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February 2013 – Page 3

Wallingford PA Real Estate

By Clark Kendus

Archives for February 2013

FHA Mortgage Premiums Increasing April 1, 2013

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FHA Logo

Well, the door to home ownership via an FHA loan is getting a little harder to open come April 1.

High delinquency rates among FHA loans is causing mortgage insurance premiums (MIP) to rise again this year in order to maintain reserve funds required by law.

Despite the fact that mortgage delinquency rates are down as a whole, the FHA holds a disproportionate share of the mortgage default market. Higher rates of default among FHA borrowers has forced the FHA to increase the cost of its MIP five times in the last five years.

Now FHA mortgages, a favorite loan product for home buyers with lower down payments and less than stellar credit scores, are about to increase again. An associated change is that  borrowers will get stuck with the higher fee for the life of their loans.

The Federal Housing Administration has announced several changes to FHA loans, including increasing the MIP fee that is added to the borrower’s monthly mortgage payments. The FHA will also tighten the requirements for borrowers with low credit scores and will propose raising the down payment on larger loans.

The higher fee for mortgage insurance takes effect on April 1, 2013, with annual mortgage insurance premium on new FHA mortgages increasing by 0.1 percent, the equivalent of 10 basis points, to 1.35 percent of the balance of the loan. A current borrower with a $200,000 FHA mortgage pays about $2,500 per year, or $208 per month, in mortgage insurance.

After the increase the FHA estimates the change will add $13 a month to the average borrower’s monthly payments

Starting June 3, borrowers who take out new mortgages will have to pay for mortgage insurance for the life of their loans if they are putting less than 10% down, which describes the majority of FHA borrowers.

The FHA will reverse a policy that automatically canceled required premium payments after loans reached 78 percent of their original value. Most FHA borrowers will now have to continue paying annual premiums based on the unpaid principal balance for the life of their mortgage loan. The agency estimates it lost billions of dollars in premium revenue on mortgages endorsed from 2010 through 2012 because of this cancellation policy.

Under current rules, the FHA has to stop charging the borrower for mortgage insurance when the loan reaches 78 percent of the original loan amount.

 

Wallingford PA Real Estate – Wallingford, PA 19086

Swarthmore 2012 Home Profile

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There Were 51 Single HOmes Sold In Swarthmore In 2012

There Were 51 Single Homes Sold In Swarthmore In 2012

The year 2012 saw 79 new homeowners in Swarthmore, with single detached homes accounting for 51 of the homes sold during the year, which translates into 65% of the market. Condos were the next most popular home type with 20 sales, followed by 6 twin homes, and 2 town homes.

Colonials were the most prevalent style with 30 of the 51 singles sold, with Cape Cods being the next most popular. A single home sold in Swarthmore during 2012 had an average of 2,521 square feet of living space and had 4.1 bedrooms and 2.09 full bathrooms.

The “average” Swarthmore home sold during the year had 3,54 bedrooms, 2,112 square feet of interior space and 1.96 bathrooms.

A majority of homes had fireplaces – 52, with 44 having 1 fireplace, 5 having 2, and 3 with 3 or more hearths. On the cooler side of the equation 55 homes sold had central air, which also matches the number of homes with basements.

Gas was the predominant heating source, present in 59 homes, and it also led in the kitchen with 55 homes utilizing gas for cooking. The average age for a home sold in Swarthmore during the year was 65.6 years.

Average taxes came in at $9,805, and it was on the market for 96 days before going under contract.

Foreclosures accounted for 2 of the sales for the year 2012, which at 2.5% of sales is lower than the averages for the county. Interestingly there were no short sales reported among the homes sold.

Pricing:

The $300,000 to $400,00 price range saw the most activity for the year with 18 sales, accounting for 22.7% of the market, the $200,000 to $300,000 range was the second most active for the year with 16 sales in that category.

Swarthmore Real Estate - Swaerthmore PA - 2012 Sales By Price Range

Mid Range Homes Accounted For 43% Of Sales In 2012

 

Swarthmore Single Home Sales – 51 Homes –  2012
Avg Price Median Price Low High Days Listed
$433,065 $400,000 $128,000 $850,000 91
Swarthmore Condominium Sales – 20 Homes – 2012
Avg Price Median Price Low High Days Listed
$131,610 $110,000 $68,620 $250,000 132
Swarthmore Twin Home Sales – 6 Homes – 2012
Avg Price Median Price Low High Days Listed
$265,083 $264,750 $191,000 $325,000 50
Swarthmore Townhouse Sales – 2 Homes – 2012
Avg Price Median Price Low High Days Listed
$305,000 $305,000 $305,000 $305,000 17

 

The year 2012 saw an increase in sales over 2011 of 23 home, up to 79 from the 2011’s total of 56. The average price declined from 2011’s $436,566 to $340,747, with a corresponding decline in the median price from $365,000 in 2011 to $310,000 in 2012.

A note on 2011 vs 2012 year comparisons. In 2011 condominium sales accounted for 6 of the 56 homes sold, amounting to 10.7% of sales. In 2012 the condominium market experienced a resurgence with 20 condominiums being sold, translating into just over 25% of the market. With 2012’s  average condo price standing at $131,000, the conclusion can be drawn that the decrease in average selling price was influenced in large part due to this fact.

Exterior Improvements Are Top Value Projects

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homeimprovement

According to Remodeling magazine’s 2013 “Cost vs.

Value Report,” Realtors consider exterior home

improvement projects among the most valuable. In fact, a

majority of the Top 10 projects in terms of value recouped

at resale are exterior replacement projects. This makes

sense given the importance of curb appeal in attracting

home buyers.

Based on interviews with real estate professionals

throughout the country, the Remodeling report found that the

top project is steel entry door replacement, which typically recoups

85.6 percent of costs. Making this project an even better

investment is that it is also the least expensive to complete. In addition, three

different siding replacement projects and two other door replacements were

among the Top 10.

When it came to improvements to a home’s interior, there were two projects

ranked in the Top 10. Ranked fifth, a minor kitchen remodel is expected to return

75.4 percent of costs, while adding an attic bedroom and bathroom came in tied

for eighth with 72.9 percent of costs recouped.

The right remodeling project, when done well, also has the potential to make for

a quicker sale and reduce negotiations with buyers over perceived shortcomings.

Check Remodeling magazine’s “Cost vs Value” breakdown,

where you can download data for all regions of the country.

 

Wallingfoprd PA Real Estate – Wallingford, PA 19086

Wallingford PA Real Estate – January 2013

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Wallingford PA Real Estate - Wallingford PA - Recently Sold Homes In Wallingford PA

Possum Hollow Road Sidewalk Construction Began In January

WALLINGFORD PA REAL ESTATE – JANUARY 2013

January 2013 sales posted a 2 home sales increase over the same month of the previous year, with 8 Wallingford PA homes sold in January 2013 vs  6 sales in January 2012. The average sales price soared up 65.6% over last year, although the length of time it took to sell went up to 203 days vs 172 last year.

 

There were 8 Wallingford PA homes sold in January 2013.

WALLINGFORD PA HOMES SOLD – JANUARY 2013

Address

Bed

Bath

Price

DOM*

Settled

15 Ridley Drive

3

2.5

$190,000

156

01/02/2013

8 Copples Lane

3

1.5

$326,250

65

01/04/2013

1000 Putnam Blvd – #401

2

2.0

$155,000

308

01/15/2013

305 Bickmore Drive

3

2.5

$290,000

584

01/24/2013

5 Brookside Road

4

4.0

$505,500

124

01/30/2013

1084 Putnam Blvd

3

2.5

$160,000

4

01/30/2013

309 Henry Lane

4

2.0

$217,000

254

01/31/2013

651 Niblick Lane

3

2.5

$269.900

130

01/31/2013

* DOM = Days On Market

 

These 8 Wallingford PA homes were on the market an average of 203 days, with the average sold price representing 86.84% of the original asking price, and 94.43% of the last asking price. The median sale price came in at $243,450.

 

Financing Methods

– Cash – 4 transactions

–  Conventional – 2 transactions

– FHA – 1 transaction

– Private – 1 transaction

 

A Seller Assist was utilized in 2 of the 8 Wallingford PA homes sold in January 2013.

– 305 Bickmore Drive – $9,000

– 5 Brookside Road – $1,500

 

No foreclosure or short sales were reported.

 

Wallingford PA Single Homes – January 2013 – 5 Sales
Avg Price Median Price Low High Days Listed
$305,750 $290,000 $190,000 $505,500 237
Wallingford PA Townhouse/Condos – January 2013 – 3 Sales
Avg Price Median Price Low High Days Listed
$194,967 $160,000 $155,000 $269,900 147

 

Total Wallingford PA January 2013 Activity vs January 2012
SALES AVERAGE DOM STL TO ORIG STL TO LAST
2012 6 $159,583 172 84.43% 89.10%
2013 8 $264,206 203 86.84% 94.43%
 33.3% 65.6% 18.0% 2.41% 5.33%

 

Looking ahead there are 10 settlements scheduled in February, 6 in March, and 1 in April.

 

Taking a look at the numbers associated with the current inventory on the market shows a weekly rise in both the average listing and median listing price of Wallingford PA homes during January 2013. A cautionary note – a rise in average asking prices does not necessarily translate to an increase in selling prices. The market as always will dictate if we are to see a rise in home prices locally.

January 2013 Listing Averages By Week

DATE

LISTINGS

AVERAGE

MEDIAN

DOM**

01/07/13

84

$282,575

$239,450

207

01/14/13

79

$286,492

$239,900

216

01/22/13

79

$291,940

$239,900

227

01/28/13

82

$302,368

$259,900

212

AVG

81

$290,844

$244,788

216

** = Days On Market

 

Wallingford PA Real Estate – Wallingford, PA 19086

Wallingford Swarthmore School District Imposing Stricter Security Policies

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Wallingford PA Real Estate - Wallingford PA - Wallingford Swarthmore School District - Stricter Security Measures Proposed

District Facilities Have New Visitor Access Rules

In the wake of the deadly school shootings in Connecticut in December, school districts across the country have been evaluating their security measures and the Wallingford Swarthmore School District has done the same, tightening up public access to district facilities.

All visitors to district buildings will be required to follow new protocols. Visitors will now be required to ring a security bell at a specific entrance, provide office staff with information on the specific basis for their visit and then produce a photo ID in order to obtain a pass.

District policy now calls for a staff member to be positioned at the entrance to each school during morning arrivals to monitor everyone entering the buildings. A re-evaluation of the district’s emergency plans, which have not undergone any significant revisions since 2006, is also being conducted.

Lock down drills will also be conducted so that the police can be on hand and offer their views on how to strengthen readiness in dealing with emergency situations. Law enforcement officials from Wallingford and Swarthmore will also be consulted for their feedback on emergency preparedness.

 

 Wallingford PA Real Estate – Wallingford, PA 19086

S. Clark Kendus

Sales Associate

Cavanagh Real Estate
112 West Front Street
Media, PA 19063
Cell: (610)-322-6734
Office: (610) 565-4100

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