The Montgomery County, PA Market Report for October 2009 shows a continuation of recent patterns; home prices again declined from the previous year’s level while the number of home sales rose.
The average price of a home in Montgomery County dropped to $285,817 compared to $304,327 for October, 2008; an 8.2% decrease. This marks the 23rd consecutive month in which home prices have fallen from the prior year level.
The number of homes sold this past October increased to 731 units versus 604 homes sold in October of the prior year; a 21% increase. This marks the 4th consecutive month that the number of homes sold has increased from its prior year level.
How is it possible that home sales are increasing, but home prices continue to fall? In a very general sense, the overall decrease in housing prices has caused some buyers to step into the market and snap up good deals. Specifically and probably to a larger extent, the first-time buyer tax credit has resulted in an abnormally high number of sales at the lower price ranges of the market. Also, housing inventory remains relatively high at approximately 8.5 months (even with October’s impressive sales rate). Housing Inventory is the number of months it would take to sell all of the currently listed homes at the current seasonally adjusted monthly sales rate. Until we start to consistently see housing inventory down near 6 months of supply, look for continued (but hopefully moderate) pressure on home prices.
To get a sense of the broader national housing market (which will certainly have some effect on our local housing market), check out my blog from this past weekend: Market Outlook: The Calm Before the Storm.
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Copyright © 2009, The Scott Loper Team, All rights reserved. Montgomery County, PA Market Report for October 2009.
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Copyright © 2009, The Scott Loper Team, All rights reserved. Wordless Wednesday - Fall Foliage on the Perkiomen Trail.
The benefit of an Adjustable Rate Mortgage is very simply in the money you can save due to the lower interest rates offered with these mortgage products. That’s not to say that there aren’t risks involved with an ARM as there are many varieties of ARMs with varying degrees of risk. However, an appropriate ARM for an appropriate borrower will balance that risk to an acceptable level and still provide a nice financial reward.
By way of example, here is my own experience with the savings produced by selecting an ARM. My current mortgage is a 7-year ARM and I am 6+ years into it (74 months actually). 
At the time that I took out this mortgage, the prevailing rate for a 30-year fixed rate loan was about 5.0%. By taking the Adjustable Rate Mortgage, I was able to get a rate of 4.125% (with no points) and I originally mortgaged $217,000. Now, all the necessary figures have been provided to generate the comparison below.
| 30-year fixed rate at 5.0% |
7-year ARM at 3.75% |
Difference | |
| Monthly Payment | $1,164.90 | $1,051.69 | -$113.21 |
| Total payments over 74 months |
$86,202.60 | $77,825.06 | -$8,377.54 |
| Principal paid off over 74 months |
$22,545.32 | $25,713.70 | $3,168.38 |
As I am about to refinance and payoff this current mortgage, I look back happily on my decision to use an Adjustable Rate Mortgage as it saved me $8,378 in payments to date. I also have to factor in that, even with the lower monthly payments, the ARM actually paid off $3,168 more in principal than the fixed rate mortgage would have. That brings my total savings to $11,546. Of course, I’m now in the position 
of refinancing which costs money that I would not have had to pay if I just had a 30-year fixed rate mortgage. Those costs are about $2,200 (Pennsylvania is among the highest in the nation when it comes to title insurance costs). So, I still saved $9,346 by going with the ARM.
As for my new mortgage, I was tempted to go with a 30-year fixed rate this time around. But on a recent dip in mortgage rates, the spread (or difference) between the 30-year fixed rate mortgages and a 5-year ARM was about 1% again. Where I live (in Lansdale PA) I was able to get a 5-year Adjustable Rate Mortgage at and attractive 3.75%. My plan is to keep the same payment as my current mortgage with the difference being applied to pay down the principal more quickly.
This is just one illustration of how using the correct Adjustable Rate Mortgage can save a significant amount of money for the borrower. There are certain scenarios and certain borrowers for which an ARM is not the right mortgage product. Conversely, I often see buyers considering a 30-year fixed rate mortgage when it absolutely makes more sense for them to use an ARM (i.e. a buyer who knows they’re only going to be in the home for a few years).
The bottom line is that a borrower should really educate themselves about the different mortgage products available and carefully weigh the risks and rewards of each one. Rates for 30-year fixed mortgages are very attractive right now, but you could literally and unnecessarily be giving away thousands of dollars to the bank by only considering this type of mortgage.
To use a handy Mortgage Calculator Click Here.
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Copyright © 2009, The Scott Loper Team, All rights reserved. The Benefit of an Adjustable Rate Mortgage.
Montgomery County PA Home Prices and Home Sales through September 2009. The streak of declining prices continues, but shows encouraging signs of slowing. Montgomery County homes prices have fallen for 22 consecutive months as of the end of September. The average price of a home fell to $300,715 this past September versus an average of $306,100 in September, 2008; just a 1.8% decrease. If you’re looking for positive signs in the real estate market, you have to see this as a potential sign of a bottoming in home prices.
On another positive and related note, the number of home sales rose sharply in September. The number of residential home sales in Montgomery County increased to 702 units this past September from 637 units last September; better than a 10% increase.
Many factors can play into the results for a given month. For example, the $8,000 first-time buyer tax credit is currently set expire at the end of November. This looming deadline has certainly had (and will have) an impact on the number of sales in the months leading up to that deadline. If Congress extends and/or expands this tax credit (which they are currently debating), we would probably see a continuation of more positive numbers in the housing markets. If the tax credit simply expires, we could see some reversal of the recent positive indications. The general state of the economy also has an enormous impact on the real estate markets (and vice versa). While we’ve seen some signs of improvement in the overall economy, it seems quite fragile and any deterioration there would weigh negatively on our real estate market. So, we forge ahead and look for a trend to become clearer as the months go by. I’ll continue to monitor the real estate market in Montgomery County and post these market reports on a monthly basis.
If you’re a home buyer, there are a few things for sure. From your point of reference, home prices have slid back pretty nicely from an all time high average of approximately $368,000 in 2007. If you combine the current price discount with the very attractive interest rates available right now (near 5.0% for 30-year fixed and near 4.0% for 5-year ARM’s), you have some pretty compelling reasons to consider a purchase. You also have to realize that nobody will truly be able to tell when the market has hit a bottom until they can take a look several months back and say, “Oh, that was it.”
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 to buy or sell a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Copyright © 2009, The Scott Loper Team, All rights reserved. Montgomery County PA Home Prices and Home Sale - September 2009.
The Condo
Knox Court at Heritage Creek are luxury condominiums offering secure entries, plush lobbies, and elevator service.
This home is the Lexington Model which combines ample space with a thoughtful, well-designed floor plan. Being a corner unit, windows enhance each room (except the baths) with abundant natural light. You’ll also enjoy the ideal location by taking in the views of the surrounding community from the corner balcony (this unit has the 2nd floor balcony shown in the picture).
Inside, the kitchen features cherry cabinetry, a ceramic tile floor, and adjoins a sunny breakfast area with sliding glass door to the balcony.
Central to the home is an elegant living room / dining room combination. Adjacent, a separate study has glass French Doors and makes a peaceful library or office.
The master bedroom is spacious and boasts a walk-in closet and a master bath with Jacuzzi tub, double vanity, and separate stall shower.
The second bedroom features a warm decor and is also nicely sized.
About Heritage Creek
Heritage Creek is an Active Adult (55-plus) community located in picturesque Warwick Township, Bucks County. The community consists of 400 single-family detached residences and 120 condominiums built circa 2001 by the Mignatti Companies. Mignatti is known in the region for quality construction, Old World craftsmanship, and attention to detail.
The Amenities and Lifestyle at Heritage Creek
The amenities and lifestyle are what really draws one to a particular Active Adult Community. At Heritage Creek, the amenities and lifestyle are unparalleled.
The center of activity is the Marquis Club and Spa; a 15,000 sq. ft. facility designed to facilitate social, recreational, and physical pursuits. The Marq is warm and inviting, creating a resort-like feel with its grand lobby and Terrace Lounge. The south wing houses a Billiard Room outfitted with two regulation pool tables and a separate extension used for card playing. An extensive Library, Internet Room, and Craft Room are also found here. The north wing contains the Great Room with its full kitchen to accommodate large events or private parties. Here you’ll also find the Overlook Lounge and book club room. From Great Room, you can view the Indoor Pool below. Along with the Indoor Pool, the lower level features a well equipped Fitness Center, Hot Tub, and the men’s and ladies Club Rooms with Saunas. Outdoors, the Marq boasts the expansive Overlook Terrace with views onto Outdoor Pool, Boccie and Tennis Courts.
Aside from these wonderful amenities, the residents of Heritage Creek are very active and involved in their community and the community at large. From publishing their own magazine/newsletter to running the day-to-day operations of the Marquis Club to partnering with outside community organizations, the members participate in all aspects and Heritage Creek fosters that involvement. That's the Heritage Creek Lifestyle.
For a virtual tour of all photos, click on the "play" button in the window below.
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 to buy or sell a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Copyright © 2009, The Scott Loper Team, All rights reserved. 3207 Knox Court Warwick PA 18974 For Sale in Heritage Creek.
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