Philadelphia area Market Update

It's been a cold and snowy winter throughout the Northeast this year. There's no denying that it's had an affect on homeowners listing their properties for sale and buyers getting out there to tour homes. This past weekend I was taking clients out and 2 of the properties had no access to the doors because of almost 2 feet of snow! Others were a little easier to get into, although boots were a must!

In Montgomery County, there are 3,321 homes on the market compared to 3,428 in January 2013. Overall, pending sales are 11% lower than last year, although scheduled showings requests are 7% higher.

Here is a snapshot of TrendMLS.com sales activity

Click to enlarge

A Snowy Monday Market Update

I don't know about you, but I'm ready for Spring! Todays massive snowfall is really cramping my routines...
But on a positive note, even with the Polar Vortex and snow days in the Philadelphia region, homes are still selling. I'm actually negotiating a deal today while watching snow fall outside!

Nationally, 2013 ended on a high note: December homes sales were the highest in 7 years and the median sale price for the entire year was 11.5% higher than 2012.
January started off slow due to the weather and economic uncertainty, but the past week saw an increase in mortgage applications and 30 day low interest rate! So buyers are ready even if mother nature is not!

Locally, the average sale price was anywhere between 2 to 6.9% higher this year from 2012 and in Montgomery county, closed sales increased by 11.5%. Our area is continuing to stabilize, making it a good time to buy and sell homes.
Hopefully the weather will stabilize too!

If you're wanting to sell your home this year, here are a few tips you can do now- even in the cold and snow

1. De-clutter and de-personalize. Clean out closets, take down excess photos- especially large family photos, pack those knickknacks away.
2. Remove wallpaper and paint with neutral colors. Buyers like clean, pretty walls
3. Talk to a Realtor and get a realistic price point. They can suggest other staging or maintenance repairs to complete prior to listing as well.
4. Hire a Professional Real Estate Agent you like, trust and feel will get you the best terms.

You can contact me for tips and tricks when entering the real estate market!

Get pre-approved!

Over the last few weeks I've spoken to half a dozen first time buyers getting ready to buy this year. It's an exciting time for them- browsing online at homes, day dreaming about hosting parties in their backyard, pinning home decor ideas- but before I take them out to SEE the homes in person, I want them to be pre-approved by a bank for a specific amount. This may seem boring or intrusive to a potential buyer, but it's important to know you can afford the home you have fallen in love with.

I often hear; "I know I have good credit so it won't be an issue" or "I know what I can afford each month"
That is great! But banks look at more than your credit and monthly income.
I have clients that have good income, stellar credit, but not enough down payment money to afford a home that they probably could afford on a monthly basis. They were basing their new home by their monthly income, not by a mortgage approval.

Another client was ready to start the process, has a great job, money saved, but his credit was a little low due to just buying a new car the prior month. We had to put the buying on hold for a few months while his credit was improving.

It's essential to talk to a bank sooner rather than later. Why tease yourself looking at homes if you aren't sure you can afford them?
I tell clients, friends, family; even if you aren't ready for another 6 months, it can't hurt to talk to a bank today. They can help determine how much more you should save, if you need to improve your credit and some tips, and provide a good estimate of monthly payments. Bankrate.com or Zillow.com have OK tools to give you an idea, but it's not always accurate. There's no obligation when talking to a bank- it's priceless in more than one way!