-889-5509 Prudential Fox and Roach Realtors, Devon Home Marketing. I love helping Sellers get their property to sold for the best price and helping Buyers make wise buying choices.

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How Will Amended Regulation Z Changes Affect Buyers and Sellers?

Regulation Z has recently been amended, and will apply to loan applications filed on or after July 30, 2009. It’s a law and a fairly complex one at that. I included the full amended link here.The tiny print just reminds me to get my eyes checked.

“Say What?” is a fairly common response to the question of, “How are you preparing to respond to the new provisions of Reg Z?

Highlights of Regulation Z Changes Effective July 30, 2009:

Here are the simple bare bones highlights of the Regulation Z changes. And just for fun let’s start with the “fly in the ointment” provision in item 3 below, since not all readers will bother clicking to the second page (you know who you are .

• Your Lender must give you a TILA good faith estimate within 3 business days after you apply for a loan. No other fees except for a credit report can by collected by your Lender at this time.
• There is a 7 day waiting period before you can close on a property, after you receive your TILA good faith estimate, known as the “early disclosure” period.
• If the annual percentage rate (APR) changes by .125 percent, your lender is required to give you, the borrower, a new TILA Disclosure AND the Lender and the Borrower must wait an additional 3 Business Days before closing the loan. As a borrower you need to know that the Annual Percentage Rate includes other costs related to settlement, not just the interest rate. Think about that for a minute, an eighth of a point up or down, and closing on the loan (and possibly settlement) must be delayed 3 business days.
• The new Regulation Z requirements pertain to mortgages on your home as well as a second home and any refinance of your home or second home.
• Consumers can waive the 3 day or 7 day waiting period for a “personal financial emergency” such as pending foreclosure, for example.
  

The Law of Unintended Consequences

That’s 10 business days of waiting for the Borrower. What do you think about that? See any potential problems in the day to day practice of real estate?

I’m sure that there are more concerns that I might have missed since I’m a Realtor, not a Lender or an an Attorney, but here’s a few that I can see that come under the heading of the Law of Unintended Consequences:

1. If you’re the Borrower, you need to lock in at least 10 days prior to Settlement and 14 days would be safer (the law reads “after the expiration of a 7 day waiting period) or you could be unable to settle on your contract date. My advice to Buyers  is talk to your lender and make sure they are informed about Reg Z, then“lock and lock early”.
2. If you’re a Seller, you need to know that your firm settlement date just became a little less certain and reliable than it used to be. You may need a back up plan of a place to stay with family or friends for a few days, or a rental, just in case you have a back to back settlement for the sale and purchase of your new home.

In the real world, last minute fees prior to settlement are not uncommon. In the real world, Sellers need their proceeds to go on to their purchase settlement involving third party Sellers and Buyers. Nothing concerns Buyers and Sellers more than the coordination of successive transactions.

In the past, Sellers often left the settlement table and headed straight for the Airport for a new job and their new home closing.

What’s the Sellers tolerance for delay? What’s to stop someone with “buyers remorse” from making last minute changes to subvert the contract? Of course it’s important to have laws to protect Borrowers from unscrupulous and undisclosed lending fees, but does the amended Regulation Z leave Sellers less protected?

I’m just sayin! Real world implementation raises lots of questions. Am I a worry wart? We’ll see! It’s my job to protect my Buyers AND my Sellers.

As I know more, I’ll bring it to you. But the take away message to Buyers is, lock in early. Don’t make last minute changes that could affect the APR. Sellers, have a back up plan and be prepared for possible delays. Consult your lender and/or your Attorney.

Contact or call Judy Peterson, Realtor, 610-889-5509 with ALL your real estate questions.

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Home Owners “Green” Tax Benefits Offer Savings Ideas Tucked Away in The First Time Home Buyers American Recovery and Reinvestment Act of 2009

You all know about the $8,000 First Time Home Buyer tax credit that’s chasing down the November 30th 2009 deadline, right?

But did you know that the American Recovery and Reinvestment Act of 2009 has a nice little tax benefit and some bright ideas for current home owners if you improve your home’s energy efficiency on items like skylights (who has a skylight that doesn’t need improving?) doors, windows, and some metal and asphalt roofs. Could be as much as 30% of the cost of the project up to $1,500.

And the “green” tax credit also covers installation costs for HVAC and gas, oil and propane water heaters through December 31, 2010.

Now I grant you it’s not 16 Billion Dollars, which is the Recovery Amount the State of Pennsylvania has to play with, but every little bit counts to most home owners in Chester County Main Line Pa, Delaware County and Montgomery County. Especially if you had some home improvements on your “to do” list anyway!

Add some geothermal goodies (heat pumps, solar energy and wind energy systems)  and you have some more bright ideas that could get a tax credit of 30% of the entire cost through December 31st 2016.

Sweet! Rewards for doing good. I like that.

Contact or call Judy Peterson, Realtor, 610-889-5509 Prudential Fox and Roach Devon Home Marketing Center for lots more Chester County Main Line Pa home buying, home improvement, homes for sale and getting your home sold home ideas.

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Our July 2009 Real Estate Market Statistical Report compares the Chester County Real Estate Market Activity for July 2007 to July 2009 for Chester County Homes Sold, Chester County Homes For Sale, Median Sold, Chester County Median For Sale and Median Under Contract Real Estate Pricing.

The National Association of Realtors® reports in the NAR National Existing Home Sales Report, that for the first time in 5 years, existing home sales have increased 4 months in a row as of 8/21/09.  I’m looking forward to the Market Reports for August since my intuitive impression is that the Real Estate Market in our area is alive and kickin’ again. I’m hearing more and more properties selling in record time and some even with multiple offers, especially when “priced right” and in awesome condition!

The Market Dynamics show that all Median Price indicators are down for this period: Median Sold Prices Down 2% from $310,500 to $305,000 In July 2009, Chester County Homes For Sale down 3% from $374,950 to $365,000 and Chester County Homes Under Contract down 15% from $335,000 to $285,000 in July 2009.

It’s interesting to note that Median Prices were up slightly in June of 2009, but not maintained for July 2009

Supply and Demand, (number of units) were down for the period with Number of Sold Units down 14% from 581 units to 497 units, Number of Chester County Homes Under Contract down 11% from 511 units to 454 units in July of 2009.The Number of Homes For Sale is down 1% from 4,852 homes for sale in Chester County to 4,788 homes for sale in July of 2009.

The Chester County Months Supply of Inventory (Days On Market) continues to be a significant indicator. The Months Supply of Inventory throughout Chester County Real Estate Inventory is up from 7.5 MSI to 8.6 MSI in July 2009. The Days On Market has increased from 60 DOM to 83 DOM in July of 2009.

This is a significant improvement downward from January of 2009 but still a real estate market factor that continues to describe a Buyers Real Market. A neutral Market is loosely defined as one in which the Months Supply of Inventory hovers between 5 Months and Six Months of Inventory. We’re definitely headed in a healthier real estate market direction compared to the 11.5 Months Supply of Inventory back in November of 2007.

The final Basic Absorption factor is Residual Inventory which is up 5% from 3,045 to 3,191 Residual Inventory Homes For Sale in July 2009 and New Listings which is down from 931 New Listings in Chester County to  814 New Listings in July of 2009.

Contact or Call 610-889-5509 Judy Peterson, Realtor Prudential Fox and Roach Devon Home Marketing Center to find out more about your neighborhood real estate market.

*All data courtesy of Trend MLS and Terradatum is deemed accurate but not guaranteed.

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Town Homes and Condos offer some good choices for First Time Home Buyers, Seniors downsizing and Investors because of the attractive lifestyle. The Community of Chesterbrook in Wayne 19087 Tredyffrin Township PA is one of Chester County’s most popular Town home and Condo locations.

New Condo Townhome Buyer Tips and Tricks

• Docs and Rules and Regs need to be ordered earlier the process.
• Disclosures are more important than ever before.
• Financing can take a little longer as some markets (not ours) had high foreclosure rates in the condo segment of the real estate market.
• Each segment of the market has it’s own challenges as we work through economic and housing recovery. Potential $8,000 tax credit of free assistance from the government remains the pot at the end of the rainbow for First Time Home Buyers for homes purchased BEFORE November 30, 2009.
• Thinking about purchasing to take advantage of the First Time Home Buyers Tax Credit? Don’t delay! Except for cash buyers, the days of 30 day closings seem to be a thing of the past.

*A look at the June 2009  housing statistics in Tredyffrin compared to the market activity in June of 2007 shows a good 4% increase in the median sold price for townhomes and condos in Tredyffrin, including Chesterbrook. The Median townhouse/condo sold price in June of 2009 was $299,000 with an average of 42 days on the market.

The Supply and Demand Number of Units sold in June of 2009 was 19 units sold compared to 30 units sold for June of 2007 a 37% drop.

During the time period 62 Townhouses and Condos sold in Tredyffrin Township and 30 of those sales were in the community of Chesterbrook.

Days on the market and Months Supply of Inventory are beginning to return to some normalcy with June DOM at just 42 days from listing date to settled date as you can see from my Months Supply of Inventory Graph. While the MSI is currently 3.9 months  in June of 2009 as compared to 2.9 months in June of 07 that’s a huge improvement over the statistics from December/January of 2008.

There were 54 Town Homes and Condos for sale in Tredyffrin as of the end of June and 26 of those town homes were in Tredyffrin, Wayne,  Chesterbrook Pa.

*Data courtesy of Trend MLS and Terradatum is deemed accurate but not guaranteed.

Contact or call me, Judy Peterson, Realtor Prudential Fox and Roach Realtors Devon Home Marketing Center,  with ALL your real estate questions, 610-889-5509. I’m always here to help!

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If you’ve been puzzled and sitting on the fence when it comes to your home ownership dreams all I can say is ouch! Now is the time to get off of the fence and take advantage of this opportunity for your potential First Time Home Buyers $8,000 Tax Credit*.

We all crave our own space, good neighbors to share a back yard barbecue with, a place for the kids, some flowers and a few tomato plants. Many of my first time home buyers can’t wait to say goodbye to “broker beige” and decorate in their favorite colors to express their personal style.

Check out my 7 Point First Time Home Buyers Quick Summary and let me know what you think? You might be looking forward to investing instead of throwing money away on rent. Our homes were never meant to be banks, but even with our current challenges in the financial and housing market, home ownership has historically out performed the stock market for investment return, interest rates are at historic lows, prices are down and sellers are motivated.

7 Point First Time Buyer Tax Credit Quick Summary. Do You Qualify For The First Time Home Buyer Tax Credit?*

1. You’re a First Time Buyer who has not owned a home within the last 3 years prior to your home purchase date
2. You will close on a home between January 2009 and November 30, 2009.
3. Your home purchase will be your primary residence, not a vacation or second home.
4. You are not purchasing a home from a close relative, parent, child or spouse
5. You DO NOT qualify if your single personal income is more than $95,000 or if your joint income is more than $170,000.
6. If you qualify, the credit you receive is equal to 10% of the purchase price up to $8,000.
7. Buyers with up to $75,000 of income and joint filers with up to $150,000 of income may get the maximum credit. But single buyers with incomes between $75,000 and $95,000 or joint filers whose income is between $150,000 and $170,000 may have their tax credit decrease at the upper range.

3 Ways To Use Your First Time Home Buyer Credit*

• Claim the First Time Home Buyer Credit on your Tax Return in 2009
• FHA may approve borrowing against the tax credit to help cover your closing costs or to increase your down payment
• since the $8,000 possible tax credit is a refundable tax credit up to 10% of the purchase price, and if your tax liability is less than $8,000, the IRS may refund the difference.

*Since I am not an Accountant or an Attorney I advise my clients to consult their Tax Adviser or Attorney with all of your tax related questions.

Call me to find out more about some good First Time Homebuyer choices, Judy Peterson, Realtor, Prudential Fox and Roach Devon Home Marketing 610-889-5509.

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