HELP! THE RELATIVES ARE COMING! WHAT CAN WE DO?

As if all the shopping, wrapping, decorating, baking, and all sorts of holiday mayhem are not enough…your house is about to be invaded by visiting relatives!  If you are having panic attacks about the potential for a Griswold Christmas, fear not.  I bring glad tidings of great outings that will keep your guests in motion and out of your house for at least part of their stay.  An agent in my office is about to welcome her grandchildren for a visit (and she really is thrilled to have them come!) and asked for our suggestions about seasonal activities.  Here are just a few that might come in handy for you as well.

Peddler’s Village in Bucks County got the most votes of all.  The lights, shopping, restaurants, gingerbread house display, carousel, “Giggleberry Farm” and more just about guarantee there is something for everyone.  My son actually went there last week and did a spontaneous juggling performance so you never know what you might find there.  Rts. 202 & 263  Lahaska, PA  http://peddlersvillage.com/

Longwood Gardens in Chester County was the second most recommended for “A Longwood Christmas”.  Spectacular lights and a miniature Christmas Railway add to beauty of “The World’s Premier Horticultural Showplace.”  1001 Longwood Road  Kennett Square, PA  www.longwoodgardens.com

A Trip to Philadelphia offers the standard in Christmas traditions at Macy’s – the organ and light show just never get old.  Check out the train display at Market East and the two-story movie at the Comcast Building.

Kozier’s Christmas Village in Berks County has a light display that is second to none, and was touted as the “Best Outdoor Christmas Display in the World” by Display World Magazine and is One of the Top 10 PA Attractions.  Family owned for 62 years and counting.  Worth the trip!  782 Christmas Village Road  Bernville, PA  http://www.koziarschristmasvillage.com/

Pennypacker Mills in Montgomery County decorates its historic estate house with a colonial flare.  Candy making, bell choir and tours.  Google Pennypacker Mills for more information.  5 Haldeman Road, Schwenksville, PA  610-287-9349

There – that should give you and your house some relief during this joyous time of the year.  Remember – you and I, and our relatives, are the same people during the holidays as we are the rest of the year.  Have realistic expectations…breathe…and enjoy.  Watch “Christmas Vacation” with your guests (still funny after all these years). It will make your family gatherings seem quite normal.  Happy Holidays and Realistic Expectations to all!          

ARE YOU READY FOR SOME GOOD NEWS?

This is the time of year we typically take stock of what we have accomplished over the last 12 months, and speculate on what the coming year will bring.  According to Dr. Austin Jaffee, the chair of the Department of Insurance and Real Estate at Penn State, the Pennsylvania real estate market in 2010 fared better than in 2009.  2010 was not, of course, a record-breaking year, but it would appear we are headed in the right direction. “House prices hit a bottom early in the year”, said Jaffee in an interview with the Pennsylvania Association of Realtors, “and began moderate increases in many regions due to the tax credit.”  With the tax credit incentive ending in April, there was a downward pressure on prices.  Dr. Jaffee further reported that sales activity was on a roller coaster, largely due to the tax credit, with sales decreasing in the beginning of the year, dramatically increasing in the spring, and dramatically decreasing in the second half of the year.

“Foreclosures continue to be an issue”, stated Jaffee.  While Pennsylvania has fewer foreclosures than other states, legal and technical issues “seem to be slowing the entire market.”  Rising delinquencies and defaults in Pennsylvania are the result of “rising and persistent unemployment.”  Dr. Jaffee explained that interest rates and affordability are quite favorable, but misleading in this downturn and not sufficient to stabilize the market.  For that we need “economic growth and a reduction in unemployment.”

Wait – I did say something about good news, right?  In 2010 Jaffee observed improvements in the housing market due to “better expectations about the market and prices.”  “There is less volatility in defaults and distressed properties in Pennsylvania.  2010 did show improvements with the stabilization of prices and beginnings of increased employment that will lead to an improving real estate market.”  Okay, we had to wade through some less than ideal details to get to it, but let’s concentrate on the “improving real estate market”.  We made it through 2010, and can at least have guarded optimism about a better 2011 for the local real estate market.       

A SON’S LOVE FOR HIS DOG AND FATHER’S LOVE FOR HIS SON

In the midst of holiday cheer and festivities, there is some sadness for my son and those who care about him.  A sophomore at Messiah College, he returned home on Tuesday for winter break to be greeted by his mother with the news that his beloved Belgium Sheepdog, Buddy, had died the week before.  We collectively decided not to burden him with this news during finals week, for which he has expressed his gratitude.

Seth is a Chemistry major, and not prone to expressing himself through poetry.  When I saw what he posted on Facebook Tuesday night, I was touched by his expression of love and devotion for Buddy.  If you have ever loved a pet, you will understand his words.

                                    The tears have blurred my vision

                                    But I’d know him anywhere

                                    He sits and waits so patiently

                                    He knows I’ll soon be there.

                                    I drop to my knees and call his name

                                    He responds with bounding glee

                                    He whines and cries

                                    The joy is in his eyes.

                                    I know it’s truly Heaven

                                    For that is plain to see

                                    My faithful friend and companion

                                    Is once again with me.

                                    To the best pet I have ever had.  Rest in peace, Buddy.

We would all like to shelter our children from such pain, but alas, we cannot.  With great love comes, ultimately, great pain.  The riches that come with that love are well worth the price we pay in separation and grief.  To the best son I could ever hope for, I love you Seth.  And that’s Dad’s take on it.

IN THE FLOOD MAP GAME – SOME WINNERS, SOME LOSERS

After years of speculation, it is about to happen.  The Federal Emergency Management Agency (FEMA) is updating the maps that determine the cost of flood insurance for property owners in flood plains.  While recent news releases have focused on changes coming to flood maps in portions of Montgomery County, I believe residents throughout the Delaware Valley would be wise to stay abreast of changes to flood maps that could impact properties they own.  Indeed, some 2,068 properties in Abington, Hatboro, Horsham, Upper Dublin, Lower Moreland, and Upper Moreland will be newcomers to the flood plain based on an analysis by the Montgomery County Planning Commission of FEMA’s preliminary map, which is expected to be adopted in final form next year.  Interestingly enough, another 2,345 properties in those municipalities will no longer be located in high-risk flood areas.

If you have a mortgage on your property, more than likely your lender will require you to obtain flood insurance if you are now deemed to be in a flood plain.  Whether you are required to take this action by your lender or not, if you are in a flood plain, having flood insurance protection may be as important as having fire insurance coverage for your home or business.  If you are fortunate enough to discover you are no longer in a flood plain, you may well be able to drop this coverage completely, although you will need to initiate this discussion with your lender, as it is not likely they will contact you in this regard.

The average premium for flood insurance purchased through the federally underwritten FEMA National Flood Insurance Program is $550.00 and $600.00 per year.  Since the new flood plain maps were created with more modern technology, Montgomery County Planning Commission’s Chief of Environmental Planning explains that someone new to the list has really always been in the flood plain.  While that makes sense, it would be counterintuitive to think that the development throughout the region had no impact on this situation.  Whatever the cause, be sure to stay on top of this situation as it relates to your properties, and contact me if you need help in determining which side of the line you are on.  

STUART VARNEY – THE ECONOMY – AND FERTILITY RATES

Our keynote speaker today at the Realtors Triple Play Conference in Atlantic City was Stuart Varney, veteran business journalist and commentator for FOX News.  I expected Mr. Varney to talk about the economy, but was less inclined to anticipate him expounding on fertility rates.  But in the end, as you will see, it makes perfect sense for him to include population analysis in his reports.

I was more than pleasantly surprised by his predictions for next year.  Based upon agreements that have been reached in Washington that include the extension of the Bush tax cuts for another two years, Varney predicted that the United States will experience a 3%, perhaps even a 4%, growth in our economy by the summer of 2011.  He believes that by maintaining the current tax structure the $1.5 trillion on the sidelines will come into play as consumer confidence grows.  Businesses that have been reluctant to utilize their substantial cash reserves will view a consistent tax structure as a sign that it time to invest in their businesses again.  From your lips to God’s ears, Mr. Varney!

While this is good news, it may be premature in the long run for dancing in the streets.  It seems that fertility rates around the world are dropping.  In fact, in all developed societies around the world birth rates are below population replacement levels.  “We have never seen anything like this before, ever” Varney said.  In the United States, and countries around the world, there are fewer working people who are having fewer children.  In 10 years, 55 out of every 100 people in the US will be retired and 65 years of age or older.  “That is not an economically viable society.  We can’t do it”.  While Varney foretells a day of reckoning that may be coming, I think we can be encouraged about the year ahead.  As to what will happen a decade from now and beyond, we may well have to make painful adjustments, but I am convinced the America I believe in will have the grit to face and defeat whatever challenges that confront us.  That’s my take on it, with some help from Stuart Varney.         

WHAT IS MID, AND WHY SHOULD I CARE?

I am currently attending the Realtors Triple Play Conference in Atlantic City, the annual, combined convention for the Pennsylvania, New Jersey, and New York Associations of REALTORS, and it is a full schedule for the thousands of real estate professionals in attendance.  No topic, however, is receiving more attention, than MID.  No, not mid-life crisis, Mortgage Interest Deduction.  The President’s Deficit Commission has announced its conclusions that include limiting or even eliminating the ability to deduct mortgage interest on your federal income tax return.

Mortgage interest has been deductible for nearly 100 years, and the proposed changes will affect all 75 million homeowners in the United States.  At a time when the American homeowner is strapped with rising real estate taxes and insurance premiums in an economy with fewer opportunities, do we really believe this is the time to abolish one of the primary benefits home ownership provides?

The last thing the struggling housing market needs right now (and in the foreseeable future) is another wet blanket tossed upon it in the midst of an overall weak economy.  Just hearing news reports about the possibility of changing the mortgage interest deduction has the effect of making already nervous buyers even more unsure about moving forward with a real estate transaction.  If you are concerned about losing a deduction we all actually understand and rely on, there is something you can do.  CALL your representative in Congress and speak in strong opposition to any changes to MID.  A stable real estate economy is vital to a strong national economy.  And as a current or future homeowner, the preservation of mortgage interest deduction is one more key to protect the value of your real estate investment.  Join the more than 1,000,000 members of the National Association of REALTORS in this call to action to support a key benefit part and parcel to the American Dream of home ownership.     

SHOPPING FOR HOMES IS JUST A BLOG AWAY

It is December 3^rd and the rush is on!  You are no doubt in the midst of shopping, baking, attending holiday gatherings and dealing with the normal mayhem that accompanies the holiday season.  So are any of you actually done?  You are decorated, wrapped, gifts under the tree, and cookies in tins ready for consumption and distribution?  If so, congratulations!  You should consider writing a blog on organization!  You very well be the only people who have time to check out a new feature on my blog, unless, of course, you are considering buying someone a home as a Christmas gift, in which case I am providing the perfect solution right in the St. Nick of time!

You can now search the entire MLS for homes for sale right here on my blog.  Just go to the “Search All MLS Listings Here” tab (creative title, isn’t it?), click the link and you are on your way.  Check it out and let me know what you think.  BTW – if you are giving a house as a gift, with everybody going green these days, I don’t think you even have to wrap it.

Whatever you are doing this weekend, try to stay calm, set realistic goals, and understand there is only so much you can and should even try to accomplish as the big day approaches.  Take time to breathe and take in the joy this season should bring, whatever that is for you.  That’s my take on it, and I hope that is a good take away for you.   

CLASSIC TOWNS, CLASSIC CHRISTMAS

After yesterday’s posting about the rise in mortgage foreclosures, I thought we needed a more light-hearted focus today.  What better way to get into the holiday spirit than to check out the many seasonal events happening in Souderton and Telford this weekend.  Souderton-Telford Main Streets and area businesses have planned a great weekend, starting with the theme, Classic Towns, Classic Christmas.  Last year Souderton and Telford were added to the list of Classic Towns of Greater Philadelphia (more on that in a future posting).  Kicking off the activities is the lighting of Telford’s Community Christmas Tree on Friday, December 3 at 7:00.  The tree is located in the municipal parking lot at Main Street and Penn Avenue.  Preceding the tree lighting a group of carolers will stroll from Grace United Methodist Church on Main Street to the pavilion next to the tree where they will join students from EMC Elementary for more songs of the season.  

The 52^nd Annual Souderton Holiday Parade starts at 11:00 AM on Saturday, December 4.  As in past years, the parade route will be from Main Street to Broad Street and ending at School Lane.  The parade announcers are Jim Church and Bruce Kenworthy who will be located at the intersection of Main and Broad.  Jim has been the voice of the Indian Valley for decades, and when a microphone is in his hand, no one is safe.  Keep him in line, Bruce!

Adding to the excitement is a new participant this year – Radio Disney.  Not only will Radio Disney be in the parade, but afterwards will be in the pavilion in Souderton Park from about 2:00 to 3:30 with music, games, and prizes for kids and parents.  Church groups will be singing Christmas carols in the park after the parade as well.  Don’t miss the bake sale to benefit Souderton’s new pool currently under construction – it won’t be cold forever!

After finishing up his parade run, Santa Claus will be at the Scout Cabin next to the park from 2:00 to 4:00, seated by the fireplace and ready to hear all the children’s wishes.  Be sure to bring your camera!  The Scouts and North Penn Goodwill will be selling Christmas trees, as is their long-standing tradition.

This certainly sounds like a classic Christmas celebration to me!  A big THANK YOU to everyone who made these free, family-oriented festivities possible.  Merry Christmas to all and to all a good time!  That’s my take on it.

FORECLOSURES ARE ON THE RISE. DO OWNERS HAVE OPTIONS?

An article in The Reporter on November 22, 2010 offered the following sobering statistics about home foreclosures:

Montgomery County foreclosures skyrocket

“Home foreclosures in Montgomery County have more than doubled in the past 10 years. In 2000, 1,054 residential foreclosures were processed in the county. By the end of 2011, Montgomery County officials expect to process at least 2,600 foreclosures. The county is averaging 10.74 foreclosures a day, and with the foreclosure filings comes an unexpected source of revenue. There are three parts to a home foreclosure filing, and each has fees attached to the process. The first step is the Complaint of Mortgage Foreclosure that carries a $251 filing fee. If a settlement is not reached, the next filing would be a judgment for the amount owed, with a fee of $14.75. If the judgment is not satisfied, the final fee of $25.25 would be to file a Writ of Execution for the property to go to Sheriff’s sale. If the expected 2,642 foreclosures are finalized this year, the county will receive approximately $660,632 in revenue.”

While it is interesting to learn that the County is experiencing a new stream of revenue, the source of that revenue is alarming.  While foreclosures are already on the rise, economists are warning us about the “shadow inventory” that exists across the country.  This refers to homes that are not yet in foreclosure, but are on the verge of being in that category.  Economists tell us the size of the shadow inventory is significant.  Do homeowners who can no longer keep up with their mortgage payments, and live in a home that may be worth less than they paid for it, have options?  Using the two favorite words of attorneys, it depends.  A qualified professional can provide counsel as to whether or not an owner is a candidate for a short sale.

 A short sale involves the sale of a property for an amount less than what is owed on the mortgage and other recorded encumbrances.  Typically, a short sale is only possible when the lender is willing to accept less than what is owed in exchange for a release of its mortgage.  Lenders and other creditors may be willing to do this rather than going through with a foreclosure as a short sale may take less time, net the lender as much money as they anticipate in a foreclosure, and the process is less complicated.  It is important to note that the lender may still elect to hold their borrower responsible for the shortfall.  If you considering a short sale, I cannot stress enough the importance of engaging the services of a qualified Realtor and attorney as soon as possible to determine if a short sale is a viable option for you.  

THE GOVERNMENT WILL STILL HELP YOU BUY A HOME!

Think the end of the tax credit means the end of government support for first-time homebuyers?  Think again!  The government has supported first-time buyers for decades.  With interest rates at historic lows and lots of Sellers competing for your attention, this is the perfect time to look into ways the government can help you get into your first home.  A home is not only a great long-term investment, it also represents security for your family and a great tax deduction as well.  It also can be available for a government subsidy.

The Mortgage Subsidy Bond Tax Act of 1980 allows state and local housing finance agencies to issue tax-exempt Mortgage Revenue Bonds (MRBs) in order to finance mortgage loans.  MRB proceeds are used to purchase or originate mortgage loans at below market rates!  The interest-rate savings of these mortgages will vary, but a 1% reduction on the interest rate could lower the payment on a $200,000.00 home by approximately $120.00 per month!

Qualification standards for mortgages financed through these bonds vary from program to program.  The following represent typical requirements to be eligible for this type of financing:

            Your household income cannot exceed 115% of area median family income.

            The price of the home purchased with an MRB-financed mortgage may not be greater

            than 90% of the average price of homes in that area.

            You must not have owned a home in the previous three years.

            The purchase must be of a primary residence.

If this sounds like you, it is time to get in the game!  The rates we have today will not be available forever.  Once gone, we may never see such low rates again.  If this type of loan is not the right fit for you, there are other very advantageous programs that will help you get into a home.  Get in touch with me and we’ll get you in touch with a mortgage that will get you in a home!  

GIVE YOURSELF AND YOUR HOME A CHRISTMAS PRESENT!

The countdown to Christmas is on (and I won’t add to your stress by mentioning how many shopping days are left before December 25^th!).

While you are busily making holiday preparations, I will remind you there is another countdown underway.  Homeowners have until the end of 2010 to complete certain energy-related improvements to their homes to be able to cash in on the tax credits available for doing this type of work.  Be sure to check with your CPA for particulars about what is included in this program, and what is not.

Here are a few details you should understand if you want to give yourself and your house a holiday bonus:

A tax credit is available in the amount of 30% of the cost of qualifying improvements up to a maximum credit of $1,500.00.  If you replace windows for example, and the cost is $5,000.00, you will have reached the maximum credit of $1,500.00 ($5,000.00 x 30% = $1,500.00).  You can spend more on your improvement projects, of course, but the tax credit is maxed out at $1,500.00.  If you have already done work on your home this year, pull your receipts and see if you qualify!  Examples include heating, ventilating, and air conditioning, insulation, roofs (metal and asphalt), water heaters (non-solar), windows and doors, etc.  You can use multiple jobs to reach the maximum, but the maximum credit is $1,500.00 no matter how many projects you complete.  This program applies to your primary residence only.

If you are planning to do this type of work anyway, you would be wise to finish the work this year and let the government “pay” for part of the job.  Good luck, and if you need the name of an excellent contractor for any of the work listed above or beyond, let me know.  I work with the best!

NATIONAL REAL ESTATE SALES REPORT

The following is a brief excerpt from a press conference with Lawerence Yun, Chief Economist for the National Association of Realtors.  Check back for sales activity reports specific to Montgomery and Bucks Counties.

Sales Decline Following Two Monthly Gains Existing-home sales retreated in October on the heels of two strong monthly gains, according to the National Association of Realtors.   Existing-home sales declined 2.2 percent to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September, and are 25.9 percent below the 5.98 million-unit level in October 2009, when sales were surging prior to the initial deadline for the first-time buyer tax credit. "The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales," says NAR Chief Economist Lawrence Yun. "Still, sales activity is clearly off the bottom and is attempting to settle into normal sustainable levels.”

Thanksgiving musings…

Thanksgiving is not quite over, but there are thousands already shopping in the pre-Black Friday hours.  It is my hope that the day that preceded Black Friday was a happy and blessed one for you.  For the first 50 years of my life, Thanksgiving meant gathering with my family and relatives at Uncle Albert and Aunt Myrtle’s house in Leesport, PA.  This was for me, the tradition I enjoyed above all others.  It became the Thanksgiving tradition for my children as well.  Life is, of course, finite, and traditions are subject to the frailties of the humans who live them.  Sadly, my Uncle Albert died on New Year’s Eve a few years ago.  My sister and brother-in-law now host smaller Thanksgiving gatherings at their home in Cape May Court House, NJ.  A new tradition is underway.

As the grandchildren gathered around my father for the annual Thanksgiving picture, I was thankful for my father being able to be there, knowing that there are no guaranties as to how many more of those pictures with Grandpop will be possible.  My family’s traditions, of necessity, will continue to evolve, as will yours.  Knowing that, we are well-advised to be fully present during Thanksgiving and other family events taking complete advantage of the time we have together.  Of course, we need to be open to changes in traditions that will inevitably come.  Wishing you the blessings of familiar family traditions, as well as new customs yet to be experienced.  Happy Thanksgiving…     

Franconia Township tables proposed use and occupancy ordinance

Franconia Township Commissioners have tabled a proposed Use and Occupancy inspection program after receiving many questions and comments about the enabling ordinance from residents and the Suburban Realtors Alliance, an industry and consumer advocacy group of which I am a Board member. Township commissioners were scheduled to consider passage of the comprehensive ordinance during a Nov. 15 meeting. The draft ordinance contained a minimum 26 point inspection checklist as well as a requirement that all home additions conform to zoning regulations and building codes. The ordinance would also establish a $200.00 fee for the inspection process, which would more than double the Use and Occupancy fee found in neighboring communities.

I commend the Commissioners for tabling this ordinance.  While I have no doubt they believed the ordinance serve a good purpose, the proposed ordinance was fraught with unintended consequences.  Sellers could have faced very costly repairs, especially if their home was built prior to 1978 and would, as a result, be subject to EPA’s new rules and regulations governing repairs to older homes that add even more expense to repairs.  I will keep you posted on further developments on this important matter.

Souderton Award

The process of reinvention is not an easy journey, whether it is undertaken by an individual, a team, or a town.  In this case, a town, namely Souderton Borough.  Area residents are justifiably proud as a result of Souderton being presented with a Revitalization Award from Montgomery County officials for revitalization projects within the Borough.  Souderton was recognized for a successful reinvention of the Borough into an arts and culture hub, with private entities rehabilitating an old firehouse into the now renowned Montgomery Theater and old mill buildings into space for over 20 businesses.  Congratulations to all involved – Borough officials, Main Streets, local businesses – all who played a role in bringing this distinction to our town.  As a resident of Souderton, I can attest to the reinvention that is underway.  This is an award well-earned and deserved.