Housing Set for Spring Recovery as ‘Fear Factor’ Fades

Five years after the U.S. housing bust sent sales and prices plunging, the spring home-buying season is pointing to a long-awaited recovery.

Reduced prices, record-low mortgage rates, higher rents and an improving job market appear to be emboldening many would-be buyers. 

Open houses are drawing crowds. A wave of foreclosures is leading investors to grab bargain-priced homes.

And many people seem to have concluded that prices won't drop much further. In some areas, prices have begun to tick up. 

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The 10 Most Popular Housing Markets

Chicago continues to hold on to the top-spot in January as the most widely searched housing market at Realtor.com. The following are the top searched housing markets from last month, according to Realtor.com data of 146 metro areas.
1. Chicago
Median list price: $186,000

2. Detroit
Median list price: $81,700

3. Los Angeles-Long Beach, Calif.
Median list price: $320,444

4. Philadelphia, Pa.-N.J.
Median list price: $221,995

5. Phoenix-Mesa, Ariz.
Median list price: $169,500

6. Atlanta
Median list price: $150,000

7. Tampa-St. Petersburg-Clearwater, Fla.
Median list price: $142,500

8. Dallas
Median list price: $189,900

9. Orlando, Fla.
Median list price: $155,000

10. Las Vegas, Nev.-Ariz.
Median list price: $121,500

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

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For more information on our local real estate market, or for a free home valuation.  Go to www.ThePhillyKind.com

The Federal government and 49 states have reached an agreement with five large mortgage lenders that will provide underwater homeowners with a modicum of relief and a second chance – and the national (and Philadelphia) real estate market a much-needed boost.


The agreement brings to end a massive investigation into foreclosure abuse launched by all 50 state attorneys general in 2010..

As reported by Bloomberg News, the $25 billion deal includes three main components. One is a $1.5 billion payment to some 750,000 borrowers who lost their homes to foreclosure – an amount that works out to about $2,000 per borrower. A second is a $17 billion fund that will cover debt forgiveness, forbearance, short sales and other forms of assistance for struggling homeowners. The third is a commitment to provide $3 billion towards refinancing of mortgages to lower interest rates.

The five lenders involved are the five largest in the country: Bank of America, JPMorgan, Wells Fargo, Citigroup and Ally Financial. Negotiations continue with several other lenders; if all of those agree to the settlement, the total value of the deal to homeowners could go as high as $40 to $45 billion.

Oklahoma’s attorney general entered into a separate, $18.6 million settlement with the banks.

It could be argued that some form of loan forgiveness would be necessary in order to clear up the foreclosure mess and give the housing market a real forward push. This agreement provides just that while preserving homeowners’ rights to seek legal redress for past abuses. Sounds like a win-win to us. Now let’s see how the market performs in the wake of the settlement.

-By Sandy Smith for PhiladelphiaRealEstate.com

For additional information on the current Philadelphia Real Estate Market or should you want to view available homes for sale even if you want to find the value of your current home; visit www.ThePhillyKind.com

How is the Market?

Without fail, I get this question EVERY DAY.  Some people ask because they are generally interested and others ask simply to break the ice knowing that I'm a Realtor.  My response is always the same." depends on where you live".  Each neighborhood of the city is different, and each neighborhood has it's own Real Estate Market Trends.

Now, since this is a blog about Fishtown and the Riverwards; the information I'm about to provide is relevant to these areas. 

The following is based on the Property Type: Single Family Home, Townhomes and Condo  priced between $0.00 to $99,999,000.00.

Property Sales

November Property sales were 19, down -5.0% from 20 in November of 2010 and -29.6% lower than the 27 sales last month. November 2011 sales were at their lowest level compared to November of 2010 and 2009. November YTD sales of 271 are running -18.9% behind last year's year-to-date sales of 334.

Basically, the overall amount of homes sold has been decreasing for the last two years.

Prices

The Median Sales Price in November was $140,000, down -7.9% from $152,000 in November of 2010 and down -16.2% from $167,000 last month. The Average Sales Price in November was $158,116, down -4.8% from $166,155 in November of 2010 and down -7.0% from $170,034 last month. November 2011 ASP was at the lowest level compared to November of 2010 and 2009.

 Simply put, the average home sales price is down from both 2010 and 2009.  We have seen the rate of home value price begin to slow and level out.  I expect price to remain steady during 2012.

Inventory & MSI (Month's Supply of Inventory)

The Total Inventory of Properties available for sale as of November was 215, up 2.4% from 210 last month and down -28.1% from 299 in November of last year. November 2011 Inventory was at the lowest level compared to November of 2010 and 2009.

A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The November 2011 MSI of 11.3 months was at a mid range compared with November of 2010 and 2009.

Market Time

The average Days On Market(DOM) shows how many days the average Property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a Buyer's market, a downward trend a move towards more of a Seller's market. The DOM for November was 59, down -30.6% from 85 days last month and down -37.9% from 95 days in November of last year. The November 2011 DOM was at its lowest level compared with November of 2010 and 2009.


Basically, homes are selling but in order to do so they must be the be the best showing, most promoted and best priced homes in the area.