How Will the Stimulus Package Affect The Housing Market—and You?
This is a monumental piece of legislation that will directly affect the housing market. I want to share my insights on how I believe it will affect the market so that you can make informed buying and selling decisions.
Homebuyers: Part of the stimulus package gives first-time homebuyers who purchase in 2009 an $8,000 tax credit. "First-time homebuyer" is defined as someone who has not owned a home for the past three years. Combined with the fact that foreclosure filings during January decreased 10% from December 2008 and that some sales in December of 2008 rose 6.5%, we will see prices at the lower end of the price spectrum stabilize. All the really great deals will be snapped up in the next month or two and we should see a price increase in December of 2009 as those who wait will rush to buy before the $8,000 credit is gone.
This will also help clean up some of the problem loans, short sales and foreclosures that have been a drag on home prices.
Three to six months from now we will see this start to move up to a little higher price range and by the end of the year, prices will stabilize in large mid-priced homes. High-end homes will be the last to stabilize sometime in 2010.
If you are thinking about buying, now is the time. Don't wait and end up wishing you had taken advantage of this opportunity.
Home sellers: If you are selling in the lower price ranges, you can expect to see increased activity and, if your home is reasonably priced, you will get it sold very close to that price.
If you are not at the low end of the market, and do not have to sell, my advice is to wait twelve to eighteen months, you will get a better price. If you have to sell now, price it right and get it sold now as we could still see a drop in value in the mid and high-end price ranges over the next 3 to 6 months.
If you want to talk further about the impact of this stimulus package, give me a call or drop me an e-mail about your situation and I will give you my recommendation. Also check back here on a regular basis for updates on what is happening in our real estate market.
Talk to you soon.
Your Realtor,
Jan
How Will the Stimulus Package Affect The Housing Market—and You?
This is a monumental piece of legislation that will directly affect the housing market. I want to share my insights on how I believe it will affect the market so that you can make informed buying and selling decisions.
Homebuyers: Part of the stimulus package gives first-time homebuyers who purchase in 2009 an $8,000 tax credit. "First-time homebuyer" is defined as someone who has not owned a home for the past three years. Combined with the fact that foreclosure filings during January decreased 10% from December 2008 and that some sales in December of 2008 rose 6.5%, we will see prices at the lower end of the price spectrum stabilize. All the really great deals will be snapped up in the next month or two and we should see a price increase in December of 2009 as those who wait will rush to buy before the $8,000 credit is gone.
This will also help clean up some of the problem loans, short sales and foreclosures that have been a drag on home prices.
Three to six months from now we will see this start to move up to a little higher price range and by the end of the year, prices will stabilize in large mid-priced homes. High-end homes will be the last to stabilize sometime in 2010.
If you are thinking about buying, now is the time. Don’t wait and end up wishing you had taken advantage of this opportunity.
Home sellers: If you are selling in the lower price ranges, you can expect to see increased activity and, if your home is reasonably priced, you will get it sold very close to that price.
If you are not at the low end of the market, and do not have to sell, my advice is to wait twelve to eighteen months, you will get a better price. If you have to sell now, price it right and get it sold now as we could still see a drop in value in the mid and high-end price ranges over the next 3 to 6 months.
If you want to talk further about the impact of this stimulus package, give me a call or drop me an email about your situation and I will give you my recommendation. Also check back here on a regular basis for updates on what is happening in our real estate market.
If you are relocating to Philadelphia and suburbs and need information about public transportation, schools, or homes for sale call Jan Gaweda at Citizens Premier Real Estate at 610-653-0386.
You can look up all available listings at www.JanGaweda.com also sign up to get many special reports important to real estate sales.
For information about public transportation go to www.septa.org
You can look up information about schools on my web site as well.
If you need more information email Jan@JanGaweda.com
Jan Gaweda |
Direct:
Office:
Email:Jan@JanGaweda.com
License Number: PA RS290259
The number of consumers with delinquent mortgages is poised to almost double by the end of next year, hitting its highest level in at least 16 years, according to a leading credit bureau.
TransUnion LLC, which analyzed about 27 million consumer records in its database, predicted that the proportion of consumers with mortgages that are 60 days or more past-due will hit 7.17% in the fourth quarter of 2009.
That would be the highest level reached since the Chicago credit bureau -- which is releasing the data on Tuesday -- first started tracking these statistics in 1992. It compares with an expected delinquency rate of 4.67% at the end of 2008.
The big culprit is adjustable-rate mortgages that were underwritten several years ago, when lending standards were loose.
Now, many of the initial teaser rates on these loans are expiring and resetting to higher interest rates and higher loan payments.
"There are a lot more loans that will be resetting throughout 2009 through 2011," says Ezra Becker, principal consultant in TransUnion's financial-services group, who notes that rising unemployment and depreciating home values are other contributing factors. "There may be an ongoing flow of consumers who may now be able to pay their mortgage but may not be able to a year from now."
Mortgage delinquencies are likely to peak in the first quarter of 2010 as today's new loans, which have tighter underwriting standards, take effect, he says.
TransUnion also predicted that credit-card delinquencies would rise, though not nearly as sharply. By the end of this year, the ratio of credit-card borrowers who are 90 days or more delinquent on one or more of their credit cards is expected to reach 1.09% -- roughly the same levels reached at the end of 2007, and flat with third-quarter levels -- according to TransUnion.
However, as conditions worsen, the delinquency rate is expected to climb to 1.37% by the end of 2009, or roughly the same levels reached in the fourth quarter of 2007.
Credit-card delinquencies are lower than mortgage delinquencies in part because credit-card lenders have more ways to control the potential losses, such as reducing customers' credit lines.
And while delinquencies are likely to climb, they aren't expected to hit historic highs, such as when they hit 1.89% in the fourth quarter of 2002, when consumers were struggling through a recession and the aftermath of Sept. 11.
"We are really going to see issues throughout all of 2009," Mr. Becker says.
"Even when the economy starts to recover, there's a delayed effect in how consumers start to respond. If a consumer is unemployed and goes into delinquency, when they get a job they're not going to start repaying immediately. They have to build up their funds."
With all the headlines talking about the deepening recession, many people might think that real estate in 2009 will do no better than 2008.
Greg Herder, a real estate marketing expert and trend watcher that I respect, sees lots of positive signs that the real estate cycle will start trending upward in 2009. Mortgage rates are close to 50-year lows — 5% or even 4.75% for 30-year mortgages. An expected massive economic stimulus package from the incoming administration suggests the downward cycle will turn into a slow rebound over the coming several quarters.
Herder points out that most economists are predicting that housing prices will stabilize and/or rise in 2009. A boom in the mortgage market (including re-fis and home purchases at new affordable prices), will pump money into our economy. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two-tenths of a percent in New England— these small signs are strong indicators that the down cycle is coming to an end.
I believe the low rates, low prices and stabilizing local markets will make early 2009 a great time to buy or move up in real estate. Check back often for my updates on the real estate market and my take on what Obama's proposed stimulus package will have on the real estate market.
Your Realtor,
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Whether clients are interested in purchasing their first home or selling their longtime residence for maximum return, he pulls out all the stops to get them the highest return on their investment.
It’s been said the harder you work for something, the more you appreciate it. When Jan Gaweda was about 12, he had his eye on a Tandy 64 computer. Coming from a hard working family, he knew that if he wanted it bad enough, he would have to earn it. He immediately began mowing lawns, doing laundry and delivering newspapers to make it happen. Months later with a shoebox full of roughly $600, Jan was able to indulge himself with a reward few other kids his age could afford. It was a lesson that taught him with the right drive and determination, he could achieve any goal he set for himself.
Growing up, Jan’s father owned a successful sporting goods business and it wasn’t long before he was going to work with him to help out. At first it was just sweeping floors and gift-wrapping. Later, when Jan became a hired employee, many of his colleagues thought he’d receive special treatment. But he was determined to prove them wrong. He worked extra hours, took on additional projects and learned the fundamentals of being an entrepreneur—self discipline, putting the needs of the customer first and pushing yourself to do more than the competition.
Those qualities would prove to serve Jan well in his future endeavors. After graduating from Radford University with a degree in marketing, Jan began a successful career in the telecommunications business. True to the family tradition, Jan eventually branched off on his own. It reminded Jan of how those days of working with his father and pocketing a weekly allowance for his hard work laid the foundation for his dedicated approach to life. But his determination to achieve the goals he sets for himself didn’t stop there. Jan took it a step further and threw himself headfirst into another competitive industry.
Jan’s ironclad commitment has quickly catapulted him to becoming one of the area’s most respected real estate agents. He understands there’s much more to a move than providing people information to get them from point A to point B. For Jan, it’s about giving his clientele his undivided attention throughout the process, overcoming any obstacles in their path and protecting their best interests throughout the process. Some people might consider this going the extra mile, but it’s the only way Jan knows how to do business.
As a father, Jan knows how important buying or selling a home is to a family’s future. That’s why he goes above and beyond to treat his clients’ important investments as he would a member of his own family. Whether that means negotiating the best price for their sale or using the latest technology and his local insight to find a home conducive to their lifestyle, Jan’s main priority is exce-eding their expectations.
As a proud parent and successful businessman, Jan Gaweda knows the key to success in both of these area’s is having a driven mentality. He applies this same devoted approach to helping other families make the most of their home sale or purchase as a leading real estate agent. From consultation to closing, Jan goes above and beyond to give people the information, guidance and personalized service he’d expect for his own family.
Whether clients are interested in purchasing their first home or selling their longtime residence for maximum return, he pulls out all the stops to get them the highest return on their investment. If a move is in your near future, entrust this important part of your life to a professional who knows that your family is priority one.
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