Harleysville-Lansdale Real Estate and More: December 2011

In 2011, we donated time and/or money to:

• Susan G Komen Race for the Cure
• RE/MAX Realty Group's Memorial Day Community Open House
• International Friendship Committee's Holiday Craft Fair
• Operation Brotherly Love
• Manna on Main Street
• National Brain Tumor Society's Race for Hope
• North Penn Visiting Nurses Association
• North Penn Knights' Basketball
• Meal Train and Memorial Funds for local residents

Plus, Scott was elected to the position of Towamencin Township auditor - a strictly volunteer position.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Giving Back to the Community in 2011; We Can Do More in 2012 - Copyright © 2011, The Scott Loper Team, All rights reserved.

There are a lot of things that affect real estate:  the overall economy, how people feel about their personal situations, interest rates, the willingness of banks to lend money, and housing prices to name a few.

The good news is right now is the most affordable houses have been in the last decade.  Consider these facts:

>  Housing prices in Montgomery County:  In January 2011, 356 homes sold for an average price of $291,870.  In November 2011 (final numbers are not out for December), 516 homes sold for an average price of $290,130.  Sales are up without a significant drop in values.

>  Interest rates: January 2011, interest rates were 4.75% – 5.25%.  In December 2011, interest rates are 4.0% – 4.25%.  (Even back in the boom years, 4% was the rate for a 5-year ARM, never a 30 year fixed.)

>  The historical impact of price vs interest rates: The average price of a home in November of 2001 was about $206,000, but interest rates were right around 7.0%. 

When our market peaked in August of 2007, the average price was just about $368,000 and interest rates were still up around 6.5%. 

Now at the end of 2011, the average price is down around $290,000 and the interest rates are about 4.0%.  

So, a monthly principal/interest payment assuming FHA minimum of 3.5% down would be:

November 2001 - $1,323

August 2007 - $2,245

November 2011 - $1,385

>  Rentals in the North Penn School District: In Q1 2011, 35 units were rented for an average rent of $1,368 per month.  In Q4 2011, 62 units were rented for an average rent of $1,513.

What does this tell us? 

Home prices and interest rates are the lowest they have been in years.  This combination has resulted in the most affordable housing prices in the last decade.  We are essentially down to a monthly payment roughly equivalent to that which was seen back in 2001.  As a result, people ARE seeing value in the housing market and purchasing homes. 

Take as another example, a buyer who purchased in January at $291,000 at a 5% 30-year fixed rate and put 20% down has a monthly mortgage payment of $1,254.  Whereas, a buyer now of that $291,000 home at 4.125% 30-year fixed and put 20% down has a monthly mortgage payment of $1,132.  That is $122 per month difference.

Investors are also out in force right now buying some great deals out there and seeing better returns on their investments as the costs to purchase are lower and the rents are higher.

What can we expect in 2012?

The Fed announced recently that it intends to keep policies in place to keep the Fed Fund Rate low and stable through mid-2013.  The only caveat is the uncertainty in the foreign markets (namely the European debt crisis) and global reactions may cause interest rates to rise.  So for the time being, consumers can expect low rates but there is a “wild card” element as to when and how fast rates may change.

Housing prices are expected to bottom out in early to mid-2012 (of course in any market, the “bottom” is always seen in the “rear view mirror” and not declared until prices have definitively rebounded). 

There are still a significant number of houses that are short sales and foreclosures.  Some area employers are rumored to make layoffs in 2012.  These factors will continue to chip away at the already low housing prices.  But the recent influx of buyers (especially investors seeing solid ROI’s) to the market will help to stabilize those prices.

There is talk of “frugal fatigue” in the overall economy and consumers who have cut costs and deferred purchases are starting to shop.  The same is likely to be seen in the housing market. 

Many sellers have deferred their moves in the last couple of years because of the market.  However, those sellers are realizing that even though they may take a loss (or not realize the “paper profit” they once had) on the home they are selling, they can make a move in the current market and get the house they really want at a better price and interest rate.  The “pain” they may experience on the selling side will be made up for on the buying side.

Plus life factors such as growing families, marriages, divorces, retirement, and job changes always dictate that a certain level of moving will occur in any market.  Some moves can only be deferred for so long; there is a pent up level of consumers who do want to make a move.

What about housing prices in the future? 

Predicting future prices is like reading tea leaves.  Our expectation is that prices will bottom out in 2012 and growth in prices will be slow to moderate and more in keeping with inflation.  Americans are still hungover from the housing bubble of 2007 and we wouldn’t expect them to go on another wild ride, just yet.

Real Estate: 2011 in Review, Predictions for 2012 originally appeared in the Montgomeryville-Lansdale Patch.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Real Estate: 2011 in Review, Predictions for 2012 - Copyright © 2011, The Scott Loper Team, All rights reserved.

The “experts” say that color trends follow the moods of a nation.  The expected mood for 2012 is an overall movement to protect and preserve what we have.

Maybe it is the uncertainty in all the markets (jobs, stocks, housing, global economy, political/taxes), but the prediction is homeowners will seek to protect their families and their assets in 2012.

Colors that evoke feelings of security will prevail.  They can be broken down into four categories:

Heritage—Embracing your background, culture, and traditions.  Earthy natural tones in shades of brown, khaki, red, green, and beige will be popular.  You will see many “National Historical Preservation Colors” when shopping for paint.

Process—Understanding the evolution of where we are today; embracing the journey, knowledge and education needed to have gotten this far and to more forward with increasing reliance on technology, design and engineering.  Think “Academic” colors such as the blue you would find in blueprints and other deeply saturated colors.

Protection—People feel threatened (more in a physical way than a spiritual way).  Metallic colors such as bronze, silver, chrome, gold, and icy colors of blue and gray coupled with deep purples (royalty) will provide a sense of armor to defend ourselves.

Enlightenment—Looking toward the future, the changes we have to embrace for a sustainable future.  Some brighter yellows and silver trim will highlight an emotion of hope.

So maybe not everyone is running out to repaint their homes (heck, there are some homeowners that haven't painted in 25 years), but it is important to understand the moods of consumers and how trends do come and go but also affect our buying decisions.  So for any seller sprucing up to sell, please keep these trends in mind!

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Home Color Trends for 2012: Protect and Preserve - Copyright © 2011, The Scott Loper Team, All rights reserved.

From a client who obviously got to know Scott very well...

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Wordless Wednesday - A Closing Gift From a Client - Copyright © 2011, The Scott Loper Team, All rights reserved.

Have you been curious about the commercial development in Towamencin Township, specifically near the Pennsylvania Turnpike Lansdale Interchange?

Demolition, lane changes, new road signs, and construction vehicles are at every turn in the vicinity of Sumneytown Pike and Towamencin Avenue.  

It’s hard not to notice the changes going on there.  Have you often wondered what is being planned for land surrounding this intersection and Forty Foot and Bustard Roads?  

I spoke with Joe Leis, Towamencin Township’s Director of Community Development earlier today to find out the plans.  In a nutshell, there’s more going on than meets the eye. 

>>>>>  In Phase 1 along Towamencin Avenue, known as Town Square One, an apartment building consisting of 240 apartments is being built by Philadelphia Suburban Development Corporation.  These apartments will be called the Residences at Town Square. 

Additionally, a Courtyard by Marriot, which will be a full service hotel, is being built facing Towamencin Avenue.  Also in the plans on the Marriot building site is a stand-alone restaurant of about 3000 square feet.  However, this small scale restaurant will not be built until a year after the hotel opens.

>>>>>  In Phase 2, also known as Town Square II, a two-story culinary arts school will be built at the proposed intersection of Washington Street and Forty Foot Rd.  Washington Street is a proposed new street to be located next to the current Univest Bank parking lot.  Another hotel is being proposed for the land located at Franklin Street and Bustard Road, adjacent to the existing Holiday Inn hotel.  This will be a smaller hotel, not a full-service one like the Marriot or Holiday Inn. 

There are road changes ahead too.  With the plans in place for the PA Turnpike expansion along the northeast extension, a northbound only exit will be created.  So if you are traveling northbound on the turnpike approaching the Lansdale exit, you will be able to exit without crossing over Sumneytown Pike, with E-Z pass only device, onto a lane that will blend into a right turn onto Sumneytown Pike. The new exit ramp will be along side the Exxon Station this is currently on site. 

Another new link in the roadways will be access from Old Forty Foot Road onto a southbound entrance to the PA turnpike. 

The PA Turnpike/309 Connector project is also well underway.  This will directly connect the Lansdale exit of the PA turnpike to Route 309 easing traffic on secondary township roads.

I don’t know how you feel about all the development and improvement, but I’m excited to see fresh buildings and better traffic patterns.  As a long-time resident of Towamencin, I think the road improvements will have the greatest initial positive impact, followed by attracting new businesses to the area. 

This type of commercial construction, improved accessibility, and infrastructure will bring more jobs and more revenue to our area which will only help the residential housing market in Lansdale and Harleysville.

~Gina

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Towamencin Township Construction - Update on Commercial Construction Around the PA Turnpike - Copyright © 2011, The Scott Loper Team, All rights reserved.

Scott and some agents from our office caught the last of the Fall Striper run.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Wordless Wednesday - You Gotta Fish While the Fishing is Good - Copyright © 2011, The Scott Loper Team, All rights reserved.

There are some caveats to being a landlord.  These are the biggest mistakes landlords make:

1) Not collecting enough of a security deposit (Especially if pets are involved)

A security deposit is money that is held by the landlord to cover the cost of any actual damages done to a rental property by the tenant. 

2) Not checking on the property once in a while (You or someone you trust should at least drive by occasionally.)

The occasional drive-by can tell a lot.  Are the tenants cutting the grass and shoveling the snow?  Is there trash lying around outside the property?  Are there six cars in the driveway?  Is there an obvious problem that they haven't called you about?  What is the general condition of the property?

3) Ignoring tenant complaints and/or deferring needed maintenance (If you don’t take care of your investment, do you really think your tenants will?)

Neglecting needed maintenance can really hurt the value of your investment.  Small repairs can escalate over time if ignored.  For example, a small plumbing leak could eventually give way to a soaking gusher that requires drywall and flooring replacement.  Fix it now or fix it later, you will have to make those repairs at some point or it will impact the resale value of the home.  Plus, the tenants are less likely to care for the home if you ignore any complaints or requests they have.

The 4th and probably MOST CRITICAL MISTAKE that landlords make…

4) Not screening prospective tenants well enough, i.e. credit checks, references (Prior landlords will often give you the straight talk on what to expect.)

Nothing can cause headaches faster for a landlord than a bad tenant.  Sure circumstances change and a person could be a model tenant, until he or she loses their job, falls ill or encounters some other life-changing event.  But past references and overall credit score are pretty good indicators of the character and trustworthiness of a prospective tenant.  A good tenant going through some tough times will still try to do the right thing.  You always want good tenants occupying your rental properties.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

The 4 Biggest Mistakes that Landlords Make - Copyright © 2011, The Scott Loper Team, All rights reserved.

Front loading clothes washing machines are great.  They use less water, less detergent, and less energy to operate.  But there is a downside (besides the higher cost to purchase a front loading machine).

Many consumers complain that their front loading machines have a strong musty smell and sometimes smells and stains are left on the clothes after washing.  This is usually because water can get trapped in the machine.  If the washer goes unused again for several days, that water will become stagnant and grow mold. 

The problem gets compounded if the last load was exceptionally dirty, left in the washer too long after the cycle, or you added too much detergent.  The low water usage may cause the machine to not rinse properly in these cases.  The residue from the wash cycle can cause a mold growth inside the drum, along the door gasket, in the detergent dispenser drawer, and in the discharge plumbing.

This is a situation that you want to avoid if you can because some consumers report that it is difficult to get rid of the odor problems once they appear.  Usually the most effective solution is to add a cup of bleach to the washer and run an empty wash cycle on the hot water setting.  Some people worry that the bleach may not fully rinse out and affect the next load of laundry.  If in doubt, run the cycle twice or use 2 cups of vinegar in place of the bleach.

To avoid the problem:

1. Leave the door ajar after each use to allow water left inside the machine to evaporate. 

2. Wipe down the door gasket after use to speed the drying process.

3. Use a minimal amount of detergent.  Avoid fabric softeners; use dryer sheets instead.

4. Run a cleaning cycle periodically according to the manufacturer’s instructions.

If problems persist, contact your manufacturer about warranty/replacement as some designs have proven to be more prone to mold growth than others.  If you are looking to purchase a machine, read consumer reviews carefully to identify the models where this is a persistent problem.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Does Your Front Loading Washing Machine Stink? - Copyright © 2011, The Scott Loper Team, All rights reserved.

The holidays are the perfect time to expect the unexpected visitors. 

> Your aunt happens to be in the area and wants to drop off some presents for your kids. 

> Your in-laws have a plumbing problem and want to switch dinner from their house to your house. 

> Your husband invites everyone from the office Christmas party back to your house.

It is not that different than accommodating a last minute showing request.  So the strategy we offer sellers would be the same to use if you are suddenly unexpectedly expecting company. 

We know how hard it is to keep your home in showing condition (a.k.a. visitor ready) at all times especially when you have kids and pets and homes are taking longer to sell and there can be a few weeks between showings.

If you get a last minute (say an hour or less) showing request, don't panic.  STAY CALM!  You can pull it off; here is what we suggest you do when you clearly don't have time to fully clean and straighten your house.  They say the kitchen and the bathrooms are what sell a house. 

So start in the kitchen.  Just remember:

>>>If you kitchen looks clean, your house looks clean

Empty out the kitchen sink - put everything in the dishwasher (hopefully it is not already full with clean dishes - if so, move even quicker).

Clear off the counters.  Dump everything in a junk drawer.

Run a swifter over the floor to pick up any pet hair or miscellaneous dirt.

>>>Take out the trash

Take the kitchen trash out.  It will help eliminate any unpleasant odors. 

Take a trash bag and empty all the waste baskets throughout the house (including bedrooms and bathrooms).* 

>>>Brighten up the place

Turn the lights on and open the shades while you journey through the home picking up.

>>>Make the beds*

They don't have to be perfect, but straighten out the sheets and comforters, fluff the pillows.

>>>Pick up and put things in their place

Pick up dirty clothes and stuff in a laundry basket.  Don't have an empty laundry basket?  Dump the clothes in the washing machine.  Pick up toys and stuff in a toy bin.

Shove any clutter under the beds (buyers rarely look there).

Anything that won't fit in closets, junk drawers, or under the beds, consider putting in the trunk of the car until after the showing.

>>>Get out before the potential buyer arrives

With a little strategic cleaning, your house can look pretty good in a short order.  But once, it is time for them to arrive, STOP picking up and catch your breath.  Don’t let anyone catch you cleaning; it makes everyone uncomfortable. 

For showings, we always advise leaving prior to their arrival.  But for the guests, obviously you need to stick around, no matter how much you might want to take off.

*Company usually doesn’t go into the bedrooms, so you can skip these steps and simply close the bedroom doors in the event of company.

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

Is Your Home Showing Ready? - Copyright © 2011, The Scott Loper Team, All rights reserved.

Congratulations to the North Penn Knights Football team from Lansdale PA for making it all the way to the PIAA State Championship game to be held this Saturday in Hershey, PA.

Saturday, December 17, 2011

PIAA State Championship AAAA Football Game

North Penn vs Central Dauphin

Hershey Park Stadium – 6:00 p.m.

Admission $8

Go Knights!

Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.

North Penn Knights Football Go for the State Championship - Copyright © 2011, The Scott Loper Team, All rights reserved.