Delaware Valley Real Estate Market Trends

Fall 2017 Delaware Valley Real Estate Market Update

Delaware Valley Real Estate Market Trends

The Fall 2017 Delaware Valley Real Estate Market is up but also down.

Sales in the Delaware Valley Real Estate and Lehigh Valley Real Estate market exceeded last November by 4.7% and are now up 7.8% Year-To-Date. Sales have cooled a bit after a very strong start to 2017, but are still exceeding last year every month. The Fall 2017 Delaware Valley Real Estate Market is up but also down.

The median sold price is up just 1.4% this year, below the expectations of most housing market experts however, the median sold price in Pennsylvania is up 4.4% Year-To-Date. Delaware median sold prices are the same as in 2016 while New Jersey has seen a slight decline of 0.6% due primarily to an increase in foreclosure sales.


Fall 2017 Delaware Valley Real Estate Market Update

Delaware Valley Real Estate: Settled Listings
Category November 2016 November 2017 Change
Residential Real Estate 6,760 7,078 4.7%
Lots, Land and Farms 111 129 16.2%
Multi-Family 223 234 4.9%
Commercial 169 145 -14.2%

Sales in the Fall 2017 Delaware Valley Real Estate Market Update region were up 4.7% compared to last November, while Bucks County sales were down 12.9%. Year-to-date sales in TREND are up 7.9% year-to-date.

Delaware Valley Real Estate: Median Home Price
Category November 2016 November 2017 Change
Residential Real Estate $212,500 $215,000 1.2%
Lots, Land and Farms $60,500 $122,000 103.3%
Multi-Family $150,000 $138,950 -7.4%
Commercial $150,000 $110,000 -26.7%

The median sold price throughout the Delaware Valley and Lehigh Valley market was up 1.2% from last November, while Bucks County was down 0.3% compared to last November. The fall 2017 Delaware Valley Real Estate Market Update reveals that the year-to-date the median sold price in the local real estate market is up 1.4% while Bucks County is up 5.5%.

Click here for Bucks County Home Sale Data Fall 2017 Report.

Real Estate Market Trends

Fall 2017 Bucks County Real Estate Market Trends

In November 2017, the Fall 2017 Bucks County Real Estate Market Trends show that sales in Bucks County were up 2.6% in November 2017 vs November 2016. While some view sales as strong, there were also two other main driving forces at work in the local bucks county real estate market.
  • Bucks County Sales: UP 2.6% in November 2017 vs November 2016
  • Bucks County Home Prices: DOWN 0.3% from last November.
  • Bucks County Home Inventory: DOWN by 7.0% during the month
For the year, inventory of homes for sale in Bucks County is 13.4% below last year.

Real Estate Market TrendsFall 2017 Bucks County Real Estate Market Trends

Bucks County Residential Sales activity

Bucks County Inventory For Sale:

Total Inventory
Nov. 2017: 2,389
Nov. 2016: 2,759

Inventory Accumulation

Nov. 2017: 3.5
Nov. 2016: 4.2

The inventory of homes for sale decreased by 7.0% in Bucks County during November and is down 13.4% (370 listings) compared to last year. That one statistic alone is driving up sales because the limited inventory is causing those in the market to chose a property based on what is currently available.  The Months Supply of Bucks County Inventory dropped to 3.5 months, while the number of new listings in November was down 10% (63 listings) compared to last November. So if you’re looking for a new home for sale in Bucks, you found fewer homes to chose from and therefore to purchase the end of 2017.

Settled Listings

November Settled Listings
Nov. 2017: 569
Nov. 2016: 653
Year-to-date Settled Listings
Nov. 2017: 7,471
Nov. 2016: 7,281

Sales in November were down 12.9% compared to last November but are up 2.6% year-to-date. The Property Marketing Period decreased from 42 days in November 2016 to 27 days.

Median Price

November Median Price
Nov. 2017: $292,000
Nov. 2016: $293,000
Year-to-date Median Price
Nov. 2017: $299,000
Nov. 2016: $283,300

The median sold price in November was down 0.3% ($1,000) from last November but is up 5.5% year-to-date, a $15,700 increase per sale.

Settled Price / Original Price

November Settled Price / Original Price
Nov. 2017: 97.0%
Nov. 2016: 96.3%
Year-to-date Settled Price / Original Price
Nov. 2017: 97.2%
Nov. 2016: 96.6%

The sold price compared to the original list price in November was 97.0%, slightly above the normal range of 94-96%. The Sold Price to List Price ratio was at 98.5% compared to 97.9% last November.

Average Showing Appointments Per Listing by Price Range

During the Fall 2017, all showings in the Delaware Valley Real Estate Market were 2.2 showings per listing for properties for sale during the fall.
All Listings:2.2
$0k – $99k: 11.2
$100k – $199k: 2.5
$200k – $299k: 2.8
$300k – $499k: 2.3
$500k +: 1.1

Note: There were some showing reservation issues with the MLS during November however all appointments in November were down from the previous year and month.

Compare Fall 2017 Bucks County Real Estate Sales against the Fall 2017 Delaware Valley Real Estate Market.


RECENT LISTINGS IN BUCKS COUNTY

  • 6125 GREENHILL RD, NEW HOPE - Listed at $3,895,000, NEW HOPE, BUCKS County

    6125 GREENHILL RD
    NEW HOPE, PA 18938

    This magnificent country estate on a prime 8 acre property has been totally renovated and redesigned with the best of ev… read more.
    This magnificent country estate on a prime 8 acre property has been totally renovated and
    Kurfiss Sotheby’s International Realty-New Hope
    $3,895,000
  • 1300 CHINQUAPIN RD, SOUTHAMPTON - Listed at $1,099,900, SOUTHAMPTON, BUCKS County

    1300 CHINQUAPIN RD
    SOUTHAMPTON, PA 18966

    One of a Kind – Circa 1852 Colonial Farmhouse and Carriage House nestled on 12 plus acres in Beautiful Bucks County! Inc… read more.
    One of a Kind – Circa 1852 Colonial Farmhouse and Carriage House nestled on 12 plus acres
    RE/MAX Elite
    $1,099,900
  • 230 WINARD AVE, SELLERSVILLE - Listed at $399,900, SELLERSVILLE, BUCKS County

    230 WINARD AVE
    SELLERSVILLE, PA 18960

    This lovely property is all heart! Nestled in a peaceful, tree-lined neighborhood that is just minutes from town, this b… read more.
    This lovely property is all heart! Nestled in a peaceful, tree-lined neighborhood that is
    RE/MAX 440-Doylestown
    $399,900
  • 199 FOLLY RD, CHALFONT - Listed at $729,900, CHALFONT, BUCKS County

    199 FOLLY RD
    CHALFONT, PA 18914

    Beautiful Brick and cedar sided 5 Bedroom 2 full and 2 half bath custom built center hall colonial with detached stables… read more.
    Beautiful Brick and cedar sided 5 Bedroom 2 full and 2 half bath custom built center hall
    BHHS Fox & Roach-Newtown JL
    $729,900
  • 88 GLENIFFER HILL RD, RICHBORO - Listed at $579,900, RICHBORO, BUCKS County

    88 GLENIFFER HILL RD
    RICHBORO, PA 18954

    Rarely offered beauty in Northampton Estates. One of Richboro’s most sought after neighborhoods. Home features a grand t… read more.
    Rarely offered beauty in Northampton Estates. One of Richboro’s most sought after neighbor
    RE/MAX Elite
    $579,900
  • 182 S MAIN ST, NEW HOPE - Listed at $1,000,000, NEW HOPE, BUCKS County

    182 S MAIN ST
    NEW HOPE, PA 18938

    None… read more.
    None
    Addison Wolfe Real Estate
    $1,000,000
  • 58 WINTER RD, HOLLAND - Listed at $459,900, HOLLAND, BUCKS County

    58 WINTER RD
    HOLLAND, PA 18966

    Beautiful Colonial Award Winning Council Rock School District with over 3000 interior sq ft! Lovingly & Meticulously mai… read more.
    Beautiful Colonial Award Winning Council Rock School District with over 3000 interior sq f
    RE/MAX Centre Realtors
    $459,900
  • 15 HILLENDALE RD, PERKASIE - Listed at $449,000, PERKASIE, BUCKS County

    15 HILLENDALE RD
    PERKASIE, PA 18944

    Prepare to be impressed as you enter through the front door of this lovely home on a half acre lot that boasts an impres… read more.
    Prepare to be impressed as you enter through the front door of this lovely home on a half
    Coldwell Banker Hearthside-Doylestown
    $449,000
  • 3825 COMLEY CIR, DOYLESTOWN - Listed at $670,000, DOYLESTOWN, BUCKS County

    3825 COMLEY CIR
    DOYLESTOWN, PA 18902

    Buckingham Beauty sitting at the end of a cul-de-sac in the desirable Buckingham Chase Neighborhood, on over 1.4 acres w… read more.
    Buckingham Beauty sitting at the end of a cul-de-sac in the desirable Buckingham Chase Nei
    Century 21 Advantage Gold-Southampton
    $670,000
  • 116 DELWHIT DR, FEASTERVILLE TREVOSE - Listed at $359,900, FEASTERVILLE TREVOSE, BUCKS County

    116 DELWHIT DR
    FEASTERVILLE TREVOSE, PA 19053

    Welcome to 116 Delwhit Drive in Feasterville. This lovely split level home boosts 4 bedrooms with 2 full baths. Enter t… read more.
    Welcome to 116 Delwhit Drive in Feasterville. This lovely split level home boosts 4 bedro
    Homestarr Realty
    $359,900
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See recent properties just listed in Bucks County.

See all homes for sale in Bucks County.


PA Act 113

Pennsylvania Act 133 Building Inspection & Municipal Code Ordinance

As we previously covered in our Pennsylvania Building Codes and U&O issues article, an important part of any home purchase is the property inspection. We also did a series called Buyer Beware (Caveat Emptor) that explains what to look for when buying a home for sale in PA. Things just changed for the new year and the new Pennsylvania Act 133 Municipal Code & Ordinance Compliance Act just went into effect. Here’s what it means for you when you buy or sell your home in Pennsylvania.

The Pennsylvania Municipal Code and Ordinance Compliance Act (PA MCOCA) sets forth procedures which must be followed by municipalities that require property maintenance and other code inspections upon the sale of a Pennsylvania home or residence. MCOCA was recently amended through Act 133 of 2016 to address situations in which municipalities were not following the Act, leading to some real estate transactions being postponed or cancelled due to minor property maintenance violations. The amendments in Act 133 clarify the rights and responsibilities of both municipalities and property owners so these issues don’t occur in the future. As of the new year, the act is now officially live – effective January 2, 2018. This doesn’t just impact PA home buyers, but also home sellers too.

Pennsylvania Act 133

Pennsylvania Act 133 Municipal Code & Ordinance Compliance Act just

Pennsylvania Act 133
Municipal Code & Ordinance Compliance Act

Municipalities are not required by Pennsylvania Act 133 Building Inspection & Municipal Code Ordinance – Pennsylvania Act 133 to inspect existing homes that are being sold. However, municipalities that do require such inspections must issue a Use and Occupancy Certificate, prior to the date of purchase, in the following manner:

1) USE AND OCCUPANCY PERMIT:

The U&O will be given if there are no property maintenance or other code violations are found. An official Use and Occupancy Certificate must be issued by the municipality, borough or township allowing the property to be used or occupied as intended.

2) TEMPORARY USE AND OCCUPANCY PERMIT: If the municipal inspection reveals at least one violation, but no substantial violations (see definition below), the municipality shall issue a Temporary Use and Occupancy Certificate. The purpose of a temporary use and occupancy permit is to authorize the purchaser to fully utilize or reside in the property while correcting code violations.

3) TEMPORARY ACCESS CERTIFICATE: If the municipal inspection reveals a substantial code violation which renders a building “unfit for habitation,” a Temporary Access Certificate must be issued. The purpose of the certificate is to authorize the purchaser to access the property for the purpose of correcting substantial violations.  No person may occupy a property during the term of a Temporary Access Certificate, but the owner shall be permitted to store equipment that is related to the proposed use or occupancy of the property or is needed to repair the substantial violations during the time of the Temporary Access Certificate. While this is the most extreme case, it is also important to move it from this status back to the complete U&O.


Pennsylvania Act 133 Building Inspection & Municipal Code Ordinance Definitions

SUBSTANTIAL VIOLATION: A Substantial Violation is a condition which makes a building “unfit for habitation.” Unfit for habitation is defined as: “A condition which renders a building, structure, or any part thereof, dangerous or injurious to the health, safety or physical welfare of an occupant or the occupants of neighboring dwellings. The condition may include substantial violations of a property that show evidence of: a significant increase to the hazards of fire or accident; inadequate sanitary facilities; vermin infestation; or a condition of disrepair, dilapidation or structural defects such that the cost of rehabilitation and repair would exceed one-half of the agreed-upon purchase price of the property.”

ESCROWS AND BONDS PROHIBITED: A municipality may not require the escrowing of funds or posting of a bond, or impose any similar financial security as a condition of issuing a certificate. But before accessing the property, a property owner is still generally required to follow all the applicable rules for permits, fees, escrows, etc., under existing building, property maintenance and fire codes or other health or safety codes.

COMPLIANCE PERIOD: A new owner will have 12 months from the date of purchase to either bring the property into compliance with codes or demolish the building. At the request of the property owner the municipality may negotiate a longer time period, but may not shorten it.

REINSPECTION OF PROPERTY: (1) At the expiration of the 12 month time period or before that time, if requested by the property owner, the municipality shall reinspect the property to determine compliance with the cited violations. (2)  If a temporary access permit has been issued and reinspection indicates that the noted substantial violations have been corrected but other cited violations have not yet been corrected, the municipality shall issue a temporary use and occupancy permit to be valid for the time remaining on the original temporary access permit. (3)  If the reinspection indicates that all noted violations have been corrected, the municipality shall issue a Use and Occupancy Certificate for the property.

FAILURE TO COMPLY BY OWNER: If the property owner fails to correct the code violations cited by the municipality, the following actions may occur: 1) Revocation of the temporary certificate; 2) The purchaser will be subject to any existing municipal ordinances or codes relating to the occupation of a property without a Use and Occupancy Certificate; 3) The purchaser will be personally liable for the costs of maintenance, repairs or demolition sufficient to correct the cited violations, and a fine of not less than $1,000 and not more than $10,000.

PRE-EXISTING VIOLATIONS: This Act generally applies to violations that are found as a part of the municipal inspections done for property resale. But these rules do not apply to violations of a local code or ordinance that are already the subject of a fine or some other judicial action against the current owner, or to properties that are subject to certain other statutory provisions. In those instances, the violations must be addressed under the other applicable rules, whatever they may be.

Click here to read the full Pennsylvania Act 133 Building Inspection & Municipal Code Ordinance – Act 133.

Cost vs Value 2017

2017 Cost vs Value Home Remodel Project Report

2017 Cost vs Value
Home Remodel Project Report

Every year we try to bring you the most current information possible about your home or property. This includes an annual look at our updated 2017 Cost vs Value Home Remodel Project Report. In years past, the cost vs value report shows a variety of factors

you’re shared are important to you. This year, we’ve attempted to keep the information to more of a list view so you can help answer the question that matters most to you: what can I do to improve the value of my home?

2017 Cost vs Value Home Remodel Project Report

The first group of projects are those small to medium size projects.

Cost vs Value: Small to Medium Size Projects 2017

Small to Medium Size Projects (National Average)Job CostResale ValueCost Recouped
Attic Insulation (fiberglass)$1,343 $1,446 107.70%
Backup Power Generator$12,860 $6,940 54.00%
Backyard Patio$51,985 $28,546 54.90%
Basement Remodel$71,115 $49,768 70.00%
Bathroom Addition$43,232 $23,283 53.90%
Bathroom Remodel$18,546 $12,024 64.80%
Deck Addition (composite)$17,249 $11,252 65.20%
Deck Addition (wood)$10,707 $7,652 71.50%
Entry Door Replacement (steel)$1,413 $1,282 90.70%
Family Room Addition$89,566 $62,055 69.30%
Garage Door Replacement$1,749 $1,345 76.90%
Major Kitchen Remodel$62,158 $40,560 65.30%
Manufactured Stone Veneer$7,851 $7,019 89.40%
Master Suite Addition$119,533 $77,506 64.80%
Minor Kitchen Remodel$20,830 $16,699 80.20%
Roofing Replacement$20,664 $14,214 68.80%
Siding Replacement$14,518 $11,093 76.40%
Two-Story Addition$176,108 $125,222 71.10%
Universal Design Bathroom$15,730 $10,766 68.40%
Whether it’s a small or large project, consult the small to medium size project list to compare what you can plan to recoup from the remodeling job before you begin. These values tend to charge slightly year over year depending on the price of materials and labor.

Next, we tackle the larger projects.

Cost vs Value Medium to Large Size Projects 2017

Medium to Large Size ProjectsJob CostResale ValueCost Recouped
Bathroom Addition$81,515 $46,507 57.10%
Bathroom Remodel$59,979 $35,456 59.10%
Deck Addition (composite)$39,339 $22,171 56.40%
Entry Door Replacement (fiberglass)$3,276 $2,550 77.80%
Garage Door Replacement$3,304 $2,810 85.00%
Grand Entrance (fiberglass)$8,358 $5,855 70.10%
Major Kitchen Remodel$122,991 $76,149 61.90%
Master Suite Addition$250,687 $150,140 59.90%
Window Replacement (vinyl)$15,282 $11,286 73.90%
Window Replacement (wood)$18,759 $13,691 73.00%
Before you start your next medium to large project, compare what you can plan to recoup from the remodeling job before you begin. And remember, it’s hard to put a price on the enjoyment the update, upgrade or replacement will bring to you and your family – whether or not you plan to sell your home in the future.
Cost vs Value Remodeling Mid Atlantic Region

Homes throughout Pennsylvania, NJ, DE and Maryland closely align to national remodeling prices.

Cost vs Value Remodeling Mid Atlantic Region

Homes and properties in the Mid-Atlantic region closely follow the national average for recouping your investment in your next project. No matter what you plan to do to your home or property, such as sell vs repair, be sure to get multiple detailed bids from licensed contractors with strong references from sites like porch.com. At the end of the day, when you come home from work, your home is your palace. Enjoy what these projects can do to your home and for your family.

While this year’s 2017 Cost vs Value Home Remodel Project Report analysis may only make you wonder IS THIS IS THE HOME I WANT TO INVEST IN? … then maybe you need a second opinion. Home Marketsite agents are ready, willing and available to help you determine what you can get for your home on the market. We can also help determine a solid return on investment from your home. And if you’re looking for a good realtor to list & sell your home, contact us today. We’d appreciate your business.

HomeOwnership the American Dream

How will Tax Reform affect real estate taxes?

How will Tax Reform affect my real estate taxes?

Published: October 20, 2017
Updated: 11/6/17 and 12/2/17

Updated December 2, 2017

Early Saturday morning, the U.S. Senate passed their version of the tax bill by a vote of 51-49. The House version of tax reform passed on November 16. This epic bill was to address disparity for corporations but also has other effects on homeowners and tax payers across the board. It officially will change the face of homeownership in this country for decades to come and you’ll see how will Tax Reform affect my real estate taxes.

A last-minute change to the Senate version would make up to $10,000 in property taxes deductible for the small number of homeowners who would still be itemizing. This change specifically aligns with the property tax cap set in the House bill.

The main difference for homeowners is that the Senate version retains the deductibility of mortgage interest payments on up to $1 million of indebtedness; the House version caps indebtedness at $500,000 for those who would be itemizing their taxes.

Now, members of the House and Senate must meet to agree on a final bill. However, it’s not too late to make your voice heard by telling members of Congress that incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected.

Published October 20, 2017

With all the recent news surrounding the current administrations desires to spur tax reform for all US taxpayers, we felt it would be helpful to describe what COULD happen as the result of certain reform and explain how will Tax Reform affect real estate taxes and homeownership, the American Dream.

HOMEOWNERSHIP IMPACT BY TAX REFORM

It has been reported by REALTORS throughout the country, including NAR (National Association of REALTORS) that the recent discussions around simplifying the tax code will

HomeOwnership the American Dream

in fact have an immediate impact on those who own homes. Many homeowners may actually lose their ability for federal income tax deductions – IF – the proposed legislation in Congress is passed in its current form (as of October 2017).

Over the past several decades, homeownership has decreased. While it’s currently moving upward, this increase in home owners may peak as a new tax code is embraced by Congress. The homeownership rate reached a peak of 69.2 percent in June 2004. A few years later, the housing crash caused credit to tighten and resulted in millions of Americans losing their properties to foreclosure. While the recent news of tax reform may have a negative impact on homeownership, it certainly is becoming more stable and healthy again just ten years after the major crash. Any tax reform affect real estate taxes in the way of changing deductions. Here’s a current look at the movement toward owning a home again.

HomeOwnership Rates 2016-2017

The number of those who own their home (legally known as real property) do so using a mortgage to help split up their payments. In addition, one of the benefits today is the home owner can also write off the amount paid in interest on these loans and the real estate taxes paid while living in the home. This can add up to substantial amount of savings to the owner versus the one renting a property.

CURRENT TAX PROPOSAL

So with a current proposal by President Donald Trump to raise the standard tax deduction, those who bought with the hope of these dedications may find out that they disappear in favor of broad tax reform. The long tail analysis may actually help increase homeownership in the long run because it will put more money into the pockets of Americans and give renters more incentive to save a down payment.

The current plan is expected to double the standard deduction and eliminate all personal deductions. The exceptions in the bill being proposed and discussed would be the deductions currently enjoyed by home owners for the Mortgage Interest Deduction and the deduction for charitable contributions. What it eliminated is the state deduction for state and local taxes.

While it sound promising that the mortgage interest can still be deducted, by doubling the standard deduction, they’ve also lowered the number of people who would be eligible to claim the Mortgage Interest Deduction with a proposed number shrinking to just the top 5 percent of all taxpayers.

As a REALTOR and PA real estate brokerage, we are alerting our local and state representatives that we are opposed to attempts to limit or eliminate tax incentives for homeownership and real estate investment. We know how tax reform affect real estate taxes in more ways than just a tax break.

UPDATE (November 6, 2017 after the proposal was made public with revisions)

“By eliminating or nullifying the incentive for homeownership, Realtors® are concerned that homeownership’s wealth-building potential could be pushed out of reach. The proposed tax reform caps the mortgage interest deduction at $500,000 for newly purchased homes. The legislation also eliminates state income tax deductions altogether, while installing a new cap on property taxes. At the same time, the proposal puts new restrictions on the capital gains exemption homeowners utilize today when they sell their home. The exemption is vital to allowing homeowners to use their equity to pay for retirement and other long-term needs. Tax hikes and falling home prices are a one-two punch that homeowners simply can’t afford.”
Kathy McQuilkin, CRS, GRI, SRES, CRP, CSP, ALHS
2017 Pennsylvania Association of Realtors® President

HOMEOWNERSHIP TAX FACTS

HOMEOWNERSHIP TAX FACTS
Homeowners already pay 83 percent of all federal income taxes.
Analysis shows that homeowners with incomes of $50,000 to $200,000 would face average tax hikes of $815 in the year after enactment (PricewaterhouseCoopers).
Non-homeowners in the same income range would enjoy average annual tax cuts of $515.

Since current homeownership is at an all-time low, we desire to see everyone who can afford the opportunity to afford a home be able to participate in the real estate market. With this new plan, it appears that fewer consumers will realize a financial benefit from owning a home. Sure renters will have more money in their pocket to possibly apply toward a down payment. But current homeowners will likely see a hike in their taxes.

Tax Reform affect real estate taxes

TAX REFORM AFFECT REAL ESTATE TAXES.
TAX REFORM ALSO LOWERS HOME VALUES!

And as a result of this tax reform, PwC predicts home values will fall, in the short run, by more than 10 percent. The drop could be even larger in high-cost areas and it could take years for home values to rebound from this significant decrease. When you reduce the deduction, you reduce home affordability since you remove the extra deductions currently available.

Any reform of this type has an immediate and long term impact on the real estate market. Most people will not see this type of impact immediately, but once it works itself through a few years of tax returns and home buying seasons, the market will respond. It always does.

So before the real estate market corrects itself in response to a new tax code, pick up the phone and respond direct to your local and state representatives in congress today. Make sure they keep these deductions and other real estate vehicles currently available including Like-Kind exchanges. The Section 1031 provision encourages growth by permitting real estate held for investment to be exchanged for property of a like kind on a tax-deferred basis. These exchanges are essential to the commercial real estate sector and to the economy.

Thanks for participating in the conversation – homeownership and home prices may depend on it.