Time is running out on the Federal Tax Incentive ending April 30.
Last Sat. my open house in Paynter’s Mill was a success.
Unit 1604, reduced to $264,900, link here, http://resideindelaware.com/listing/574503/
is very motivated and would like to join their children and grandchildren in FL.
Sunday at Harmon Bay in Rehoboth was eventful. Kim Crawford & Deb Griffin from The Jetty Group toured the community with a Brunch Bus. I think it was more a Mimosa Bus. LOL 25 “happy people” toured the 3 models, The Beach House, The Cape House & The Pilot House. Harmon Bay is a fantastic investment. With single family homes starting at $289,900. 20 of the 32 lots are sold since August 2009. Harmon Bay is 1.5 Miles from Rehoboth Beach and minutes from Dewey Beach & Lewes.
Monday was a day for maintenance. My listings on Realtor.com now have more pictures, updated information and Virtual Tours.
Archive for the Category "Market Report"
Yesterday was a beautiful spring day on the Delaware shore. I held open houses in Paynter’s Mill in Milton. Which is just a few hundred yards away of being in Lewes. It is only 3 miles to Beebe Hosp and downtown historic Lewes. It is only 4 miles from Cape Henlopen State Park and the Cape-May Lewes ferry. You only need to travel 8 miles to the Rehoboth Beach boardwalk. The open houses were very busy with buyers who enjoyed the beauty of Paynter’s Mill. I have 3 units remaining from Schell Brothers and several pristine resales. Many folks were interested in the first time offering of having a semi custom home built by Schell Brothers on the 3 remaining lots in Paynter’s Mill. The construction of Lot 94 is to begin in late April with the Columbus model. Donna Davis, Ocean Atlantic Sotheby’s Int’l Realty will be hosting the open house today, 4/11 from 1-5. I’ll be at Harmon Bay in Rehoboth Beach. The hottest selling community in Rehoboth. With 19 of 32 homes sold since August 2009. Prices start at $289,900. Only 2 miles to the boardwalk. Let’s enjoy this beautiful spring day. There is only 20 left to take advantage of the Federal Tax Incentives. Don’t miss out! This is the time to buy. There are low home prices, low mortgage rates and incentives by seller, builders and tax credits.
April 10th & 11th is National Open House Weekend. I’ll be in Paynter’s Mill in Milton on Sat. 4/10 featuring 8 fantastic condos. 2-3 bedrooms. aLl with garages. Starting at $194,900 with Seller Incentives.
Call for directions and details.
On Sunday 4/11, I’ll be at Harmon Bay in Rehoboth. The hottest selling community. New constrcution starting at $289,900 for a single family. Just 2 miles to the Rehoboth boardwalk. 19 of 32 homes sold since August. Call for directions and details.
Enjoy this beautiful spring weekend. Visit the DE shore. Paul 302-430-3543
Is Now the Time for Some Home Buyers to Make a Deal?
While housing prices are continuing to fall, prospective home buyers may not want to wait much longer for the market to hit bottom, experts say.
“Most of the big declines in home prices have occurred,” says Lawrence Yun, the chief economist at the National Association of Realtors. “Any more will probably be minimal.”
Part of the reason is that homeowners are becoming more realistic in listing their asking price.
“Home prices are where they should be,” says Robert Abbott, co-owner and VP of Abbott & Caserta Realtors in northern New Jersey. “Sellers are accepting the current reality and are pricing more realistically.”
The latest Case-Shiller report shows that home prices in 20 cities dropped 18.6 percent in February from a year earlier. But for the first time in 16 months, that rate of decline eased from the prior month.
A look at the median home prices across the U.S. shows that some prices have actually risen in recent weeks, according to the National Association of Realtors.
Region January ‘09 February ‘09
Northeast $227,000 $251,000 (up)
South $143,300 $146,700 (up)
Midwest $131,000 $131,000 (same)
West $215,000 $204,600 (down)
The median prices are still down from the same time in 2008, but that’s more a reflection of what were over inflated prices, says Abbott.
“We’re experiencing an adjustment in prices,” Abbott says. “From my area, we’ve been in a down market since 2005 and I think we are now at a stabilized place.”
The current price level of homes seems to be drawing more buyers into the market, says Jim Gillespie, CEO of Coldwell Banker.
“We are seeing a lot of activity across the nation,” says Gillespie. “Of course we’re in the Spring market, but we’ve seen more buyers in the market now than at this same time last year.”
More people are not only ‘kicking the tires’ but actually buying right now, says Abbott.
“We are showing significant activity when it comes to sales,” Abbott says. “The number of days for a house on the market is going down.”
But not all levels of housing are seeing the benefit, according to Cindy McLellan, a real estate broker in Denver, Colorado.
“Lower levels of home prices are seeing more of the activity,” says McLellan. “Higher priced homes, those in the $1 million range and above, are still taking some time to sell. High enders still have trouble getting jumbo loans and sellers are till trying to make a profit.”
McLellan says it’s the first time home buyers that are driving the market. “With the $8,000 tax break from the Obama Administration and lower interest rates, first time buyers really have an incentive to buy and they are.
Not everyone thinks housing prices have bottomed or might not even go lower. Fred Skolich, president of Skolich Real Estate in New Jersey says prices remain in flux.
“I think they are still going to come down,” says Skolich. “We’re in the middle of the Spring market. After we get away from that, I think you’ll see some further adjustments in price.”
“There’s no need to rush,” says J. Andrew Hansz, an associate professor with the department of finance and real estate at the University of Texas at Arlington. “It’s a buyer’s market right now. If you need a place, it’s a good time, but buyers are in control.”
But home buyers waiting on the sidelines to time the market could be making a mistake, says Skolich. “You might wait for a lower price, but then interest rates could go up,” Skolich says. “It’s like a stock, you don’t know if you’re really buying at the bottom or not.”
Mortgage Applications Drop
Housing Price Decline Slows
And those prospective buyers making low offers, might find themselves in a bidding war, says NAR’s Yun.
“I think some buyers are trying to steal property by offering low prices,” says Yun. “But even in those markets that plunge, buyers are coming back and making bids.”
“We’ve seen some bidding wars” says Robert Abbott. “It’s very competitive especially when the home is priced right.”
Whether someone is in the market to buy, just looking or waiting for prices to drop even more, analysts say the current state of housing is the best it’s been for some time.
“I’m not just saying this because I’m in real estate, but I think it’s as great a time to buy as I have seen in my 34 years in the business,” says Coldwell Banker’s Gillespie. “Houses are affordable, there are plenty of homes to choose from and you have record low interest rates on 30 year mortgages.”
1. NEW $8, OOO FEDERAL TAX CREDIT.
Until Dec. 1, 2009, qualified first-tome buyers can receive a tax credit.
Learn more at FederalHousingTaxCredit.com
2. LOW INTEREST RATES.
Rates remain at near-record lows: you can lock in a payment that fits your budget.
3. UNBEATABLE INVESTMENT.
Even in down markets, over the long term home prices still appreciate more then the stock market.
4. AVAILABLE LOANS.
Lenders are still eager to make loans to borrowers with good credit.
5. GREAT SELECTION
With so many homes on the market, you can get the features you want! ResideInDelaware.com
6. ENERGY EFFECIENCY.
New homes have advanced technology and environmentally-friendly features that can help save energy.
The previous Stock market crash, which lasted from March 2000 through October of 2002, ended on October 9th 2002. On that very day, the headline on the front page of USA Today read “No End In Sight to Stock Market’s Decline.” Yesterday, the headline in the Wall Street Journal read “Dow 5000?” Could this represent a major turning point? We think there is reason to believe so. There are still so many negative issues to contend with, and the big concern for Stocks is the decline in earnings, which even at these levels don’t make Stocks appear cheap, because of the relative Stock price-to-earnings ratio.
But there are also a few things to be optimistic about. Citigroup, an important part of the financial sector which led Stocks lower, had a significantly more positive outlook in statements made by their CEO Vikram Pandit this morning. Citigroup is boasting a strong capital base and profitability levels for the first part of the year.
Also giving Stocks a boost is Treasury Secretary Geithner, who said the US has done more in the last few weeks than other countries have done in years. FDIC head Sheila Bair, also kicked in and said that removing the toxic assets from bank’s balance sheets will help restore confidence in the banking system. This positive chatter has brought a little confidence to Wall Street today, something that has been sorely lacking so far this year.
Federal Reserve Chairman Ben Bernanke spoke in front of the Council on Foreign Relations in Washington this morning, where he indicated that the recession would be over by year end if the banking situation was stabilized, and further commented that major financial institutions would not be allowed to fail given the fragile state of financial markets and the global economy. It’s great to see that the mark-to-market issue is finally getting the attention it needs…Mr. Bernanke stated that mark-to-market needs to be addressed and that there has been evidence that present accounting rules have indeed made the current crisis much worse.
While he does not support suspending mark-to-market, he does feel that it needs to be modified expeditiously. As you know, this issue has been a strong rallying cry on our part for several months now, and Mr. Bernanke’s statements today are exactly in line with the position we have had, which is not to eliminate mark-to-market, so as not to repeat the days of Enron, but to make adjustments to allow for alternative methods, such as cash flow valuation. There is a congressional hearing on mark-to-market coming up on Thursday, and going back to Bernanke’s comments, a stabilization of the banking system would help bring an end to the recession.
One other topic that has been an MMG favorite is the Uptick Rule, and we are now hearing talk that the Uptick Rule may be reinstated, making it more difficult to aggressively short Stocks. Should both mark-to-market and the Uptick Rule be addressed shortly, Stock prices could undergo a significant rally, especially with all the cash presently on the sidelines.
This past Wednesday on February 4th, Ocean Atlantic Sotheby’s International Realty (OASIR) held their weekly meeting in the residential community of Paynter’s Mill. Paul Maltaghati of OASIR was the host. Sotheby’s agents toured the beautiful condominiums and upscale community. Schell Brothers builders have completed all 16 buildings with a total of 96 units. There are only 6 units availalbe. With prices from $249,900 to $312,900, and a HUGE Builder Incentive being offered. Call Paul Maltaghati 302-430-3543 for details. Mortgage rates are historically low. Lynn Cattaffi of Tidewater Mortgage Services gave the agents the weekly update filled with good news. Lynn has plenty of lenders looking to lend money. Smart banks and lending companies know Delaware and especially Sussex County is a solid investment. Retirees make up a good part of the homebuyers coming to the area. Retirees are less of a risk.
The condos of Miller Landing at Paynter’s Mill offer 2-3 Bedrooms/2 Baths. All the condos include either 1 or 2 Car Garage. Residents of Panyter’s Mill enjoy the Manor House Clubhouse and the other ammenities such as swimming pool, tennis, volleyball, basketball and walking/jogging trail.
OASIR top Realtor of the Year 2008, Kim Hamer and her husband Jeff Hamer attended the meeting. Jeff has recently joined the Rehoboth Beach office. Kim & Jeff are proprietors of Fins, Claws & Arenas of Rehoboth Beach, Kim & Jeff love Kindle Restaurant & The Corner Market Bistro located in Paynter’s Mill.
It was great to see the top OASIR’s agents such as Christine Strauss and Jennifer Nagle of Team Strauss, Brian & Jenn Barrows of Barrow’s & Associates, Matt Brittingham, Vicki Condit, Suz Bond of Team Bond, Justin Healy the Broker of OASIR and many more fantastic agents. A special thanks to Jack Giles of the Delaware Real Estate Commision for his enlightening speech. Amanda Ryan gave OASIR’s 2009 Marketing Plan presentation.
The phones are ringing, the market is up, December home sales rose 6.5% and was higher than December 2007. Paynter’s Mill is 95% sold out. RDM Homes have sold out! Beazer Homes has sold out! Schell Brothers have a fist time offering of 4 lots availalbe for TBB Schell Brothers single family homes. Paynter’s Mill is located 3 miles to Beebe Hospital, 5 miles to Cape Henlopen State Park, 8 miles to downtown Rehoboth and boardwalk, & 9 miles to the exciting nightlife of Dewey Beach.
There is excitement about final 6 condos at Paynter’s Mill. They are nicely appointed and ready for occupancy. Thank you Ocean Atlantic Sotheby’s International Realty agents.
Why Buying a Home in the Next Three Weeks May Prove to be an Extremely Smart Decision
This is the real reason I wanted to email all of you. In my opinion, buying a home between now and January 20th (Inauguration) will prove to be the best time to buy a home in our lifetime. Here’s why:
So, there’s no doubt that there is pent-up demand out there and that many people have been patiently “waiting for the bottom” for a couple years now. The media reacts to reported housing numbers (sales & price). Sales always pickup before price and in most prior downturns, sales picks up very quickly. And, one month’s sales are reported about 3 ½ weeks after the end of the month so there is a delay between the actual activity and when the data for that activity is reported. Only when the numbers are published will the media report this data and make predictions based upon it. The point is, if you wait for the media to start reporting about a bottom in home sales, you will already be two or three months late and will miss the bottom. However, even more important, if the sales pace returns with a vengeance like it has in most of the past downturns, builders and existing home sellers will not be willing to offer the great discounts and deals they are now. Once it is common knowledge that the market has bottomed, home sellers will feel as if the pressure is off and will be less desperate and thus less willing to agree to huge discounts or incentives . In other words, the best deals are going to be given to the customers that buy prior to the bottom when sales are very slow because once we have the bottom, sales will pickup and sellers will significantly reduce their willingness to offer incredible deals. Also, sales are always slower during the winter so sellers are even more incentivized right now to offer incredible deals.
Here’s another reason to buy a home very soon. The window of opportunity right now to get a great deal is really only about 3 weeks long . . . here’s why: Obama’s inauguration is on January 20th. Do you think Obama is going to implement an Economic Stimulus Package very shortly after entering the White House? His economic team has already spent numerous hours working on this package so that it is ready immediately upon his inauguration. This is no secret . . . Obama has been very vocal about this. Do you think Obama’s Stimulus Package is going to have a strong Housing Stimulus component to it? You bet . . . it is becoming more and more accepted by economists that to fix the economy, you have to fix housing. So, in other words, on or shortly after January 20th, we will have a package in place to seriously kick start housing. Now, ask yourself this . . . once the package is announced and home sellers (Builders & Existing Home Sellers) know that Obama has taken steps to significantly increase demand in housing, what do you think will happen to their willingness to offer incredible deals? I can tell you . . . it will significantly decline. Why would they offer a great deal when they know that they no longer need to since the housing stimulus is going to be all the incentive buyers need? The basic point is this . . . the window of opportunity for would-be home buyers to be offered a special extra incentive or significant discount is only open for 3 more weeks. When Obama takes office, he is going to move quickly and aggressively to fix housing. Once he does this . . . even before we see the results, just knowing what he is going to do will take the pressure off housing and make the market a little less favorable to buyers. Here’s the other good news . . . for buyers who contract before January 20th but settle after January 20th, they will very likely be able to benefit from whatever stimulus Obama implements (low rates, tax rebates, etc). So, buying over the next three weeks is a “Two-fer” . . . you get the great discounts associated with the challenging housing market and you’ll most likely also be able to capitalize on whatever incentives are included in Obama’s package.
In fact, you can take this argument even further for new home buyers . . . Obama’s stimulus package is likely to be temporary because only a temporary housing stimulus will create the desired urgency and housing demand. So, Obama may do something like lowering conforming interest rates to 4.5% for 6 months only. If he does this, any new Home Buyer who waits until the package is announced may not benefit from this if their house cannot be built fast enough to settle within 6 months. New Home Buyers who buy now increase their chances of capitalizing on any temporary housing incentives in Obama’s stimulus package.
Anyway, hopefully this all makes sense. I really believe that the peak of home sellers willingness to offer huge discounts or incentives is right now. Waiting until Obama’s Inauguration to see what he’s going to do seems like a logical approach for would-be home buyers but I think it will prove to be a mistake since the certainty of knowing the specifics of his housing stimulus will make home sellers feel more secure and less willing to offer great deals.