“Despite the fact that key market indicators released in recent weeks have shown declines in home sales, anecdotal reports from real estate agents in the field suggest “better days are ahead for the industry,” according to commentary released Monday by the economic team at Wells Fargo Securities, LLC.”

Please visit the DSNews.com site to read the rest of the article.

This is great news for those who are thinking of putting their house on the market in the coming months!

For more information on the current real estate market in your area, please call me at 302-528-0404 or visit my main website, sharonlantz.com.

“Mortgage rates dipped into record territory again, with the 15-year fixed-rate falling to its lowest level in 60 years and the 30-year fixed-rate just a tick off its own record.

A popular choice among homeowners looking to refinance, 15-year, fixed-rate mortgages averaged 3.13% last week, down slightly from the record low of 3.14% set in early February, according to Freddie Mac. The average rate on 30-year fixed-rate mortgage fell to an average of 3.88%, a mere 0.01 percentage points above its previous record low.

“The record low rates have helped make housing as affordable as ever, according to Frank Nothaft, Freddie’s chief economist.

“With these historically low rates and declining house prices, the typical family had more than double the income needed to purchase a median-priced home in January,” he said.”

Now is the time to invest!

To discuss the possibility of purchasing a home, please visit sharonlantz.com and either email or call so we can set up a meeting to discuss your future as a potential home owner!

Arden is home to both visual and performing arts, and features a number of theatres, including the New Candlelight Dinner Theatre, the outdoor Field Theatre, and several other performance areas.

Arden was founded in 1900 by sculptor Frank Stephens and architect Will Price, and is based on the Single-Tax economic philosophy of Henry George.

According to the site Wikipedia,

“Land in Arden cannot be sold; instead it has a renewable 99-year lease. People are free to improve it as they choose, but the land-lease fee will not increase because of improvements. Arden is not exempt from New Castle County land taxes, but the buildings within the village are taxed separately for county and school district revenue, while the land is technically one large parcel, and taxed by New Castle County accordingly.

The land is held in a trust, administered by three elected trustees, who have life-long tenure. Arden’s tax structure is currently based upon the individual leaseholds. Most leaseholds are residential, and the land rent is based upon the square footage rather than the improvements upon the land. An elected board of assessors divides the County’s full assessment of the residential areas of Arden by the individual lots. Lots that are nearer to open space or woodlands are assessed a bit higher, while lots nearer main road are assessed a bit lower.”

If you are interested in seeing some of the homes in this unique community, please call me at 302-528-0404 to set up an appointment!

“U.S. banks increased financing for commercial real estate in the fourth quarter for the first time in almost two years as default rates dropped and lenders shed more foreclosed properties, Chandan Economics said.”

We can only hope this will eventually lead to an increase in lending to home buyers! 

Please visit the Bloomberg site to read the rest of the article. 

Click on the paper to see this week’s Wall Street Journal House of the Week.

Sussex Finance Director Susan Webb gave county council the good news at its Dec. 13 meeting: a projected $1 million surplus in the general fund has more than tripled to almost $3.5 million.

Webb said a $1.6 million increase in realty transfer taxes for fiscal 2011 and a sharp decrease in employee-related expenses added up to put the county well in the black.

The county has been able to eliminate 50 jobs over the past three years through attrition, absorbing work in departments and three early-retirement plans.

A single $750,000 realty transfer created by a partnership change in a medical complex was a big boost to the county coffers in fiscal 2011, Webb said. Even so, the tax has fallen from more than $35 million in 2005 and 2006 to less than $15 million the past four years.

County council wasted little time backing staff’s plan to allocate the funds to four areas: • $136,000 in grants as previously authorized by council. Among the grants is $7,500 to provide streetlights and cover community clean-up costs for the West Rehoboth Community Coalition, an increase of $2,500 per town in local law enforcement grants and $3,000 each to county CHEER centers and Meals on Wheels of Lewes and Rehoboth Beach. • Ten percent of the surplus – more than $347,000 – must be dedicated by ordinance to open-space programs. • Nearly $1.1 million to cover a one-time 8 percent property tax reduction amounting to $8.30 for an average county taxpayer. • Nearly $958,000 to be invested in the county’s pension fund and another $958,000 to be invested in the county’s pension benefit trust fund, which funds healthcare costs.

County Administrator David Baker said it was prudent to take advantage of an opportunity to place money in the pension funds. Although the pension trust fund is funded at nearly 90 percent and the pension benefit trust fund is funded at nearly 75 percent, both funds are still short about $9 million of meeting a 100-percent funding level, Baker said. The county has $68 million in its two pension funds.

As posted in the Cape Gazette. Photo by Ron MacArthur.

If you are looking for a Rehoboth Beach getaway, here’s a great one to consider!

Wall Street Journal December Home of the Week!

Some buyers are sophisticated enough to look for solid wood cabinet doors and dovetail joints in drawers, and may even be able to tell the different quality grades of granite countertops. But many buyers don’t look past the surface—so if a kitchen seems fresh, polished and modern, they’re impressed.  And the opposite holds true for those homes that looks outdated, worn, and just plain old tired.

For the most impact, I suggest that you take these steps:

Buy a new countertop. A few years back, you may have been able to get away with a laminate countertop in an older or entry-level home, but I don’t think that’s true any longer. Sellers have realized that nothing matches the eye appeal of glossy granite in online photos, where most buyers begin to winnow their choices. Fortunately, the price for granite has dropped a great deal in recent years, especially for the cheaper grades of stone–which look just fine, in my opinion. But if granite is beyond your budget, consider Silestone or Corian. Look for deals where the installer throws in a free stainless steel sink and pull-out faucet. If you can’t afford new counter tops and if your present laminate counters are in very good condition, you might consider using a liquid car wax to refresh them and bring new brightness.  When it comes to counter space, clear off as much space as possible. Showing off your small appliances and other items tends to clutter the space and leaves a buyer with the impression there is no food prep area and not enough storage area.  You want to maximize the amount of space you have, or at least the appearance of more space.

Paint the walls and ceiling in a neutral color that picks up one of the tones in the countertop. Don’t use fad colors, don’t use paper boarders.

Change out any old appliances in dated colors like almond (or that 70′s Yellow Harvest.) Only buy white replacements if they match your cabinets; if you have natural wood, go for black or stainless. You needn’t buy top-of-the-line, but shouldn’t get the lowest end either. To make your kitchen stand out, consider adding one or two special appliances, such as a countertop microwave/convection oven or a wine chiller. If most of your appliances are relatively new and work well, paint any chips or dings with appliance touch up paint and polish them with liquid automotive wax.

Update the lighting, since few items show a kitchen’s age more quickly. Swap out any fluorescent fixtures for more fashionable pendant, track, spot or can lights. Minor details such as this can have a huge impact on the buyer’s appeal and updated lighting can really highlight the room.

Buy new cabinet hardware in brushed nickel or bronze.  Match all hardware. Don’t use a nickle finish on drawer pulls and chrome on the kitchen faucet.  Keep it uniform.

Beyond that, you can make a big impact without spending much money. If your cabinets are wood, refinish them; if they are painted, give them another coat (but don’t paint over wood cabinets, as most buyers prefer natural wood to painted).

Otherwise, clean, organize and edit. Since buyers will open cabinets, throw out or store all mismatched dishes, cracked cups and ancient small appliances. Replace the shelf paper and invest in drawer organizers. Face the labels of pantry items forward and put like items together, as in a grocery store.

When you have your first open house, make sure that your floors glow and your appliances sparkle inside and out. Grind a lemon peel in the garbage disposal to kill any odors. Then, put out a plate of warm cookies. Your visitors will feel a welcome vibe.  Don’t burn incense as this may set off a buyer with breathing problems and they may feel you are trying to mask some odor.

as reported in the WSJ by June Fletcher

The following are the states with the highest percentage of homes occupied by their owners.
1. West Virginia   8% Personal Income Tax ~ 6% Sales Tax ~ Property Tax Rate is .95
Home ownership rate: 73.4%
Median home value: $94,500
2. Minnesota   7.8% Personal Income Tax ~ 6% Sales Tax ~ Property Tax Rate is 1.27
Home ownership rate: 73%
Median home value: $200,400
3. Michigan   6.6% Personal Income Tax ~ 6% Sales Tax ~ Property Tax Rate is 1.91
Home ownership rate: 72.1%
Median home value: $132,200
4. Iowa   6% Personal Income Tax ~ 6% Sales Tax ~ Property Tax Rate is 2.15
Home ownership rate: 72.1%
Median home value: $122,000
5. Delaware   7.9% Personal Income Tax ~ 0% Sales Tax! ~ Property Tax Rate is .68!
Home ownership rate: 72.1%
Median home value: $294,400

The state with the lowest home ownership rate? New York, which has a home ownership rate of 53.3 percent.
Source: U.S. Census Bureau and “States With the Highest (and Lowest) Homeownership,” 247WallSt.com (Oct. 12, 2011)

Single Family Homes: 

The single family home sales show an improvement from the same time period in 2010.  Last year, 411 homes were sold for an average sale price of $360,224  with total sales of $585,597,096. On the other hand, last year two bedroom homes sold for $188,578,; three bedroom homes sold for $261,140, and four bedroom homes sold for $513,547.  The four bedroom home is the only home to see an increase in average sell price thus far in 2011.  The average sale price of a home has declined from $311,986 to $301,186 when compared to the same time last year.  The numbers are a “mixed bag” with more transactions closing,  but a decrease in sales by 6% from the same time last year.

Condos and Townhomes: The total number of closed listings as of September 30, 2011 was 152 units totaling $45,415,189 in sales.  The average sell price of a unit was $298,784.    Compared to 2010, this market has not shown improvement.  In fact, fewer units have sold and the average sales price has declined.   The 13% reduction in the number of units and the 19% decline in sales price indicate the market has not recovered in this area.    Last year at this time, the sales were $58,281,998 and the average sales price was $366,890 with a total of 173 units being sold.
 
Mobile Homes:  The total number of closed listings as of September 30, 2011 was 108 units totaling $ 4,968,044 in sales. The average mobile is selling for $46,000 which represents 88% of the list to sell price.  While the number of sales has improved, the average sale price has declined from $51,322  in 2010 to $46,000 thus far in 2011.   

Weather for the first-time buyer, the down-sizer, or the investor- the ripe fruit is there for the picking.  On Thursday,  WSFS Bank posted a 30-year fixed, 0 points rate of 4.006% Now can you recall a time in recent memory when lending rates were that low? Most lending institutions are holding the rates firmly in check in order for more consumers to climb on board.

What is not, to the dismay of many would-be buyers, being loosened up is the credit requirements to qualify for those loans. As the fed keeps a titan’s grip on the industry, buyers are feeling the pinch and punch of steady and higher Fair, Issac and Company  (FICO) score requirements. So how does this shake out for you? If you have qualifying scores (talk to your lender) and your income to debt ratio allows for a mortgage, this is not the time to sit on the fence. It is the time to act.

Become part of the dream and don’t sit on the outside looking in. If you are not in a good position due to credit issues, call your lender and consult with them about how to go about restoring or repairing your credit. It may not be as difficult as you may think. The point is, take action, take charge, and don’t be a victim of today’s economic outlook, be part of the recovery.    

I have experience in working as both a Delaware Buyer’s Agent and Delaware Seller’s Agent.  I have the skills, confidence, energy and knowledge to successfully complete any real estate transaction in Delaware and a proven track record that can be supported by client referrals.

I also have experience with assisting destressed homeowners short sale their homes in Delaware.  If you or anyone that you know are falling behind on mortgage payments, a short sale is the alternative to foreclosure.  Don’t be intimidated by the Delaware Short Sale Process.  I have a team of Delaware Short Sale Experts with years of experience and knowledge to successfully close a short sale in a timely manner.  I will help take the stress off of your hands

Avoid Foreclosure in Delaware.  Call me today to find out how you can Short Sale your Home in New Caslte or Kent County Delaware.

Call me today to find out more information about buying and/or selling a home in Delaware.  302-383-7575

Also, please visit my blog on a regular basis for current real estate news on the local housing market.

Feel free to visit my website for more info: www.AndreasDelawareHomes.com

Service Areas:

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Paulson understands that the Banks are not lending enough, even after the injections that have been given to them. The Treasury had also announced a plan to help consumer finance, using $20 billion of the bank bailout fund to buy asset backed securities for a consumer-lending facility known as Term-Asset-Backed Security Loan Facility, or TALF. This program should start in January where it will provide liquidity to consumer loans, like auto loans, credit cards, and student loans. All of which will be operated by the Federal Reserve.

With the current economic weakness, the Federal Reserve lowered the Fed Funds rate from 1.0% to a range between 0% and .25%, the Fed will employ all necessary tools to stimulate economic growth, including the purchase of large quantities of MBS (Mortgage Backed Securities).

In any real estate transaction, one of the most important elements is the price of the property. To be able to determine the market value of a property, lenders and real estate brokers hire a real estate appraiser to asses its market value.

There are three types of appraisal that appraisers employ – the VA, FHA and conventional appraisals. Professional real estate appraisers have real estate appraisal licenses that allow them to practice their profession. To be able to get this license, potential appraisers must attend classes and take and pass the state exams. However, even after getting their licenses, appraisers still need to take more classes to become certified appraisers for VA loans, FHA loans and others. Apart from state accredited schools that offer courses on different subjects on real estate appraising, online courses are also available on the Internet.

Online courses on real estate appraisal

Real estate appraisal courses offered by schools on the Internet include different areas of study, which usually includes the National Standards of Professional Appraisers (USPAP), lessons on how to use the Uniform Residential Appraisal Report, Real Estate Math, FHA Appraisal, OREA Information, State Appraisal Licensing Information, and License Renewal Information. Other additional courses offered by some schools also include Residential Real Estate Appraisal, and Legal Considerations in Appraisal.

Review courses to help future appraisers pass the state exams are also offered by the schools, which come in the form of practice exams and tutorials. These courses are often delivered through various software, CDs and virtual tutorials that future appraisers can access on their personal computers right at the comfort of their homes. As with other real estate courses offered online, future appraisers are also given the opportunity to study the different appraisal laws and principles in other states.

Renewal of License

Real estate appraisers are also required to renew their licenses and they do so by taking another set of exams. Online schools also offer help in this process by helping the appraisers upgrade their skill by offering additional courses like Income Property Analysis and Home Inspection. Given all of these, it is clear that online real estate appraisal courses offer a wealth of information for appraisers that can help them practice their profession.

Real estate investment companies acts as brokers and represents both buyers and sellers and create ideal opportunities for real estate investors. They represent clients in the sale, purchase, exchange and the finance of the real estate investment. Real estate investment companies are ideal for individual investors who want to take advantage of the real estate market but are unable to spend time on it. Most companies give personal attention and due importance to individual investors as they are their primary and most crucial segment of business.

The real estate investment companies deal with active brokers, a wide variety of investors, vendors, consultants and governmental agencies. Individuals can avoid many dangers associated with real estate investment by investing through companies as most companies employ personals that are trained to handle the pressure situations that often crop up in real estate investment. The investors who see the market clearly and make decisions based on the best evidence would get much profit from the real estate investment company. The investors can achieve the financial security and freedom which enables them to pursue other involvements.

Acquisitions, property management, due diligence, redevelopment, leasing, debt analysis and procurement, tax documentation, disposition analysis and detailed monthly reporting are some of the important services provided by real estate investment companies. Real estate investment companies are also referred as Real estate investment trust (REIT). Real estate investment companies have special federal tax treatment and must comply with certain tax requirements. There is a slight difference between Real estate investment companies and real estate investment trusts. For a company to become a real estate investment trust, it should share out 90 percent or more of its taxable income to its shareholders once in a year.

Before selecting a particular company, look whether they are registered under proper acts. Get as much information on a company from as many sources you can.

Right now rates are closer to the bottom point than they are at the top and with the volatility in the marketplace it is no time to sit on the sidelines trying to time the bottom of the market.  To listen to the complete inteview click here.  Now this is all speculation.  Naturally, that doesn’t stop the press from covering it.  When hope for homeowners gets spread in this manner, it’s important to remember some facts:

1.  The Treasury doesn’t set mortgage rates — Wall Street traders do.  Historically, rates  are based on the Supply and Demand for mortgage-backed bonds.

2.  Treasury intervention doesn’t guarantee low rates.  That mortgage rates are up by a half- percent since a week and a half ago proves it.

3.  Zero details about the plan have been confirmed, quoting CNBC.  Everything you’ve heard about 4.5 percent rates is a guess at this point.

But, perhaps most importantly, nearly every analyst interviewed has expressed a belief that a Treasury-sponsored stimulus would apply to home buyers only.  Homeowners wanting a refinance, in other words, would be ineligible.

Mortgage rates are very low today compared to where they’ve been in 2006, 2007 and 2008.  If you think your mortgage rate is too high for this market, reach out to your loan officer to review all of your options.  If rates really do reach 4.500 percent, you can always refinance again later.

FHA which stands for the Federal Housing Administration, provides insurance to mortgages that are made by private lending institutions.

There are many advantages in obtaining an FHA mortgage versus a conventional mortgage.  For one thing you do not have to provide a large downpayment, the minimum down payment requirement is currently at 3%.  Coming January 1, 2009 that amount will increase to 3.5%.  Also credit score requirements are more flexible and the mortgage insurance premiums are more reasonable.

In the DC Metropolitian area the and other high cost areas the FHA limits will be as follows:

• One-Unit    $625,500 
• Two-Unit    $800,775
• Three-Unit  $967,950
• Four-Unit    $1,202,965

Most areas of the country will have the following limits:

• One-Unit    $271,050
• Two-Unit    $347,000
• Three-Unit  $419,400
• Four-Unit    $521,250

To find out what the limits are in your county click here for the high cost areas or click here for the low cost areas around the country.  If your county is not on either list then use the one for the low cost area.