The statistics for April 2012 for Berks County have just been released and the settled units have gone up from last year to 300, but there is still an inventory of 3,000 unsold properties in Berks County looking for buyers. Through the first four months of this year there are almost 1,000 properties settling in Berks County with an average price of approximately $147,000. The number of properties settled is up almost approximately 125 properties from last year, but the average price of $147,000 is down a bit from last year. Clearly we have enjoyed an upwards Trend here in Berks.
European Economy and the US Jobs Report
Two things have been coming up negative this week; the European economy and the jobs report.
In the European economy it is clear that several countries populations are upset with austerity measures and are demanding less austerity for their everyday lives. This does not bode well for overall economic health and would negatively impact America.
While the unemployment rate has dropped recently and we should be pleased, suddenly the gain is being watered down by a statistic that shows that overall jobs have decreased. This means that if both the unemployment rate has dropped significantly and the number of jobs has increased only a small amount, the only explanation is that more people are dropping out of the labor force. We now have a new term called the LABOR FORCE PARTICIPATION RATE (LFPR). If people are not participating in the labor force, they are either going without or they are likely receiving some sort of entitlements or other support such as unemployment or social security. The reality is that our country will find it difficult to pay down debt if there are not enough people in the labor force producing taxable income.
At this point these are things that we have to be concerned about and keep our eye on, however while it may dampen recovery, economists don’t expect that either are severe enough to reverse our strides. These issues are concerns and not something that should provide a panic attack. The European situation may cause a bit of inflation which will tend to increase mortgage rates.
Berks County Real Estate Sales
Berks County had the greatest increase in March of this year compared to all year by counties. We are pleased that the gains in Berks County were 41% in number of sales. We are pleased to see the real estate market in Berks County picking up. Overall the first quarter of this year was the highest since 2008.
April Market Update
For the last week jobless claims increased to the highest level since January and the 2nd highest reading for 2012.
But helping bonds and home loan rates remain good was the lower inflation data from the consumer price index. The feds believe inflation appears to be in check so that bonds and the home loan rates including mortgage bonds remain near record levels and pretty much unchanged since March.
In the near future, the uncertainty that is apparent everywhere will still rattle the economy no matter who wins the presidential race as there are still many issues. To handle all of them we are expecting the debt ceiling to be raised and the tax cuts that were put into place when George W. Bush was president to be extended. Clearly things are moving in the right direction, especially here in Berks County. There is still some rocky terrain, but we expect that the recent increase will be sustained.
Spring Time Maintenance
The weather is getting warmer and the days are getting longer and like every spring, homeowners are beginning to look to the outside of their home to do their landscaping and gardening.
But spring time shouldn’t just be a time for planting, it is a great time to take care of some maintenance issues on your home and to make sure everything is in check for the new season coming up. Here are 10 spring maintenance tips:
1) Roofing Repairs. Even though we got lucky this winter season, now is the perfect time to inspect your roof for repair items. Look for missing or loose shingles , examine the condition of the flashings around chimneys and such, and even buildups of leaves and other debris from trees that hang over your roof. If you feel uncomfortable with heights or just don’t know what you are looking for, contact a licensed roofing contractor for the inspection and quotes for repairs.
2) Gutters and Downspouts. Check for leaks from joints that may need to be repaired, make sure no fasteners are loose or sagging from your home, and most importantly, clean leaves and debris so you don’t have a waterfall coming from them during heavy spring and summer rains
3) Fences and Gates. Make sure your posts are not loose and shaking. Wiggle them to see how solid they still are. Some wood posts might show signs of rotting. Replacing or stabilizing parts now will be easier than replacing a full fence or gate later down the road.
4) Yard Debris. Clean up leaves, needles, limbs, branches and other debris that have accumulated on your yard during the winter. Now is a great time to prune those trees, bushes, and plants that require so! Also, check for cracked limbs and leaning trees and have them trimmed, cut back, or cut down depending on the condition before strong spring and summers come through and do damage to your home.
5) Fans and Air Conditioners. Check and clean cooling fans, air conditioners and whole house fans. Check outdoor A/C units for damage or debris and clean or replace any filters that may need replacing. Also, don’t forget to check dampers for smooth operation. If you are unsure of what you are looking for, contact a locally licensed HVAC expert to do a routine check and cleaning to make sure you are ready!
6) Sprinklers. Get them out of storage and test them out or run your in-ground sprinklers through a cycle and watch how the water I shitting. Move any sprinklers that might be hitting your siding or washing away loose soil areas. Also keep an eye out for hoses that might be leaking and replace to help keep your water bills lower.
7) Vent Blocks and Vent Covers. Remove foundation vent blocks or open vent covers to allow air circulation in the crawl space. Remove outdoor faucet covers and turn on the water supply to them and check for leaks.
8) Prepare Yard Tools. Look for broke or damaged tools and replace now while stores have specials on them. Sharpen cutting tools and mower blades and have your lawn mowers cleaned and serviced.
9) Furnace Filters. Now is the time to replace your furnace filter that has become covered with dust from the heating season. This is especially important if you have Central Air.
10) Smoke Detectors. Replace your batteries and run a test on them to make sure they are in working order and consider installing a carbon monoxide detector as well.
Do you have any other spring time routines that others might find helpful? Please feel free to share your ideas below!
Pricing Your Home Right
Homes that are priced right are selling in today’s market. Even though the market is getting better, there are homes that are still sitting on the market, and the number one reason is price.
How do you prepare for the process of selling your home? How do you know where to price your home competitively? These and many other questions come to mind when thinking about selling your home and hoping that your home doesn’t sit on the market for months.
To prepare you best to sell your home, you must take the emotional attachment to your home out of the equation. Your memories of holidays, birthdays, anniversaries, parties, etc etc may be priceless to you – but to a potential home buyer they don’t make your home worth any more. What you have to do is look at your home, weigh your features, location, and condition and compare them all to what is currently available and to what has sold recently near you. This is what we do in a market analysis and we as agents provide this as a free service to you when you are considering putting your home up for sale.
Here are some other tips when considering what to price your home at if you are thinking of selling:
Be wary of real estate agents who tell you that your home will sell for a higher price than comparable homes in your area have sold for recently just to get you to list with them. Realtors refer to this as buying a listing. Even though it is tempting to go with an agent that promises to sell your home for more than others have priced your home at, keep in mind that if your home doesn’t get activity at that higher price, that agent might be working on you over and over again to reduce your price to market value. We are not in a market to “test the waters” at a higher price – homes that are priced right are selling and those that are high sit until they are reduced.
If you recently applied for a refinance and had a refinancing appraisal done – this might not be an accurate reflection of market value. Sometimes refinance appraisals come in too high or too low because they are not considering what a buyer will pay. A high refinance appraisal can leave you with false expectations and a low refinance appraisal has you walking away from the sale with less money in your pocket.
Don’t list your home based on what you need or want out of the sale. Listing with this mind frame won’t motivate buyers to pay more. Buyers will still want to pay market value and in most cases won’t overpay just because you need to sell for more to buy your next home.
If your home needs a lot of work compared to what sold recently, you will either have to fix your home before selling, or price your home accordingly.
Location does still matter! Especially with gas prices on the rise, buyers are looking for ways to save money and commuting is a big subject these days. If your home is off the beaten path, a buyer might not pay as much for your home as they would a home that is more convenient to stores, work, or attractions.
The easiest way to determine your price is to start with a Market Analysis. You can do so by clicking here and filling out our online form. It is recommended to interview agents as well – see what different agents say your home is worth and compare amongst yourself to see what your home is being compared to. Once you get the stats and see for yourself what your home is worth, go with the agent that has a good marketing plan and one that you feel comfortable with. This agent is someone you will be in contact with quite a bit while you go through the process of selling your home and you want to feel as comfortable as possible.
Good luck!
SmartPhone Real Estate Apps
Did you know that more than 2/3 of prospective buyers who use a mobile device in their home search reported that they contacted a real estate agent for a showing as a result of their mobile search. This stat is courtesy of a survey conducted by the Real Estate Book between 1/26/2012 and 3/3/2012.
52% of those surveyed said they used a mobile device to search for a home and 48% said they had not. Of the 48% that didn’t, 85% of them said they would considering using a mobile device search in the future.
This is another example that shows us that Real Estate is turning more and more towards technology to assist home buyers and sellers. We expect this trend to continue and we at Century 21 Gold plan on progressing with technology to help our clients.
Last month, Century 21 Gold announced the launch of our own Smartphone App that will help you search for a home. Use our app as you are on the road and drive by a for sale sign – you will see all the information on the nearby homes for sale. Searching for a home has never been easier!
When you list with us, you can be rest assured that the sale of your home is in safe hands with a company representing you everywhere possible. We market your home well which leads to fast and easy settlement for you!
Click here to send our phone app to your SmartPhone!
5 Things Home Buyers Do Not Like
So you are thinking of selling your home and you think you have a great home and you know marketing is key especially with the market not completely healed yet. There are things that turn homebuyers off that some sellers and even agents do which could hinder your home selling. We found this useful article online that points out 5 things that homebuyers do not like when they are searching for their next home. This article is very useful and has been written based on comments and contributions submitted in by various real estate agents and buyers.
The list includes:
1) Doctored and false images. At the top of this pet peeve is stretching a photo which makes a room look much bigger than it is. This particularly irritates buyers that already have larger items for a room and a bigger room is needed. When they get to the home to find out the room isn’t in proportion as it is in the photo is a major let down.
Another disappointment for homebuyers is seeing perfect and pristine photos online only to get to the home and see a messy home. While we don’t suggest you have to keep a perfect home at all times, your home should be kept nice for showings.
Another disappointing thing on the topic of photos is a photo of just one corner of a room. Photos like this can be very misleading to the homebuyer relying on photos to get a feel for your home. Nothing irritates buyers more than when they feel they were misled or tricked to view a home they don’t have real interest in. Not only is it a waste of their time, it is also a waste of your own accommodating showings.
2) Listings with no images at all. Even though false and doctored images turn off buyers, homes with no photos online at all are worse. The old saying something is better than nothing at all is definitely true!
Nine out of ten times homes with no photos are overlooked and passed by the typical homebuyer who think something is wrong with the home! Homes with no photos will indeed sit on the market longer and the longer a home is on the market, new homebuyers will often pass on looking at it also thinking something is wrong with it even though it might fit their needs nicely and be priced right.
In today’s market we can upload up to 24 photos into our Multi-List System. Also, when we upload more than 6 photos on Century21.com, a visual tour is instantly created on YouTube exposing your home to many more buyers.
3) Misleading Marketing. It is best to disclose any known problems upfront to all potential buyers. Often buyers will pay for home inspections and if they find something in the report that you knew about previously, the buyer might cancel their agreement of sale which has wasted valuable marketing time for your home! By disclosing known problems upfront you are more likely going to find the right buyer.
Certain phrases used could set your home up for failure to certain buyers. Using terms like “immaculate” and “better than new” when the buyer walks in and sees wear and tear or lots of clutter will irritate buyers as well. Be honest and take photos and you will be able to attract the right type of buyer from the start and have an easier sale!
4) Sellers Present for Showings. If you have to be home for showings, we can work with you. The seller’s that are present for showings and follow the buyer around is one of the top pet peeves of homebuyers. You might be proud of some of the customizations you made to your home to make your life easier, but most buyers want to be free to talk to their significant other or agent and talk about making changes to suit their lives.
If you insist on being present for showings, please do yourself a favor and after you let the potential buyer and agent into your home, sit back and relax or go outside for some fresh air. Let the buyers talk amongst themselves and take as much time as they need to check out your home; they are, after all, making one of the biggest purchases of their lives!
5) “Bizarro Showings”. Dogs, kids, and sleeping residents all make the list here. Pets that run out as soon as you open the door prompting a chase to catch the cat or dog we were not supposed to let outside can lead to an unforgettable showing.
Showing a home to find a seller sleeping in a bedroom can also be awkward, or walking into a room to find someone changing because they forgot they had a showing are also not good practice.
The article we found online talking about all of these turnoff’s even cited examples of weird showings where someone had placed a rose on a recently deceased person’s bed. Other examples included short-sale buyers who had a child run after them screaming “You can’t have my house!”
Once again, if you are going to have a showing it is best to remember the date and time, make sure you aren’t present, or let the buyer have their time to look around.
Have you ever gone to look at a home and ran into a unique situation or problem that was a turn off? We would love to hear your stories! Please feel free to comment below.
The author of this article is Tara-Nicholle Nelson who has written such books as “The Savvy Woman’s Homebuying Handbook” and “Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions”. You can visit her online at www.rethinkrealestate.com
Market Update for Mid March
This past week showed a modest gain in the stock market due to the feds report that things are improving in most areas. When things start to improve, more money is put into the stock market at the expense of bonds which include mortgage bonds. We thus saw home loan rates raise just slightly so the financial system and the economy plus things quieting a little bit in Europe increased the bonds. The uncertainty in Europe and the issues between Israel and Iran still could break which might lead investors back into the safety of bonds in the future.
The housing market is interesting in that home prices are raising in most states. In fact, 38 to be exact with Pennsylvania being one of them. Still the overall home prices are going to drop an estimated 2% over the next few months before they head upward by midyear. The greatest declines are specifically in 5 states; Nevada, Florida, California, Arizona and Michigan. Foreclosures are still a problem with new laws going into effect to make the foreclosure process much more rapid.
Our area is the 4th most searched area on Realtor.com
The February search statistics for “The Top 10 Most Searched Housing Markets Online” are in from Realtor.com. The Philadelphia/NJ market is #4 on the list. Realtor.com groups together areas and the Southeast Pennsylvania region is grouped together under Philadelphia.
This statistic is a good sign that there are buyers in our area and when we see this it can lead to more homes selling.
Thinking of selling your home? Want to know what your home is worth on the market today? Contact us today for a FREE Market Analysis and find out what your home will sell for. Get a jump start on the competition and list now for the Spring Market Buyers!
To view the complete list from Realtor.com, click here
