Archives for November 2014

Nether Providence Commissioners Looking To Reduce 2015 Tax Hike

November 25, 2014 by admin

Upon initial review Nether Providence Township’s $6.75 million 2015 budget calls for a 6.26% hike in municipal taxes, but it is thought that just as last year the budget development process will result in a drop in the proposed hike before the approval of the final spending plan in December.

The proposed budget would result in a increase in millage from the current 4.78 mills to a millage rate of 5.08 mills.

At about this same time in 2013, township officials were looking at a 6.16% tax boost. But by the time of the final vote in mid-December, it had been trimmed to 2.04%. Previous years saw increases of 3.82% in 2009, 3.72% in 2010, 4.97% in 2011 and 6.7% in 2012.

The largest outlays in the budget go to police and public works costs.

Wallingford Real Estate – Wallingford, PA 19086

How Are Mortgage Interest Rates Determined?

November 18, 2014 by admin

What is behind the daily fluctuations of mortgage interest rates? When you are shopping for a mortgage it is important to understand the basic influences of mortgage rates and how they are determined. Mortgage rates are generally offered in eighths, so you’d see 4%, 4.125%, 4.25%, 4.375%, and so forth. There are two main components that determine your mortgage rate. The first is the market rate for mortgages, and the second is your individual financial situation.

Mortgage rates are closely tied to the yield on the 10-year Treasury bond. In general, people tend to refinance their mortgages, or sell their homes and buy new homes, in 10-year cycles. You can expect to see cycles of seven to 10 years for mortgages, so the 10-year Treasury bond is a pretty good measure if you want an idea of what’s happening.

If the yield goes up on 10-year Treasury bonds, then mortgage rates are likely to move higher. Likewise, if bond yields move lower, mortgage rates are likely to head lower as well. A good rule of thumb is to expect a 1.60% to 1.80% spread between the yield on 10-year Treasury bonds and mortgage rates.

This means that if the 10-year Treasury yield is at 2.4%, you can expect to see mortgage rates at right around 4.0% to 4.25%. The rate will never be completely predictable but you can get a general idea of which way mortgage rates are likely to head by looking at Treasury yields.

If bond yields increase mortgage rates increase, if bond yields decrease mortgage rates decrease.

Economic activity: One of the biggest factors in what happens with mortgage rates is economic activity. We get a lot of economic measures, from readings of the Consumer Price Index, to measures of Gross Domestic Product, to information about Consumer Confidence. All of these measures influence mortgage rates.

Basically, when the economy is in good shape, demand for mortgages increases, and interest rates move higher in response, since incentive to encourage people to buy homes isn’t needed as much. When the economy slows down, mortgage rates drop as lenders try to attract borrowers.

Mortgage rates are also shaped by such events as Federal Reserve Policy Announcements, the state of the housing market, and regional mortgage activity.

Your Personal Financial Picture

The ultimate influence on whether you pay the best available rate, or whether you are charged more, is your own financial situation.

Lenders take a look at your individual situation and use that to determine whether or not you will get the best possible rate, as determined by the market, or whether you will pay more. If you are seen as a bigger risk, you will pay a higher interest rate for your loan, since the lender is taking on a bigger risk that you will default on the loan. Here are some of the factors in your personal situation that impact your mortgage rate:

Your credit score: This is a three-digit summary of your financial reputation. Your credit score represents your ability to handle credit. If you have a higher score, the lender thinks it is likely that you will repay your loan, and is more willing to charge you a lower rate.

Loan term: The longer your loan term, the bigger the chance that you will default. If you choose a shorter loan term, and a faster payoff, you will be rewarded with a lower interest rate.

Down payment: You pay less when you have more of an equity interest in the property. The more you can put down for your down payment, the more you are likely to save in terms of interest. A 20% down payment will most likely result a lower mortgage rate.

Points paid: You can also pay points in an effort to reduce your mortgage rate. You can pay money up front, and see a reduction. A point represents 1% of your home’s purchase price. For each point you pay, you can expect to see a reduction of about 1/8 of your loan rate. So, if you are buying a home for $200,000, one point is $2,000. If your loan rate is quoted at 4%, you can get it down to 3.875% by paying that $2,000. Pay two points ($4,000) up front, and you could see it drop to 3.75%.

The determination of what interest rate an individual borrower will pay is subject to a number of factors, and it is always wise to speak to several lenders to shop for the best rate available.

Wallingford PA Real Estate – Wallingford, PA 19086

NAR 2014 Profile Of Home Buyers And Sellers

November 11, 2014 by admin

The National Association Of Realtors (NAR) conducts an annual survey of home buyers and sellers evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers. The 2014 Profile Of Home Buyers And Sellers survey was conducted with recent buyers and sellers who bought or sold a home between July 2013 and June 2014. NAR sent out over 72,000 questionnaires in order to compile the data in the survey

Some highlights from the recent 2014 NAR report.

Characteristics Of Home Buyers:

– 33% of recent home buyers were 1st time buyers, trending down from the historical norm of 40%

– First time home buyers averaged 31 years of age – repeat buyers were 53 years old on average

– Median income of buyers was $84,500. The median was $68,300 for 1st time home buyers, and $95,000 for repeat buyers

– 65% of recent home buyers were married

– The typical buyer searched for 10 weeks for a new home, and viewed 10 homes

– Homes purchased averaged 12 miles from past residences, with 50% being located in the suburbs and 16% in urban areas

– 88% of buyers financed their recent home purchase with an average of 10% down

– 12% of al buyers cited saving for a down payment as the most difficult task in the purchasing process

Characteristics Of Homes Purchased:

– New homes accounted for 16% of purchases

– The typical home purchased was 1,870 square feet in size, built in 1993, had 3 bedrooms and 2 baths

– 79% of the homes purchased were detached single family homes

– Buyers expect to live in their home for 12 years after buying

– 79% of buyers believe their home is a good financial investment

Characteristics Of Home Sellers:

– 40% of sellers traded up to a larger size, 47% bought a higher priced home, and 53% purchased a new home

– The typical seller lived in their home for 10 years. In 2007 the typical tenure was only 6 years

– Sellers typically sold their home for 97% of the listing price, and 45% reduced their price at least once

– 17% of sellers delayed selling their home because the value of their home was lees than the mortgage owed

– 36% of sellers offered incentives to buyers, such as seller assists and home warranties

– 9% of home sellers were For Sale By Owners (FSBOs) – on average they sold their homes for 13% less than an agent assisted home sale

Wallingford PA Real Estate – Wallingford, PA 19086

Get An Annual Chimney Inspection To Safeguard Your Home

November 11, 2014 by admin

We might wish it wasn’t so, but winter is on its way, along with much cooler temperatures. For homeowners with a fireplace, now is a good time to think about setting up your annual fireplace and chimney inspection. Inspecting and cleaning your chimney on a regular basis can improve fireplace performance, and help prevent chimney fires and carbon monoxide concerns.

Here’s why it’s so important: As you enjoy the warmth of a fire on a cold winter night, creosote and soot is building up. This can restrict air flow and damage the fireplace chimney. If you have a gas fireplace rather than a wood-burning one, you’re not off the hook. Even gas fireplace chimneys can become blocked by a bird’s nest or other debris.

There are three standard levels of service when it comes to chimney inspections. A level-one chimney inspection includes a visual check of the fireplace and chimney, followed by a recommendation regarding cleaning, which can be done on the spot.

A more extensive, level-two inspection is required after a dramatic weather event such as an earthquake, tornado or hurricane, or upon purchase of a new home. This expands upon the level-one inspection, with the inspector climbing on the roof and in the attic and crawl spaces to check for items in need of repair. A level-three chimney inspection is done only rarely, usually after a chimney fire. During this type of inspection, the walls of the chimney are typically torn down and rebuilt.

Whichever one you require, be sure to add this important task to your to-do list this fall.

Wallingford PA Real Estate – Wallingford, PA 19086

Wallingford PA Real Estate – October 2014

November 3, 2014 by admin

Wallingford PA sales data in October 2014 was weak across the board. The average selling price in October 2014 saw a decrease of 30.4% from $333,375 last year to $232,167 this year. Sales volume was also down – sales fell by 7 homes – a 43.8% drop – in October, down 7 units from 16 last year.

There were 6 single detached family homes sold with an average selling price of $289,250 This core category registered a 24.2% decrease of $92,250 compared to October 2013 when there were 11 single family homes sold with an average selling price of $381,500.

Buyers and sellers put 11 homes under contract during the month.

WALLINGFORD PA HOMES SOLD – OCTOBER 2014

Address	Bed	Bath	Price	DOM*	Settled
350A Saybrook Lane	2	1.0	$87,000	101	10/01/14
207 Cedar Road	2	1.0	$86,000	351	10/10/14
203 Elm Road	3	1.0	$115,000	130	10/10/14
502 W Country Club Lane	3	2.1	$384,500	7	10/15/14
913 Twyckenham Road	3	2.1	$690,000	4	10/16/14
700 Avondale Road #6G	2	2.0	$110,000	21	10/17/14
709 Manchester Avenue	2	1.0	$150,000	17	10/21/14
105 Beatty Road	3	1.1	$310,000	70	10/21/14
432 Vernon Street	3	1.0	$157,000	7	10/22/14

* DOM = Days On Market

3 of the 9 Wallingford PA homes sold in October 2014 had a Seller Assist:

– 203 Elm Road – $3,450

– 502 West Country Club Lane – $8,995

– 105 Beatty Road – $9,300

Financing Methods

– Conventional Mortgage -6 transactions

– Cash – 2 transactions

– FHA Mortgage – 1 transaction

There were no reported distressed sales this month.

Wallingford PA Single Homes Sold October 2014 – 6 Sales

Avg Price	Median Price	Low	High	Days Listed
$289,250	$230,000	$86,000	$690,000	97

Wallingford PA Condos Sold October 2014 – 2 Sales

Avg Price	Median Price	Low	High	Days Listed
$98,500	$98,500	$87,000	$110,000	61

Wallingford PA Twins Sold October 2014 – 1 Sale

Avg Price	Median Price	Low	High	Days Listed
$157,000	$157,000	$157,000	$157,000	7

WALLINGFORD PA – OCTOBER 2013 VS OCTOBER 2014

	SALES	AVERAGE	DOM*	STL TO ORIG	STL TO LAST
2013	16	$333,375	91	92.61%	96.32%
2014	9	$232,167	79	89.70%	95.25%
	-43.8%	-30.4%	-13.2%	-2.91%	-1.07%

* DOM = Days On Market

Looking ahead to upcoming activity, there are 16 homes Pending with 7 scheduled to settle in November, 7 in December, and 2 in January.

Wallingford PA Real Estate – Wallingford, PA 19086

Archives for November 2014

Characteristics Of Home Buyers:

Characteristics Of Homes Purchased:

Characteristics Of Home Sellers:

WALLINGFORD PA HOMES SOLD – OCTOBER 2014

Wallingford PA Single Homes Sold October 2014 – 6 Sales

Wallingford PA Condos Sold October 2014 – 2 Sales

Wallingford PA Twins Sold October 2014 – 1 Sale

WALLINGFORD PA – OCTOBER 2013 VS OCTOBER 2014

S. Clark Kendus