Greater Philadelphia Real Estate Podcast

Here we are at the end of 2018! Today we’ll be discussing our 2019 real estate predictions. As we all know, in 2018, the markets were very, very good. In the past few weeks, we’ve seen a shift in the market, and we expect that to remain a continuing trend moving into 2019. The driving forces behind that shift are mortgage rates, which were changed by the Fed fund rate. Rates were increased a couple of times in 2018, and by the time this article gets to you, they might have increased yet another time. Rates are also expected to increase as 2019 progresses. What effect will these rate increases have on the market? We expect that they will continue to slow down the markets. Right now, we’re at 5%, which is an eight-year high in terms of interest rates; however, rates in general are still historically low. For 2019, we expect that buyers are going to continue to try to enter the market before those rates rise even more. One thing that could slow that process down is if unemployment rates start to increase. We’re still at historically low unemployment rates, as well, but if that number increases, it will have a negative impact on the market. We don’t have any reason to anticipate that happening in the coming year. Inventory levels are also at an all-time low. This coming year, we’ll likely see inventory rates pick up as well. That means we’ll likely see our days on market increase compared to where it is now. “All in all, we don’t expect any huge increases or decreases in 2019. Likely, we’ll just be riding the highs and lows, but staying overall steady throughout the year.” Additionally, we expect to see a balancing of the market in 2019. We’re coming out of a seller’s market at the moment, so we’ll probably see buyers having more opportunities to get into the market. This will affect sellers, especially those trading up for another home. Since inventory is low, they might be hesitant to list their current home for fear of being unable to find another to buy. They won’t want to take the chance of buying a home while thinking that we’re at the top of the market, which is what many people went through back in the 2008 housing crisis. All in all, we don’t expect any huge increases or decreases in 2019. Likely, we’ll just be riding the highs and lows, but staying overall steady throughout the year. If you have any questions or are thinking of buying or selling in 2019, feel free to reach out to us. We look forward to seeing you in the new year!

Our team is so thankful for you this holiday season. We hope your season is as merry and bright as ours. Happy Holidays! In the spirit of the season, our team would like to extend our warmest thanks to all of you for the amazing year we’ve had. Your continued support means so much to us. The success we achieved in 2018 wouldn’t have been possible without you. We look forward to continuing to serve our community, and are excited to work with you all in the new year to come. Merry Christmas, Happy Holidays, and Happy New Years! 

Today I want to talk about six home safety tips to employ if you want to keep your home safe from burglars. There are six things that house burglars don’t want you to know: 1. Nighttime burglaries aren’t common. Burglars prefer to do it during the day when they will usually find the home’s occupants out of the house. Many of these crimes take place between 12:30 p.m. and 2:30 p.m. 2. They know you’re not home. When it comes to social media, don’t post where you are at all times; a lot of burglars watch social media and track your movements so they can strike when they know you’re not home. Wait until you get home to update all of your friends and family about your vacations, trips, etc. 3. They don’t like your security practices. A home with an alarm or some type of dog is less likely to get burglarized than homes without. In fact, an alarm makes a burglary 300 times less likely; burglars want an easy target. 4. It’s not helpful to advertise that you have guns. Besides the fact that the burglar will then know to expect such a thing, it might also further incentivize them to rob your home, since guns sell well on the secondary market. “Many burglaries take place between 12:30 p.m. and 2:30 p.m.” 5. Your shrubs and architectural items make it easier for burglars to hide. Make sure you trim your shrubs and that you don’t have large objects obscuring your windows, or else burglars will exploit this to hide and get closer to your home. 6. They look for valuables left in open spaces.  Don’t leave your valuables out in the open, especially in places where they can be seen from windows, including technology like computers and laptops. This makes for easy targets. If you have any other questions about home safety tips or real estate in general, don’t hesitate to reach out to me. I’d be glad to be of service to you.

Are you making any of these 10 common but costly homeownership mistakes? If so, we’ll explain how you can mitigate them. In real estate, people often talk about how much it costs to buy a home, but what about the cost associated with simply living in a home? As most homeowners already realize, owning a property can be an expensive ordeal.  Today, we’ll cover 10 expensive homeownership mistakes. For each point, we’ll also discuss a money-saving alternative. Let’s dive right in: 1. Using incandescent light bulbs. These bulbs can cost about $180 per year. Using LED bulbs instead will cost you 87% less, making these bulbs the far more cost-effective option.  2. Ignoring leaky faucets. A leaky faucet can waste up to 3,000 gallons of water in a year, racking up a hefty water bill all the while. Fixing leaks as soon as you notice them is essential.  3. Using dirty or incorrectly sized filters. To keep your heating and air conditioning units working smoothly, you will need to regularly replace filters—making sure that, when you do, you use the correct size.  4. Excessively adjusting your thermostat. Programmable thermostats can save you a lot of money.  5. Not adjusting your vents. There’s no sense in leaving vents open to empty rooms. You should only heat and cool the areas you actually plan to be in.  6. Overwatering your lawn. If you have a sprinkler or irrigation system, you need to make sure it’s working properly.  7. Setting a water heater’s temperature too high. Adjusting the temperature of your hot water heater according to the season can save you a lot of money on your utility bill.  8. Ignoring leaky windows. If you feel any air coming into your home on windy days, it may be time to recaulk around your windows to ensure that they’re properly sealed and are not leaking air. “In the age of the internet, almost anyone can tackle most minor repairs without the help of a professional.” 9. Paying a handyman to take care of small projects. In the age of the internet, almost anyone can tackle most minor repairs without the help of a professional.  10. Neglecting your roof. If you have any curling or cracked shingles, your roof may leak and cause costly damage. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

You’ve probably been hearing a lot about the future of our market in the news lately, and today, we’re going to get to the bottom of what may lie ahead by reviewing some projections, as well as some recent market trends. On a national level, average home prices have appreciated 5.5% since this time last year. Locally, however, appreciation levels haven’t been quite so high, with average Pennsylvania home prices seeing an increase of just 3.6% year over year. Of course, these numbers only reflect the statistical average on a broad scale. Real estate trends vary between different counties, and even between different neighborhoods. Also, according to findings by CoreLogic, August 2018 had the slowest appreciation rate in nearly two years. This may be part of why we’ve seen affordability issues lately. Buyers and sellers alike have been hesitant to enter our market as a result of recent trends, with buyers holding out for greater affordability and sellers waiting for greater appreciation. “Real estate trends vary between different countries, and even between different neighborhoods.” Everything in our market is connected. As such, everything we’ve mentioned so far has also had an impact on supply. We’re still currently experiencing low inventory, and with mortgage rates beginning to climb, this trend is likely to continue. Now at approximately 5%, the current average interest rate for 30-year fixed mortgages is higher than we’ve seen in the past eight years. With all this in mind, you may be wondering what we can expect from the coming year. In terms of appreciation, forecasts predict that we’ll see an average national growth of 4.7% and an average growth in Pennsylvania of 5.5% between August of this year and August 2019. As we’ve already mentioned, interest rates will continue to rise as we move into next year. The bottom line is this: Buyers and sellers alike should make their move as soon as possible. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What’s going on with mortgage rates in our market? Right now, the average 30-year fixed rate is about 4.77%, which is the highest it’s been in the past seven years. Experts predict that it will continue to creep closer toward 5%, but it’s still at a historically low level. Is this really affecting our market? Not right now. I think what’s actually affecting the market is the dramatic price increases we’ve seen the past two years. Home prices are significantly higher now than they were when the market crashed in 2008. Additionally, inventory levels are still really low. “It’s still a good time to buy and take advantage of these historically low rates.” Low inventory, price increases, and rising mortgage rates have produced a little bit of a slowdown, but our market’s still extremely good right now. We’re heading into a time of year where more homes are expected to come onto the market, so it’s still a good time to buy and take advantage of these historically low rates. If you have any more questions about our current market or you’re thinking of buying or selling a home, don’t hesitate to get in touch with us. My team and I would love to help you.

If you’ve put your home on the market and it is not selling, there are a couple of key factors you need to examine and steps you need to take to rectify the situation. The first factor you need to look at is timing. What is the average days on market for listed homes in your area right now and where does your home fall within that average? This can vary depending on what price point your home’s in. The second factor is how your home compares to other homes on the market and what kind of activity they’re getting. Your real estate agent can help you with this by pulling some numbers from the MLS. “Remember to discuss these points with your real estate agent.” After that, you need to determine whether your home is priced appropriately based on those factors. If your home has spent more than a month on the market but it’s still getting decent showing activity, be patient and see what happens. If it’s not getting decent showing activity, look at how your home compares to other similar homes on the market in terms of showings and online views. A lack of showings could mean one of two things—either there aren’t a lot of buyers in your price point and the market’s slow in general, or buyers are eliminating your home from consideration in favor of other comparable homes. If it is the latter case, it is usually because of price. This is why, when putting your home on the market, you never want to overprice it. This can cause it to sit on the market, become stale, and prevent you from getting market value for it. Remember to discuss these points with your real estate agent. If you need help selling your home or you have any other real estate questions for me, please feel free to call or email me anytime. My team and I would love to help you.

Should you buy or sell first? This is a common question asked by sellers when they have to sell their home and also purchase a new one. The first thing you will want to do is look at your finances and get pre-qualified. You need to talk to a lender who can tell you whether you qualify for one of the following three options: You can buy first and then sell, sell first and then buy, or simultaneously buy and sell. Each one has its advantages and disadvantages. If you qualify to buy a new home before you sell your current home, you should know that after you purchase your new home, you will have to carry two mortgages. You need to make sure that you feel comfortable doing this. Also, you will now know exactly how much equity you are going to get out of your current home. Meanwhile, an advantage of selling first is that you do not have to worry about a home sale contingency. This puts you in a much stronger negotiating position as a buyer because it gives the seller one less contingency to worry about. “The most common option is to buy and sell simultaneously by putting your home on the market at the same time you are looking.” If you decide to sell first and then buy, this obviously puts you in a great position because you know exactly how much equity you are getting from your home. This can give you stronger negotiating power when buying because you are already going to have the cash in your pocket. However, you will have to make arrangements for short-term living. This may mean that you will have to stay with friends or relatives, or even get a short-term rental in the meantime. The most common route that sellers take is to buy and sell simultaneously. Once you find a home and it goes under contract, you then have what is called a home settlement contingency. This means that the home you are buying is contingent upon the settlement of your current home. In this case, you will know exactly how much equity you will get out of your current home as well as the closing costs and what money they are carrying forward. However, it can be a very stressful day when you are trying to settle your current home in the morning and then settle on your new property in the afternoon. A recommendation I make for that is that you wait a day in between selling and buying and stay in a hotel or a friend’s house overnight and keep everything in a moving truck overnight. If you have any additional questions about this or are interested in buying or selling, please feel free to reach out to me by phone or email. I look forward to speaking with you soon.

There’s a lot of conflicting information out there about open houses. Specifically, people often debate whether or not they’re effective. Well, statistically speaking, open houses do not generally work. But this may be partially due to the fact that most agents don’t know how to properly host one. If you do want to hold an open house, there are a few things you must do to make them as effective as possible. Open houses are an easy, non-formal way of bringing buyers in to look at your home. But this arrangement also presents the concern of security issues. To reduce the risk of security problems, it’s a good idea to have all potential buyers coming through the door fill out a sign-in sheet. This will let you know who was in your home and at what time they were there. “The more signs you have up, the more traffic your open house is likely to see.” Another way to host an open house more effectively is to prepare. Make sure you’ve advertised the event properly. This can be done by putting up signs throughout the week and putting up even more signs the day of the open house. The more signs you have up, the more traffic your open house is likely to see. And more traffic means more potential buyers. Also, don’t hesitate to let the neighbors know you’re selling. Even if they aren’t looking themselves, they may know someone who is. Whether you’re planning on hosting an open house on your own or with the help of an agent, these tips will be crucial to making the most of the event. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What are the differences between individual agents and teams? Today I am going to tell you about the advantages and disadvantages of both. Most agents work individually. They work for a brokerage and run their business by themselves. The brokerage provides support for paperwork, answering phones, making appointments, and more. Teams, however, normally have an admin or two who focuses on those kinds of tasks. When you hire an agent from a team, you are hiring that entire group or professionals. Also, you will pay the same commission regardless of whether you are hiring a team or an individual agent. “The advantage of a team is that they have people hired specifically to make appointments and do paperwork, allowing agents time to do their specific roles.” With only so many hours in the day, an individual agent may have trouble providing enough attention where needed. They may also lack the necessary expertise on all various subjects within the transaction for it to go smoothly. Working with an individual agent will most likely afford you more one-on-one time, but it will also cause you to lose out on the level of service a team could provide. You wouldn’t expect to see a doctor or a lawyer answering their own phones and scheduling appointments. You would expect that to fall under the responsibilities of other professionals on their team. This is also true in real estate, where everyone has a specific role to play. While you can see that there are a lot of advantages to hiring a real estate team as opposed to an individual, the decision is still yours. If you think that a team setting is what you are looking for and would like to speak with me about my team buying or selling your home, please feel free to call or email. I look forward to speaking with you soon.