Author Archives: Kim Shindle

Avoiding anti-trust discussions

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The new “Instant Offer” feature touted on some online listing sites has caused many real estate agents to reconsider their use of these sites. Some Realtors® have suggested their organizations take a position on these features.

“We’ve seen many Realtors® speak out on social media about this issue and many have called for boycotts,” said Hank Lerner, PAR’s director of law and policy. “While individual brokers and agents can certainly make independent business decisions about distributing their own listing content, we want to caution members against starting or promoting group boycotts of Zillow. It’s unlawful for associations to encourage members to withhold listings or business from any company, or to adopt rules that would prevent them from doing so.”

The National Association of Realtors® encourages Realtors® to show their value to homebuyers and sellers.

Realtors® know and understand their local markets far better than a website can. Realtors® work with home sellers to prepare their home for the sale and market their home to a large audience. As a real estate professional, Realtors® negotiate the best deal for their clients.

“In the meantime, it’s best to avoid conversations that could be a violation of anti-trust laws,” Lerner added.

Secretary outlines state budget process

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Pennsylvania is facing a number of difficult budget challenges, both short- and long-term, according to the commonwealth’s Budget Secretary Randy Albright. The secretary and Sen. Pat Browne (R-Lehigh) addressed Realtors® at PAR’s Day on the Hill this week in Harrisburg.

One of the major debt issues Pennsylvania faces is the state employees/teachers pension fund. Albright said delaying making decisions on this issue continues to raise the debt pension level, which is currently at $62 billion.

Browne agreed, saying the state’s risk exposure was too high with the state pensions and it’s not in line with the private sector. “We need to make a real effort to move the commonwealth in that direction for the first time. It’s a burden that the state can no longer carry.”

“We continue to look at short-term fixes, but delay long-term solutions,” Albright said. “It’s those kind of funding decisions we can’t put off. We’ll need to work together as the legislature and the governor.”

The state has been facing an unexpected downturn in revenues, according to Albright. “The state missed $200 million in income last month and $680 million to date in this budget.”

“We’re working to find fresh ways to continue to deliver services,” Albright said. “We’re asking departments to take a hard look at what they’re doing now that we may not have to do.” Through those efforts, the state has identified $2 billion in savings by streamlining services.

“We’re working to maintain a level of service or providing an even better level,” he added.

An announced prison closing in Pittsburgh will save $100 million and combining four state human services agencies will save another $100 million.

Albright said they will look to close a loophole that allows businesses to avoid paying taxes on storage fees, as consumers are charged taxes.

Browne said the general assembly and the governor’s office have different approaches to the budget process. He said the budget has an approximately $3 billion hole.

“Our conversations need to be more than what’s needed to close this year’s budget,” he said. “Pennsylvania is carrying too much risk. And we need to address some of the long-term challenges.”

Browne said the Independent Fiscal Office estimates the state will face a $20 billion short fall in 2020, if some issues are not addressed.

He said one of the biggest challenges is human services, particularly with the growing number of senior citizens and their need for Medicare.

“It’s more expensive than what we can meet,” he said. “We need to provide services but get costs down.”

Browne added, “We need to make decisions to find a way to look toward the future. We want to continue to invest in our people.”

Statewide home sales and prices continue upward swing

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The Pennsylvania housing market continues to look positive, according to a report released today by the Pennsylvania Association of Realtors®.

The fourth quarter of 2016 experienced an increase in home sales, compared to the previous year. Existing home sales were up 5.2 percent in the fourth quarter with 33,188 sales, compared to the fourth quarter of 2015 and were up 7.2 percent overall in 2016 with 137,526 sales.

The median sales price rose in the fourth quarter as well, up 4.6 percent to $170,000, compared to the same quarter in 2015. The year ended with the median sales price up 2.8 percent higher than 2015.

Homes are selling quicker in many markets. Days on market dropped 6.3 percent from 80 days in 2015 to 75 in 2016.

“Sales and prices were up in most markets throughout the commonwealth,” said 2017 PAR President Kathleen McQuilkin. “Overall, we’re seeing healthy growth in the real estate market.”

The number of new listings entering the market continued to fall in the fourth quarter of 2016, down 7.5 percent, compared to the same period in 2015. The months supply was at 4.8 in the fourth quarter, down 25 percent from the same quarter in 2015.

“We’ve seen a continuing trend of fewer listings entering the market, with an overall decrease of 4 percent in inventory in 2016,” McQuilkin said. “This has created a competitive market because there are fewer homes available. Inventory is lower and demand is growing. Homes that are in good condition and priced competitively are seeing multiple offers. This could continue to be a challenge in the new year.”

McQuilkin said percentage of original list price received is up as well. “Statewide, we saw properties selling at 93.5 percent of the original list price,” she said.

“Overall, Realtors® are positive about the market in 2017,” she added. “We’re continuing to see low interest rates and low unemployment rates which inspires consumer confidence.”

To view the entire market report, visit PARealtor.org.

Gov. Wolf met with Realtors® on Act 133

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Pennsylvania Realtors® met with Gov. Tom Wolf today for a ceremonial signing of Act 133 of 2016. The act amends the Municipal Code and Ordinance Compliance Act, originally enacted as Act 99 of 2000, which will change how some municipalities issue use and occupancy certificates. Act 133 took effect Jan. 2.

“The new legislation will prohibit municipalities from denying use and occupancy certificates due to point-of-sale inspection issues,” according to Hank Lerner, Esq., PAR director of law and policy. “Some municipalities were inappropriately withholding or impeding U&O certificates, leading to some real estate transactions being postponed or cancelled due to minor property maintenance violations.”

Realtors® sent more than 13,000 emails to state legislators urging them to support this legislation.

“We heard of numerous transactions being delayed or canceled due to municipalities denying the U&O certificates based on minor violations,” said 2016 PAR President Todd Polinchock. “We appreciate that state legislators heard our concerns for homebuyers and sellers and passed this legislation and that Gov. Wolf signed the bill when it arrived on his desk.”

“One of the provisions of Act 133 states that a violation found through a point-of-sale inspection cannot be used to deny a permit or to require pre-settlement repairs,” Lerner explained. “But the act also gives municipalities a permit structure that should help ensure necessary repairs are made in a timely fashion after transfer. These new amendments clarify the rights and responsibilities of both municipalities and property owners so these concerns don’t occur in the future.”

Municipalities cannot require repairs be made before the closing, according to Lerner. “The buyer and seller can certainly negotiate pre-settlement repairs if they choose, but it cannot be required. Regardless of the number or type of violations found in a municipal report, the municipality must issue a permit of some sort and can’t require repairs/renovations be completed as a condition of issuing the permit. However, while a permit can’t be withheld, the type of permit may depend on the type of violations that are found,” he said.

More detailed information is available at PARealtor.org. Members with clients experiencing issues with a municipality not following the amended code should contact their local government affairs director or field staff representative. They will be monitoring these situations throughout the state and providing information to PAR.