Martin Miller, Bucks County Homes » Real Estate News

People ARE Buying Homes, Here in Bucks County and All Over the Country!

Marty Millner — Wed, 01 Feb 2012 21:26:39 +0000

Many folks believe that very few houses are selling, and that almost no one can get a mortgage. Along with Keeping Current Matters, I want to let everyone know that neither of these assumptions is true.

A few weeks ago, the National Association of Realtors (NAR) released their Existing Homes Sales Report. According to the report there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means that approximately 12,000 houses sold yesterday, approximately 12,000 will sell today and approximately 12,000 will sell tomorrow. So the thinking that homes aren’t selling just isn’t true.

Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.

There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe.

If you’d like more facts and figures, or information about buying or selling a home in Yardley, give me a call – I’d love to talk with you!

Yardley and Bucks County Real Estate Market Update

Marty Millner — Fri, 16 Dec 2011 20:39:04 +0000

Hard to believe that we are just a week away from Christmas!

From a Yardley real estate perspective, we are now 11 months into data for 2011. Let’s see where we are, both with Yardley real estate and Bucks County real estate.

Bucks County real estate

Units Sold: Looking at numbers for all of Bucks County, the number of units sold this year is about 4% lower than a year ago at this time. For those who suggest that no real estate sells in Bucks County, although the number of houses sold is a bit lower, there have been 4,052 homes that have closed through November this year!

Pricing: The average price of a home for sale in Bucks County is down by 5.5% from last year at the same time.

Pending Sales: This is the best forward indicator of real estate activity, and the number of pending sales has trended up for several months.

Inventory: This is also an extremely important metric, when considering Bucks County real estate market conditions. The number of houses for sale in Bucks County is 7% less this month than last month, and more than 11% lower than it was at the same time last year! This still represents more than 11 months of inventory in Bucks County. We consider a market to be balanced when there is about a six month inventory, so you can see that factors are still favoring buyers. It is important to note, that the average days on market has also increased this year, from 88 to 101.

Observations for Bucks County real estate market

My observation from all of these statistics is that the market, while still favoring buyers, has stabilized a bit in Bucks County. I posted an article the other day comparing distressed and non-distressed real estate sales. In the article, I pointed out that both locally and nationally, prices of non-distressed properties appear to have stabilized. In looking at Bucks County real estate, it is important to note that we have far fewer distressed property sales than in many other parts of the country. Houses can and will sell, if they are priced correctly, marketed properly, and if appropriate steps are taken to ensure that they show as well as possible.

Yardley Real Estate Information

As I have pointed out many times in the past, real estate markets are very local, often varying from neighborhood to neighborhood. Let’s look at what is happening in the Yardley and Lower Makefield Township real estate market.

Inventory

Inventory of homes Nov 2011 204
Inventory of homes Oct 2011 226
Inventory of homes Nov 2010 194

Although inventory is a bit less this month, compared with last month, it is higher by almost 10% from the same time last year. This is a bit of a contrast to the County as a whole.

Pricing

Average price of a home for sale Nov 2011 489,000
Average price of a home for sale Nov 2010 499,000

Asking price of a house for sale in Yardley/Lower Makefield Township is about 2% lower this year.

Units sold

261 homes sold through November this year
291 homes sold at the same time last year

It is also interesting to note that homes selling this year sold at an average of 92% of the list price, while they sold at an average of 93% of list price last year. Please note that when comparing the sold price to list price, we use the original asking price, where the price is reduced.

There is currently about a nine month inventory of homes for sale in Yardley. This is actually a bit better than for all of Bucks County.

Observations

There is no question that, looking at all of this information, it is still a buyers market. However, whether you are a buyer, seller, or just curious about real estate in Bucks County, or Yardley, houses are selling. Interest rates are at historic lows. Despite public perception, buyers are getting mortgages, and real estate is selling. If you are a potential seller, it is critical that you be realistic about pricing. It has never been more important to make sure that your house shows as well as it possibly can, and that it is marketed properly and thoroughly. I have a real sense that, especially for non-distressed homes, the market is a bit more stable right now, than it has been in quite a while.

Bucks County Home Prices Stabilizing (or not?)

Marty Millner — Fri, 09 Dec 2011 19:35:26 +0000

There was a really interesting article in the Wall Street Journal a couple of days ago, questioning whether home values are still falling. If you are curious about what is happening in the real estate market, check out this article at the following link, “Why Home Prices Are (and Aren’t) Stabilizing”

From a Bucks County perspective, why is this article so interesting?

There are always articles written that talk about how bad the real estate market is. I have written pretty extensively about the real estate market in and around Yardley and Newtown, and all over Bucks County. I have pointed out on numerous occasions, that our market is nowhere near as dire, as in other parts of the country, like Arizona, Florida, etc.

This Journal article is the first article that I have seen that makes a distinction between distressed sales, and non-distressed sales. I think this could be a critically important distinction, because, as the article points out, according to CoreLogic, an important emerging trend is that home prices are actually stabilizing after excluding distressed sales. If you are not familiar with the term, “distressed sale”, it essentially refers to bank owned properties, and/or short sales, etc.

It is clear, according to the statistics, that prices of non-distressed properties are actually stabilizing, even as the prices of distressed properties are still falling.

The reason this becomes so important to the real estate market in Bucks County, is because for Bucks County real estate, the percentage of distressed property sales, is very significantly lower than the national average. In fact, for all of Bucks County, the percentage of distressed property sales is about 13% or so, while the national percentage is 28 to 30%. I would actually suggest that in the Yardley, Newtown, Washington Crossing real estate market, that percentage is even lower.

In fact, many people are really surprised to learn that for the entire real estate market in Bucks County, following the height of the market, which was in 2007, prices fell by 6.7% in 2008, they dropped by 6.8% in 2009 and believe it or not, they actually went up by 4.3% in 2010. Those statistics are based on the change in the average sold price, each year.

So, if you live in or are interested in real estate in Bucks County, spread the word!

Yardley, Newtown, Bucks County Real Estate update

Marty Millner — Tue, 10 Aug 2010 20:12:33 +0000

Newtown house inventory vs days on the market

We are definitely in the dog days of summer, here in Bucks County.

I just got back from a very nice, long weekend in Chicago.

For today’s post, lets look at a couple of charts that show inventory and average days on the market for homes in Yardley and Newtown.

What do the charts show?

Basically, in both Newtown and Yardley, the average days on the market has been trending lower, for the past 90 days.

In Yardley, the number of houses on the market seems to have peaked in early July, and is now trending lower. It will be interesting to see what happens in the fall, which contrary to what a lot of people think, is actually the second busiest real estate time of the year, after the spring market.

In Newtown, inventory appears to still be on the upward trend.

I suspect, in both Yardley and Newtown, we are seeing homes coming on the market, but there are still not a great deal of buyers. Becuase of the new listings, the average days on the market, is a bit lower. This all translates to market dynamics that still favor buyers.

Although interest rates are at unbelievably low rates, and show no signs of increasing in the near future, in my view, the pace of sales has slowed down since the spring, which is normal, for this time of the year.

Yardley homes on the market vs days on the market

So, if you are looking to sell, price your home realistically. Houses are selling, but only those that are priced competitively.

Buyers, lots of choices, and lots of competition for your dollars.

If you need an evaluation of the value of your home, please call me at 215-519-1399.

Real Estate Buyers & Sellers, in Bucks County..what do they think?

Marty Millner — Sat, 01 May 2010 17:19:57 +0000

Well, it is hard to believe that it is May 1st!

We have officially reached the end of the real estate tax credit.

I am happy to report, that April was one of the busiest months that I have had, in a long time.

It was an extremely productive month, with many transactions, listings, and new prospects to work with.

As we approach the remainder of the spring market, it will be very interesting to see how the market performs, in the absence of the credit.

In the meantime, I saw this quiz in a real estate magazine, and thought it would be fun to review it with you.

The quiz was entitled, “Understanding today’s home buyers and sellers”. Here it goes.

1. What service did sellers most often say they wanted from their real estate agent?

The number one answer from sellers, was that they wanted help in pricing their home competitively. Other popular answers, were that sellers wanted the agent to find a buyer;

marketing the home to potential buyers and selling the home within a specific time frame.

I comment on my blog all the time, about how important it is to price homes correctly. I feel that one of my most important job, is to help sellers understand the

market, so that they can price their home appropriately, given market conditions.

2. What service do buyers most often say they want from a real estate agent?

The top answer, was that buyers wanted help from their realtor, in finding the right home to purchase. Almost half of the buyers, answered that way.

3. The typical home buyer searched how long before purchasing a home?

This was interesting to me, because of the variety of expeiences that I have had. The answer was that, on average, buyers searched for 12 weeks, and viewed 12 homes, before making a

final decision. That happens to be the longest average time for buyers, since this survey started in 2001. It was also interesting to note, that buyers searched for 2 weeks on their own, before contacting an

agent.

4. Out of the following, what was the most common incentive that sellers offered in the sale of the home?

The single most common incentive, that was offered by sellers, to help secure buyers, was a home warranty. I often suggest that the seller purchase a home warranty, as the cost

is not that significant, and it helps a buyer feel comfortable that they are not going to get hit with a large and unexpected expense, in the first year they are in the home.

5. What feature on real estate Web sites do customers most frequently say they find the most useful?

84% of buyers, said that they found photos on real estate web sites, most useful. Buyers also commented that they found detailed information about a house, very useful, as well. Other things were mentioned, such as virtual tours, and interactive maps. It is very obvious, that the focus for real estate websites, should be about the consumer, and homes, not about the agent!

6. What’s the first step buyers often take during the home-buying process?

This was pretty easy to answer, as well. Overwhelmingly, buyers answered that their first step in the process, is to search online, for houses. This is why I focus so much of my marketing

energy, to a strong, on-line presence. The use of good quality photos is critical, and it helps to also encorporate virtual tours and video in online marketing.

7. Of buyers who considered purchasing a foreclosed home, what was the most common reason they gave for ultimately not purchasing a foreclosure?

The reason most buyers did not purchase a foreclosed home, was simply that they could not find the right home for their needs. In the areas of Bucks County that I most frequently work in,

foreclosed homes are not a major factor. There certainly have been more distressed properties on the market, than at any other time since I have been in real estate, but the process of buying foreclosed homes, tends to be extremely complicated, and very stressful. Very often the properties are not in good condition, and it can be very challenging to work with banks.

8. What environmentally friendly features did buyers most often say is “very important” when looking for a home?

There were a number of answers to this question, but the single, most important energy efficient feature, was heating and cooling costs. It has been my experience, that buyers are more aware of

energy efficient options, these days, and are looking for more energy efficient homes.

9. What age range represents the largest segment of home buyers?

25-34 was the largest segment of the market. This was too be expected, given the original first time home buyer tax credit. I was fortunate to have been able to work with many, young, first time home buyers, towards the end of last year, and into this year. It is a very enjoyable demographic for me, and I love trying to ensure that buyers who have never been through the home buying process, make fully informed decisions and are totally comfortable with the process.

10. What is the most frequently reported reason for selling a home?

Most common answer to this, was job transfer.

11. What was the most common factor that influenced buyers in selecting a certain area to live?

The quality of the neighborhood, was the most common answer given. I would add, that in conjunction with the quality of the neighborhood, is the quality of the school district.

The answers to these questions, was taken from the National Association of Realtors, 2009 survey of buyers and sellers. NAR does a comprehensive survey every year, interviewing thousands of buyers and sellers, to find out all sorts of things that are important to them.

As always, I invite your thoughts and comments.

Yardley, Newtown, Bucks County real estate review

Marty Millner — Thu, 25 Mar 2010 19:57:16 +0000

We read all the time, statistics about real estate from all over the country.

Real estate is, and always has been, local. It is local, sometimes even down to neighborhood by neighborhood.

I always track statistical information about real estate in Yardley, Newtown, Lower Makefield Township, Upper Makefield Township, and many of the communities that I serve.

People ask me every single day, how is the market? I can answer that question, based on how carefully I track statistics, as well as from my own personal experiences in representing buyers and sellers.

So, here is a brief look at a couple of interesting real estate charts, for Yardley and Newtown.

If you look at the charts, you will see that after falling a bit, during the 90 day review period, inventory levels are increasing in both Yardley and Newtown. As you would expect, with more houses on the market, it is taking longer to sell. Average days on the market is also increasing.

Houses can and do sell. It is all about the price. These charts make a compelling case for wanting to be sure that if you are interested in selling, you must price your house correctly.

If you have questions, please feel free to contact me.

: Inventory and days on the market for 19067

Will new federal short sale guidelines, help the process?

Marty Millner — Mon, 08 Mar 2010 16:53:11 +0000

Many buyers that I work with, when searching for homes in Yardley, Newtown, and all over Bucks County, eventually run into a house that they want to see, and we find out that the house is being sold as a, “short sale“.

For those not familiar with what a short sale is, a short sale basically happens when a seller owes more on a house, than what the house is worth. For example, if a seller in Yardley, owes 300,000 on their mortgage, and the house is worth 250,000, the mortgage on the house can not be satisfied with the sale price. The seller would have to bring money to closing, in order to sell the house. If the seller did not have the resources to do that, the only way the house could be sold, is through a, “short sale”. The bank would have to agree to accept less than the full amount owed on the mortgage.

In the markets that I focus on in Bucks County, we have fewer distressed property sales, than in many parts of the country.

However, I do encounter short sales, frequently.

In general, working with banks on short sales, has been extremely frustrating. As a generalization, the banks often take an unreasonable amount of time to make a decision. In many cases, the decisions they make, don’t make sense, from a market perspective. I had a client make an offer on a short sale, many months ago, on a house in Yardley Boro, and the bank refused to neogtiate the offer. The house sat on the markaet for many more months, and the bank eventually sold the house for about 50,000 less than what they turned down!

For the average buyer, buying short sale properties, is usually extremely stressful. As I mentioned earlier, the process often takes longer. In addition, the banks generally sell the house in its current condition, which means that a buyer can make the sale contingent on a home inspection, but the bank will not agree to fix anything.

I have been amazed at how dificult most banks make it, to deal with short sales.

This video outlines some new, federal guidelines on short sales, that will take effect in April.

I wonder if this will help?

What are the top 10 home repair tips, for home owners in Yardley, Newtown & Bucks County.

Marty Millner — Tue, 09 Feb 2010 22:24:36 +0000

Click here to view the embedded video.

I write this post from my home in Yardley, Pa, Bucks County, waiting for the arrival of the third major snow storm of the season. I came across this wonderful video, that details the top ten home repair tips, for home owners in Yardley, Newtown and all over Bucks County. Hope that you find this video helpful.

Upper Makefield Township, Bucks County, 2009 real estate year in review

Marty Millner — Mon, 25 Jan 2010 17:57:55 +0000

On my last post, I took a detailed look at what happend in 2009 in Lower Makefield Township real estate market.

Today, we are going to check out the results from 2009, in Upper Makefield Township real estate market.

Here is what the real estate market looked like, as we finished 2009, in Upper Makefield Township.

Inventory in Upper Makefield Township

There were 101 homes for sale, as of the end of 2009, in Upper Makefield. This compared with an inventory of 134, as of the end of 2008. There were 113 homes for sale, at the end of November, 2009. This represents a decline in inventory of 24.6%, from the end of last year. Normally, that is a good sign for sellers.

Pricing Trends in Upper Makefield

The average price of a home for sale in Upper Makefield, at the end of 2009, was 1.43 million. At the end of 2008, the average price of a home for sale, was 1.59 million. This represents a decline of 9.8% in list pricing.

There were 72 homes that sold in 2009, and they sold at an average of 88% of the asking price. 71 homes sold in 2008, and they sold at an average of 91% of the asking price.

Summary;

Inventory levels are down and unit sales are modestly, up. Probably the most telling statistic is that at the current sales pace, there is a 16.8 momnth supply of homes in inventory. We consider a balanced market when there is approximately a 6 month supply. You can clearly see that there is a strong, buyers market in Upper Makefield Township, at the current time.

Average days on the market for all price levels, is 111 days. For homes priced between 1-3 million, the average days on market are considerably longer, and the supply is measured in years! 82% of the 72 homes that sold this year, were priced below 1 million! 55% of the current inventory, is priced above 1 million. Specifically, based on the current rate of sales for homes over a million, there is a 4.3 year supply! 13 homes sold over 1 million in 2009, which represents 1.08 per month.

It is particularly telling that the average sale price in 2009, was 762,000 yet the average price for the current inventory, is 1.43 million!

It is evident that there is a lot of competition in Upper Makefield, especially at the higher price levels. It is critically important, that you price your house correctly, if you intend to sell.

As always, I welcome your thoughts and comments on any of this information. I will review additional communities, in future posts.

So you have an underground oil tank in Yardley, Lower Makefield Township, Newtown, Upper Makefield Township, Bucks County, Pa.

Marty Millner — Tue, 12 Jan 2010 21:17:47 +0000

I represented a seller on a house that closed in Lower Makefield Township, recently, that was heated with oil, and had a tank burried in the ground.

I advised the seller, over a year ago, to have the tank removed, prior to listing the house.

If you are not familiar with the possible complications of having an oil tank in the ground, you probably wonder why I would suggest that. The answer is that if oil gets into the ground, it creates a potentially very difficult and expensive, enviornmental issue.

I preferred that the seller deal with the tank, on their own terms, and without the pressure of trying to meet a buyers demands.

So, we received an offer on the house, and as part of the home inspection, the buyer included a soil sample to determine whether there was any indication that there was any oil had escaped into the ground. This is the test that is most often used, to determine whether there are issues, and whether further remediation is necessary, once the tank is taken out of the ground. Years ago, there was a pressure test that was used, but that test posed some risk that the test itself, could compromise the tank.

In my seller’s case, unfortunately the soil test did indicate that some oil had found its way into the ground. My experience with the basic soil test, is that the test very often does indicate that some oil residue is in the soil. Sometimes, that can happen just from filling the tank.

The problem is, that once there is an indication that there is oil in the ground, there is really no way to know exactly what it is going to cost to remove the tank, and do remediation. Thus the challenge for the seller, which is to meet the demands of a nervous, and concerned buyer.

In our case, we needed to get estimates from companies, for the cost of the tank removal, soil remediation and installation of an above ground tank. As I said before, without actually removing the tank, and doing further soil testing, there really isnt any way to know with absolute certainty, what the total cost will be. As a result, we had to establish an escrow, which was actually considerably more than what we expect the cost to be, so that the buyer would be comfortable with moving forward to closing.

That takes me back to my original premise. If you have an undergroud oil tank, and are going to sell your house, I highly recommend taking appropriate steps to remove the tank before you put the house on the market. That way, you can remove it, and provide a prospective buyer with the appropriate documentation.

If you do have an underground tank, and you are faced with cleanup, there is a grant program that is offerred by the Pennsylvania Department of Enviornmental Protection Bureau of Waste Management, to assist owners of underground heating oil tanks with the costs of environmental cleanup due to a release of oil. There are some limits, which I will address in a minute, but basically the release must have occurred or been discovered, on or after January 30, 1998.

The program is basically a remibursement program. The owner must pay the first 1,000 of eligible cleanup costs. The DEP, will remiburse the remaining eligible cleanup costs up to a maximum of 4,000.

I have the instructions, and the form to submit, if you need to apply for funding under this provision.

This particular transaction would have been much less stressful, and the seller would have left the closing with a lot more money, had the oil tank been removed last year.

If you have other questions, or want additional information about removing underground oil tanks, please contact me.