Author Archives: Kelly Leighton

Harrisburg, Lancaster land in top 50 best places to live

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Harrisburg and Lancaster nabbed the two highest spots in Pennsylvania in U.S. News and Reports’ recently-released annual Best Places to Live list.

The site ranks the top 100 most populous areas in the country. Austin, Denver, San Jose, Washington, D.C. and Fayetteville, Ark claimed the top five.

In 34th place, Harrisburg, which fell nine spots from last year’s report, scored 6.7 out of a possible high of 10. The scores factored in aspects such as desirability, value, job market, quality of life and net migration. Harrisburg’s strongest assets are the value and quality of life in the Capitol city.

With a population of 558,198, Harrisburg’s affordable housing market and low cost of living make it an ideal location. The average annual salary is $46,520, about $5,000 below the national average, but the median home price is only $83,500, more than $125,000 less than the national average. Additionally, the unemployment rate, at 4.4 percent, is below the national average. The average work commute time is 22.5 minutes, also below the national average.

Harrisburg is a “fairly young” town, as 13 percent of the population is between 25 and 34, and the median age is slightly over 40. Harrisburg was also praised for its’ closeness to state parks, the Susquehanna River and music and art opportunities.

Meanwhile, Lancaster landed seven spots behind in 41st, scoring 6.6 overall. Lancaster’s highest-rated factors is the city’s quality of life and its value.

Lancaster’s population is 530,216, slightly below Harrisburg’s. Housing is also considered affordable here comparatively, with the median home price costing $176,138, more than $35,000 below the national median home price. Lancaster boasts a low unemployment rate (4.1 percent), and a 22.9 minute work commute.

Lancaster was applauded for its shops and restaurants on College Row, as well as closeness to hiking trails.

Affording a down payment in Philadelphia takes an average of 3.8 years, study reports

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Affording a down payment is a struggle for some potential homebuyers, and SmartAsset recently analyzed how long it would take residents in the 15 biggest cities in the country to save for a down payment.

Philadelphia was included in the study, and researchers found that it takes an average of 3.8 years for someone to save for a down payment in the city. Thanks to the lowest average income on the list, at $38,253, as well as the ninth-highest home prices at an average of $145,300, saving for a down payment may take a while. Philadelphia landed in eighth out of the 15 cities studied.

“How much house a person can afford depends on many factors including location, income, credit score, and savings, among others. In our study, it was surprising to see that even in places like San Francisco where the median income is relatively high, it would be nearly impossible for the average household to afford the ensuing mortgage payments on the median-priced home,” said AJ Smith, SmartAsset’s personal finance expert and VP of content.

The analysis took into consideration the median home prices and income, and calculated how long it would take residents to save 20 percent for a down payment if they saved 20 percent of their income. Not surprisingly, California claimed four out of the top five spots for length of time it would take to afford a down payment, thanks to San Francisco (9.84 years), Los Angeles (9.38 years), San Jose (7.2 years) and San Diego (7.01 years). New York City claimed third place, as it would take residents an average of 99.27 years to afford a 20 percent down payment.

“While it would take 3.8 years to afford a down payment in Philadelphia, given the parameters we explored, that’s a relatively short amount of time compared to other big cities where saving up for a down payment can take almost a decade,” added Smith.

Pa. ranks as one of the best states to retire

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While many people associate retiring with moving south, that isn’t necessarily the trend anymore.

Florida is still at the top of the list of the best places to retire, but some of the other most beneficial placesfor retirees may surprise you. In fact, Pennsylvania was recently named the 11th best state to retire, according to WalletHub.

The study analyzed 31 “key indicators of retirement-friendliness,” including affordability, health-related factors and overall quality of life. Some factors included the adjusted cost of living, the annual cost of in-home services, WalletHub’s taxpayer rating, the percentage of the workforce that is aged 65 and older, most museums per capita, most theaters per capita, percentage of overall population aged 65 and older, life expectancy and property crime rate.

Overall, the commonwealth landed in fourth for quality of life, 20th for affordability rate and 32nd for health care, scoring overall 63.23 out of a possible score of 100. Pennsylvania also landed in the top five for most theaters per capita, as well as tying with Vermont for having the fourth-highest percentage of residents 65 and older, according to WalletHub.

WalletHub noted that many retirees cannot rely on their social security or pension to support their cost of living, so the more affordable a state, the better it is for retirement, making Pennsylvania a top choice.

Florida, scoring 69.22, Wyoming, South Dakota, Iowa and Colorado were labeled the top five best states for retirees, while Hawaii, Connecticut, the District of Columbia, Alaska and Rhode Island scoring a 43.84, were labeled the worst five states for retirement.

Americans are ‘cautiously optimistic’ about housing market in 2017

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In the new year, Americans are remaining “cautiously optimistic” about the housing market, according to the ValueInsured Modern Homebuyer Survey.

Sixty-nine percent of respondents reported that they think the housing market will be better in 2017 than it was in 2016. Fifty-eight percent of Americans, including 62 percent of millennials, said that they think the housing market will be better for them personally this year. Nearly three-quarters of homeowners believe it will be easier for them this year to upgrade to a new home.

Millennials who are not currently homeowners are the most optimistic about the housing market this year. Forty-one percent believe that 2017 will be an easier time for them to buy, while 44 percent said they are ‘confident’ they can afford a down payment, an increase of 6 percent from September, and 14 percent from March.

“I recommend Americans, especially first-time buyers, absolutely pursue their dream of owning a home,” said Joe Melendez, CEO of ValueInsured. “But it’s up to us as an industry to help make them feel more confident in doing so, and that starts with us giving them greater certainty by protecting their down payments.”

Yet, homeowners are less confident now than they were in September that their homes are worth what they bought them for, and they are also less sure that home prices in their area will keep rising. However, 53 percent believe if they purchase a home this year, it will increase in value by 2018.

But 78 percent of Americans think purchasing is a better option than renting. And owning a home is still a pivotal part of the American Dream, according to 79 percent.

Real estate pro offers advice on those hard-to-sell homes

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If you have that house on the market that just isn’t selling, Matt Parker, real estate professional and author of three real estate books, is here to help.

First, if your homeowners are staying in the home they are trying to sell, Parker suggested if they can afford to get out first, they should. If they can’t, make sure personal touches, such as photos, are not displayed, and keep the family pet out of the house during showings, he advised.

“Approach the condition of the home as a hotel would be, neutral,” said Parker. “It is tempting to get personal with the sellers, assuaging their love of their decor and tastes. But, the process is about buyers feeling comfortable in a potential space, not sellers enjoying their lifestyle. If you do it correctly, it doesn’t take long.”

While preparing to put their home on the market, some owners grow frustrated or tired, Parker said. “They just throw their hands up and say ‘I am not cleaning those gutters.’ Sellers have to remember, it doesn’t matter how tired they are, it matters how buyers feel in their home. Take the time to prepare your home correctly for the market, it will make the difference financially, and, from a stress standpoint.”

As for sprucing up homes, Parker said, in his experience, some sellers try to give buyers a “paint allowance.”

“This has never worked in the history of real estate,” he said jokingly. “Really, it doesn’t work. Buyers want move-in ready, not ‘I think this would be fun to prep, paint and then move in.’ It’s very easy and fast to modernize your home with gray and white paints and trim. It can add a real classy touch to your home. Don’t ever use atypical colors, or, colors that lend themselves to preferential taste, like pink.”

And what are Parker’s top tips? “Use professional photos, make sure the listing is listed on all MLS sites and all relevant non-MLS sites,” he said.

 

2016 existing-home sales hit highest peak since 2006

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2016 was the best year for existing home sales in the past decade, according to the National Association of Realtors®.

Previously, 2015 had the best year in the past decade for existing home sales with 5.25 million, but 2016 saw sales of 5.45 million, the highest it has been since sales hit 6.48 million in 2006. Sales slipped a bit in December 2016, but still saw an increase of .7 percent from December 2015.

The median existing-home price in December 2016 was $232,200, an increase of 4 percent from December 2015’s average of $223,200.

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” he said. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December,” said Lawrence Yun, NAR’s chief economist. “While a lack of listings and fast rising home prices was a headwind all year, the surge in rates since early November ultimately caught some prospective buyers off guard and dimmed their appetite or ability to buy a home as 2016 came to an end.”

Housing inventory continues to remain an issue. In December, inventory fell to 1.65 million, a decrease of 10.8 percent from November,and the lowest NAR has seen since it began the reports in 1999. Properties were on the market for an average of 52 days, representing an increase of nine days compared to November, but a decrease of six days from December 2015.

Throughout 2016, nearly one-third of buyers were first-time homebuyers, a number that remained consistent throughout the past two years.

Region-wise, in the Northeast, the median price was $245,900 in December 2016, a 3.8 percent decrease from December 2015. Additionally, sales slipped 6.2 percent in December to an annual rate of 760,000, an increase of 2.7 percent, compared to 2015.

Kathy McQuilkin inducted as PAR’s 94th president

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Kathy McQuilkin

President Kathy McQuilkin

Exton Realtor® Kathleen McQuilkin was installed as the 2017 PAR president last evening.

McQuilkin, an avid runner, compared leading PAR to training for a hard race.

“As an organization, we must be ready for decision-making when obstacles arise,” she said. “Preparation is paramount. PAR has great people, talented staff and exceptional volunteers like you, who use our resources, like our strong RPAC investments and grassroots network to overcome uncertainty, bypass roadblocks and switch paths, if necessary.”

2016 President Todd Polinchock made remarks prior to McQuilkin’s installation. Polinchock said he is most proud of the field rep program, as well as the passing of Act 133, during his tenure as president.

“Realtors® are special people,” said Polinchock. “It’s a special community and I am an awe of this organization.”

McQuilkin added that PAR is better with a “strong” team. “At PAR, we operate as a leadership team,” she said.

A Realtor® for more than 30 years, McQuilkin works with RE/MAX Professional Realty in Exton and is a member of the RE/MAX Hall of Fame. She has been consistently active throughout her local, state and national Realtor® organizations. She was recognized by PAR in 2011 when she received the  Realtor® Active in Politics Award in 2011. She has served on the Legislative, Strategic Oversight, Finance and Executive committees, is a major investor in the Realtors® Political Action Committee and has been a member of the RPAC Hall of Fame since 2013.

Winter months are when buyers are more likely to find deals

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Winter is a good time for homebuyers.

NerdWallet researched two years of homes for sale on realtor.com® in 50 metro areas and found that home prices in January and February were, on average, 8.45 percent lower than homes listed in the summer months, June through August.

However, Jonathan Smoke, realtor.com®’s chief economist said that sales in October and November 2016 were stronger than usual, due to the lack of inventory on the market, so January and February may not see as low of prices as they have in the past. But NerdWallet reported that January is still a good time to buy because, on average, less people are searching for a home, instead waiting for the spring and summer, so there will be less competition. Last year, NerdWallet found there was a decrease of 47 percent in sales in January compared to June. There is also a decrease in inventory. In 2016, there were 21 percent less homes on the market in the summer compared to the winter.

“Prices are likely to increase even more than you typically see in spring because of low levels of inventory and because we didn’t see the normal weakness we see in fall,” Smoke said. “You basically face almost half of the competition with almost the same amount of inventory in the market. This potentially means fewer homes with multiple bidders and more room for negotiating with sellers.”

In the past two Januarys, the median home on the market sold for more than $7,000 under the listing price- making winter a pretty good time for buyers.

Mortgage rates causing hesitations in first-time homebuyers

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The rising of mortgage rates at the end of 2016 is causing some would-be first-time homebuyers a little hesitation in house hunting this spring.

In October 2016, 55 percent of potential homebuyers were planning to make their first home purchase in the spring. This number has dropped to 44 percent this month, according to realtor.com®. The website reported that the average 30-year conforming rate rose .8 percent from September to December 2016, and would cost, on average, an extra $720 per year in interest.

“Last fall, we saw a large jump in the number of first timers planning home purchases, which was very encouraging because their market share is still well below pre-recession levels,” said Jonathan Smoke, chief economist for realtor.com®. “But, as evidenced by their decline in share, first-time buyers are really dependent on financing and affordability is one of their largest barriers to home ownership. This number could continue to decline with anticipated increases in interest rates and home prices.”

While first-time buyers accounted for nearly one-third of buyers in November 2016, first-time buyers were almost five times more likely than repeat buyers to report that they struggled to qualify for a mortgage.

In addition to mortgage rates, the continued lack of inventory on the market is impacting would-be first-time homeowners. Inventory on realtor.com® in December 2016 was down 11 percent from December 2015. Another aspect of the low amount of inventory is that the cost of homes is still above average. In December 2016, homes on the market cost 9 percent more than they did in 2015.

Realtor.com® also reported that the average listing views saw an increase of 40 to 80 percent during the last few weeks in December 2016, compared to December 2015, as more buyers are striving to purchase the same homes.

 

What noise factors can impact your sellers’ home value?

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What’s that noise?

Turns out homebuyers typically have a preference when looking at home near notoriously noisy areas. What does it cost the sellers?

The realtor.com® team analyzed nine “major noise factors” and how they impacted home prices of homes near them.

Not surprisingly, airports are the highest offender. Sellers of homes within two miles of an airport are listing, on average, 13.2 percent below the average listing in their zip code. Relatedly, railway tracks within a tenth of a mile of a home for sale will see a discount of 12.3 percent, compared to other homes in the zip code. This is followed by highways within a tenth of a mile, where homes will see a dip of 11.3 percent, compared to other homes in the zip code.

On the other end of the spectrum, people living within a tenth of a mile of a fire station only see a decrease of 1.8 percent, compared to other homes in their zip code. Schools are another one, homes within a tenth of a mile see a decline of 4.3 percent, compared to other homes in their zip code, as some parents may see this as a positive thing. Yet, homes a little further away from schools, such as 1 to 5 miles generally see a jump in prices, up to 8.6 percent.

A 24-hour supermarket within a tenth of a mile will typically see a decline of 5 percent in price of the home. However, realtor.com® points out that a good store in the area generally increases home prices by 3.4 percent.

The other factors realtor.com® included in the study were busy roads within a tenth of a mile (9.5 percent decrease), a hospital emergency room within a half of a mile (7.6 percent) and a busy church within a half of a mile (5.2 percent).