A note from Brendan Reilly

Greetings!  My newsletter covers local and national real estate trends to keep you abreast of current conditions.  If you or anyone you know is looking to buy or sell a property in Suburban Philadelphia, I would love to help!


Report: Foreclosures continue to decline
Approximately 1.1 million homes in the U.S. were in some stage of foreclosure in March, down 23 percent from March 2012 when 1.5 million homes were in foreclosure, according to the latest foreclosure report by CoreLogic. Since foreclosure activity peaked in 2010, completed foreclosures have fallen 52 percent. “For 17 consecutive months, foreclosures have declined year over year across the U.S,” said Anand Nallathambi, president and CEO of CoreLogic. “Although we still have more than a million homes in some stage of foreclosure, this trend, combined with rising home prices, is another signal of a gradually improving housing market.” 

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Economist provides optimistic outlook for housing industry
There are reasons to be optimistic about housing over the next several years, according to Dr. Mark Zandi, chief economist with Moody’s Analytics.  “I’m optimistic we have righted the wrongs that got us into this mess, not all, but most,” Zandi said as he addressed the 2013 Commonwealth Housing Forum, in Harrisburg. He cited overvalued homes, over construction and bad loans as areas that led to the housing collapse. Zandi noted that nationwide housing prices collapsed during the recession by about a third but not quite as much in Pennsylvania.  “The Realtors® (NAR’s) affordability index reflects the incredibly low mortgage rates and lower home prices,” he said.  And many markets are seeing homes undervalued.” He said, however, that overall Pennsylvania housing is appropriately valued.  “Housing is key to the broader economic recovery. For every house built, 4.5 jobs are created. We need the housing market to lead the way and we look like we’re on that road,” he said.  “I think we’re through the worst of the foreclosure issue,” Zandi observed.   “I don’t think it’s going to be a significant problem going forward in the housing industry.”

 

 

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Housing rebound facing obstacle: Too few homes
Some buyers are running into an obstacle that’s keeping the national housing recovery in check: There aren’t enough homes for sale. Some markets along the East and West coasts have grown red-hot. A handful of other cities remain depressed. The shortage of homes is occurring just as ordinary Americans want to buy again. More of them feel confident about their job and retirement account. Mortgage rates are near historic lows. And prices are rising again, easing fears that new buyers might lose their investment in a home. Part of the reason for the supply problem is that when the housing market collapsed in 2006, many people lost so much equity in their home that they were unable or unwilling to sell. Prices have started to rise, but not enough to restore what many lost.

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Getting the Offer Accepted
The National Association of Realtors Pending Sales Report revealed that buyer demand is at its highest point in three years. At the same time, the supply of homes for sale has dramatically dropped  in the last several months. That has created a real estate market not seen since boom times of the last decade. We are beginning to see bidding wars in most price points in almost every market.  The challenge becomes how to make an offer that will ensure you are the winning bidder when you finally find the home of your dreams.  To better the chances of an offer being accepted, a buyer should consider three things:

1) You only get one chance to make a first impression: Sellers develop their own personal feelings on the buyers that come through their house during the selling process. Those feelings often impact the seller’s thinking when deciding on an offer. Put your best foot forward right from the first time you meet the homeowner.
2) 10% different can be 100% better: This marketing axiom applies to a buyer’s offer. What can you do to set yourself apart from the other offers? We are not just talking about price here. Think outside the proverbial box.
3) This is not 2011: Two years ago, inventory levels, the direction both house prices and mortgage interest rates were headed all favored the buyer. Things have dramatically changed. Buyers must understand the scope of these changes and what impact they will have should the buyer decide to pass on a current opportunity.