Posts Tagged ‘real estate market recover’

Caught In Between Selling and Buying a Home in Harrisburg PA?

Caught In Between Selling and Buying a Home?

 

Sometimes selling a home and buying a new one can be a difficult balancing act, as a homebuyer often cannot place an offer on an attractive home and sell the current one simultaneously. These homebuyers and sellers get “caught in between.” Below are some tips on how to close that time gap between buying and selling a home.

 

Consider bridge loans. A bridge loan means borrowing from the current home’s equity until the proceeds from its sale are obtained. Some bridge loans require that only the interest be repaid; others mandate a single payment of interest and principal when the loan needs to be paid back. If protracted, bridge loans can be expensive, so it is best to use them for overlaps of a short period of time between closings.

 

Buy on contingency.Have a prior-sale contingency included in the purchase contract of the new home. It provides the opportunity to withdraw from an offer if the current home does not sell by a certain date.

 

Evaluate whether to buy or sell first.You might still get “caught in between” even with a prior-sale contingency clause. Homeowners must consider which is better to do first. In a “seller’s market,” locating the new home and starting the buying process may be the best approach. It is important to note that most people need to sell their current home in order to qualify for a loan to buy the next one, which is often more expensive.

 

Review home equity options.For those who need to borrow for a longer period than just a few months, it is best to use a home equity loan or a fixed-rate line of credit, particularly if sizable equity has been built up.

Contact me now to help you bridge the gap. 717 514-1793 or Ken@KensHomesles.com

 

Harrisburg PA Real Estate Expert

 

Ken Huebsch is your premier real estate agent in the Greater Harrisburg area.  He is a specialist in Harrisburg real estate  as well as the communities of Palmyra, Hershey, and Hummelstown.  My wife Leslye and I have a combined 40 plus years experience serving our clients -We KNOW Harrisburg. When you plan to buy or sell Harrisburg area real estate, allow us to work for you.  We are dedicated professionals and are here for your success.  For more information on how we can best serve your real estate needs, please complete our online contact form or give us a call.  Also, check out what our fabulous clients have to say about us on our testimonials page!

 

Cell: 717 514-1793
email: mailto:Ken@KensHomesales.com

presented by http://www.KensHomesales.com

 

 

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10 REASONS TO BUY A HOME

 REASONS TO BUY A HOME
Original Source: Wall Street Journal Online
Enough with the doom and gloom about homeownership.

Sure, maybe there’s more pain to come in the housing market. But when Time magazine starts running covers that declare “Owning a home may no longer make economic sense,” it’s time to say: Enough is enough. This is what “capitulation” looks like. Everyone has given up.

After all, at the peak of the bubble five years ago, Time had a different take. “Home Sweet Home,” declared its cover then, as it celebrated the boom and asked: “Will your house make you rich?”

But it’s not enough just to be contrarian. So here are 10 reasons why it’s good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer’s market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We’re four to five years into the biggest housing bust in modern history. And prices have come down a long way- about 30% from their peak, according to Standard & Poor’s Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it’s mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You’ll never catch the bottom. It doesn’t really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What’s not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won’t see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You’ll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you’ll get a tax break on capital gains-if any-when you sell. Sure, you’ll need to do your math. You’ll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It’ll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension-zoning permitted-or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You’ll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. “You can tell the ones that have been bought,” said my local guide. “They’ve painted the front door. It’s the first thing people do when they buy.” It was a small sign that said something big.

5. You’ll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you’re better off buying.

6. It offers some inflation protection. No, it’s not perfect. But studies by Professor Karl “Chip” Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That’s valuable inflation insurance, especially if you’re young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It’s risk capital.
No, your home isn’t the stock market and you shouldn’t view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities-for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy-if it happens-and still managing to sleep at night.

8. It’s forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won’t. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn’t a cost. You’re just paying yourself by building equity. As a forced monthly saving, it’s a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors® puts the current inventory at around 4 million homes. That’s below last year’s peak, but well above typical levels, and enough for about a year’s worth of sales. More keep coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear.
Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed-either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the “glut” simply won’t matter: It’s concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won’t have any long-term impact on housing supply in your town.

Original Source: Wall Street Journal Online

 

Harrisburg PA Real Estate Expert

Ken Huebsch is your premier real estate agent in the Greater Harrisburg area.  I am a specialist in Harrisburg real estate  as well as the communities of Palmyra, Hershey, and Hummelstown.  My wife Leslye and I have a combined 40 plus years experience serving our clients -We KNOW Harrisburg. When you plan to buy or sell Harrisburg area real estate, allow us to work for you.  We are dedicated professionals and are here for your success.  For more information on how we can best serve your real estate needs, please complete our online contact form or give us a call.  Also, check out what our fabulous clients have to say about us on our testimonials page!

Cell: 717 514-1793
email: mailto:Ken@KensHomesales.com

Presented by KensHomesales.com

When Will the Housing Market Recover in Harrisburg, PA?

When will the Housing Market Recover in Harrisburg, PA?  A recent survey reveals some surprising results of what Americans believe about the housing market and how quickly it will recover. Trulia.com, a top real estate website, and RealtyTrac.com, the top online marketplace for foreclosure properties released the somewhat startling results last week that gives a glimpse into the minds of Americans’ attitude toward the current housing market crisis.

Questions and Answers signpost

When will the Housing Market Recover?

When Will the Housing Market Recover?

The first item the survey addressed is exactly when Americans believe the housing market will recover from its current crisis. The results are revealing of how much faith Americans put into our current real estate situation.

Year % of American adults who believe the housing market will recover:

Already recovered 4%                                                                                                                                  

2010  – 1%

2011   – 10%

2012  – 27%                                                                                                                                                   

2013  – 24%

2014  – 12%

2015 or later  – 22%

These results are revealing of how we view the current real estate crisis. In fact, over half of Americans believe it will take two years or longer for the real estate market to recover from its current situation. This certainly shows most people are ready for a long and possibly bumpy road until the housing market returns to an optimal level. I have compiled some Tips for Sellers, as well as some Tips for Buyers. These may help buyers and sellers in the market today with some advice that they may not normally consider.

Would You Walk Away from Your Mortgage?

Almost half (48%) of homeowners who have a mortgage said they would consider walking away if their mortgage was underwater. This figure is up from a similar survey released in May 2010 which showed only 41% would consider this a viable option.

An interesting aspect of this survey is men reported they were much more likely to walk away from their mortgage than women. Of the men surveyed, 57% said they would consider walking away from their mortgage, while only 40% of women reported they would consider this an option.

Calling in the Reinforcements

In lieu of walking away from a mortgage, the survey also showed two-thirds of home owners would consider Calling a Lender in an attempt to modify the current terms of their mortgage as their first option. Ten percent said they would actually have a tenant move into their home in an attempt to recover their mortgage.

As this survey shows, a majority of Americans believe we may be in for a longer than expected ride as we wait to see when will the housing market recover. For some who are in the midst of struggling with their mortgage, the survey also shows nearly half of Americans believe they might walk away if they were in over their heads. While others would also consider a mortgage modification or some other creative means to restore their mortgage.

This is a great time to buy for certain people. Just because we are not sure of when the housing market will recover, this does not mean that you should wait for it to get better. If interest rates rise, then the difference in your interest payment will more than outweigh the potential decrease in values, yet. For more questions or information, contact me (Ken Huebsch, Prudential Homesale Services Group) @ 717 514-1793  or Ken@KensHomesales.com

 

Harrisburg PA Real Estate Expert

Ken Huebsch is your premier real estate agent in the Greater Harrisburg area.  I am a specialist in Harrisburg real estate  as well as the communities of Palmyra, Hershey, and Hummelstown.  My wife Leslye and I have a combined 40 plus years experience serving our clients -We KNOW Harrisburg. When you plan to buy or sell Harrisburg area real estate, allow us to work for you.  We are dedicated professionals and are here for your success.  For more information on how we can best serve your real estate needs, please complete our online contact form or give us a call.  Also, check out what our fabulous clients have to say about us on our testimonials page!

Cell: 717 514-1793
email: mailto:Ken@KensHomesales.com

Presented by KensHomesales.com