In looking at today’s real estate market we see a lot of homes actually on the market.  Is now a good time to buy or not?  We’ll look at that question and let you make that decision.  Obviously, with a lot of properties on the market prices are clearly low or at worst reasonable compared to a few years ago.  Many people are even willing to look at the short sales and foreclosure sales to try to arrange a “better deal”. It is imperative in those situations to be aware that you may fact many projects to bring you home up to the appearance and need you will want.  It’s more than one buyer who brought a short sale or foreclosure that had to spend a lot more money to fix certain items. 

Another consideration is what type of interest rate you will get.  Recently, I saw a review that today’s rates are the lowest they have been in decades.  We have even seen a 3.75 fixed for 30 year rate. That’s truly a great rate.  If someone has a credit score over 620 he can get a FHA rate that is very reasonable with a small downpayment. 

The big thing in today’s market is looking a your own job stability.  To be blunt, if you don’t know for sure you are going to have a job you shouldn’t buy a new or existing home anyway.  However, if you do feel confident in your job stability and comfortable with your present financial situation then today may be a terrific time to get started in you real estate ownership experience.  Good luck in making these decisions and happy house hunting.

In looking at sites to build a new home you have to consider many factors.  First, consider the type of home you will be building and will it fit on the lot.  Oliver Homes has a community in Greencastle, Pa called Pleasant Walk Estates that has 2 acre homesites that would accomodate most any size home.  They have two other communities near Mercersburg, Pa called Deerwood Mountain Estates and Mountain Brook Estates.  Deerwood Mountain Estates has only 1/2 acre lot sizes and a new home buyer would have to be careful as to what type of home and how large of a home that could be built on that site.  Mountain Brook Estates has 3 acre lots that would not really be any issue for size of a home.  Those lots would have to be looked at individually as some allow for walk out basement exits and some do not.  These are just some basic things to look for in the purchase of a lot in building a new home.  In addition to size one must also consider what particular convenants are for each community- i.e. is there a minimum square footage requirement, is brick or another cladding material required, are any special roof pitches needed, and many more.  Finding the right site to put your new home is something that needs to be looked at and analyzed to find what works not only for you but for the also new home you want to build.  Good luck in your search.

As we get out of the winter and move into spring and summer it’s a time people think about buying a home.  A time for families to have a place all their own.  In reading many articles on the economy and whether it is a good time to buy or not there are mixed signals.  One article says the market is picking up and prices are starting to rise.  Another says that prices may still be able to come down ever so slightly.  I have two comments regarding those divergent points of view- first, we will never know when the  real estate market hits the bottom until after we missed it, and secondly, you need to buy a home for your value, your personal use, and your desires and wants.  You do not need to look at what others are saying or doing but you need to do what works for you.  The questions you must ask - Is this something that will work for me? , Will I be overextended financially?,  Can I make the monthly payment?.  One thing I always remember in the buying of a home is that you are not really paying $ 200,000 or so for a home -you are paying whatever the monthly payment is and is that within your budget.  That’s the question to ask in your purchase decision.  Can I afford this purchase on a monthly basis? Good luck with your search.

Washington County, Maryland has instituted a wavier of excise tax until April 1, 2010.  It is a great opportunity for buyers in the market for new homes to take advantage of up to an $ 8,500 credit on their new home.  Building permits need to be issued by the April 1st date.  Early on in the program the public was not aware of how it worked but have now become more informed and are taking advantage of this offer from the county.  It is great that Washington County Commissioners have made this offer to the homebuying community as they have felt some resistence from those that may not see the need of this offer for new construction.  As an group numbers run around 25% unemployment in the construction industry.  Anything that can be done to keep this industry employeed will do wonders for the economy in this community.  Thanks to the Washington County Building Department and the Washington County Commissioners.

Some people may still not know about the $ 8,000 tax credit for first time homebuyers and the $ 6,500 credit for the second time buyers but it’s still here until April 30, 2010.  We are happy to have the new year upon us but the deadline to sign a contract to buy a home is still April 30 and will get here sooner than we think.  Give us a couple weekends  of bad weather and it’ll be March before we know it and then we’ll be busy with spring type things and soon it will be April 15th and we’ll need to do our taxes and next thing you know we’re scrambing to find a home to buy the last couple weeks of April.  I encourage you, that if you’re in the market for a home under the tax credit don’t wait.  I know you read about the availability of homes on the market but a lot of them are not in excatly “live-in” condition.  If you think you’re going to buy a short sale or foreclosure between now and the end of April unless you’ve had it under contract for about 6 months right now it will not happen.  Note- I did not say it probably will not happen - I said it will not happen. You cannot at this stage get a contract on a bank owned or short sale and get it ratified by April 30, 2010.  You can talk to anybody that has tried to do it and you’ll find I’m telling you the truth. 

Remember, you second time buyers also get a tax credit also but only for $ 6,500.  Really, that’s a great deal.  I didn’t get a tax credit when I bought my last home.  This warning holds true for you in finding a home.  You need to start ASAP.  You also need to deal with selling you current home.  Don’t think it can’t be done either.  I know a guy who recently decided to put his home on the market and sold it in 10 days and then had to figure out where he was going to move because he heard all the things about the real estate market being slow so he didn’t really look- so get started and be persistent. 

Good luck in you home searches.

In looking at the economy and housing we see all the negative things shown and say - woe is me.  Actually, there are more postive things happening that the press wants us to know.  Even in a recent article in my local newspaper it talked about the job losses, etc. and then at the end of the article did say during that timeframe (of the job losses) the local economy saw an increase in local job growth.  We don’t really know where those gains were because the media doesn’t want us to know.  Good news rarely sells any media whether it’s papers, internet advertising, or other media. 

Analyzing the housing industry there is such a slowdown in the large housing states of California, Florida and Texas that they make any slight gains in other areas look like overall losses.  Is it bad- yes it is bad - but is it as bad as the media reports- probably not.  We do face tough times in today’s market but there are bright spots.  We must work to clean up the credit crisis and get money back into the economy.  Yesterday in a meeting with a financial advisor it was stated that around 40 percent of monies available are sitting on the sidelines waiting to see what will happen and where to put it.  We need to get consumer confidence back so that 40 percent can go to work and earn some money and buy American products.  Housing is a commodity that will survive as people will need homes but we will probably not see the excesses that we have seem in the past.  Looking forward to your thoughts as we proceed thru the next weeks and months.

As many people look at the housing industry they look at the economy and say now is not a good time to buy a home.  Sometimes we forget the main reason to buy a home- that being a place to live.  Sure, we can say that maybe my home is not increasing as much as it would have three years ago, or we can say maybe the price will be lower.  What we really need to remember we are not buying homes to make money we’re buying homes to live in!! Does it suit my current family situation and does it suit my needs today.  We have in the past had this side benefit that we have also made money on our homes but did we really buy a home to make money or to have a place to live.  Your investment in your home was not really to make money, but to have a place to raise your family, cherish some memories, and develop a tradition as your own - not your parents or garndparents but yours.  It’s something to think about as you ponder your decision to buy or to not buy a home.

As we look at the real estate market today we see a rather slow and depressed economy.  That being said it is important to analyze whether this may be a good time for “You” to buy a home.  Remember, you as an individual are not going to set a trend in the market nor will you need to follow the trend in the market.  In other words, in a down market which we are in now, it may be a very good time for you to buy if you have good job stability and good credit.  You can save money and get a great deal on a home.  Conversely, if the market is strong, but you as an individual do not have job stability or any funds it would not be a good time to buy a home even though others may see it as a great time.

Now everyone who is looking to buy wants to get the best possible deal that is out there, but you really need to consider is it a good deal for me?  We have all purchased an item and then looked at another store, saw the same item and checked the price to see if it is more or less than what we paid.  In trying to guess when the market is at the bottom neither you nor I will know the day when the market picks back up.  By that time, we’ve missed the bottom of the market that we’ve been waiting on.  Therefore we’ll never really know when the market hits the bottom until we’ve missed it!! 

From a buyer or seller standpoint then, we need to look at our given situation and say is now a good time for me -not is it a good time for “the rest of the world.”  Look at your situation and see if this makes sense.  There are many good buys today in the real estate market.  Happy house hunting.

I thought it would be appropriate to discuss the question- Is really a good time to purchase a new home or for that matter any home at all?   Many things factor into whether this is a good time.  Of most importance would be the stability of your employment.  If you have good job stability this may be an excellent time.  If you do not know if you’ll be employed next week or month surely it is not a good time.  Now the question comes in about credit and down payment.  These things seem to be of great importance in the news but in the industry we do not see this as much of a problem in the marketplace.  If a person has moderately good credit and a few thousand dollars with stable employment the person will get a loan.  I am not talking about an internet high risk type loan but a regular interest fixed rate loan for 30 years. 

Now the question assuming you can get a loan and have an OK credit score is now a good time to buy?  To give you a personal application I recently purchased a not so fuel efficient vehicle.  It was not a hybrid, not a 40 mpg vehicle but one that will get less than 18 mpg on a good day.  Why did I buy that vehicle - because no one else wanted it and I could save enough money on the purchase that I could more than pay for the extra gas I will spend while I own the vehicle.  So my answer as to whether now is a good time to buy is can you get a good deal and be able to make the payments?  If you answer is yes then now is a great time to buy. 

A real estate investor told me he started investing in the 1960’s and was told it was not a good time to invest - he did anyway.  Each time he was told it was not a good time to invest but he did anyway.  He now has over 100 properties and is quite well off.  If you can get a good deal and afford it now’s a great time.  Happy buying.

As I mentioned in my last entry I thought it would be good to discuss the advantages and disadvantages of buying a new home versus buying an existing home.  An obvious advantage in the new home market is the ability to pick the colors, particular features and include only what you want in the new home.  A new home community may also allow you to meet neighbors more quickly as most of the other residents are new also.  Some new home communities have amenities such as community swimming pools and community centers that the existing market frequently does not provide. In looking at the new homes this may sound like an insult to your intelligence but it is new and all the items in it are new.  Keep this thought in mind as we discuss existing homes.

            In purchasing an existing home you pick the style of the home by say only looking at two story homes, you pick the colors by what is available in the market during the time you are looking and what is on the market at that time.  You can still make those decisions but are limited by what is available as a completed home.  Frequently in the existing market you have more established neighborhoods, with more mature landscaping, and areas that have a bit of a history.  In buying an existing home you do not need to wait for the home to be built- you merely work out the details as to when you can settle on the property.  As I mentioned above if you do buy a 10 or 15 year old home everything in it is about that old unless it’s already been replaced.  How much will you have to repair or replace is a question you need to answer as you look at the existing home market.

            There are advantages and disadvantages of both.  It’s a decision that you to analyze as to what’s best for you and your family.  Happy house hunting.