What does this all mean? Well, for one, i strongly advise everyone to downsize. It's time to crunch and save and be prepared for shortcomings because they may well be around the corner. Many developers are turning to the rental market to wait out the storm while its becoming more difficult to qualify for a loan. However, if you do qualify for a loan, its a great time with the low rates and large inventory. The construction market is still quite healthy in Philadelphia. Luckily, many projects have reasonable exit strategies in fair retail prices or rental capabilities. Those that seemed to be a little unrealistic.... many of them arent built yet. Wonder why?
Please hear this... if its too good to be true, it is. Unfortunately, the mortgage industry isnt regulated. So a door to door aluminum siding salesman could be selling mortgages behind a desk and they make their money in volume. There is no licensing for this field. The fees are not always disclosed far enough before settlement. So, please be cautious and dont go for an interest only balloon that will explode by 3 points in 2 years and render your home purchase unaffordable. The traditionall 10 or 20 percent down mortgage at a nice warm 30 year fixed with very little upfront pointage is looking lovely these days. Go find one!
As for sellers, in this time with a heavy credit crunch, the buying pool has been shaved... maybe in half. We need to create value in your home. We need the perception to be that it is a worthy purchase and there is great differentiation in your home than the rest of the inventory. I just ran some inventory numbers for a developer client of mine and the news was grim. 19125 in the 400-600k home marketplace has a 27 month inventory. Northern Liberties has a 56 month inventory! What does that mean? If there is not one new listing in this price range, it will take 27 and 56 months to sell thru everything that is for sale today. So, competition is fierce. There are still transactions as people still need to move for whatever reasons.... however, the products have to stand out. Have a nice weekend!
Please hear this... if its too good to be true, it is. Unfortunately, the mortgage industry isnt regulated. So a door to door aluminum siding salesman could be selling mortgages behind a desk and they make their money in volume. There is no licensing for this field. The fees are not always disclosed far enough before settlement. So, please be cautious and dont go for an interest only balloon that will explode by 3 points in 2 years and render your home purchase unaffordable. The traditionall 10 or 20 percent down mortgage at a nice warm 30 year fixed with very little upfront pointage is looking lovely these days. Go find one!
As for sellers, in this time with a heavy credit crunch, the buying pool has been shaved... maybe in half. We need to create value in your home. We need the perception to be that it is a worthy purchase and there is great differentiation in your home than the rest of the inventory. I just ran some inventory numbers for a developer client of mine and the news was grim. 19125 in the 400-600k home marketplace has a 27 month inventory. Northern Liberties has a 56 month inventory! What does that mean? If there is not one new listing in this price range, it will take 27 and 56 months to sell thru everything that is for sale today. So, competition is fierce. There are still transactions as people still need to move for whatever reasons.... however, the products have to stand out. Have a nice weekend!
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