Christopher Pataki Newark Delaware Real Estate

For Buyers who may be on the fence as to buying now or waiting until next year, here is a simple calculation that can help make your decision easier. Let's say that your buyers are waiting for the prices of homes to drop another 5%. Over the same time frame interest rates increase by 1%. A simple example of why to buy now is as follows

• Purchase price today 200,000 at 5% interest gives a principal and interest payment of $1073.

• Waiting until the price drops 5% but the interest rate is 6% gives a principal and interest payment of $1139.

$66 per month may not seem like alot but it becomes almost $8000 after 10 years and $8000 is what every first time home buyer is trying to get. It is just a simple math problem.

I was a little upset last week that Congress had almost let the First Time Home Buyers Tax Credit lapse before they acted on it. Yesterday both houses did what needed to be done. They extended and expanded the tax credit. It appears that Congress also thought outside the box. To incent current homeowners to become move up buyers, this bill may have expanded the real estate market activity exponentially. We have had very underwhelming spring seasons for 4 years now and this may change the outlook and opportunities that help potential sellers get off the fence. Kudos to our Washington leaders.

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It is time for Phillie Phans to show some solidarity. Naysayers can be heard everywhere so let us be positive and loud! It has be 30+ years since a back to back celebrations(of the 4 major sports teams). This town can use the positive national attention and each of us can help. Show your support of the 2009 (soon to be) World Champions by wearing RED on Wednesday. This may be a small thing to do but each of us should be able to support this Phantastic effort............................chris

Almost everyone saw this coming (except possibly Congress). An offer for government subsidized first time home purchases - an $8000 Federal Tax Credit - is about to expire. Somehow the date of expiration was passed as December 1. Many people at first glance saw that date as the end of the year (and procrastinated accordingly).

Guess when thousands of them started looking for their first homes - during the past month. Unfortunately that puts a huge stress on the entire purchase system. With Veterans Day and Thanksgiving (weekend) occurring in the month of November the end of month crunch for settlements will be even greater than normal.

Unforeseen delays and errors will take place. The overcrowded piles on the desks of processors and underwriters will continue to grow and settlement slots in attorney offices will become full. The stress on home buyers is already very high but not knowing makes this process even worse. Many of these buyers will not be able to settle without the stimulus.

Hundreds of thousands of Realtors, Lenders, Lawyers, etc., have contacted their Senators and Representative to extend the credit and probably received positive responses to their inquiries.

Congress, now is decision time! Either announce an extension now or at least make a date to grandfather those people who have already made mortgage applications, and qualify for the credit, that the credit will still be allowed. This is not one of the many pork projects that waste taxpayer money. This is REAL stimulus. Lets show some good faith to your constituents and take care of this today!..................chris

There are some real good signs for the housing market in New Castle County Delaware.

• Days on market continued to drop to under 70 days - lowest in the year
• New listings are jumping with over 950 new homes being listed in September
• Sold homes are up almost 100 units (6.5%) over the 3rd quarter 2008
• Pended homes were up 14% over the 3rd quarter 2008
• Homes sold on average 93% of original listing price

Lets hope this upward trend continues through the fourth quarter. It is a no secret that the First Time Homebuyer Tax Credit has helped make this improvement possible with upwards of 40% of homes being sold to first time home buyers. If you have not already done so, make sure to contact your Congressmen and Senators and let them know that we need to extend the housing tax credit.

Best wishes to a successful 4th Quarter.