james yoakum: Mortgage Rate Hedging a Difficult Task
- 10/05/09 01:08 AM
This article from Marketwatch.com discusses using interest-rate-tracking ETFs (Exchange Traded Funds) and options on those ETFs to hedge the risks of mortgage rates rising before home-buyers have locked them in. While this particular approach might not be the perfect solution, today's historically low interest rates do make mortgage rate hedging something that is in high demand from savvy potential buyers who are looking to buy soon, but not soon enough to lock in at today's super-low rates (4.75%!!!). As this article highlights, a 1-point rise in mortgage rates right now could cost a buyer of a $200,000 home $1,300 per year … (0 comments)
james yoakum: Mortgage Rates Below 5% Again!
- 10/03/09 12:57 AM
Rates on 30-year fixed mortgages have dropped back below 5%! One local lender that I work with is quoting 4.74% for purchase loans this morning and they usually offer even better rates to first-time buyers. If you're thinking of buying this could be a perfect time - prices are still low but showing signs of bottoming out, there are loads of houses on the market, and interest rates are amazingly favorable. Happy house hunting! … (2 comments)
james yoakum: Philly Unemployment Up - Region Still Relatively Strong
- 10/02/09 06:28 AM
The unemployment numbers for the Philadelphia region that came out this week don't look great but they could certainly be worse. In Philadelphia county August unemployment rose to 10.5% from 10.3% in July - worse than the national unemployment rate which just hit a 26-year high of 9.8% for September. The Philadelphia region as a whole is doing better though, clocking in at an 8.3% unemployment rate - up just slightly from 8.2% in July. On a county-by-county basis there's pretty big range with a low of 6.6% in Chester County and the 10.5% high in Philadelphia county. So what does … (0 comments)
james yoakum: The Philadelphian on the Roof(Deck)
- 09/30/09 03:58 AM
This article from today's Inquirer describes a couple of nice roof decks in Philadelphia. Roof decks have been a growing trend in Philly for years, and why not - the typical Philadelphia rowhouse is great for many reasons, but an abundance of private outdoor space is not one of them. I often think about finding a creative way to use to the top of my house for more than just keeping the rain out, but so far I've found it easier to take advantage of my friends' decks and avoid the expense and maintenance involved in constructing my own. My favorite … (0 comments)
james yoakum: Chestnut Hill College Expansion - Good News All Around
- 09/16/09 02:29 AM
Chestnut Hill College, a picturesque college in the Northwest Philadelphia neighborhood of Chestnut Hill, recently announced plans to expand its campus from the current 45 acres to a total of 78 acres. It will grow its footprint to include the 32 acre property known as Sugarloaf across Germantown Ave. from the college's current main campus. The expansion project will add 10 new buildings, cost $500 million, and allow the school to expand enrollment from 900 to 1,500 undergraduate students. While some Chestnut Hill residents are wary of the additional traffic and loss of green space that will accompany the school's expansion … (0 comments)
james yoakum: Philly Zoning Code Made Slightly Easier
- 09/10/09 06:54 AM
Philadelphia's zoning code is ridiculous. It's a patchwork accumulation of hundreds of years worth of laws piled on top of each other and it's sorely in need of a massive overhaul to make it more uniform and comprehensible to the average property owner, investor, or developer. Not to mention that it's out of touch with the demands of modern Philadelphians who often prefer more mixed-use neighborhoods with a diversity of architectural styles, property uses, and densities. That said, given that it's not changing anytime soon it's very important to have some understanding of the basics of Philly's arcane zoning rules. The … (0 comments)
james yoakum: Lots Going on in North Philly
- 09/09/09 05:23 AM
Just wanted to bring this great article from today's Daily News to your attention - lots of great information about various developments going on in North Philadelphia. There's also an article in today's Inquirer more specifically about Temple's efforts to recenter its campus along North Broad Street. It will certainly be exciting to observe and take part in the changes taking place in North Philadelphia over the coming years. … (1 comments)
james yoakum: Lots of People in Parkside
- 09/08/09 09:30 AM
West Philadelphia's Parkside neighborhood is blessed with some of the most beautiful architecture in the entire city, an unbeatable location adjacent to Fairmount Park, and easy transit access to the Center City and University City job markets. Most of the beautiful old buildings along Parkside Ave. date back to the 1876 Centennial Exposition that was held in Fairmount Park and reflect the grandeur and promise of Philadelphia at that time. In more recent times Parkside has had a rough time, with much of the neighborhood succumbing to abandonment, deferred maintenance, and crime. However a bit of information from this article about … (0 comments)
james yoakum: More Incentive for Philly Landlords to Maintain their Properties
- 09/02/09 06:47 AM
After a recent tragedy in which two people fell from a Center City fire-escape the city's Department of Licenses and Inspections (L&I) is feeling pressure to prevent the same thing from happening again. They announced today that they will be conducting spot-checks on multifamily buildings to look for major code violations and safety hazards. This should be a great incentive for multifamily property owners to take better care of their properties and hopefully will make Philadelphia's tenants safer and happier. Given the huge number of dilapidated properties in Philadelphia, I think the ideal solution would be for L&I to conduct regular, … (0 comments)
james yoakum: Open Window for Sellers
- 09/01/09 08:24 AM
If you need to sell your home, but have been waiting for the market to recover now may be a good time to take a shot at selling - especially if your home is one that would appeal to first-time buyers rushing to close deals before the November 30th expiration of the first-time buyer tax credit. You're still going to have to price your home very competitively to sell it in today's market, but if you anticipate selling in the next 12-18 months, the time between now and November may represent a brief window where you can earn a premium thanks … (0 comments)
james yoakum: Good News for Buyers - Bad News for Stabilization?
- 08/25/09 03:11 AM
According to Senate Majority Leader Harry Reid of Nevada an extension of the $8,000 first-time-buyer tax credit is something that, politically anyway, can (and will?) be done. Additionally, by 'extension' he refers to extending the program beyond its current expiration date of November 30th, and extending the tax credit to all hombuyers, not just first timers. While an extension of the tax-credit would be great news for buyers who are just now entering the market and could use more time to shop around, an extension also prolongs the unnatural state present in the current housing market. Currently, sales are being artificially … (2 comments)
james yoakum: $8,000 First Time Buyer Tax Credit Expires Soon!
- 08/17/09 02:41 AM
The $8,000 tax credit for first-time homebuyers ends soon! You must close on your home purchase before 12/1/09 to be eligible, so if you're considering taking advantage of this great program getting started now is essential. Check out this video for more info and contact me if you'd like to get started on the home-buying process! … (0 comments)
james yoakum: A Simple, Good Idea - Condo Association buys up Foreclosed Units
- 08/11/09 02:02 AM
A condo association in Chicago has begun an effort to buy up the vacant, foreclosed units in its condominium complex. At least 12 of the Shoreline Towers Condominiums' 378 units are in foreclosure and the condominium association has arranged a $2.5MM line of credit to allow it to purchase the units and then rent them out to recapture monthly condo fees and put warm-bodies in the units. This seems like an obvious and simple way to deal with what is becoming a widespread problem, namely condo associations missing out on big chunks of funding from non-dues-paying, abandoned units. The condo owners … (0 comments)
james yoakum: Opportunities for Creative Redevelopers with Deep Pockets
- 08/10/09 07:48 AM
Looking for a BIG real estate redevelopment project that gives you a chance to be very creative and will put all your spare change to work? Look no further than your friendly US Postal Service. The USPS is selling its 2.7MM square foot central post office in Chicago and for whoever ends up buying it this building will be a signature project (let's hope it's a memorable project in a good way and not a white elephant in the making). Over the past decade numerous uses for the massive building have been proposed but none have worked out so the postal … (0 comments)
james yoakum: Housing Market Tied to Employment = Uncertainty
- 07/31/09 09:01 AM
I attended a conference this week at the Wharton Lauder Institute focused on the financial crisis. I heard several distinguished professors and business leaders discuss a wide range of topics, and many of them touched on real estate as a key part of the current crisis. Professor Joseph Gyourko of Wharton's Real Estate Department discussed his recent research that points to some U.S. Housing markets being at or near a bottom (namely Phoenix, Vegas, and Miami). In these markets, according to Gyourko, land and buildng permits are readily available so housing prices tend to be closely tied to physical construction costs … (0 comments)
james yoakum: Countrywide Settlement Payments
- 07/28/09 07:28 AM
A bit of good news for Countrywide borrowers - Bank of America (which now owns Countrywide) is paying a settlement to borrowers in certain states (PA being one of them) who meet the following criteria: * The loan was made by Countrywide * The loan was secured by an owner-occupied property; in other words, the borrowers must have lived in the property that served as collateral for the loan. * The first payment on the loan was due between January 1, 2004 and December 31, 2007. * You must have lost the property securing the loan through … (0 comments)
james yoakum: Real Estate Investing Overveiw
- 07/27/09 08:03 AM
For those of you looking for a well-balanced, big-picture overview of real estate investing look no further than the current (August 3rd) issue of Forbes Magazine. The special section titled "You Can Still Get Rich in Real Estate" contains four articles covering everything from investing in REIT's to the tax advantages of leasing out an unused vacation home. As you would expect from Forbes, real estate investment options are rigorously compared to a host of other investment options. The articles also break down returns after the various ancillary costs that many amateur real estate investors tend to ignore (taxes, commissions, transaction … (0 comments)
james yoakum: FHA-Financed 2-4 Unit Properties - A great way to start investing today!
- 07/22/09 02:40 AM
As prices come down across the board many seasoned real estate investors are migrating to larger properties where they can achieve greater economies of scale. This is leaving fewer professional investors in the market for duplex, triplex, and fourplex properties. As the investor community moves away from 2-4 unit properties it leaves the bidding wide open for owner-occupants and first-time buyers who want to buy a home that doubles as a savvy investment. The best thing about buying a 2-4 unit property as your primary residence is that you can get FHA financing for up to 96.5% of the purchase price … (0 comments)
james yoakum: One Measure of Home Prices Goes Up!
- 07/17/09 03:45 AM
News of broad-based home price increases is starting to trickle in, with this report from Integrated Asset Services showing a 1.6% monthly increase in nationwide single family detached home prices for the month of May. The same survey also showed a small gain in April giving some hope that the increase isn't just a fluke. The IAS pricing index is less closely followed than the National Association of Realtors, FHFA/OFHEO, or Case-Schiller indices, so many observers may wait to see positive trends from those indices before declaring a turnaround. However, given that the IAS index is down 19% from it's peak … (3 comments)
james yoakum: Squirrels Lead to Lower Prices?
- 07/16/09 05:02 AM
This article from Realtor Magazine gives a good example of why many sellers are slowly coming around and selling for less in today's market - and it's not just because they're sick of chasing squirrels out of the attic (although that is funny). The old adage "a penny saved is a penny earned" comes into play here because the faster a vacant home is sold the more the seller saves on maintenance, marketing, and carrying costs. In the scenario described in the article the homeowner spends over $2,000 per month on the home for every month that it doesn't sell. If … (0 comments)
This article from Marketwatch.com discusses using interest-rate-tracking ETFs (Exchange Traded Funds) and options on those ETFs to hedge the risks of mortgage rates rising before home-buyers have locked them in. While this particular approach might not be the perfect solution, today's historically low interest rates do make mortgage rate hedging something that is in high demand from savvy potential buyers who are looking to buy soon, but not soon enough to lock in at today's super-low rates (4.75%!!!).
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