Lancaster, PA Real Estate News

By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Homeowners: Your House Must Be Sold TWICE In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the next twelve months. One major challenge in such a market is the bank appraisal. If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank. Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth, and an appraiser’s evaluation of that same home. Bill Banfield, Exec...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Mortgage Interest Rates Are Going Up… Should I Wait to Buy? Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Freddie Mac, along with Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors, is calling for mortgage rates to continue to rise over the next four quarters. This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 3.5%. However, we must realize that current rates are still at historic lows. Here is a chart showing the average mortgage interest rate over the last several decades: Bottom Line Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago,...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
      As I look at the Market I live in , West Lampeter Twp.(Lancaster Co., PA) ,I can see a trend . Properties that are staged to sell and priced below $250,000are selling in days ! Homes listed  for sale between $250,000 -$375,000 are going Under Agreement(UA) in 45-70 days . In both of these two Price Pointsthere is scarcity as Demand is out pacing Supply . But beyond these two Price Points , it's a different story . Homes priced at $400,000 and above arenot (across the board) experiencing the same pace of success . Many real estate agents are not aware of this and are using marketing that has succeeded in the lower Price Points . Unfortunately Days On Market (DOM) are piling up.      So what's needed to sell your above $400,000 property ?  It will take a proactive Internet based Mar...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Top 4 Home Renovations for Maximum ROI Some Highlights: Whether you are selling your home, just purchased your first home, or are a homeowner planning to stay put for a while, there is value in knowing which home improvement projects will net you the most “Return On Investment” (ROI). While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value. But please keep in mind that any improvement you make will not guarntee an exact dollar for dollar return .    For more information about Preparing Your Home for Sale , email mikeperrykw@gmail.com  .
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Your Friends Are Crazy Wrong If They're Telling You Not to Buy The current narrative is that home prices have risen so much so that it is no longer a smart idea to purchase a home. Your family and friends might suggest that buying a home right now (whether a first-time home or a move-up home) makes absolutely no sense from an affordability standpoint. They are wrong! Homes are more affordable right now than at almost any time in our country’s history except for the foreclosure years (2009-2015) when homes sold at major discounts. As an example, below is a graph from the latest Black Knight Mortgage Monitor showing the percentage of median income needed to buy a medium-priced home in the country today in comparison to prior to the housing bubble and bust. As we can see, the percentage ne...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Feeling ‘Stuck in Place’? You Aren’t Alone… And There’s Hope! Whether you are a renter who is searching for your dream home or a homeowner who feels like your only option is to renovate, you have at least one thing in common: feeling stuck in place. According to data from the National Association of Realtors’ Profile of Home Buyers & Sellers, the average amount of time that a family stays in their home remained at 10 years in 2017. This mark ties the highest marks set in 2014 and 2016. Back in 1985, when data was first collected on this subject, homeowners stayed in their homes for an average of only 5 years. There are many reasons why homeowners have decided to stay and not to sell. A recent Wall Street Journal article had this to say, “Americans aren’t moving in part because inventory...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
7 Reasons to List Your Home This Holiday Season Every year at this time, many homeowners decide to wait until after the holidays to put their homes on the market for the first time, while others who already have their homes on the market decide to take them off until after the holidays. Here are seven great reasons not to wait: Relocation buyers are out there. Many companies are still hiring throughout the holidays and need their employees in their new positions as soon as possible. Purchasers who are looking for homes during the holidays are serious buyers and are ready to buy now. You can restrict the showings on your home to the times you want it shown. You will remain in control. Homes show better when decorated for the holidays. There is less competition for you as a seller right n...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
5 Reasons Homeownership Makes ‘Cents’ The American Dream of homeownership is alive and well. Recent reports show that the US homeownership rate has rebounded from recent lows and is headed in the right direction. The personal reasons to own differ for each buyer, but there are many basic similarities. Today I want to talk about the top 5 financial reasons you should own your own home. Homeownership is a form of forced savings – Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee that your landlord is the person with that equity. Homeownership provides tax savings – One way to save on taxes is to own your own home....
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
A Housing Bubble? Industry Experts Say NO! With residential home prices continuing to appreciate at levels above historic norms, some are questioning if we are heading toward another housing bubble (and subsequent burst) like the one we experienced in 2006-2008. Recently, five housing experts weighed in on the question. Rick Sharga, Executive VP at Ten-X: “We’re definitely not in a bubble.” “We have a handful of markets that are frothy and probably have hit an affordability wall of sorts but…while prices nominally have surpassed the 2006 peak, we’re not talking about 2006 dollars.” Christopher Thornberg, Partner at Beacon Economics: “There is no direct or indirect sign of any kind of bubble.” “Steady as she goes. Prices continue to rise. Sales roughly flat.…Overall this market is in an ...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Veterans Affairs Loans by the Numbers Some Highlights: Since the creation of the VA Home Loans Program, 22 million veterans have been able to achieve the American Dream of homeownership. So far in 2017, $188 billion has been loaned to veterans and their families through the program. VA Purchase Loans are on the rise in 46 out of 50 states and Washington, DC.  This a great loan that will allow Veterans to buy a home with absolutely NO out of pocket money ! Email mikeperrykw@gmail.com to get started !    
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Multigenerational Households May Be the Answer to Price Increases Multigenerational homes are coming back in a big way! In the 1950s, about 21%, or 32.2 million Americans shared a roof with their grown children or parents. According to an article by Realtor.com, “Nearly 1 in 5 Americans is now living in a multigenerational household – a household with two or more adult generations, or grandparents living with grandchildren – a level that hasn’t been seen in the U.S. since 1950.” Another report that proves this point is the National Association of Realtors’ (NAR) 2017 Profile of Home Buyers and Sellers which states that 13% of home buyers purchased multigenerational homes last year. The top 3 reasons for purchasing this type of home were: To take care of aging parents (22%, up from 19% l...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Low Inventory Causes Home Prices to Maintain Fast Growth The National Association of Realtors (NAR) released their latest Quarterly Metro Home Price Report last week. The report revealed that severely lacking inventory across the country drained sales growth and kept home prices rising at a steady clip in nearly all metro areas. Home prices rose 5.3% over the last quarter across all metros. Lawrence Yun, Chief Economist at NAR, discussed the impact of low inventory on buyers in the report: “Unfortunately, the pace of new listings were unable to replace what was quickly sold. Home shoppers had little to choose from, and many had to outbid others in order to close on a home. The end result was a slowdown in sales from earlier in the year, steadfast price growth and weakening affordability...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
The Cost of Renting vs. Buying a Home Some Highlights: Historically, the choice between renting or buying a home has been a tough decision. Looking at the percentage of income needed to rent a median-priced home today (29.2%) vs. the percentage needed to buy a median-priced home (15.8%), the choice becomes obvious. Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year!       Buyers , your first step is Mortgage Pre-Approval ! Email mikeperrykw@gmail.com to get started .    
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Buying a Lancaster, PA Home Can Be Scary... Unless You Know the Facts Some Highlights: Many potential homebuyers believe that they need a 20% down payment and a 780 FICO® score to qualify to buy a home, which stops many of them from even trying! Here are some facts: 40% of millennials who purchased homes this year have put down less than 10%. 76.4% of loan applications were approved last month. The average credit score of approved loans was 724 in September.   Buyers your first step is Mortgage Pre-Approval ! For more information email mikeperrykw@gmail.com
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
How to Save on a Mortgage Payment Whether Buying or Selling In Trulia’s recent report, Rent vs. Buy: Roommate Edition, they examined the impact that renting with a roommate has in determining whether it is more expensive to rent or buy. The study explains: “Since we started keeping track in 2012, it’s been a better deal to buy than rent in America’s largest housing markets – and for much of that time it hasn’t been close.” It then goes on to ask the question: “But does the equation change for renters who share their rent with a roommate?” The report reveals: “While the standard rent vs. buy analysis reveals buying is cheaper than renting in all of the nation’s 100 largest metros, this doesn’t hold true for those choosing between renting with a roommate and buying a starter home.” It see...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
The #1 Reason to List Your House, NOW! The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that sales rose 0.7% month-over-month, but remain 1.5% lower than they were a year ago. Some may look at these numbers and think that now is not a good time to sell their house, but in fact, the opposite is true. The national slowdown in sales is directly tied to a lack of inventory available for the buyers who are out in the market looking for their dream homes! The inventory of homes for sale has fallen year-over-year for the last 28 months and has had an upward impact on home prices. NAR’s Chief Economist Lawrence Yun had this to say, “Home sales in recent months remain at their lowest level of the year and are unable to brea...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Millennials Flock Towards Low Down Payment Programs A report released by Down Payment Resource shows that 61% of first-time homebuyers purchased their homes with a down payment of 6% or less. The trend continued among all buyers with a mortgage, as 73% made a down payment of less than 20%. An article by Chase points to a new wave of millennial homebuyers: “We teamed up with Google to help us better understand what customers are searching for and how the home buying landscape is evolving. We found that millennials and first-time homebuyers are making a big splash in the market, and affordability remains top of mind.” Among millennials who purchased homes, David Norris, Loan Depot’s Head of Retail Lending, said: “It’s clear from the survey results that Millennials have a lot of anxiety bu...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
Net Worth of Homeowners 44X Greater than Renters Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago. The study revealed that the 2016 median net worth of homeowners was $231,400 - a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter. Owning a home is a great way to build family wealth As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by incr...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
No… You Do Not Need 20% Down to Buy In Lancaster,PA ! The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that non-homeowners cite the main reason for not currently owning a home, as not being able to afford one. This brings us to two major misconceptions that we want to address today. 1. Down Payment NAR’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 39% of non-homeowners say they believe they need more than 20% for a down payment on a home purchase. In actuality, there are many loans written with a down ...
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By Michael J. Perry, Lancaster, PA Relo Specialist
(KW Elite )
4 Reasons to Sell This Fall in Lancaster, PA Some Highlights: Buyer demand continues to outpace the supply of homes for sale! Buyers are often competing with one another for the listings that are available! Housing inventory is still under the 6-month supply that is needed for a normal housing market. Perhaps the time has come for you and your family to move on and start living the life you desire.   Sellers, update your Current Market Value with a FREE national RPR Report To get started email mikeperrykw@gmail.com  
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