Home buyers scramble in a tight real estate market
The housing market is heating up. Existing home sales have jumped to their highest level since early 2007 and new home sale activity has been equally as brisk. In some markets, such as the Bay area or Dallas, house prices have surpassed their previous inflation-adjusted peaks.
Nonetheless, great deals can be had in places like Pittsburgh, Cincinnati, Cleveland and St. Louis, where, according to HSH. com, the base cost of owning a median-priced home — including the principal, interest, taxes and insurance payments — is around $1,000 per month. (The analysis presumes a 20 percent down payment.)
The biggest hurdle for would-be buyers in many markets is that there are fewer homes for sale. Housing inventory has fallen year-over-year for 20 straight months, which is pushing up prices. The median list price nationally is about $250,000, a steep 9 percent higher than one year ago.
A couple of factors have created the situation. The most important one is that, early in the housing market recovery, private equity firms saw a huge opportunity in real estate. They raised money and bought up as many distressed properties as they could, and then fixed them up and rented them out.
You might think that with a rise in prices these institutional investors would simply flip the properties and be happy with the profits. However, the rents that they were collecting amounted to a better stream of income than they could find in the bond market, so they just held on. And because the vast majority of the properties were at the lower end, there is now a shortage of homes for first-time buyers in many markets.
Adding to the housing shortage is the fact that baby boomers are choosing to renovate their homes and to stay put, and some homeowners who would like to move up may be reluctant to give up their ultra-low mortgage rates.
Still, according to the National Association of Realtors, interest in buying a home is the highest it has been since the Great Recession because households are feeling more confident about their financial situation, job growth is strong in most of the country, and the stock market has seen record gains in recent months. And while mortgage rates increased over the past four months, they have been holding steady and remain at historically low levels.
According to Mike Raimi at Luxury Mortgage, “mortgage underwriting is loosening up, and the Federal Housing Finance Agency raised its maximum loan limits applicable to conventional loans to be acquired by Fannie Mae to $424,100 from $417,000 and to $636,150 from $625,500 in high-cost areas.”
If you are a buyer, there are steps that may improve your odds of finding Home Sweet Home.
— Run the numbers. It’s important to understand how much home you can afford to buy and whether home ownership might preclude you from addressing other important financial issues in your life.
— Start the mortgage process, and correct credit report mistakes. If you have not done so in a while, go to AnnualCreditReport.com and request your free copy. It’s important to correct any errors on the report before you start the mortgage process.
— Conduct research. Even if you are working with an agent, check out new listings and spread the word throughout your network. You never know who may be about to list a home.
— Keep your emotions in check. Even with limited supply, there are a lot of houses out there. Be careful not to blow through your budget or put yourself in a position where you own two homes. homebound elderly. Volunteers can help out from once a month to once a week. THRIFT SHOP is open 10 a.m. to 1:30 p.m., Monday through Friday. DANCE CLASS is held every Monday at 10:30 a.m. EXERCISE WITH MEG for every Monday, and Wednesday, at 1 p.m. FEELING CRAFTY? Then join our crafty crew, at Montco SAAC at 12:15 p.m., when we will be making handmade soap. Cost is $2.00 to cover materials. SAFETY WITH DANIELLE CHARRY: From the Lincoln Center. Series on the latest scams and crimes to help keep you from getting scammed! May 2, 16, 23 and 30, at 10:30 a.m. IN YOUR BEST INTEREST: Presented by Danielle Charry, of the Lincoln Center. Tues., May 9th, at 12:30 pm. EAT HEALTHY/ BE ACTIVE: Learn how to balance calories, enjoy your food while eating, avoid oversized portions and try new fruits and veggies. Friday, May 12th, 10:30 am. KNOWLEDGE IS POWER: Montgomery County Recovery Center will discuss drug addiction and recovery programs. Tuesday, May 16th, at 12:30 pm. THE EYES HAVE IT! Montgomery County Association for the Blind will give free vision screenings. Tuesday, May 23rd, at 12:30 am. TAKE STEPS TO BETTER HEALTH: Health Steps
MONTCO SENIOR CONCERT CHOIR
Practices are every Wednesday at 10a.m. at United Church of Christ (corners of West Marshall & Noble streets) in Norristown. This is a volunteer choral group who have been providing concerts for local organizations for over 40 years If interested, please contact our President, Bill Gildea at 610-631-9134, or our Director, Tedd Didden at 215-646-0294 for more details. Our only requirement is that you are 55 years of age, or older. Join in the fun singing a large variety of upbeat music to appreciative audiences. All voice
at 10a.m. at United Church of Christ (corners of West Marshall & Noble streets) in Norristown. This is a volunteer choral group who have been providing concerts for local organizations for over 40 years If interested, please contact our President, Bill Gildea at 610-631-9134, or our Director, Tedd Didden at 215-646-0294 for more details. Our only requirement is that you are 55 years of age, or older. Join in the fun singing a large variety of upbeat music to appreciative audiences. All voice parts are welcome!
NATIONAL ASSOCIATION OF ACTIVE AND RETIRED
Chapter 372holds its regularly scheduled luncheon meetings the first Wednesday of every month 1p.m. at FacendaWhitaker Lanes, 2912Swede Road, East Norriton. Information: 610-382-2752.
NORRISTOWN MEN’S RETIRED BOWLING LEAGUE
Bowling league for ages 55 and over is looking for bowlers. All are welcome regardless of bowling average. The league meets to bowl every Thursday from noon to 3p.m. If interested, call Pete Crescitelli at 610-630-6165.
PEAK CENTER
Greater Harleysville and North Penn Senior Services (GHNPSS) operates both The PEAK Center in Lansdale and Encore Experiences in Harleysville. The mission of Greater Harleysville and North Penn Senior Services is to provide access to programs and resources that help older adults live independently and remain active. Both centers offer health and wellness, a meal program, social service assistance, enrichment events and more. Greater Harleysville and North Penn Senior Services (GHNPSS) operates both Encore Experiences in Harleysville and The PEAK Center in Lansdale. The mission of Greater Harleysville and North Penn Senior Services is to provide access to programs and resources that help older adults live independently and remain active. Both centers offer a place of comfort, fellowship and care to the seniors in our community. For more information on our programs contact: Encore Experiences in Harleysville, www.encoreexperiences.org, 215-256-6900or The PEAK Center, www.peakcenter.org, 215-362-7432.
PRESENTATION OF OUR LORD UKRAINIAN CATHOLIC CHURCH
Presentation BINGO will be held on the 1st and 3rd Wednesdays during the winter. Doors open at 5 p.m. with food available for purchase and the games begin at 6:45. Admission is $10 for boards, $15 for paper. Please join us at Presentation of Our Lord Ukrainian Catholic Church, 1564 Allentown Rd, Lansdale. For more information: 215362-9599.
RSVP OF MONTGOMERY COUNTY
(Retired and Senior Volunteer Program) offers free, confidential Medicare sessions throughout the area. For information, call 610-489-1555or 610834-1040, ext. 20. RSVP promotes volunteer service among area senior residents, age 55 and older seeking ways to be active and fulfilled by giving to their communities.
ST. MARY’S GOLDEN AGE CLUB
The club meets Thursdays, 9 a.m. to 3p.m. at the church hall, West Elm and Oak streets, Conshohocken. At 9a.m., card games; 10a.m., snacks; 11a.m., lunch; noon to 2:30p.m., Bingo. Membership is $10/year, $2donation weekly includes snacks and lunch. Casino trip, second Tuesday of every month. Any interested person over 55is welcome. Contact Pat Monastero 610-279-4882or Joe Koza 610-825-4596.
GOLDEN AGE CLUB OF LOWER PROVIDENCE
The Golden Age program of the Lower Providence Presbyterian Church, 3050 Ridge Pike, Eagleville has been discontinued. For more information, call the church at 610-539-6635.
ST. FRANCIS OF ASSISI SENIORS
The members meet at the parish’s former convent on Buttonwood Street, the first and third Tuesday of each month from 1 to 3 p.m. Bingo, refreshments, speakers and bus trips are offered. Newcomers are welcome. Information: 610-2720402. TRIPS: April 27, 2017 -- Harrisburg-Middletown PA Rail & Paddlewheel Day Trip - Scenic train ride on Hummelstown RR, lunch @ Alfred’s Victorian Restaurant, boat ride on “Pride of the Susquehanna”. Riverboat cruise is a narrated 45-minute ride. Restaurant is sit-down luncheon with a choice of entrees’.Scenic rail road ride is along Swatara Creek. Price $105 includes all the above, taxes, tips & driver gratuity. Call the number below for choice of entree’s. Bus leaves St. Francis Rectory at 7:17 am. Departs Harrisburg 4 p.m. May 22-23, 2017 -- Laurel Highlands & Flight 93 Memorial Site. For trip details, call the number below. Price: Single $337.00, double $322, triple $309. For more information on any trip call Jane Caruso, 610539-1681 (Price includes baggage handling, taxes, guide & driver gratuity)