Real Estate Market Trends - The Pilgrim Team

New, Existing-Homes Sales On Rise

The National Association of Realtors® (NAR) reported a 7.6 percent increase in existing-home sales for the month of August, to a seasonally adjusted rate of 4.13 million units anticipated in 2010. The increase was higher than many experts predicted, as real estate markets showed strong activity even without the home buyer tax credit. Regionally, the West showed the biggest increase in existing-home sales, with a jump of 13.8 percent. The Northeast followed with an increase of 7.9 percent, while the South and Midwest grew sales by 5.2 and 5.0 percent respectively.

NAR chief economist Lawrence Yun remains cautiously optimistic. "The housing market is trying to recover on its own power without the home buyer tax credit," he said. "Home values have shown stabilizing trends over the past year, even as the economy shed millions of jobs, because of the home buyer tax credit stimulus. Now that the economy is adding some jobs, the housing market needs to steadily improve and eventually stand on its own."

Freddie Mac reported that the average commitment rate for a 30-year fixed-rate mortgage dropped to 4.43 percent in August, a record low. The rate was 5.19 percent during this time last year. Total housing inventory fell slightly to 3.98 million units, representing an 11.6 month supply.

First time buyers accounted for 31 percent of the homes purchased during August. Investors also had a strong showing, accounting for 21 percent of the market, up from 19 percent the month before. Repeat buyers acounted for the remaining 48 percent of August home purchases.

Find the Right Coverage

When purchasing a home, you will need to acquire homeowners insurance. In fact, all lenders will require a policy be in force prior to funding the loan. Make sure you have enough coverage, should anything happen. Policies refer to "replacement costs" that may not cover everything. You should ask your insurance agent a lot of "what if" questions. The deductible amount also plays a big part in setting your premium. Higher deductibles lower the number of claims, and reduce your insurance costs.

Check with your insurance agent for more information on these issues, and any others. If you don't have an insurance agent, we have access to several top-notch agents we can refer you to with confidence.

Seller Opportunities

Selling your home in today's market requires strategy and execution. Here are three tips to help sellers reduce their time on market:

•Make it shine. Buyers are attracted to attractive homes. Make your home stand out by mowing the lawn, raking the leaves, washing windows, and cleaning the carpets. These are small things that will make a big difference.

•Remove clutter. Not only do clean homes show better, but tidy homes offer more to the imagination. One person's treasure is another person's trash. Removing unnecessary clutter will help potential buyers envision their own potential or the home.

•Pay attention to the market. Work with your agent and price your home to sell. A competitively priced home is the one that sells first, and in this market that counts for a lot.

These simple tips can help you sell your home and take advantage of our today's market. Please contact us if you have any questions about selling your home. We are here to help!

Real Estate Market - The Pilgrim Team - Professional Realty Associates Real Estate in York PA, Homes for Sale in York PA, Home listings, York MLS, Relocation, Short Sales

Real Estate Market - The Pilgrim Team - Professional Realty Associates Real Estate in York PA, Homes for Sale in York PA, Home listings, York MLS, Relocation, Short Sales

York Rail Trail

If you are the type of person who likes to get out for a walk, try the York Heritage rail Trail. It is perfect for walking, jogging or bicycling. You can begin in York and head south o the Maryland state line. The trail follows along the Old Northern Central Railway. This is an historic stretch of countryside.  Abraham Lincoln is the most notable when he traveled the line form Washington D.C. to Gettysburg to give the Gettysburg Address. He used it a second time when his funeral train made its way through. The King and Queen of England also traveled on the line. During World War II troop trains used the rail to move our men and women to far off destinations.

The rail line is still there and maybe someday may have a excursion train running again. Plans are in the works as of this writing.  Next time you want a scenic get away you don't have to go far to find this local York County treasure!

The Pilgrim Team Introduces Fox Run Creek Estates

The Pilgrim Team of Professional Realty Associates is proud to announce Lancaster Home Builders Newest Community located in Dover Towship in York County PA. Lancaster Home Builders is offering 13 home floor plans priced from the Mid $150's. House designns include Rancher, Two Story, Cape Cod. The Builder will work with the home buyer in some floor plan modifications so that the homeowner can modify a particular design to fit their individual needs and requirements. The Sales Representative is Jerry Pilgrim Broker of Professional Realty Associates located in York, PA.




Open houses will begin in early November on weekends, but appointments can be arraigned to meet with a representative to tour different floor plans throughout the week. Bring your own house design and we will be glad to work with you.



Fox Run Creek Estates is located in an area of York County wit gently rolling hills with scenic vistas of the Skytop area north of Dover, PA. Parks including Pinchot State Park, Ski Roundtop are nearby. For more information visit us at: Fox Run Creek

Hidden Costs of Bankruptcy

Hidden Costs of Bankruptcy: "Considering filing for bankruptcy? There may be alternatives you've never considered …
If you are having trouble paying your mortgage and are possibly considering bankruptcy, there may be better solutions for your particular circumstances. I've created the free report available on this page, 'The Hidden Costs of Bankruptcy,' to provide more information.
Alternatives to foreclosure, such as conducting a short sale and moving into a rental residence with less expensive payments, may offer the breathing room you need to reorganize your finances.
To get your free report, fill out the form below and click send. However, if your situation is urgent and you need immediate assistance, please don't hesitate to contact me.
I'm here to assist you.




Homeowner Resources
Get Your FREE Report!
What is a CDPE®?
Learn how agents with the Certified Distressed Property Expert® designation are best suited to help distressed homeowners.Contact This CDPE®
Jerry Pilgrim
Professional Realty Associates
3921 E Market St
York, PA 17402

717-757-5955
www.StopYorkPaForeclosure.com"

York PA July 2009 and July 2010 Real Estate Comparison Report

Home Sales Comparisons for July 2009 and July 2010 in York County PA



July 2009

Homes sold = 407, Total new listings = 859, average list price sold was $189,141 and sold price was $183,511, Average unsold median price was $228,398.

July 2010

Homes sold = 271, Total new listings = 741, average list price sold was $176,203 and sold price was $170,014, Average unsold median price was $370,201. The amount of time it will take the market to absorb the current inventory (3,220) would be 11.88 months.

As you can see that there was a -33% decrease in sales from a year ago. With a total inventory of 3,220 currently unsold homes, properties must be positioned at the correct price or the market (buyers) will reject the over priced properties. Most surprising is the huge jump in the unsold median price of homes ($370,201) which is a indication that the upper price brackets are not selling and continue to build in the inventory of homes. This is an alarming trend that must be reversed sooner rather than later.

With the current interest rates hovering in the low 4's NOW is the time to buy a home at low prices and with potentially low principle and interest payments. I believe the current economic uncertainty must be cleared up and property taxes always on the rise are putting a damper effect on higher end homes. Something must be done in Harrisburg soon or we face a worsening crisis with high end homes.

Short On Space? Make The Most With What You Have!

One of the most common complaints that homeowners have is the lack of space. The home that had lots of space when you first bought it has seem to shrunk over the years. It could be that your family is growing or you just find that your needs have changed over the years and suddenly your home is too small and you need more space. If purchasing a new home with more space is not in your plans, you can still utilize the space you have with some helpful hints below!

Utilize attic and basement storage. If you can gauge the temp and moisture levels in both attics and basements, they can be great places to store many things. Of course if your basement is susepable to moisture, storing items that can be effected by mold wont work. However, many things like old toys, sports equipment or small furniture can be stored no problem. Now, if you have no attic and no basement, but you have a lot of wall space, you could consider utilizing wall shelving units for things like books or pictures.

Utilize your closets. The problem a lot of people have with their closets is that they put too much in here and they don't utilize all the space available. If you need to reorganize your closet, it's a good idea to get your hands on some shoe racks, clothing bags (with hangers), storage systems, containers, etc. Try using some jewelry boxes as well for your earrings, watches, and necklaces. Storage systems are really popular right now for closets and most can be customize for your specific needs.

Don't overlook hidden space. The solution to finding extra space can be found in the areas you might have not thought about before. Some ideas are building drawers and shelves beneath a staircase or installing ceiling shelving units in the garage. Nooks and corners you may have thought were useless might end up being the extra space you need!



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Neighborhood Crime Watch

One of the oldest and best-known crime prevention concepts in North America is called Neighborhood Watch. It is also one of the most efficient and least costly ways to prevent crime and reduce fear. Neighborhood watch is a group of neighbors looking out for their fellow neighbors, and these types of groups have been shown to reduce crime by 50%.

This program empowers homeowners to become active in protecting their community through participation in Neighborhood Watch groups. Residents participate in Neighborhood Watch in their area by organizing residents to communicate any suspicious behavior to others by phone trees and reporting it to the authorities.

Benefits of Neighborhood Watch

•Your risk of being burglarized as well as other crimes such as auto theft, vandalism and personal assault are significantly reduced.
•By helping with this program you help to stretch the tax dollars by helping law enforcement agencies, who are limited in their available manpower.
•Participation causes not only neighborhood crime to go down, but many communities report a new feeling of caring and belonging amongst neighbors. Many have used their combined efforts to improve their streets, recreation opportunities and local services.

If you are interested in starting a neighborhood watch in your community, below are some steps to help you get started!

•Form a small planning committee of neighbors to discuss the needs of your community, gage the level of interest and potential problems, decide on a date and place for an initial Neighborhood Watch meeting
•Contact Your Local Sheriffs Office or Police Department for more information or to arrange a speaker
•Arrange a meeting location close to your neighborhood. It should have enough room to hold your invited neighbors and, if needed, for the use of audio visual aids such as an overhead projector.
• For more information and educational materials related to starting a Neighborhood Watch, visit the program's website.

Second Mortgage Modification

Although the media is reporting that the recession is getting better, the economy is still in recovery. There are still thousands of homeowners who are struggling to make mortgage and ends meet. Many homeowners have had not only modify their first mortgage but also take a second mortgage in order to make ends meet, but now making that payment on top of all the other growing expenses can leave many struggling. There may be some help for those homeowners who are in this situation.

The 2nd Lien Modification Program (2MP) may be just what you need. A few large institutions have already signed on to the 2MP program: Bank of America (and Countrywide), CitiMortgage, Chase (with EMC and WaMu), and Wells Fargo (and Wachovia). More are expected to join this growing list.

Below are some of the eligibility requirements:

• You have a second mortgage on your home and:
• Your first mortgage has been modified under HAMP
• Your second mortgage provider is one of the participating banks
• Your second lien was originated on January 1, 2009, or earlier
• Your second lien has an unpaid principal balance of $5,000 or more and a monthly payment of $100 or more
• The second lien servicer has a 2MP modification agreement or trial period plan in place for you by December 31, 2012

Interest rates are reduced to 1-2%, depending on the type of second lien you have. The term of the loan can be extended to 40 years. Even better, a 2MP servicer can even forgive all or part of the second lien, which means your debt is reduced or removed.

There are some restrictions. You can’t participate if your mortgage is subordinate to a second lien, or if it is a home equity loan in first lien position. 2MP is also not for you if you don’t have to make payments on your second lien or interest is charged until the first is paid in full. Liens insured, guaranteed or held by a Federal agency like FHA, HUD, VA, or Rural Development aren’t covered under 2MP.

If you qualify, however, it can be a financial lifesaver. To learn more, contact your mortgage provider or a housing counselor through HUD.

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FANNIE MAE MAKES NEW REGULATIONS ON STRATEGIC DEFAULTS

FANNIE MAE HAS COME UP WITH NEW STRATEGY ON HANDLING STRATEGIC DEFAULTS

Homeowners across the country and here in York, PA are hearing about the so called advantages of walking away form their financial obligation (mortgage) on their home. Fannie mae has decided that they will not take this lightly when a homeowner has the ability to pay their mortgage, yet deciides not to. Fannie Mae announced they will not allow a homeowner to be eligible for a Fannie Mae backed loan for at least 7 years. They also have said that if a state that allows a deficiency judgement (Pennsylvania does) they will do just that. Fannie Mae is letting homeowners know they will not take this lightly and pursue a claim against these homwowners.

Think twice about how this can adversely affect their ability to get new credit and also could cause an potential or even a existing employer to hire or retain that person due to the foreclosure and judgement on the credit report.

Homeowner Liability

Once you have purchased a home and become a homeowner, you will have certain responsibilities. Obtaining the proper insurance for your home is an important first step. Most homeowners have liability insurance, but they don't actually understand their responsibility as a homeowner. When you own a home, you can be held responsible for any injury that happens on your property. Unfortunately, that also includes things that you have no control over.

There are many instances when a homeowner can be held liable, such as if someone slips on your doorstep and is injured, if a tree on your property falls and damages your neighbors property or even if your pet bites a visitor to your home.

What most homeowners will find surprising is that that even people who trespasss on your property and then injury themselves actually have legal recourse. The law states that once the owner is aware that there is a trespasser present on the property or can reasonably anticipate that a trespasser may be present, then the owner actually has a duty to exercise ordinary care in order to avoid injuring the trespasser.

It is important for homeowners to be aware of where their liability responsibility is and to make sure they have adequate insurance to cover any damages. For many people, the coverage included with their regular homeowners policy is enough. But in some situations, you may want more. Some common reasons to get more coverage include:

• You own a swimming pool
• You own a dog, especially if you own an aggressive breed of dogs, this will raise your homeowners premiums.
• You frequently host social events. If you have parties often, the likelihood of someone getting hurt goes way up-especially if you’re serving alcohol at your parties.

As in all home owner insurance matters, take care to read your policy carefully. If you have questions about your premises liability coverage, ask your insurance agent. You might need separate riders to provide all the liability coverage necessary for your situation.

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Strategic Foreclosure? Is it really an option?

What is a "strategic foreclosure"? There has been a lot of talk lately on the news networks such as ABC, NBC, CBS, FOX News, MSNBC and others about these types of forclosures. I have heard the talk that if it is ggod enough for corporate america to walk away from the financial obigations it should be good enough for the private sector to do the same.

Think of it like this, and ask yourself these questions. Does the corporation have a family to feed? Does the corporation need a place to live? Does it need to have credit in the future to buy a house or even rent an apartment? Does it need a job? If you need any or all of these things STAY AWAY from the idea of a strategic foreclosure. They entice you to milk the system for all it can give you at the time, but remember payback can come back to hit you in a big way.

The only good foreclosue is NO foreclosure. You need an expert with the experience like a CDPE (Certified Distressed Property Expert) who can work closely with the Banks to negotiate a settlement that will not adversely affect you for a very long time such as a foreclosure can. Please go to my web site www.pilgrimteam.com and seach for my CDPE site for additional information that can help you or someone you may know who is struggling with the possibility of foreclosure.

What Makes A Binding Contract?

Eventhough the first part of the The Home Buyer Tax Credit has expired (it was April 30th) part two requires that the homebuyer closes on the home on or before June 30, 2010.

One of the questions that has come up as part of the tax credit push is what exactly is a ‘binding contract’ in the eyes of the IRS. It is a common real estate term that many don't understand exactly what it is.

As with anything that has to do with tax benefits or legal obligations, it is a good idea to seek the advice of a tax accountant or attorney. They can help translate murky guidelines and offer the best course of action when buying or selling a home.

When it comes to actually writing an offer, allow your realtor to craft the contract or use a standard state contract. Your offer should be thorough and concise, it is vital to not leave any terms blank or undefined. Any ambiguities in an offer can lead to misinterpretation down the line that could render the contact ‘non-binding’. Not only can this have an impact on your Home Buyer Tax Credit, other tax advantages or even the ability to close on the deal.

Be sure to do your research and take advantage of help from real estate professionals and other resources such as the National Association of Home Builders (NAHB) and the National Association of Realtors.

All contracts have some contingencies – and some are more important than others. Just be sure to consult with an expert to make sure your offer is clean, clear and enforceable.



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Title Insurance Explained

During the process of purchasing a home, you will most likely deal with title insurance. Many homebuyers are confused at to exactly is title insurance is and whether or not they really need it?

When you buy a home you are given a title. The title is the owner's right to possess and use the property. It is important to know that it may not the home seller who owns the title. A bank with a mortgage on the property might own an interest in the property, as does someone who has done work on the house and filed a lien against it or even a homeowners association if the dues have not been paid. The government may also have liens against the property for unpaid taxes.

Homeowners will need to ensure that there are no problems with the home's title as well as confirm that the seller really owns the property. Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. A title search and title insurance will protect the homeowner from these problems.

A title search will reveal if someone other than the owner of the property owns the title. This search can be done by examining public records to look up the history of property ownership. While you can easily do your own title search, if you are obtaining a loan to purchase the property, the lender will require that a qualified third party do the title search. The title search shows not only limitations on the use of the property and rights others may have in the property, but also liens or monetary obligations that are outstanding against the property.

Title insurance is different than homeowners insurance where you are covered in case of a future event. For example, if you get car insurance you are insured in case you have an accident, you buy health insurance in case you get sick. Title insurance is different as it covers events relating to the title that have already happened. It does not cover anything that happens to the title after the date of issuance. For example if you have liens filed against the property for taxes that you have not paid, your title insurance policy is not going to help you. But, if the lien is for taxes not paid by someone who owned the house before you, then you may have coverage under your title policy.

A title company will do a title search on the property before issuing the policy to see if there are any problems with the title. This search is done in an effort to minimize the risks of offering insurance. Problems such as deeds, wills, outstanding mortgages, judgements, and tax liens can be located from the search and can typically be cleared up before the closing on the property. When these problems are not cleared they will often be listed as exceptions to the policy's coverage. You would then need to decide whether the property is still something you want to purchase given the known problems with the title.

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Is A Fixed Rate Mortgage Right For You?

If you are planning on purchasing a new home and will be obtaining mortgage financing, you will have many different mortgage loan programs to choose from. It can be confusing to decide which will be best for your situation with all the different choices on the market today. However, the vast majority of them are fixed rate mortgages with a 15 year or 30 year term. These traditional mortgages are amortizing, which means that you pay off the entire loan amount by the end of the term of the loan. While these are still the most common type of loan, there are advantages and drawbacks to these mortgages. Depending on your financial situation, and the prospects of changes in your financial future, a fixed rate mortgage may or may not be the best product for you.

Below are some of the pro's and con's of fixed rate mortgages:

PROS

Interest rate on your mortgage cannot be increased for the life of your loan

Monthly payment will remain the same for the life of the loan

Loan will be completely paid off by the end of the term

Fixed Rate mortgages are very common and standard and finding a lender who offers this loan will be easy.

CONS

Fixed monthly payment amount may be difficult to make at the start of the loan

Large percentage of payment goes to interest payment in first years of the loan

Usually has a higher interest rate than a variable rate loan initiated at the same time

Interest rate cannot be reduced as in some variable rate programs

Maybe harder to qualify for, as higher income may be required

Depending on your financial situation, a fixed rate mortgage may be the best solution for you. If you can afford the monthly payment required to obtain the loan, then the fact that your interest rate and monthly payments will stay the same for the life of the loan while give you peace of mind and make monthly budgeting easier.

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