Archive for August, 2010

The Velocity of Money

Monday, August 23rd, 2010
Velocity of MoneyAccording to the most recent Commerce Department report, Personal Spending and Personal Incomes were unimproved from the previous month, and the Savings Rate increased as consumers cut back on spending. While that data sheds light on the slow economic recovery, it also has implications on home loan rates.

Here’s why…

It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent, and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren’t spending much money these days…and businesses are still reluctant to spend moneymaking investments in their business. With the present velocity at low levels, inflation remains subdued and that’s good for home loan rates. That’s because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation –which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen. Buying a home

While we certainly want to see better economic recovery news in the near future, we have to remember that there’s an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result. Currently, home loan rates are at a historically low level, which makes now an ideal time to purchase a home or refinance before the velocity of money –and rates –change.

To summarize, rates are as low as they will ever be; prices are stagnant and will rise as the economy recovers. 
 
IF YOU ARE A BUYER LOOKING TO GET THE MOST BANG FOR YOUR BUCK, NOW IS THE TIME TO BUY!!!!

Now is the time to Buy a House

Monday, August 23rd, 2010

According to CNBC, now is the time to buy a home! With market conditions favorable for buying a house in Philadelphia, why are buyers shying away when mortgage rates are at record lows!

According to a recent survey that was done, 33% of the people felt that home values have not yet reached bottom; 28% of the people felt that home values will decline more. In addition, only 24% of homeowners felt their home gained value, when in actuality 34% of the homes ACTUALLY gained value.

According to Lawrence Yun from the National Association of Realtors, the Real estate Market is in danger of over-correcting itself. Soon there will be too much supply, and not enough demand, which may cause home prices to over-correct.

The Philadelphia Real Estate Market is still one of the safest places to buy real estate as the real estate market in Philadelphia remains very stable.

Refinance Levels highest since May 2009

Wednesday, August 18th, 2010

Mortgage RatesMortgage refinancings rose 17.1% last week and now account for 81.4% of total mortgage applications, according to the Mortgage Bankers Association.

Mortgage rates hit all-time lows earlier this year and are still at levels not seen for decades, with many lenders currently offering 15-year fixed-rate loans lower than 4% and 30-year fixed in the 4.25%-4.5% range.

Now is the time to buy or refinance. It is unlikely that rates will be this low for a long time. These low rates should certainly help out the Philadelphia Real Estate market throughout the rest of 2010.

Washington Square: Restaurants, Schools, Points of Interest

Tuesday, August 17th, 2010

Washington Square

Washington Square Real EstateWashington Square is one of the original squares laid out by William Penn and his surveyor in the planning of Philadelphia. The park is bordered between Walnut St & Washington Square South, and west of 6th Street. The square is located within the Washington Square West and Society Hill neighborhoods. There are several condo buildings bordering the park as well as many historical sights.

Restaurants:

Schools: Walnut Street Theater

Points of Interest:

Philadelphia’s Most Expensive Homes

Monday, August 16th, 2010

Here is a look at the top 5 most expensive homes that Philadelphia has to offer:

1706 Rittenhouse#5: 1706 Rittenhouse Square – 23rd Floor - $5,298,200

Listing Says: 1706 Rittenhouse Square: Your Life, Your Way ~ Your new construction ~Your entire floor … Your four corners at Rittenhouse Square ~ Your private elevator ~ Your 4,200 square feet ~ Your custom floor plan ~ Your finishes ~ Your views on Philadelphia and The World ~ Your garage ~ Your lap pool ~Your fitness center ~ Your concierge ~ Your car and driver ~ Your indulgences ~ Your tax savings. It~s all about You, deliberately, discreetly, by design. From $4 Million.

#4: 228 W. Washington Square – $5,485,000

Listing Says: Superb Federal Architecture in a rare jewel, situated directly on Washington Square Park. This five story, 6,800 sqft townhouse with elevator is 25 feet wide, 60 feet deep, with high ceilings and custom millwork throughout. Four bedrooms each with private marble baths and fireplaces. Original pine floors throughout. Exquisite antique chandeliers and sconces, and a 60 foot black and white marble entrance hallway and atrium are impressive. Private and fully-equipped mother-in-law suite or home office. Many more details. Secured deeded parking with two car spaces.

#3: 237 S. 18th Street #2B – $5,575,000 Modern Contemporary Kitchen

Listing Says: The Barclay Condominium. This magnificent renovated residence on Rittenhouse Square has splendid views of the Square. When ~Only the Best Will Do~ Unparallel, Sophistication and craftsmanship coupled with stunning square views make this residence a true gem. This smart and spacious home has 5,325 square feet and 10 ft ceilings, a grand hall, a large elegant living room with a fireplace overlooking the square, a formal dining room, there is a mahogany paneled library with a wet bar and elaborate screening room and a gym. Fabulous appointments with every desirable amenity. The stunning eat-in kitchen has the finest high end appliances. The Luxurious master suite has a fireplace and his & her lavish marble baths, Enjoy Rich mahogany floors throughout and the finest finishes, 5 year tax abatement.

#2: 1200 Latimer Street – $6,200,000

Listing Says: Latimer House: Triple wide steel and glass internationally acclaimed landmark residence. Multiple car parking. 2,000 sf private courtyard garden. Roof rights. Deck. Sculptural, compelling, beyond beautiful 6,000 sq ft contemporary home. Bold geometry with voluminous three story ceilings. Suspended steel staircase. Vast light and space. Urban panorama. PLUS, Additional separate professional studio(s) and living quarters. Famed home. Renowned architects. First time offered.

Philadelphia Luxury Homes#1: 2201-2205 Green Street – $6,995,000

Listing Says: The Bergdoll Mansion is one of Philadelphia’s most stunning residences. The c. 1882 Italianate-style home in the heart of the Art Museum Area is built of classic, smooth brownstone block. The approx. 14,000 sq/ft interior has been lovingly and meticulously restored including all plumbing, heating, air conditioning and electric. Highlights include, a formal drawing room ~ formally the Ballroom, a massive dining room, an exquisite Library, and a delightful sunroom, which leads out onto the gardens. There are two cooks kitchens, one for the home-cook and one for entertaining. The entire property is fenced and has a courtyard that can accommodate 8 cars. The architectural details are too numerous to recount but include mosaic tile, ceiling frescoes, carved mahogany woodwork, ornamental plaster, and gilded bronze and onyx details. This home provides the life style of European Estate and the comforts of 2010.


America’s Most Stable Real Estate Market

Monday, August 16th, 2010

philadelphia skylineAccording to CNBC, Philadelphia is the #2 most stable Real Estate market in the country. Philadelphia real estate has remained stable through the ups and downs of the Real Estate Market. In the last 12 months, the largest monthly price change was only 0.14%, while the smallest price change was only 0.05%. These #’s show you how stable the Philadelphia real estate market is compared to the rest of the country. According to the Zillow home value index, over the last 12 months, the average price in Philadelphia at it’s peak was $209,900, and $208,600 at its low. The #1 most stable real estate market in the country was in Grand Rapids Michigan. The Philadelphia Real Estate Market should remain stable for the next 12 months as well…


South Philly: Restaurants, Schools and Points of Interest

Thursday, August 12th, 2010

South Philadelphia

Citizens Bank ParkSouth Philadelphia is the district in Philadelphia encompassing South Street to the north, the Delaware River to the east and south, and the Schuylkill River to the west. Moyamensing, Point Breeze, Pennsport, Southwark, Grays Ferry, Passyunk Square, and Bella Vista are a few of the neighborhoods located within South Philly. Residents are largely those who have lived in the area for generations, and you can find large populations of Italian and Irish Americans. This diverse neighborhood has areas that are commercial, like Columbus Avenue, and residential like Pennsport.

Restaurants/Bars: Melrose Diner

Tony LukesSchools

 

Mummers Museum

Points of Interest

University City: Restaurants, Schools and Points of Interest

Tuesday, August 10th, 2010

University City

 

World Cafe LiveThe University City district is an eclectic community filled with students, young professionals, families, and artists. It is situated between the Schuylkill River to the east, 52nd Street to the west, and between Spring Garden and Market Streets to the north and Woodland Avenue and University Avenue to the south. The Powelton Village, Cedar Park, Spruce Hill, Squirrel Hill and Walnut Hill neighborhoods are located within the University City district. The eastern portion of the district houses University of Pennsylvania, Drexel, and the University of the Sciences, while the western portion is largely residential. Several trolley lines and the Market-Frankford subway line conveniently connect University City to Center City.

Pod Restaurant

Restaurants/Bars:

Schools:University of Pennsylvania Logo

Philadelphia Zoo Welcome Sign

Points of Interest

  • 30th Street Station
  • Sam Quinn Gallery
  • Institute of Contemporary Art
  • U of Penn Museum of Archaeology and Anthropology
  • Philadanco
  • Clark Park
  • Fine Arts Library
  • Children’s Hospital of Philadelphia
  • Franklin Field
  • Penn Presbyterian Medical Center
  • Hospital of the University of Pennsylvania
  • Philadelphia Zoo

Condo Sales Double 2nd Quarter of 2010

Monday, August 9th, 2010

Philadelphia SkylineCondo sales in Philadelphia nearly doubled from the first quarter of this year to the second, and the numbers were better than at any time since the housing downturn began here in August 2007, according to Philly.com.

Data from the Recorder of Deeds Office analyzed by Econsult Corp. vice president Kevin Gillen show that 604 condo sales closed citywide between April 1 and June 30. Of those, 477 units sold for less than $500,000, the analysis shows.

More than 200 separate condo locations were recorded, including some in Northeast Philadelphia, South Philadelphia, and East Falls, according to Gillen’s analysis. The majority were in Center City and adjacent neighborhoods.

Art Museum/ Fairmount: Restaurants, Schools, Points of Interest

Friday, August 6th, 2010

Art Museum/Fairmount

Philadelphia Museum of ArtThe Art Museum/Fairmount neighborhood of Philadelphia is located west of Broad Street to the Schuylkill River, and between Spring Garden Street to the south, and Girard Avenue to the north. This is a widely residential section of the city, considered primarily middle class, and home to many young professionals and graduate students. Fairmount also features many art museums, restaurants, and Fairmount Park. The Benjamin Franklin Parkway and its attractions are also considered a part of the Fairmount section of Philadelphia.

 

 

Restaurants/Bars:Belgian Cafe

 

Schools:

 Eastern State Penitentiary                       

Points of Interest

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