Real Estate Category

Ambler Real Estate News

It is hard to believe that we only have three months left in 2009!  If the calender didn’t aptly bring this to light, I would have deduced the impending winter due to the seemingly abrupt need for a wool poncho and slippers while writing this.  Anyway… I thought it would be a good time to bring you up to speed on the current happenings in Ambler real estate and a brief recap of events since the beginning of the year.

As of today there are 19 homes for sale in Ambler; 12 single homes, 1 twin and 6 row homes, ranging in price from $174,900-369,900.  Since January 1, 2009 40 homes have sold in the borough, priced from $60,000-395,000, 10 homes are currently pending settlement.  Of these 40 homes, 20 were single homes, 6 were twins and 14 were row homes.  The average days on market for homes in Ambler since the beginning of the year is 86.3, pretty much on par with last year at 86.6, but a far cry from the peak of the market in 2005 at 28 days.  86 days may sound somewhat dismal, but I can assure you it is possible to sell a home in this market in a reasonable amount of time.  I have seen several properties in Ambler go under contract within a few weeks.  My average days on the market for my listings is currently 18 with an average list to sale price ratio of 98%, this means that homes are still selling in a short period of time and at or close to list price.  It is extremely important for homes to be priced properly, aggressively marketed and show well (hopefully better than the competition). 

The aforementioned information is based only on resale homes, which until recently was pretty much all Ambler had to offer.  Ambler is known for its history and beautiful older homes (my personal favorites) dating as far back as 1732 (corner of Mattison and North Streets).  New construction is a term rarely, if ever, associated with Ambler.  As Inspector Clouseau would say (in his best french accent) “Not anymore!”  A first for downtown Ambler is Station Square, a new townhouse development on South Main Street.  Although some are confused by the location, WB Homes did it right.  The townhouses are well crafted with great attention to detail and thoughtful modern amenities.  Many people have asked me “Why would they build next to the train tracks and who would want to live there?”  The location and community are geared towards those who commute and lead the all too common “busy” life style.  Just 2 blocks from the train station, it is like city living but in the calm and comfort of the suburbs.  It seems they made a good decision as they have already sold 23 of 58 homes/lots.  There are 7 different models to choose from, all named after stops along the R5, ranging in price from $310,600-354,00 (not including upgrades to the standard options).  

It is still a buyers market by far, but the inventory of homes is slowly decreasing and sale prices seem to be holding steady, some areas have even shown signs of an increase.  Fortunately foreclosures have not had a huge impact in our area, unlike many other parts of the country.  I am optimistic with regard to the future of home sales and values in Ambler and look forward to an exciting fall!

Categories: Ambler, Real Estate

Don’t miss out on the first time home buyer tax credit!

At the rate we’re going November 30th will be here before we know it! That date is the deadline for first time home buyers to take advantage of the $8000 tax credit currently offered by our government. This credit is refundable, which means if your total tax liability for 2009 is less than $8000 (which is typical) the IRS will issue a refund for the balance. What an amazing opportunity! In order to be eligible for the credit you must be a first time home buyer or someone who has not owned a home within the last 3 years, a single filer making less than $75,000/year or joint filers making less than $150,000/year and use the home as your primary residence. Your new home must be purchased and settled by November 30, 2009 and you have to own the home for a minimum of 3 years. Check out this link to watch a short video that clearly describes how the program works http://tr.im/taxvideo.
In addition to the tax credit there are many reasons why our current market significantly benefits first time home buyers:

  • you have no home to sell, putting you in a choice position for negotiation
  • the inventory of homes for sale is still very large, so there is a lot to choose from
  • prices have declined in many areas
  • rates are still near historic lows
  • excellent loan programs are available, such as FHA which allows as little as 3.5% down, you can obtain money from parents as gift funds, lower credit score requirements than conventional loan programs, and a possible seller assist of up to 6%

If that isn’t enough to get you excited about purchasing a home how about these 7 additional reasons to buy a home, and these apply in any market:

  • Tax breaks- mortgage insurance, property tax and some closing costs are tax deductible
  • Appreciation- real estate has long-term stable growth in value. while year-to-year fluctuations are normal, median existing home sale prices have increased on average 6.5% each year from 1972 through 2005, and increased 88.5% in the last ten years (NAR statistics)
  • Equity- money paid for rent is money you will never see again, I often liken it to being thrown down the toilet, whereas mortgage payments let you build equity in your home
  • Savings- building equity in your home is like a ready-made savings plan
  • Predictability- unlike rent, fixed mortgage payments don’t increase over time
  • Freedom- after years of living with rented white walls, you can have color in your life- paint each wall a different color of the rainbow if you like, you can because it’s yours!  paint the walls, plant a tree, do whatever you want
  • Stability- Living in one neighborhood for a number of years gives you a sense of community and offers educational stability for children

This is a fabulous time to take this big step in your life, if you feel that you may be ready I would love to help!

Categories: Real Estate

Recent economic news

Overall economic trends continue to be down, but offset this past week by some positive news:

  • Treasury Secretary Tim Geithner’s release of the details of the government’s plan to reduce toxic assets held by banks is an important step in stabilizing the banking system
  • The S&P 500 stock market is up 21% since March 9, 2009
  • The Fed’s investment of another trillion dollars to purchase mortgage backed securities and Fannie Mae and Freddie Mac debt prompted mortgage interest rates to fall yet again
  • The National Association of Realtors announced that exisiting home sales rose by 5% in February
  • The Federal Housing Finance Agency’s monthly housing price index estimated that home prices rose 1.5% from December to January

The paradox of our sagging economy is that there hasn’t been a better time to buy a home in a decade.  Buyers who are able to see past the immediate future will take advantage of a golden opportunity.  In a few years, they will look back and realize they made an excellent decision.

Buyer activity is increasing, which is great, but it won’t lead to immediate price appreciation.  There is too much inventory to get through.  That’s why it is more important than ever for sellers to price their properties right from the outset.  If they do, they will benefit from the increased optimism of buyers venturing into the market.

Whether these events represent an uptick in a still-decreasing trend line, or the start of a stabilization of our economy is yet to be known.  But after so many months of negative trends, it is welcome news for our economy and our local market.

Categories: Real Estate