Happy New Year!  I hope you had a wonderful holiday season and are looking forward to this year.  The week before Christmas turned out to be very busy for me, and we enjoyed helping three households select homes and enter agreements to buy them, which helped two households and a builder be able to move forward with their plans.Here are the numbers from my January 7, 2010 searches in the Lancaster County MLS:

Happy holidays!  Christmas is almost here and people are busy getting ready.  I hope you have a wonderful holiday season.

This time of year tends to have fewer active buyers and sellers, but those who are active are generally feeling the need to move for some reason or another.  There is talk of interest rates heading up in the Spring due to the Federal Reserve changing strategy and focus, in an attempt to avoid inflation.  Astute buyers are trying to lock in ahead of that.

The $8,000 First Time Home Buyer Tax Credit has been extended, and, there is now also a $6,500 credit for people selling a home and buying another!  People thinking of buying a home really should be aware of this and carefully consider the impact of not acting to take advantage of this.  To take advantage of this, you need to purchase a house prior to the end of April 2010.  That means buyers need to be under agreement on a property before April 30, 2010, and settle on that property on or before June 30, 2010.

Here are the numbers from my December 7, 2009 searches in the Lancaster County MLS:
                 Active Listings   UA Listings   Ratio     Prior year Ratio
Dec 7, 2009     2,873               439      15.28%       18.19%
Nov 4, 2009     2,907               641      22.05%       20.43%
Oct 6, 2009      2,882               759      26.34%       22.65%
Sep 8, 2009     2,884               773      26.80%       24.12%
Jul 7, 2009       2,761               796      28.83%       29.17%
May 7, 2009     2,845               801      28.15%       34.95%
Mar 7, 2009     2,812               545      19.38%       31.00%
Jan 3, 2009      2,660              427      16.05%       21.29%

We started 2009 weaker than corresponding months in 2008, stronger in September, October and November, but weakness returned in December.  The First-Time Homebuyer Tax Credit had some impact on that, possibly nudging buyers that were planning to move in early 2010 to act sooner and purchase a home before the original deadline of November 30, 2009.

The Lancaster County Association of Realtors publication, House Calls, reports in the December 2009 issue that settled units, where the home has transferred ownership, was up 24.2% in October 2009 over October 2008.  Pending home sales for October 2009 have increased over 2008 by 26.0%.  We have seen a significant change in the market compared to 2008.  House Calls also reports that the National Association of Realtors® forecasts 2010 home sales are expected to be 15 percent over 2009.

Over the last few months there were several homeowners that I spoke with that are facing challenges.  Most are dealing with job losses or health issues that led them to being unable to make their mortgage payments.  In viewing homes, there are a larger percentage that are vacant than I remember seeing before.

Sellers currently face stiff competition from other sellers and from builders selling new homes.  Buyers have many homes to choose from and can use guidance in making their selection.  With all of the challenges home buyers and sellers can be faced with in the market, doesn’t it make sense to use the services of a Realtor® that has helped many people through the buying and selling process over the last decade?

If you know someone who is thinking of buying or selling, please recommend they call me.  I’ll also be happy to contact them if that is appropriate.

Happy Holidays! 

Thank You!

Prepared by:   J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®

Prudential Homesale Services Group

150 North Point Boulevard, Lancaster, PA 17601

717-560-9100     http://www.msollenberger.com/        msollenberger@topproducer.com

Licensed in PA

Feel free to visit me on Facebook.com, LinkedIn.com, or Twitter.com.

p.s. As we approach the celebration of a new year, and become involved in making resolutions and plans for 2010, may you have hope and excitement as you think about your future.

The $8,000 First Time Home Buyer Tax Credit has been extended, and, there is now also a $6,500 credit for people selling a home and buying another!  People thinking of buying a home really should be aware of this and carefully consider the impact of not acting to take advantage of this.  To take advantage of this, you need to purchase a house prior to the end of April 2010.  That means buyers need to be under agreement on a property before April 30, 2010, and settle on that property on or before June 30, 2010.

Here are the numbers from my November 4, 2009 searches in the Lancaster County MLS:

                 Active Listings   UA Listings   Ratio     Prior year Ratio

Nov 4, 2009    2,907               641      22.05%       20.43%

Oct 6, 2009      2,882               759      26.34%       22.65%

Sep 8, 2009     2,884               773      26.80%       24.12%

Jul 7, 2009       2,761               796      28.83%       29.17%

May 7, 2009      2,845             801         28.15%       34.95%

Mar 7, 2009       2,812             545         19.38%       31.00%

Jan 3, 2009        2,660             427         16.05%       21.29%

Price ranges up to $250,000 again show the most strength in activity and ratio.  Above $250,000 there is much less activity and the average time on market is significantly longer.  The Market Absorption as reported in The Lancaster County Association of Realtors publication, House Calls, indicates that in price ranges up to $300,000 the “Months Supply” maximum is 7.3, whereas $300,000 to $400,000 is 15.2 and $400,000 and up is 20.7.  That indicates that someone selling a home in the $400,000 and up price range may need to be prepared for possibly nearly two years of time on the market.

The Lancaster County Association of Realtors publication, House Calls, reports in the November 2009 issue that settled units, where the home has transferred ownership, was up 22.4% in September 2009 over September 2008.  Pending home sales for September 2009 have increased over 2008 by 26.8%.  The pending home sales increase again points to future months of increased settled units, possibly in October, November, and December.

Our office has been seeing nice sales numbers again this month.  September and October 2009 were much improved over September and October 2008, but with the $8,000 tax credit scheduled to end in November, things have quieted somewhat.

Things have been interesting lately.  Recently there were two transactions where my buyers had entered into an Agreements of Sale on the homes, but unusual issues came up and both agreements ended up being released instead of settling.  This is unusual in typical market environments, but not so much in the current environment.  Buyers and Sellers both take on some risk when they enter an Agreement of Sale to sell or buy a home.  Even knowing that risks exist doesn’t eliminate the frustration when plans get changed.

Tuesday I talked to someone that is selling their home without a Realtor®.  He told me he had his home sold twice, but when it came to getting the agreement in writing, the buyers backed out.  One even bought a house on the street next to his home.  He also mentioned that someone from out of town had called him, and when he talks to them next he will make an offer they can’t refuse.  It appears he may be giving away any commission savings he hoped to enjoy by not using a Realtor®.

Also, someone told me about a recent auction on a house, and that prior to the auction the auctioneer approached a neighbor that was attending the sale and invited him to make a bid on the property just to get the bidding started.  When the auction started, the neighbor did that and no one else bid any higher, for a long time.  Ultimately the bidding went higher after several recesses, but the sellers did not accept the maximum bid after all of that.  It appears to me that buyers tend to go to auctions and FSBO’s expecting or hoping for a bargain.

With all of the challenges home buyers and sellers can be faced with in the market, doesn’t it make sense to use the services of a Realtor® that has helped many people through the buying and selling process over the last decade?

If you know someone who is thinking of buying or selling, please recommend they call me.  I’ll also be happy to contact them if that is appropriate.

Thank You!

Prepared by:   J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®

Prudential Homesale Services Group

150 North Point Boulevard, Lancaster, PA 17601

717-560-9100     http://www.msollenberger.com/        msollenberger@topproducer.com

Licensed in PA

Feel free to visit me on Facebook.com, LinkedIn.com, or Twitter.com.

Here are the numbers from my October 6, 2009 searches in the Lancaster County MLS:

                 Active Listings   UA Listings   Ratio     Prior year Ratio

Oct 6, 2009      2,882               759      26.34%       22.65%

Sep 8, 2009     2,884               773      26.80%       24.12%

Jul 7, 2009       2,761               796      28.83%       29.17%

May 7, 2009      2,845              801       28.15%       34.95%

Mar 7, 2009       2,812              545      19.38%       31.00%

Jan 3, 2009        2,660             427       16.05%       21.29%

Several of our Prudential Homesale Services Group offices saw very strong production in September.  The North Pointe office I work in was almost 37% above goal for the month in pending home sales.  Some of this may be due to the $8,000 tax credit, which is scheduled to end November 30, 2009.

Buyers and Sellers are both a bit uneasy now.  Buyers are uneasy due to wondering if they are buying at the right time, if prices will decline.  Sellers wonder if they should wait to sell until the market improves.  Sellers and Buyers anxiety also increases when inspection or appraisal issues arise, which happens frequently.  Several people selling homes expressed significant relief when they reached an agreement to sell.  Reaching that stage gives them the confidence that someone wants to buy the home in an environment with a lot of bad news and uncertainty.

The Lancaster County Association of Realtors publication, House Calls, reports in the October 2009 issue that settled units, where the home has transferred ownership, was up 16.5% in August 2009 over August 2008.  Pending home sales for August 2009 have increased over 2008 by 30%.  The pending home sales increase again points to future months of increased settled units, possibly in September, October, and November.  House Calls reports that the $100,000 to $200,000 price range had the strongest performance.  This is likely due to the $8,000 tax credit currently offered buyers that haven’t owned a home in the last three years, since many will be buying their first home.

On September 25 I attended the Sheriff Sale at the Lancaster County Courthouse.  There were 133 properties on the list to be sold.  Many were continued until November 25, but 30 were sold.  Of the 30 sold, all but 4 or 5 were sold to the bank forcing the foreclosure.  The good news is that approximately 100 homes remained with the current owner who worked something out to prevent the foreclosure sale.  The remaining homes will likely be sold in the next few months by the mortgage company using a local Realtor®.  In July, there were over 150 homes on the Sheriff Sale list, so the 133 in September is a reduction of 11.3%.  In a time when there is a lot of national news coverage on foreclosures, this is information that illustrates how our area in Lancaster is insulated a bit when considering other areas of the country.

Time is almost gone on the $8,000 First Time Home Buyer Tax Credit!  People thinking of buying their first home really should be aware of this and carefully consider the impact of not acting to take advantage of this.  To take advantage of this, you need to purchase (and settle on) a house prior to the end of November 2009.  That means buyers need to be under agreement on a property before early to mid October.  With the increasing length of time the mortgage process may take, it may be challenging to get approval and settled before November 30, 2009.  There is a possibility the Tax Credit may be extended, but the Cash for Clunkers program was not extended, and the $8,000 Tax Credit may also not be extended.

Borrowing for a home loan increases in complexity and challenge.  Lenders are faced with increasing rules and regulations and are still learning to work within the context of the legislation.  Appraisal issues come up, but can be anticipated with a proper market analysis’s being done by both the listing agent and the buyers agent.  Buyers really need to get pre-approved to know how much they are qualified to purchase.  Simply using a calculator on the Internet is no longer enough to be confident.  Credit scores have become even more important that they were a year or two ago.  Lenders have increased the level that a credit score for a buyer must be to qualify.  Buyers that have been pre-qualified several months ago really should talk to their lender again to verify they continue to be qualified for what they are looking for.

A big Thank You to everyone who has recommended my service to someone they know.  I really appreciate the confidence that shows you have in me, and will do everything I can to continue to earn that confidence.

If you know someone who is thinking of buying or selling, please recommend they call me.  I’ll also be happy to contact them if that is appropriate.

Thank You!

Prepared by:   J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®

Prudential Homesale Services Group
150 North Point Boulevard, Lancaster, PA 17601

717-560-9100

     http://www.msollenberger.com/
     msollenberger@topproducer.com

Licensed in PA

Feel free to visit me on Facebook.com, LinkedIn.com, or Twitter.com.

Here are the numbers from my September 8, 2009 searches in the Lancaster County MLS:                

Active Listings   UA Listings   Ratio     Prior year Ratio
Sep 8, 2009     2,884              773          26.80%   24.12%
Aug 7, 2009     2,805             791          28.20%   25.04%
Jul 7, 2009       2,761             796         28.83%   29.17%
Jun 5, 2009      2,844             814          28.62%   33.26%
May 7, 2009     2,845             801          28.15%   34.95%
Apr 4, 2009      2,861             642          22.44%   32.03%
Mar 7, 2009     2,812             545          19.38%   31.00%
Feb 4, 2009      2,730             447         16.37%   24.62%
Jan 3, 2009      2,660              427         16.05%   21.29%This table shows the ratios of the number of properties currently under agreement divided by the number of properties actively on the market for 2008 and YTD 2009.  The January through June time period had lower ratios in 2009 than we saw in 2008.  However, in July the gap narrowed and in August and September has reversed, and activity is now stronger than last year.   The Lancaster County Association of Realtors reported in The Lancaster New Era and Intelligencer Journal on August 28, 2009 that there was a 25.3% increase in the number of homes going under agreement in July 2009 over July 2008.

Lancaster County Real Estate Market Report August 9, 2009 Here are the numbers from my August 7, 2009 searches in the Lancaster County MLS: 

           Active Listings   UA Listings   Ratio     Prior year Ratio
Aug 7, 2009  2,805               791         28.20%   25.04%
Jul 7, 2009    2,761               796         28.83%   29.17%
Jun 5, 2009   2,844               814         28.62%   33.26%
May 7, 2009  2,845              801         28.15%   34.95%
Apr 4, 2009  2,861               642         22.44%   32.03%
Mar 7, 2009  2,812              545         19.38%   31.00%
Feb 4, 2009   2,730              447         16.37%   24.62%
Jan 3, 2009   2,660              427         16.05%   21.29%

Once again, it’s clear that the market in the Lancaster area is strengthening in 2009 compared to 2008. Looking at the trend last year for May, June, July, and August, the ratio was declining, and this year it is consistently in the area of 28% for those four months.  In this last four months we did not see an increase, but neither did we see a 10% range decline like last year over the same time frame.

Looking at the various price ranges on August 7, 2009 we see the following:
Price Range     Active Listings     Under Agr.       Ratio     Ratio 5 yrs ago       C/5yrago
Up to $50,000             71                 30             42.25%         76.12%            55.5%
$50,001 to $100,000   202                68             33.66            98.44%            34.2%
$100,001 to $150,000 353                181            51.27%       196.77%            26.1%
$150,001 to $200,000 602                230            38.21%       157.02%           24.3%
$200,001 to $250,000 470                128            27.23%         89.95%           30.3%
$250,001 to $300,000 422                  64            15.17%         66.67%            22.8%
$300,001 to $400,000 359                  65            18.11%         42.76%            42.4%
$400,001 to $500,000 124                  15            12.10%         31.67%           38.2%
$500,001 and higher    202                10               4.95%         28.75%           17.2%
Totals:                     2,805               791             28.20%       103.22%          27.3%
 

Analyzing this shows that change in demand has had the hardest impact on the $500,001 and higher price range.  The current ratio is only 17% of the ratio five years ago, whereas Up to $50,000 and $300,001 to $400,000 price ranges kept their ratio’s much higher proportionally than the others.  Considering that most houses sold fit into the $100,001 to $250,000 price ranges, these changes have had a significant impact on a lot of people. Clearly the $100,001 to $150,000 range is the one most in demand.  As price range increases there is generally a decline in the UA/A ratio.  It appears that properties in the $500,001 and higher range are seeing the least activity.

The Lancaster County Association of Realtors publication, House Calls, reports in the August 2009 issue that settled units, where the home has transferred ownership, was down 14% in June 2009 over June 2008.  Pending home sales for June 2009 have increased over 2008 by 3%.  They also reported that in June 2009, the $100,000 to $200,000 market was up 30 percent over June 2008 in pending home sales.  This may be the beginning of a positive trend.  Last week an article in the Wall Street Journal reported that new construction activity is beginning to increase again.

Recently someone stopped when I was at our Prudential Kiosk at Park City, and mentioned that their house went down in value here in Manheim Township.  They had heard from someone that house values were down 30% and they assumed their house had declined also.  After a brief discussion, they were pleased to understand that they likely had not experienced a significant reduction in value.  Lancaster County Pennsylvania is an area that was recently listed in the top ten areas for real estate market strength.  I believe it is because we have a diverse economy, with a good variety of sectors in service and manufacturing.   We are not dependant on any one sector like Detroit is on the automobile, and Florida is on tourism.

HVCC.  “Havoc” is how it’s referred to, but HVCC stands for Housing Valuation Code of Conduct.  Recently regulations have become effective that relate to the mortgage loan and appraisal processes.  HVCC relates to the appraisal process, and other regulations address Truth-in-Lending issues and underwriting issues.  The time it takes to process and approve mortgage loans has increased recently, and any changes that buyers/borrowers want to make after getting approval will delay the process.  Buyers need to have a higher credit score now to purchase a home than they would have needed three years ago.  At a time when the unemployment rate is increasing, although at a slowing rate of increase, it is more challenging to get approval since buyers may have been downsized in a number of ways.  Even if a buyer hasn’t been downsized, if they are concerned about their job stability, they are likely to not pursue purchasing a home until they are more comfortable that they are secure.

Time is running out on the $8,000 First Time Home Buyer Tax Credit?  People thinking of buying their first home really should be aware of this and carefully consider the impact of not acting to take advantage of this.  To take advantage of this, you need to purchase (and settle on) a house prior to the end of November 2009.  That means buyers need to be under agreement on a property before mid-October.

Thank You!

Prepared by:   J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®Prudential Homesale Services Group150 North Point Boulevard, Lancaster, PA 17601717-560-9100     www.msollenberger.com        msollenberger@topproducer.comLicensed in PA Feel free to visit me on Facebook.com, LinkedIn.com, or Twitter.com.

Here are the numbers from my July 7, 2009 searches in the Lancaster County MLS:

                  Active Listings   UA Listings   Ratio     Prior year Ratio
Jul 7, 2009       2,761             796             28.83%   29.17%
Jun 5, 2009      2,844             814             28.62%   33.26%
May 7, 2009     2,845             801             28.15%   34.95%
Apr 4, 2009      2,861             642             22.44%   32.03%
Mar 7, 2009      2,812            545             19.38%   31.00%
Feb 4, 2009       2,730            447             16.37%   24.62%
Jan 3, 2009       2,660            427              16.05%   21.29%

In analyzing that information, it’s clear that the market in the Lancaster area has strengthened a good bit in 2009 compared to 2008.  Considering the ratio in January 2009 was 16.05% and has improved to 28.83% in July (a 12.78% improvement), and that the ratio only strengthened 7.88% last year, it seems like there is renewed vigor in the Lancaster market.  That may be due to the economic stimulus packages put in place earlier this year.  The Unemployment Report of 9.5% unemployment that was released last week points to continued problems, but considering how that number is developed, it could mean something as insignificant as more people who were unemployed and gave up looking, began looking again. That is a sign of renewed hope, not of more problems.  Economically, we still haven’t seen the growth we enjoyed over the last few years, but as an economics professor I had in college said, “In every expansion are the seeds for a contraction, and in every contraction are the seeds for an expansion”.  We will get there.  Warren Buffet speaks of his confidence that over the next 10 years we will see good things in our economy and business environment.  There are too many creative and enterprising people in our country for things to not get better.

The Lancaster County Association of Realtors publication, House Calls, reports in the July 2009 issue that settled units, where the home has transferred ownership, amounted to 471 in May 2008, and was down 12.5% to 412 in May 2009.  They also report that the five-year average of homes sold in May is 506.  In April 2005 we saw 532 homes sold.  This is consistent with my numbers listed above.  With the April ratio of Under Agreement divided by Active Listings in 2008 being 32.03% and in 2009 being 22.44%, we can expect that we will see fewer homes settle in May of 2009 than for 2008.  However, with the ratio being 28.83% for July 2009 verses 29.17% for July 2008, I predict we see a smaller decline in number of settlements in August 2009 vs. August 2008.  That may be the beginning of a positive trend.

Once again, have you heard about the $8,000 First Time Home Buyer Tax Credit?  People thinking of buying their first home really should be aware of this and carefully consider the impact of not acting to take advantage of this.  To take advantage of this, you need to purchase a house prior to the end of November 2009.
     1.      It is a tax credit of $8,000 that reduces your taxes, possibly giving you cash.
     2.      With interest rates as they are now, the cost to borrow money is not likely to get less in the future.
     3.      Buyers have more homes to select from.
     4.      Sellers are not able to demand the prices they may have a couple years ago.
     5.      Buyers are less often in situations where offers are competing with others.

Interest Rates:  Although the mortgage rates have increased slightly over the last month or so, they are still near the low’s of the last 30 years.  House Calls, reports in the July 2009 issue that the national average commitment rate on a 30-year, fixed-rate home loan as of June 25^th was 5.42%, down from 6.45% one year ago.  In response to the increase in foreclosures and short sales, lenders have tightened eligibility requirements for borrowers and are rechecking credit scores and other facts just before settlement, and are requiring more verifications for assets and employment.

The world is changing, in many ways.  Technology and culture are the areas that stand out to me the most.  We have become so reliant on mobile technology, and use it to communicate in ways previously not common.  Teenagers and young adults plan their lives with mobile phones and text messaging in much different ways than prior generations did.  Social networking sites like Facebook, LinkedIn, MySpace, Twitter, and others are becoming so much a part of people’s lives now that they check their sites sometimes several times a day.  As a Realtor®, I have needed to utilize those sites to reach people.  It is all a very fascinating study in culture change.  Include the economic dynamics in our community and nation recently and you have a very complex and changing environment.  This is an exciting time to be living in.

Thank You!

Prepared by:   J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®
Prudential Homesale Services Group
150 North Point Boulevard, Lancaster, PA 17601
717-560-9100     www.msollenberger.com        msollenberger@topproducer.com
Licensed in PA
Feel free to visit me on Facebook.com, LinkedIn.com, or Twitter.com.

Here are the numbers from my June 5, 2009 searches in the Lancaster County MLS: 

              Active Listings   UA Listings   Ratio     Prior year Ratio

Jun 5, 2009     2,844            814         28.62%    33.26%

May 7, 2009    2,845            801         28.15%    34.95%

Apr 4, 2009     2,861            642         22.44%    32.03%

Mar 7, 2009     2,812            545         19.38%    31.00%

Feb 4, 2009     2,730            447         16.37%    24.62%

Jan 3, 2009      2,660            427         16.05%    21.29%

These numbers are like a “snapshot” of the market at a point in time.  Other numbers that are reported are based on activity over a period of time, possibly one month, one quarter, or one year.  I like these numbers because they seem to be a “leading indicator” of activity that will be reported on after the period of time has ended.

In reviewing market numbers, we could also consider Months of Supply.  For example, if there are 2,800 properties on the market, and in the last month there were 800 that went Under Agreement, then the calculation is 2,800 divided by 800, equaling 3.5, which represents about 3.5 months of supply of homes at that pace of sales.  In the period of time from March 15, 2009 to April 15, 2009 there were 1011 homes that went under agreement.  Considering that there were 2,861 active listings on April 4, 2009, that represents 2.83 Months of Supply at that time.  Looking back to the 2004, from March 15, 2004 to April 15, 2004 there were 1,264 homes that went Under Agreement.  On April 6, 2004 there were 1,390 active listings, representing a Months Supply of 1.10.  That illustrates that we currently have more than double the Months Supply that existed in 2004, at the peak of the market.  That gives some possible suggestion of how long a home may be on the market.  Some homes will sell sooner, others take longer.  Home preparation and pricing impact that significantly.

However, to put that in the perspective of the national housing market, for example in Las Vegas at one point, there were approximately ten times as many homes for sale per person as we have here in the Lancaster PA market.  Here in Lancaster we have been shielded, (But not completely isolated) from the harsher effects of the national housing market.

The Lancaster County Association of Realtors publication, House Calls, reports in the June 2009 issue that settled units, where the home has transferred ownership, amounted to 409 in April 2008, and was down 16.9% to 340 in April 2009.  They also report that the five-year average of homes sold in April is 449.  In April 2005 we saw 532 homes sold.

Has the housing market reached its low?  Will it improve in 2009?  I don’t know.  We are in a time of uncertainty, fear, liquidation, and volatility.  People who take careful, calculated and well understood risks at times like this tend to be well rewarded for that later.

Have you heard about the $8,000 First Time Home Buyer Tax Credit?  People thinking of buying their first home really should be aware of this and carefully consider the impact of not acting to take advantage of this.

1.      It is a tax credit of $8,000 that reduces your taxes, possibly giving you cash.

2.      With interest rates as they are now, the cost to borrow money is not likely to get less in the future.

3.      With the 2.83 Months of Supply of inventory, buyers have more homes to select from.

4.      With the 2.83 Months of Supply, sellers are not able to demand the prices they may have a couple years ago.

5.      With the 2.83 Months of Supply, buyers are less often in situations where offers are competing with others.

Interest Rates:Wow!  Currently I am aware of mortgage rates ranging from 5% to 6% depending on the number of points a borrower pays.  Those are low rates when you consider the range of rates over the last decade.  What is also unusual is that mortgage rates fluctuate every day, and sometimes multiple times in one day.  Someone checking rates with different lenders will have to be on the phone with each of them a couple times every day if they want to try to get the best rate.  However that will only work if they have a property under agreement, have applied for the loan at all the different places, and haven’t locked in already somewhere.  Lenders are getting more savvy about borrowers playing the field like that, and are less and less forgiving about locking in and then if rates go down adjusting the rate.

Also, I hear that the Federal Government is borrowing money to fund the Stimulus Package, pushing interest rates up.  It’s a sad but true reality that the desired effect of the stimulus package can be a bit minimized by the action of stimulating.  Current homebuyers are likely to benefit from the stimulus package as home values increase in the next couple years as the economy recovers.  Call me if you would like to participate in that.

Thank You!

Prepared by:   J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®Prudential Homesale Services Group150 North Point Boulevard, Lancaster, PA 17601717-560-9100     www.msollenberger.com        msollenberger@topproducer.comLicensed in PA

Here are the numbers from my May 7, 2009 searches in the Lancaster County MLS:

                        Active Listings   UA Listings    Ratio          Prior year Ratio

May 7, 2009                2,845               801        28.15%          34.95%

April 4, 2009               2,861               642        22.44%          32.03%

March 7, 2009             2,812               545        19.38%          31.00%

February 4, 2009         2,730               447        16.37%          24.62%

January 3, 2009           2,660               427        16.05%          21.29%

Looking at the ratio changes from April to May, last year was an improvement of 2.92%.  From April to May this year, the ratio improved 5.71%.  We still see a slower market than we have for several years, but we need to remember that just a few years ago we talked about the market being hot, and that it could not sustain that pace indefinitely.  Homes are generally taking longer to sell, and sellers are not enjoying the eagerness buyers exhibited just three or four years ago.

May 4, 2004, the ratio of under agreement listings to active listings was 128.52%.  That means that for every 100 houses actively for sale, there were also 128 that were already under agreement.  Recent activity indicates that for every 100 houses actively for sale there are 28 in addition that are under agreement.  This shows that there is a significant difference in the market environment.

My personal experience points to the fact that even in that environment, people still choose to move, and therefore buy or sell homes.  I have enjoyed being involved in several properties getting sold in the last few weeks.  Recently we have seen much more activity in our offices, with stronger activity in new listings and with properties going under agreement than we did a year ago.

There is still economic news that points to the challenges in the housing and financial markets.  Unemployment figures remind us that some people are experiencing job losses, and other news indicates that people are generally uneasy about committing to major purchases.  Those who are not concerned about their job may find now to be a great time to make a move.

In all of this, as you consider moving, ask yourself if you want a Realtor® with experience and many tools to market properties and help buyers locate a home?  Or do you want someone that works for less, just because they are less sure of the value they bring to you.

With my experience and the programs and services I can offer as an agent with Prudential Homesale Services Group, you can look forward to a great experience in buying or selling a home.  I’d love to assist you in getting to where you want to go.

Thank You!

Prepared by:   J. Merle Sollenberger, GRI, CRS, Associate Broker, Realtor®

Prudential Homesale Services Group

150 North Point Boulevard, Lancaster, PA 17601

717-560-9100     www.msollenberger.com        msollenberger@topproducer.com 

Licensed in PA