Tarp Program
Investor Report: Financing Opportunities by Kenneth R. Harney You've probably heard that the Obama administration's budget sent to Congress last week emphasizes helping small businesses around the country, but you may not know that it also includes lots more potential financing opportunities for purchasers, owners and rehabbers of commercial real estate. For starters, the White House wants $30 billion in so-called "TARP" bailout money that's been paid back by big banks to be redistributed to smaller banks to allow them to make more loans for small business purposes, including acquisitions and renovations of commercial and other investment real estate ranging from office buildings, retail strips, warehouses, restaurants -- you name it. The budget also proposes to more than double the maximum loan amount of the government's main financing tool for small-scale commercial property -- the "SBA 504" program. Under the budget, new loans could go as high as $5 million, up from the current $2 million cap. Since a lot of people aren't all that familiar with the 504 program, here are some examples of the types of projects eligible for 504 financing: - Buying commercial-use land and buildings, plus ancillary costs such as street improvements, utilities, parking lots and landscaping.
- Construction of new buildings and renovations of existing buildings to business-purpose use.
- "Green" and energy efficiency rehabilitations to commercial real estate.
Under the 504 program, which is overseen by the Small Business Administration, borrowers can put down as little as 10 percent into a deal. Compare that with financing packages available to investors and owners in the regular marketplace - where downpayments of 40 to 50 percent are standard. Interest rates in the 504 program are attractive as well. Most financing packages involve a combination of a first mortgage and a second - with blended interest rates somewhere in the low six percent range currently. President Obama also signed legislation recently cutting out some lending fees - roughly in the two percent range -- to lower 504 borrowers' upfront costs. Chris Hurn, CEO of Mercantile Capital Corp., an Orland-based national lender who specializes in small business real estate financing, calls 504 "without question the very best commercial loan out there." But not enough potential users of the program seem to know about it, Hurn told Realty Times in an interview following the release of the budget. Are there special requirements to qualify a 504 package? Absolutely: The real estate must be intended to house the borrower's business activities, in part or as a whole. That business activity, in turn, should retain existing employment or create new jobs - generally one job for every $65,000 of loan money. Check it out. Published: February 5, 2010
More Tax Credit Info
Springtime house hunters out early thanks to tax credit
The springtime spurt in home buying may hit before the snow melts this year as buyers scramble to meet an April 30 tax credit deadline. The spring buying season typically takes off in March and runs through May. But buyers who want to claim this year's tax credit — up to $8,000 for first-time buyers and up to $6,500 for repeat buyers — must have signed purchase contracts by April 30. And they have to complete the deal by June 30. "I expect the buying season will be moved up," says Jim Gillespie, CEO of Coldwell Banker. Sales "are going to take off in February and March and really take off in April. ... My concern is that the move-up buyer hasn't thought what they need to do. Their window is really short. They have to coordinate closing dates." The average time it takes to get a home loan processed is about eight weeks now — two weeks more than it used to be, according to the National Association of Realtors. The tax credit's impact on 2010 home sales is uncertain. Some economists expect the credit to pull sales that would have occurred later in the year into the first half. "The tax credit will absolutely have an effect," says Pete Flint, CEO of Trulia, a residential real estate search engine. "It is going to shift demand from the later part of the year to the first part. January and February will be very strong. The next three months, there will be a surge in demand." The credit is pulling in some consumers now. "I'm actually in the middle of house shopping, and I decided to do it now so that I could get the $8,000 tax credit," says Amity Gay, 26, who's looking for a cottage-style house in Tallahassee. Sellers should be prepared to appeal to first-time home buyers, who still make up the majority of buyers, according to Pat Lashinsky, president and CEO of ZipRealty. And buyers should expect rising prices in some markets, including San Diego, Dallas, Minneapolis, Chicago and Washington, D.C. At MetLife Home Loans, buyers are being preapproved now for new housing developments; an increase in demand is being attributed to the expanded tax credit. "Our spring market got moved up at least two months because of this," says Kent Geschwender, branch manager. The tax credit was scheduled to expire on Dec. 1, 2009, but was extended and expanded by Congress. TAX CREDIT INFO
THE EXPANDED HOME BUYER TAX CREDIT COULD CHASE
AWAY THE WINTER BLUES This column is brought
toyou by the NAR Real Estate Services group By Ken Trepeta
As we begin 2010, both real estate professionals
and home buyers have something to look forward to and, more importantly, take advantage of-the extended and expanded home buyer tax credit. Originally created in 200S, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit. To help everyone better understand the extended and expanded home buyer tax credit, here are some highlights of the changes. Who Can Claim the Credit? First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a "first-time home buyer," the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. For current homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years. Another key point is that the existing home does not need to be sold. One must, however, occup}' the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at "move-up" buyers. How Much Is the Credit and What Are the Income limits? The maximum allowable credit for first-time home buyers is $8,000 or lO(i'b of the sales price, whichever is less. For current homeowners, it is $6,500 or 10% of the sales price, whichever is less. Under the extended home buyer tax credit, single buyers with incomes lip to $125,000 and married couples with incomes up to 5225,000 may receive the maximum credit. The credit decreases for single buyers who earn between $125,000 and $145,000 and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income--over $145,000 Ior singles and over S245,OOOfor couplesare not eligible for the credit. What Are the Deadlines for Qualifying for the Credit? Under the extended home buyer tax credit, as long as a written binding contract to purchase a home is in effect 011 April 30, 2010, and the deal is closed by July 1, 2010, one can claim the credit. Will the Tax Credit Need to be Repaid? No, the buyer does not need to repay the tax credit if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale. Another provision of the law waives the recapture provisions for service members who receive orders that require them to move. Are There AnyOther Critical Provisions? There are three provisions people should be aware of: - There is an $1')00,000 limitation on the cost of the home. - The purchaser must be at least 18 years old on the date of purchase. - For a married couple, only one spouse must meet this age requirement and dependents are not eligible to claim the credit. For more information, including the required IRS forms, please contact the Internal Revenue Service at 800-829-1040. RE Ken Trepeta
is the director ofthe Real Estate Services program for the
RISMedia's REAL ESTATE 13
Great New Listing In Northern Liberties
120 W. Wildey Street ---- $349,900 NORTHERN LIBERTIES This is a beautiful and spacious 3 bedroom 2 full bath townhome in a rapidly developing neighborhood in Philadelphia. Great Floor Plan, Beautiful, Original Hardwood Floors throughout, rustic and lightfilled bathrooms, 3 large bedrooms, updated kitchen, and large master bedroom with vaulted, exposed beams ceiling and exposed brick walls. Serene master bath with antique claws foot tub and exposed brick walls. 
Great New Listing In Northern Liberties
1. AMAZING DEVELOPMENT OPPORTUNITY, INCOME PRODUCING RENTAL PROPERTY OR FIRST TIME HOME BUYER HOME. 41-45 W. Wildey Street in the Northern Liberties. $250,000 3 Bedroom, 2 Bath with Large side lot currently being used as a patio. Washer and Dryer, Updated kitchen with new cabinets and subway tile backsplash and new beautiful bathrooms. 
NEW TAX CREDIT INFORMATION
News Release NATIONAL ASSOCIATION OF REALTORSÒ The Voice For Real Estate®
500 New Jersey Avenue, NW Washington DC 20001 PUBLIC AFFAIRS For further information contact: Lucien Salvant, 202/383-1176 lsalvant@realtors.org Tax Credit Extension a Positive Step Toward Sustained Real Estate Recovery, Say Realtors®
WASHINGTON (November 5, 2009) - The National Association of Realtors® today commended the U.S. Senate and House of Representatives for passing a bill that includes an extension and expansion of the current home buyer tax credit as an important step in ensuring a real estate and economic recovery. "RealtorsÒ appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners," said NAR President Charles McMillan, a broker with Coldwell Banker Residential Real Estate in Dallas-Fort Worth. "As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation's housing market." McMillan praised the efforts of several senators to put the recovery above politics. They are Sen. Johnny Isakson, (R-Ga.); Senate Majority Leader Harry Reid (D-Nev.); Finance Committee Chairman Max Baucus (D-Mont.); Sen. Chris Dodd (D-Conn.), chairman of the Banking, Housing and Urban Affairs Committee; and Sen. Joe Lieberman (I-Conn.), chairman of the Homeland Security and Governmental Affairs Committee. NAR economists estimate that the current tax credit has contributed approximately $22 billion to the general economy, and approximately 2 million people will take advantage of the tax credit this year. "The substantial rise in home sales we've seen over the past few months proves that the tax credit is working and is being used by buyers who were waiting for the right opportunity to get into the market," McMillan said. "This important incentive is helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our great nation. Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership." -more- #129 REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORSÒ and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORSÒ. All REALTORSÒ are members of NAR. Tax Credit Extension a Positive Step - add 1
The bill would extend the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction. Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return. Detailed information about provisions in the tax credit legislation is available on Realtor.org. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries. # # # Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.
NEWS ABOUT THE FIRST TIME BUYER TAX CREDIT FROM OUR CEO
As many of you may know there is currently an $8000 Tax Credit for First Time Home Buyers that was put in place to stimulate the real estate market. This significant buyer incentive program is due to expire on November 30, 2009.
The NAR and other industry groups are lobbying Congress to: extend the credit for another year, expand the incentive to include all buyers and possibly increase it to $15,000. This proposed extension and increase would be invaluable in assisting the continued recovery of our local real estate market.
We have been asked to assist by writing to our US Representatives and Senators and encouraging them to act now to continue to support our recovery.
If you agree that it would be a big help if buyers continued to have an incentive to buy please click the link below and send e-mails to your Congressman and Senators. If we all speak up it can make a big difference. Feel free to forward this to your clients, friends and family. The more emails that are sent, the greater the chance for success.
http://www.prufoxroach.com/taxpetition.cfm
Thanks for your help.
Larry Flick
AMAZING NEW LISTING IN QUEEN VILLAGE
This is home! Beautiful sundrenched 3BR/2.5ba townhome w/1 car deeded parking & an airy & comfortable open floor plan. Finished basement w/half bath. This home is in impeccable condition w/handsome Brazilian cherry hrdwd flrs & the finest Burber carpeting t/o. The kitchen will satisfy the finest of chef's w/GE Profile stainless steel appliances, custom cherry cabinets, beautiful granite countertops, subway style tile backsplash & double sink. Tons of storage. Kitchen opens into large DR/LR combo w/gas fireplace. Use the glass French doors to exit onto slate enclosed private patio. Master bedroom is set up perfectly w/Juliet balcony, walk-in closet, grand bathroom w/double sinks, glass stall shower & separate tub & a sitting room w/more closets. Upper floor is used as a great room w/wet bar and vaulted ceilings. This room receives tons of light all day and walks out to an amazing roof deck large enough for an outdoor table and furniture. Finished basement w/half bath is used as another entertainment room 
GREAT NEW LISTING
Great Price! Rarely available "The Hartley Model"! in Naval Square. One of Center City, Philadelphia's premier gated communities. A wonderful 3 bedroom bi-level brick end unit townhome with private entrance in the popular gated community of Naval Square. Entry foyer, 9' ceilings, cherry hardwood floors, gorgeous kitchen w/granite counters & stainless steel appliances. Wood blinds t/o. Formal Dining Room, custom paint. Powder room with pedestal sink. 3 nice sized bedrooms, custom closets. 2nd floor laundry. Great porch off of home office on 2nd floor. Custom storage area in garage. Luxurious master suite with beautiful master bedroom bath with cherry cabinets, granite counters, tile floor, jacuzzi bath, stall shower and private commode. Great location, steps away from the fitness center and clubhouse and pool (to be completed soon). This bi-level is on the first and second floor of this building. PARKING!  
 
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GREAT NEW LISTING AT THE WANAMAKER HOUSE IN RITTENHOUSE SQUARE
Beautiful, spacious, bright and comfortable new listing at the highly sought after Wanamaker House in Rittenhouse Square. This is a 3 bedroom, 3 full bath with amazing Northern and Western views of the city and river. Beautiful kitchen with granite countertops, tile backsplash, stainless Fridgedaire appliances and modern cabinetry. Large, main bedroom with built in speaker system, Berber carpets, two large closets, one a walk-in, and a grand marble bathroom equipped with a Jacuzzi, steam shower with two heads, and his and hers sinks. Herringbone hardwood floors throughout main areas and foyer. 2nd bedroom's bathroom comes tiled floor to ceiling with bath/shower combo and frosted bowl sink. Bosch stackable washer and dryer, crown molding throughgout. Large patio off 2nd and 3rd bedrooms. A must see! 
January Existing-Home Sales Fall, Inventory Down
WASHINGTON, February 25, 2009 Existing-home sales declined in January with some buyers waiting to see how details of the economic stimulus package would affect them, according to the National Association of Realtors®. At the same time, inventories fell to a two-year low. Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 5.3 percent to a seasonally adjusted annual rate1 of 4.49 million units in January from a level of 4.74 million units in December, and are 8.6 percent lower the 4.91 million-unit pace in January 2008. Lawrence Yun, NAR chief economist, said there was understandable hesitation by some home buyers. “Given so much stimulus package discussion in January, some would-be buyers simply sat out for clarity and certainty on the nature of housing stimulus,” he said. “The housing market will soon get a lift from very favorable buying conditions – not only from improved affordability, but also from the stimulus of an $8,000 first-time home buyer tax credit, and higher conforming loan limits that will allow more people to tap into 50-year low mortgage rates.” NAR estimates the impact of the stimulus package and lower interest rates on the housing market to be about 900,000 additional home sales in 2009 compared to conditions before the stimulus package. Inventory is expected to fall below an 8-month supply by the year end, which would be consistent with home price stabilization. Total housing inventory at the end of January fell 2.7 percent to 3.60 million existing homes available for sale, which represents a 9.6-month supply2 at the current sales pace. Because sales were down, the January supply is up from a 9.4-month supply in December. “The drop in total inventory is an encouraging sign because the number of homes on the market has declined steadily since peaking in July 2008, and inventory is at the lowest level in two years,” Yun said. In January 2007 there were 3.54 million homes for sale. NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said foreclosure relief needs to be fair. “Though President Obama's foreclosure relief plan is a step in the right direction with a net positive benefit for the housing market, serious issues of moral hazard and fairness need to be better addressed,” he said. “The plan should be wider in scope with equal opportunity for all rather than targeting specific groups. Responsible homeowners who have been making payments consistently on time but do not have traditional refinance options should also qualify for potential loan modifications,” McMillan said. According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low at 5.05 percent in January from 5.29 percent in December; the rate was 5.76 percent in January 2008. A high prevalence of distressed home sales, and of those in lower price ranges, has skewed the median price to be markedly lower than under normal market conditions. The national median existing-home price3 for all housing types was $170,300 in January, down 14.8 percent from a year earlier when the median was $199,800; the median is where half of the homes sold for more and half sold for less. McMillan said we are living in a bifurcated market divided between distressed sales and traditional homes. “It appears that in many instances a buyer can get a really good deal on a distressed sale, although that home may require some significant effort to bring it up to standard.” A preliminary analysis by NAR suggests that non-distressed properties are holding their value much better. “Distressed sales activity appears to be leveling off, although there are wide differences locally. For example, close to 80 percent of all sales are either foreclosed properties or short sales in Santa Ana, Calif., but less than 20 percent in the Chicago region,” Yun said. About a quarter of all inventory is listed as being distressed, but NAR estimates that distressed sales – foreclosed or those requiring a lender-mediated short sale – comprised about 45 percent of all sales in January. “Home buyers are evidently competing for homes with deep discounts,” he said. Yun said it will take a while for the stimulus to show in housing data. From the time a buyer starts looking for a home until it is reported as a closed sale can take as long as five months: a median of 10 weeks to search and make an offer, about 6 weeks to close the transaction and up to 4 weeks to collect and report the data. “This means improvement from the economic stimulus isn’t likely to show as closed home sales before summer, although we may see an earlier lift from lower mortgage interest rates,” he said. Significant local market variations continue. “A majority of markets experienced sales declines of more than 20 percent from a year ago, but some markets appeared to have reached the tipping point of accelerating home buying,” Yun said. “For example, home sales in Las Vegas have more than doubled with some reports of multiple bids.” Single-family home sales fell 4.7 percent to a seasonally adjusted annual rate of 4.05 million in January from a pace of 4.25 million in December, and are 7.1 percent less than a 4.36 million-unit level in January 2008. The median existing single-family home price was $169,900 in January, which is 13.8 percent below a year ago. Existing condominium and co-op sales dropped 10.2 percent to a seasonally adjusted annual rate of 440,000 units in January from 490,000 units in December, and are 20.3 percent lower than the 552,000-unit level a year ago. The median existing condo price4 was $174,400 in January, down 20.6 percent from January 2008. Regionally, existing-home sales in the Northeast dropped 14.7 percent to an annual pace of 640,000 in January, and are 23.8 percent lower than January 2008. The median price in the Northeast was $228,200, down 14.7 percent from a year ago. Existing-home sales in the Midwest fell 5.7 percent in January to a level of 1.00 million and are 16.7 percent below a year ago. The median price in the Midwest was $138,100, which is 6.8 percent lower than January 2008. In the South, existing-home sales declined 5.7 percent to an annual pace of 1.64 million in January, and are 15.9 percent below January 2008. The median price in the South was $152,100, down 7.4 percent from a year earlier. Existing-home sales in the West were unchanged at an annual rate of 1.20 million in January and are 29.0 percent stronger than a year ago. The median price in the West was $220,000, which is 25.5 percent below January 2008. # # # NOTE: References to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors® for more information. 1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns. Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions. Each February, NAR Research incorporates a review of seasonal activity factors and fine-tunes historic data for the previous three years based on the most recent findings. Revisions have been made to monthly seasonally adjusted annual sales rates for 2006 through 2008, as well as the inventory month's supply data. There are no revisions to raw inventory, or to single-family and condo home prices, aside from the normal prior month revisions. However, minor variances in sales ratios between single-family and condo resulted in slight revisions to weighted prices for total home sales. 2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases. 3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported. 4Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. Existing-home sales for February will be released March 23. The next Pending Home Sales Index & Forecast is scheduled for March 3; release times are 10 a.m. EST. For more information, please visit: www.realtor.org/research/research/ehsdatawww.realtor.org/research/research/ehsdata 
More Information on Federal Stimulus Package
Tax Credit for HomebuyersFirst-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Additional Housing-Related ProvisionsTax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation. Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills. Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames. Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
More Help for Homeowners in the FutureAnother thing to keep an eye on in the coming weeks is President Obama's plan to help struggling borrowers before they are faced with a default on their mortgage. According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster. While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That's because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices. 
GREEN DESIGNATION
I just completed the Green Designation course offered through the National Association of Realtors. I recommend this for any Realtor who wants to stay on top of the latest real estate trends as well as anyone who is interested in helping save our environment. In the near future, Green New Construction and Greener existing homes are going to be in huge demand due to informed customers looking to save money and live healthier lifestyles or who just want to be part of the whats cool or "Eco Chic" movement. Weatherizing and making homes more efficient is not only going to save you money every year but its going to help make the Earth a healthier place for generations to come. Building new homes without VOC's or Volatile Organic compounds or replacing materials in existing homes containing these materials will lead to healthier lives. VOC's are gases from materials such as paints, glues, and carpets that easily enter the air of your home. New energy star rated or LEED rated homes use passive designs such as Southern facing orientations and open floor plans for ventilation and a healthier indoor air quality. Green homes also use more efficient appliances, lighting, hvac systems,energy sources, and more air tight pre-fabricated building materials. LEED certified homes go as far as recycling all of the leftover building materials and use rain water to irrigate their Green roofs as well as all the landscaping. They use more porous driveway and patio materials so that water doesn't run off the properties and pollute the local water sources, instead the water naturally filters through the property to underground sources. So Green homes arent just about their components but more importantly about where these components were manufacured, how much energy is needed to transport them and how they are disposed of at the end of their lifecycles. All in all, Green Homes may be more expensive but the money you will save over time, the tax credits and health benefits you will receive will be well worth the initial expense. Philadelphia has many new and exciting green developments either in progress or already up for sale. Please contact me if you would like to set up a showing of these listings.
Today, the National Association of Realtors (NAR) reported existing home-sale statistics for the fourth quarter of 2008
National: median home price was $180,100, down 12.4 percent from the fourth quarter of 2007
Northeast: median home price was $248,800, down 4.7 percent from the fourth quarter of 2007
The Greater Philadelphia Region fared better than the national market and slightly below the Northeast with prices falling 6.8 percent. Other local real estate data, listed below, was released by Prudential Fox & Roach, HomExpert Market Report® and compares how the local market has impacted your audience. National: median home price was $180,100, down 12.4 percent from the fourth quarter of 2007 · Northeast: median home price was $248,800, down 4.7 percent from the fourth quarter of 2007
December Pending Home Sales Index© Shows 18 Percent Drop from Last Year's Greater Philadelphia Region Real Estate Activity
Index shows increase comparing November 2008 to December 2008
DEVON, PA - February 3, 2009 - The Greater Philadelphia region* saw an 8.6 percent increase in December real estate activity moving to an index of 73.2 from the November index of 67.4, according to the Prudential Fox & Roach, REALTORS® HomExpert Pending Home Sales Index©. December's increase in the region's activity follows a 21 percent increase in the November index, but is 18.3 percent lower than December 2007 when the index stood at 89.7.
Compared to findings reported by the National Association of Realtors® (NAR) Pending Home Sales Index, real estate activity in the Greater Philadelphia region fared better than both the Northeast and the National indices. The NAR index showed a 1.7 percent decrease in pending sales in the Northeast and a 6.3 percent increase across the nation. In November, the NAR index indicated a 7.2 percent decrease in pending sales in the Northeast and a four percent decrease nationwide.
Based on the forward-looking indicator, real estate activity in the five-county Southeastern Pennsylvania area increased 7.9 percent from an upwardly revised index of 72.1 in November to 77.9 in December. The October index stood at 57.8. Delaware County saw the largest increase in Southeastern Pennsylvania real estate activity, rising 12.9 percent to an index of 75.5. The increase follows a 23.5 percent increase in the November index. Philadelphia County saw a 9.1 percent increase in December activity, rising to an index of 102.4 - the highest index since February 2008 when it stood at 104.6. Bucks County was the only county in Southeastern Pennsylvania to see a decrease, falling 1.8 percent to an index of 65.9.
Following a 12.2 percent increase in November, Center City pending home sales rose 14.6 percent in December to an index of 89.1. Meanwhile, the Main Line area saw a 4.8 percent decrease, falling from an index of 82.7 in November to 78.7 in December.
Southern New Jersey pending home sales increased 15.5 percent in December. The index rose to 67, from the upwardly revised November index of 58. The October index stood at 47.9. Burlington County saw the highest increase in the 12-county region, rising 19.8 percent to an index of 67.5 in December. This is the highest index recorded in Burlington County since the January 2008 index, which stood at 71.4. Mercer County followed closely with an 18.8 percent increase to an index of 61.5 in December. Following a 5.2 percent decrease in the November index, Salem County fell 16.3 percent in December falling from 73.7 in November to an index of 61.7 in December.
Delaware real estate activity fell 2.5 percent in December moving from an upwardly revised index of 67.5 in November to an index of 65.8 in December. Following a 14.1 percent decrease in November, Kent County saw a 29.9 percent decrease in pending home sales. The index fell to 55.4 from an index of 79 in November. New Castle County activity increased 7.1 percent to an index of 68.7 in December.
"Winter months are normally slow for the real estate market. However the November adjustment following the October financial meltdown rolled into December as well," said Steve Storti, senior vice president, marketing for Prudential Fox & Roach, REALTORS. "While there's still uncertainty in the national market, future government actions including a significant housing stimulus would help improve our market."
While the December pending homes sales index for the Greater Philadelphia region increased 8.6 percent, it is 18.3 percent below the December 2007 index, moving from an index of 89.7 in 2007 to 76.2 in 2008. The Southeastern Pennsylvania index is 20.1 percent below a year ago, Southern New Jersey is down 11.4 percent and the Delaware area fell 23.6 percent below last year's December index.
The index, based on contracts signed in December, monitors real estate market activity by tracking pending sales of homes reported to the TREND® Multiple Listing Service, the region's primary real estate reporting tool for 32,000 real estate professionals. A sale is listed as 'pending' when a contract has been signed but the transaction has not closed. Sales are typically finalized within one or two months of signing. An index of 100 is equal to the average level of contract activity during 2002. The Prudential Fox & Roach, REALTORS' HomExpert Pending Home Sales Index is modeled after the national index created by the National Association of Realtors®, which is available at www.realtor.org.
The following is the December 2008 HomExpert Pending Home Sales Index for the Greater Philadelphia region:
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