Lancaster County PA Realty Check: May 2009

Early Tuesday morning, 300 real estate professionals from the northeast region meet to network and learn from each other in Philadelphia!  Held at the headquarters of the Greater Philadelphia Association of Realtors, the event was sponsored by GPAR, Trulia, TastyKake, Zillow, Coldwell Banker, Trend MLS, and a number of others.  REBarCamp has brought real estate professionals together at different locations across the country.

     Morning rush hour at dawn on the Schuylkill Expressway - sitting in traffic...

            Orientation.  Brad Carroll in the rear is recording the proceedings for the Internet.      

                                                            Kim Wood Emcees...

                                  Jeff Geoghan

                                                                  Brian Schulman

Lunch at Penn Treaty Park - where William Penn signed a treaty with the Indians in 1682...

                                       Adrienne Loughery, Audrey June-Forshey, and Anne Marie Malfi

                                                               Brian, Audrey & Jeff

                         The Ben Franklin Bridge in the misty distance behind Penn Treaty Park...

©BrianSchulman2009

Interest rates in Lancaster County PA continue to be quite low by historical standards.  According to the Lancaster County Association of Realtors, a poll of local lenders as of April 27, the latest figures available, averaged 5.04% for fixed 30-year mortgages, and 4.71% for 15-year loans.

Of course, these low rates reflect a soft market - but if you are in the market for a home anyway, this is an unusually good time to purchase.  And for first time buyers, the $8,000 First Time Buyer Tax Credit is still in effect.  (Please feel free to contact me for details on this great program.)

For buyers, I think it would be a mistake to wait until interest rates get any better.  It's entirely possible that rates are about as low as they are going to become.  In addition, it's quite likely that within the next six months to a year, we will start experiencing a reemergence of inflation, due to the incredible level of government spending.

The government doesn't possess the money it's spending.  Much of it is being borrowed, and what can't be borrowed is being printed.  In the long run, this can only lead to a devaluation of the dollar.  Countries like China and Russia are even hinting about going to an alternative currency in the future other than the U.S. dollar, due to the uncertainty that the dollar will remain strong.  An alternate global currency would accelerate even more the devaluation of our dollar as there becomes less demand for it.

What's the result of the devaluation of the American dollar?  Prices go up, for one thing.  But while it may look like our home values are going up, the impression is deceiving.  In fact, the increased number of dollars it takes to purchase a house in times of inflation is not the result of increased value - it's the result of needing more dollars of lower value to purchase the same home.

So how does all this relate to interest rates?  When lenders make long term loans, they expect to make their capital value back plus a profit.  If they expect that the dollars they lend are going to come back to them with less value, they're going to want more dollars back - which manifests itself in higher interest rates.

Bottom line - for the time being, with inflation low due to the soft economy, interest rates are probably pretty close to as low as they're going to get.  When the economy starts strengthening, inflation is waiting in the wings - and with it, higher interest rates. 

Don't put off a home purchase because you think interest rates may sink even lower.  When the economy comes back - as it inevitably will - higher prices and mortgage rates will make today's seem like a bargain.

©BrianSchulman2009

One of the most pleasant and historic towns in Lancaster County is the borough of Lititz, PA, founded by the Moravians in 1756.  Besides the wonderfully preserved architectural heritage and rich history, there are well-tended parks and green areas which add to the quality of life.

Linear Park is one such area.  Running between Market Street and Brookview Drive, it symbolically connects the historic town with the modern surrounding suburbs.

Children have plenty of available activities, while the paved walking trails are ideal for cyclists and joggers.

A wide variety of scenery passes by in the relatively narrow park.  Here a brook cuts through a wooded area.

                                                        A baseball field is one of the attractions in Linear Park.

Lititz is never far from the scenic Lancaster County farmland.  Here alpacas, known for their fine wool, graze in an adjacent field.

Linear Park was created in a joint cooperative effort by Warwick Township, Lititz Borough, Lititz Springs VFW, Lancaster County Parks Community Iniative Program, and the Chesapeake Bay Foundation.  It is open daily dawn to dusk.

©BrianSchulman2009

Discover Elegant Living In the Heart of Lancaster County...

On a premium lot, this stately Georgian style brick home with its gables, overlooking a pond and farmland, has both superior size and superlative upgrades.  1465 Drake Lane is one of the finest homes in the desirable Veranda community.

The home is based on the largest model available in Veranda, the Creswood - but with even more square footage due to a huge game room addition on the second level, which could also be used as a fifth bedroom. 

Other features that set this home apart from the competition: gorgeous cherry finished oak floors - a $40,000 custom upgrade -complement the cherry kitchen cabinetry, and continue throughout the house.  Period characteristics such as wainscoting, chair rail and crown molding throughout blend with the most modern of conveniences, including wiring for Surround Sound and Internet throughout.  Custom wood interior shutters (over $20,000) add to the classic interior.   Rounded drywall corners are on all vertical wall corners and the arches.

 Lovingly built by Charter Homes, among its' many fine features are a sunken grand family room with an elegant fireplace and 10' tray ceiling, master bedroom suite with gas fireplace, and a gourmet kitchen that includes a new $5,000. stainless steel double oven and a sunny English garden room.   With a three car garage, 3-1/2 baths and 4,055 square feet, this lovely home is offered at $549,900.

Veranda is a beautiful community in East Hempfield Township, close to shopping centers, the Lancaster Health Campus and Women and Babies Hospital - yet in a historic setting overlooking a pond and picturesque barns and farmhouses.  Family and cultural events are held throughout the year.  Miles of walking trails and sidewalks meander through this well-planned community.

OPEN FOR THE FIRST TIME SUNDAY, MAY 15, 1:00 - 3:00 PM. 

Directions:  Rte 30 to Harrisburg Ave W approx 1.5 mi, L at Veranda, L on Banner Dr, L on Grassy Way, R on Carroll La, R on Drake La.

I have an idea for you to consider, which may reduce your risk in keepng your property off the market while you pursue a private sale to someone you know.  In addition, if your private sale is successful, my idea won't cost you a cent.

 If your private buyer writes a good offer, applies without delay for a mortgage, and is approved for their mortgage, then you will have achieved your goals.  However, in today's unsettled economic conditions, lenders have become increasingly cautious in making mortgage commitments.  If any problem happens to crop up in the mortgage process, your property could be off the market for weeks or months, with lost opportunities for you to sell the house.

 Consider this:  a discrete Realtor can put your house in the MultiList, disclosing that there is a private sale in progress, seeking only BACK-UP agreements in case there is any problem which results in your buyer's purchase falling through.  You don't even have to have any real estate sign in the yard if you wish not to.  If your buyer is successful in their purchase, with a listing agreement that excludes your pre-existing buyer, you will not be charged a fee.

 In addition, with a written agency agreement, your Realtor would be authorized to give you real estate advice regarding your private sale.  While an attorney may offer you legal advice, an experienced Realtor can give you practical real estate experience to draw from.  Again, this may be available to you at no charge if your own buyer buys the house, in return for allowing the agent to seek back-up buyers just in case.

You have absolutely nothing to lose by allowing your Realtor to quietly protect your interests while you go through the process with your own buyer.  But just in case, having a back-up agreement could save you a lot of lost time and income if there were to be any of a multitude of possible snags in the buying process.

©BrianSchulman2009