Malvern Realty BLOG

I never understood why people feel the need to wait for the holiday seasons to be thankful.  The reality is that we should be thankful for the good things in our lives every day of the year. Regardless of negative elements of the overall economy and unemployment, there are always important life events occurring at all times.  You don't want to miss those and you don't want to dwell on the negative when there are still so many positive things happening. 

So what are the "blessings" of the current real estate market?  The media would have you believing that there is only doom and gloom on the horizon.  In fact there are a myriad of things to be thankful for in the current market conditions .... Let's review a few of the positives.

• Interest Rates remain low which will continue to allow for homeowners to refinance out of variable rate loans and capture good rates in a 30 year fixed mortgage. Low interest rates will also promote moving the inventory.
• It is a great time to "upsize".  While you might take a slight hit in selling the home you own now, you will save more if you are buying up. 
• Investors have a huge buying opportunity to acquire properties at a good "value" for the long term hold.
• Lower oil prices will allow homeowners with oil heat to get through this winter absent the anticipated $4 gal + home heating oil costs.
• The suburban Philadelphia market has weathered the national slowdown fairly well compared to many parts of the country.
• The shift in the market will bring values back into a range for sustainable growth, which provides a better balance for lenders and consumers.
• FHA mortgages are available to qualified borrowers that do not have a lot of cash to put down.
• No one can time the market, so now is truely the best time to buy.  Inaction will not yield you the benefits of the current buying opportunities.

There are many more positives to focus on in the current real estate market.  Please take a moment to reflect on what is important in your life and the positive events that occur on a daily basis.  Post your comments on what you think is the best part of your life right now, real estate related and otherwise.  If you really focus on those events, the negatives just don't seem to have the same impact !!

The recent Shift in the real estate market has effected most real estate professionals.  Home builders especially have had to adjust to the changing market.  The shift to a buyer's market has left inventory on the market for extended marketing times and put downward pressure on prices.  Builders have had to react with a variety of solutions to move inventory and plan for new projects.  Free upgrades, assistance with Buyer closing costs, price concessions, higher Realtor commissions, and "gifts" to Buyers are among some of the incentives used to move inventory.

Financing is another key component of the changing market.  While conventional and FHA mortgages remain readily available to consumers that are qualified to borrow money, many of the investment lending sources have been eliminated or have tightened up.  Local banks that would readily lend for "spec" house building no longer want to predict the real estate market looking forward 12 - 18 months, and therefore are not lending for spec houses. 

Please post your comments regarding how your business has changed as a builder due to the Shift in the real estate market.  How has the lending environment effected your decision making for new projects, and also for the dispositon of existing projects.  What is your outlook for the next 12 to 24 months?  Are you currently buying new land ? 

WHAT A WEEK !!! Now that the congress and President have signed off on the so called "Bailout" Bill, the American consumer is left to ponder ... what will happen now.  We all know that there is no quick fix for restoring the credit markets, but in the meantime how will the typical Real Estate consumer respond to the current economic conditions. 

This week's post asks you, the Real Estate Consumer, to post your comments relating to your current home ownership situation: 1) do you plan to move in the near term and will the economy change your decision 2)  has your appetite for debt changed 3) do you have a Home Equity Line of Credit in jeopardy of being revoked 4) do you think that home values will remain unstable in your area 5) are you interested in investing in real estate

Personally, I think this is an excellent time to purchase real estate in many scenarios.  For example, it is an excellent time to "upsize".  You may take a small hit on selling your home, but you will benefit from buying "up" at this time.  Also an excellent time for first home buyers... FHA programs are still available and allow low down payments for qualified borrowers.  Lastly, it is an excellent time to invest in real estate, assuming you get the right "IN" price, and especially if you have a strategy to buy and hold.

PLEASE POST YOUR COMMENTS TODAY AND CHECK BACK OFTEN  WWW.MalvernRealtyGroup.COM/MRGBlog  

There are many levels at which the mortgage lending practices of the recent past have negatively impacted the current flow of mortgage money, the overall real estate market, as well as the overall financial markets in the US and abroad.  The current credit crisis begs many questions to address the importance of pricing risk properly.  Please post a comment that addresses one of the following questions about the current mortgage market, or post your own question or comment.

Do you think the Government did the right thing by stepping in to back Fannie Mae and Freddie Mac?

Who is more responsible for the meltdown ... individual lenders for not policing themselves, or the federal government for not taking action sooner on reckless lending practices?

Which candidate for president is best equipped to handle the current challenges in the economy (mortgage market, financial market, unemployment etc.) ... and Why !!

Please post your comments or questions ... and check back frequently to stay current on local and national real estate issues.

Welcome to the Malvern Realty BLOG page, hosted by Alex Coates, Broker / Owner of Malvern Realty Group, LLC.

This BLOG page will be updated on a weekly basis to keep you informed regarding the latest news and trends in Real Estate, Mortgage Financing, Real Estate Appraisals, and Title Insurance.  We will also cover topics that relate to both the buying and selling side in the purchase of Real Estate in Pennsylvania like the home inspection process, buyer closing costs, seller closing costs, real estate commissions, Radon, Termites, Mold, Lead Paint, and other aspects of buying and selling a property.

We will also focus on the local and regional real estate markets including the Malvern market, Chester County, and the Main Line.

In addition to being a resource for learning, we also want you to enjoy your time on our BLOG site.  Blogging can be a fun and informative way to spread knowledge about the Real Estate industry.

Thank you for visiting the Malvern Realty BLOG page.  Please post your comments today !!