Poconos Real Estate Blog

Just the Facts, M'am : Market Statistics for Monroe County, Poconos, PA

There are a lot of opinions out there about the real estate market and most of them, unfortunately, are based on the national news stories which do not nearly illustrate local intricacies. I am not here to paint a rosy picture where one may not exist, but I am offering some facts for folks to generate their own opinions about our market here in Monroe County.

I will, of course, offer my opinion about these statistics near the end of this article, but all the numbers are factual and not distorted in any way.

To clarify what these numbers represent: I gathered statistics from the Pocono Mountains Association of REALTORS Multiple Listing Service (MLS) on June 3, 2008. The information, while deemed accurate, is not guaranteed, as the MLS system relies upon information being inputted by many different individual users, and does not include statistics for non-MLS sales. The statistics cover single family residential home sales for the time period of January 1 to June 3 of each year specified, only in Monroe County.

Our MLS overlaps over several counties but I felt that the data would be skewed by including them because of the changing dynamic of MLS coverage. More real estate companies are opting to join nearby MLS's in order to expand their marketing reach across regions. So today, for example, there are more listings from Lehigh, Carbon or Pike County than there were a few years ago. To keep it simple, and to make the comparisons fair, I limited the area.

Market Statistics for Monroe County, Poconos

* Info not available

For those of you for whom this basic data is not enough, I encourage you to download the latest Supply and Demand Report which offers more in-depth figures for all of the different municipalities in the County. For each municipality you will find details such as current active listings, under contract listings, year to date closed sales, and list and sale price averages. This info is very useful in determining what the local markets look like - realistically. After all, markets ARE local and even the statistics posted in the above chart will not accurately reflect what is going on in your neighborhood.

So What Does It All Mean?

There is no denying that we are experiencing a slow down. Fewer homes are being sold (although if you add the current Pending Sale inventory of 302 homes to the # of sales this year, things look a lot better), and the higher price ranges are feeling this particularly so. Buyers are bargain hunting and they are buying up the foreclosures and homes that are priced and marketed correctly. I have sold several homes in the past few weeks to savvy buyers who shopped the market and found the houses that are fair buys. They are out there. But there is a lot of inventory out there that is NOT priced and marketed correctly, unfortunately, and of course that is not selling.

What impact does THIS have on our market? The glut of under-marketed and over-priced inventory? I don't know for certain but my guess is that Buyers (and others who choose to focus on the negatives ;) ) see all this excess inventory and make the assumption that they are going to steal a home. This couldn't be further from the truth as I do not see many sellers being desperate enough to accept low-ball offers. I see banks choosing from multiple offers on foreclosure listings, and I hear 'regular sellers' threaten to take their properties off the market and wait until Buyers get off the fence about making a move.

Honestly, I wish they would do just that. The inflated inventory of unrealistic listings is not helping matters any.

Overall, though, we are doing ok: No drastic price decines, a foreclosure rate that is nowhere near that of some other areas of the country, and a market that continues to attract commuters, vacationers and second-home buyers, retirees, and investors.

Slow and steady wins the race!

Further Reading:

The Pennsylvania Association of REALTORS published an article about the PA housing market in it's latest issue of PA REALTOR Magazine.

Buying a Penn Estates Home - FAQ #3 Safety, Security & Quality of Life

It may come as a surprise to some of my neighbors that not everyone has the same high opinion of Penn Estates as we do. Let's face it: A quick search of the internet for information about Penn Estates, as well as about life in the Poconos in general, reveals some not-so-flattering accounts of life here. As a matter of fact, I will admit to being a bit distressed at the one-sided information I found when researching what potential buyers might come across when they search certain topics. So, lest everyone out there get the wrong idea about us, let me try to balance the perspective a bit and tell you what I know. As a Mom, as a community volunteer & self-appointed advocate, a homeowner, and as a REALTOR(r), I feel I have to.

Penn Estates is home to over 6,000 people and compares in size to a small town. There are twenty-six miles of roads that serve 1700 properties. We contract with a private security firm to provide us with staff and services to manage the 24/7 safety needs of the community: guest registration & access control, patrols, traffic monitoring, emergency assistance, complaints, etc.

We are served by regional police departments, Stroud and Pocono Mountain, which cover a huge area of our county and are under-funded and under-staffed, just like most police departments that serve high-growth areas of the country. They rely heavily on and cooperate greatly with our private force to serve Penn Estates along with all of the other communities and towns in the areas they serve, and they are excellent in their response to 911 calls and crime investigation.

So my answer to the question "Is the community safe?" is 'Yes.' Is it perfect and crime-free? Of course not. Am I comfortable raising my teenage daughters here? Absolutely.

However, I think a better question is, what is Penn Estates, or any other area one might considering buying a home in, doing to address growth problems related to crime? How are these neighborhoods countering the negative effects of the continued population explosion our area is experiencing? IMHO, this is very important because as growth continues (which it will because it is a great place to live!), crime inevitably will too.

"What are areas doing to prepare themselves for that?" is a question that potential homebuyers should be asking when they research places to live.

Here in Penn Estates, we have been fortunate to have the support, guidance and cooperation of the Stroud Regional Police Department in establishing a model Neighborhood Watch Program, which we hope will be an example that the 'Burgs (the Boroughs of Stroudsburg and East Stroudsburg) and other communities in the Poconos follow. We have already held the training session for the first group of volunteers and look forward to the grand opening of 'watch central' in the Community Center building at the main amenity complex (stay tuned for more info on that).

The areas that acknowledge the inevitability of issues and address potential issues proactively are the areas that will keep crime rates low and continue to grow property values.

Yes, the Poconos has its share of troubles, as would be expected in an area which is expanding so quickly. Undoubtedly, when you search for information on the area in general or particular communities, news articles and reports of specific crimes will come up. Robberies, grafitti, gangs, domestic violence, arson...no doubt you have come across stories about any of these things occurring in different parts of Monroe County...Brodheadsville, Saylorsburg, Bushkill, Effort, downtown Stroudsburg and, yes, Penn Estates have been affected at one time or another.

An unfortunate fact about bad news is, it always makes headlines...don't even get me started on THAT, as I could go on and on about the unbalanced reporting and fact-less accounts that make it to print.

But remember that the good things that happen every single day in neighborhoods and communities across Monroe County don't make headlines. And ask yourself, is paying attention to headlines going to give you a clear picture of what life is like here?

It is difficult to know what information to believe and whose stories are accurate. I know that even my claims will be scrutinized and perhaps even written off as a sales pitch. To be sure, no matter who you ask, they will say that THEIR neighborhood is the best =) Everyone has an opinion and bad news is plentiful, especially in someone ELSE's neighborhood!!

So my advice to you is, do your homework and seek out a balance in sources and in perspectives. Then, make the decisions that are best for you and your family.  Who knows, buying a home in Penn Estates or other areas of the Poconos just might be the best move you ever made!

• For specific questions related to crime in Penn Estates, feel free to email me, contact the Stroud Area Regional Police Department or the Pocono Mountain P.D. For information on State Police and other police departments and private forces in Monroe County, visit the Monroe County Control Center site.
  

• 2007 Crime Rates in the Monroe County Poconos This link has crime rates broken down by type of crime and jurisdiction. Penn Estates is located mostly in Stroud Regional, with a small portion of the community being part of Pocono Township.

New Stroudsburg High School or Renovation?

The debate continues and could be decided at tomorrow night's School Board Meeting. (Wednesday, 4/16/08, 7:00 PM in the Stroudsburg High School Cafeteria at 1100 West Main Street)

Should we proceed with the Renovation Plan begun by the previous Board? Should we build a New Facility in a New Location on Chipperfield Drive? Should we taxpayers get to vote on the issue in November? These are the discussions on the Agenda for tomorrow night.

In case you haven't been keeping up with the issue, here is a link to today's Pocono Record article and a list of previous articles on the subject.

My opinion: Continue with the Renovation Plan and not waste 5 years and over $3.8 million dollars of our money that has already been spent on the planning. Keep the high school down town, leave it close to the stadium, and save us the additional $20 million dollar cost of a new facility.

What do you think? Will you be at the meeting tomorrow? Please comment below!

Scavello Courts Democrats

State Representative Mario Scavello of the 176th Legislative District is seeking write-in votes from Democrats at the April 22 Primary Election. The purpose, he says, is to allow him to concentrate on his continued efforts in the State House of Representatives, free from the time and expense of a campaign should he have a challenger in the November election.

I, for one, will be writing in his name. His time this year is much better spent addressing all of the big issues in Harrisburg right now...property tax reform, tolls on I-80, etc.

Representative Scavello has been a dedicated advocate for the Poconos in Harrisburg since his election in 2002. He has garnered a reputation there for fighting for what he thinks is right regardless of party lines.

Governor Ed Rendell acknowledged as much during his presentation of his Economic Development Plan during his visit to Stroudsburg earlier this year. I was present for the speech and marvelled at the time the Governor took honoring our Representative for his dedication to his constituency.

Perhaps we should shrug off our party affiliations for this local election and consider Mr. Scavello the leader of the Pocono Party ??

Click here for some comments from other voters.

Writing in a candidate is a fairly simple process. Here is info on how you can write in Mario Scavello's name at the Pennsylvania Primary Election on April 22, 2008.

Who are you supporting? Please share your comments using the form below.

Foreclosure Heat Map For Monroe County

A picture is worth a thousand words.

Below is a screen shot of a map I generated at HotPads.com which illustrates the severity of the 'foreclosure crisis' here in the Poconos. It demonstrates quite clearly the eratic nature of real estate markets, even in our immediate vicinity. Check out the map for the entire country and zoom in on other areas to see how local real estate markets, and foreclosure problems, really are.

The maps are compiled using data from Realtytrac and then color-coded to illustrate foreclosure densities. The cooler the colors, the less foreclosures there are...as the maps changes over to yellows, oranges and reds, the number of repossessed homes is higher.

 

Are you surprised?

Is Now a Good Time to Buy a House in the Poconos?

Some may doubt my answer. It is, after all, given by a real estate agent whose income arguably depends upon her ALWAYS responding with a resounding 'YES!' when asked this question.

However, I have not earned the status of Trusted Agent by so many of my clients and neighbors by giving out self-serving advice. So, even though my answer is, indeed, 'yes,' please keep reading as you just might a) learn something about the real estate market, and/or b) find that even an evil, money-hungry agent can tell it like it is.

Either way, I've achieved my goal :)

So, yes, now is a good time to buy a house in the Poconos. And here is why:

1. Pennsylvania is not one of the 5 states driving the media's hysterical headlines about the housing crisis, the subprime mess or whatever other base topics threatening our confidence in real estate investment anywhere. Simply put, real estate markets are local and national news coverage must be ignored in favor of facts, statistics and anecdotal evidence from your target area. PA has never been and is not currently a volatile market.
2. The big-money investors are still investing here. A drive around Monroe County will reveal an incredible amount of money being spent on development and commercial projects all over the place. This kind of investing does not get done without feasibility studies, projections, etc. So what do they know that you don't know? That this is a desirable area and that the demand-well is not drying up.
3. There are plenty of choices out there. Hey, it is springtime so listing inventory is up. Better still, the 'passive-sellers' (those non-urgent owners who listed while the market was hot and were testing the market) are just about weeded out as contracts expire and these dreamers and their agents come back to reality. So you should now be seeing more homes available at the right prices.
4. Dan Green says, "Stop asking your real estate agent if now is a good time to buy." and offers some advice from the mortgage advisor's point of view that makes a lot of sense and has nothing to do with local real estate market conditions. The changing mortgage lending environment should be enough to encourage prospective home buyers to finally take the plunge...this year, before the pendulum swings completely the other way and mortgages get increasingly trickier to obtain (in other words, lenders' CYA policies become buyers' PIA!).

And if you are still skeptical...scared...worried or whatever, check out this article which explains the psychology of a real estate market and how one should evaluate the one that they are in.

Finally, if you have questions or need some information, just email me...I promise I will respond quickly!

Clinton Visits Stroudsburg High School

I guess we Mounties are officially on the map!

Former President William Jefferson Clinton came to Stroudsburg last night to campaign for his wife Hillary who is seeking the Democratic Nomination for President. The Primary Election is on April 22.

(Do you know where to vote? Monroe County Polling Places)

The crowd was large despite the nasty, rainy weather. People started lining up at around 3:30pm and they started letting people in around 5 o'clock. There was a great representative mix of people there, including teachers and other school staff, veterans, and a variety of adults and children. I was especially pleased to see a good number of young people...the not-quite-old-enough-to-vote set...there to see democracy in action. Teenagers, like my daughters, who are learning about government and politics in school and have an interest in experiencing it first hand. It was very exciting for them, especially, to see a President in person!

President Clinton, who was given a hearty welcome and introduction by Congressman Paul Kanjorski, began his speech around 7:30 and spoke for almost an hour.

This visit topped off a long day of campaigning in Pennsylvania, which included stops in the Lehigh Valley and Wilkes Barre.

Were you there? Please click on the 'comment' button below and share your impressions with all of us!

Or, test your knowledge of other Presidential visits to the Pocono Mountains.

FHA Loan Limits Increased

This is good news for homeowners who are in trouble because of an adjusting ARM or other sub-prime mortgage, and could help them avoid foreclosure.

It is also a boon to many home buyers who now have a larger selection of homes because of the higher loan limits.

FHA is an affordable alternative for those borrowers who do not qualify for regular conventional programs, without exposing them to the risks involved in the creative financing that created the problems we hear so much about these days.

Here in Monroe County, the limit for a single family home is raised to $271,050, well above the average sale price here. In Carbon, Northampton & Lehigh, the limit is $402,500, and in Pike County, $729,750. There are higher loan limits available for multi-unit properties.

These new loan limits expire at the end of 2008 so there is some incentive for owners and potential buyers to complete their transactions this year as the limits could revert to the 'old' limits of $200,160 in Monroe County, $305,666 in Carbon, Northampton & Lehigh, and $362,790 in Pike.

Need a recommendation for a local FHA loan expert? Click here.
For more info on the changes, read the HUD announcement.
For info on FHA loan limits in other areas, search here.

Real Estate Market Predictions for The Year of the Rat 2008

I confess - I do have a more-than-passing interest in feng shui and other ancient Oriental philosophy. Not only does it intrigue me but much of it really just 'feels' right to me...and that is what it's all about, isn't it

So, today being Chinese New Year, I decided to search out some information on what it means to us in real estate. And since I do already have my own gut feelings about what the year will bring, and I have found my inner voice to be an exceptional guide throughout my life, I expected to find some positive news.

And I was rewarded with very auspicious news indeed!

The first article I stumbled across seemed to be waiting for me to read it. It's title, "Year of the Rat bodes ill for markets," gave me great pause, but I read on in spite of my trepidation. What I found out is that the stock market fires will be quelched by the heavy water element of the Rat, but that real estate is fortunate to be one of the earth industries that looks to the Rat for money. As excerpted from the article:

"The rat is a symbol of money to the earth industry ... Strong water element in the year indicates productivity and strong activity in the metal industries," said Mr. Lo, who suggested investors put their money into property, mining and gold.

Raymond Lo is a feng shui master in Hong Kong, and is now one of my favorite people!

Whether you believe in this philosophy or not, you cannot argue that it is not fascinating to consider the possibilities and predictions given to us by the Masters. Additionally, the idea that any bad luck, bad energies or fateful predictions can be minimized or eliminated with 'cures' is one that has to appeal to anyone with a taste for optimism!

Further reading:

Read about your personal animal predictions for the year here
More predictions
Auspicious dates and times calendar

Stroudsburg S.D. Addresses Transportation Inefficiencies

Stroudsburg School District Superintendent, Dr. Toleno, presented a plan last night to a crowded room of concerned parents, School Board Members and media, for changing the school bus schedule for the 2008/09 school year. The new plan requires changing the times that our students report to school, based upon grade level, and is, in my view, a common sense approach to solving the myriad transportation issues we have been dealing with for the past several years.

This plan reminds me a lot of how things were 'back in the day' when I was a girl walking to school, through the snow, for miles, up hill both ways. Not really, I took the bus. But we did start school earlier and earlier the older we got, when finally as a high school student I could get home in time to watch Luke and Laura on General Hospital, which started at 3pm. Ahh, the good ol' days!

I understand that this presentation will be given again tomorrow night at the School Board Meeting, for those who didn't make it last night.

Three Tier Busing Presentation

An overview of the problems this plan attempts to correct begins on page 4 of this document.

The proposed start times for each grade level are outlined in chart form on page 7.

Do you think it's a good plan?

Free Foreclosure Prevention Advice

The Hope Now Alliance is a program which offers free counseling to homeowners in jeopardy of defaulting on their mortgages. Whether the borrower is already behind in payments, is facing problems when the adjustable mortgage rate resets, or is able to stay current once the rate resets, help and advice is available.

The first step is to call the 24/7 hotline at 888.995.HOPE (888.995.4673).

HUD-approved counselors are on hand to gather information on the homeowner's situation and to determine eligibility for various options. The call will take around 45 minutes and the caller can expect the counselor to recommend action steps if the information gathering goes well, or a follow-up call if income and debt information is not readily available.

Recommendations vary based on individual circumstances, but options include refinancing, temporary rate freezes, and loss mitigation strategies such as a short sale or deed in lieu of foreclosure. Most often, the best advice is to be pro-active and not avoid the situation because of fear or anxiety.

When homeowners call they will NOT be judged or even billed for the service...it really is intended as a free resource for troubled borrowers to get the help they need, as it is in everyone's interest to rectify these problems quickly.

My best advice to you is MAKE THE CALL.

Further reading:

Avoiding Foreclosure in PA

FHA Refinancing

Representative Kanjorski's 2/4/08 Announcement Re: Fed Funding For Counseling

Think you have good credit? Better think again.

What has previously been thought of as a decent credit score is about to change.  At least from a mortgage application perspective.  I've asked PREB (Poconos Real Estate Blog) Guest Author, Andy Williams, to explain the details.

The days of unethical sales practices by some of the less-reputable mortgage representatives are numbered as the home financing market gets another dose of reality. Practices such as less than full disclosure about the cost of loans through the hiding of fees and rate manipulation have been very common in the past.  Hopefully this most recent change will make this 'sales tactic' much harder to pull off and level the playing field a bit. Consumers should find it easier to compare apples to apples and spot the rotten ones more easily and earlier on in the process.  This way they can direct their business back toward the good guys like Andy where it belongs. - L


From the Desk of:

Andrew Williams

President

Abacus Regional Mortgage

NEW FANNIE MAE LOAN-LEVEL PRICING

All Fannie Mae lenders will be changing to tiered pricing.  Some have already changed and others will follow by the 2nd quarter of 2008.  The tiered pricing effects borrowers with credit scores below 680.  The pricing refers to the points charged by a lender. If a borrower has a score lower than 680, the pricing will be roughly as follows:

< 620         +2.0 points
620-660      +1.75 points
661-679      + .75 points

Remember, 1 point equals 1% of the mortgage amount, so on a $200,000 mortgage for a borrower with a credit score of 650, the loan could cost $3,500 more.

If the borrower doesn't have the money to pay the points, they can opt to pay a higher interest rate to absorb the cost of the points.  The cost of .5 in price equates to roughly .125% in interest rate.  For example, if they score a 619, the 2.0 pt. add-on may be absorbed into the interest rate by adding .5% to the interest rate.  If the going rate is 6.25%, adding .5% would increase the rate to 6.75%.

This may only effect the Fannie Mae lenders, with the local banks still not charging any sort of surcharges for credit scores lower than 680.  We will have to wait and see how this all plays out.

Now more than ever it is important to choose your mortgage broker very carefully.  I am proud to offer proven market expertise and I am dedicated to helping you determine what loan is right for you. Call me for the straight answers. - Andy

Penn Estates MLS Sales Data 2000 through 2007 - Listings Sold

Information obtained from the Pocono Mountains Association of REALTORS MLS on Jan. 7, 2008

Community 'Get out the Vote' Effort

I thought you'd like to see what our awesome Volunteers on the Penn Estates Government Relations Committee are up to.  What an energetic, enthusiastic group!  Each year our voter turnout gets bigger than the last and this Committee is determined to get the Community to flex its political muscle in order to get the attention of officials in Stroud and Pocono Townships of Monroe County, PA.  Call me an optimist but I think it's working!

Identity Theft Prevention Tip

FROM THE DESK OF:

Andrew Williams

President

Abacus Regional Mortgage

 

Recently my 82 year old mother became a victim of identity theft.  Someone from Kentucky stole her name and social security number and opened a credit card with Capital One.  The culprit not only received the card, but they charged it to the limit and never made a payment. 

 

All of this was discovered when she inquired into moving into a different apartment.  Upon inquiring into her credit, the landlord informed her of this account with Capital One which had been placed for collections.  This is where the fun begins.

 

Both my mother and I have spent countless hours on the phone  being transferred between departments at Capital One.  From one ignorant or unhelpful representative toe the next, each time resulting in an ultimate transfer direct to their collection agency.  Needless to say,  this has become a very stressful and frustrating situation.  These so-called "Customer Service Representatives" either hung up the phone or refused to transfer our call to a supervisor.  When asked to speak with the fraud department, they asked for the account number of the credit card, and transferred the call right back to the collections agency.

 

Now I know why Capital One has that commercial about vikings pilaging a suburban mall.  After several unsuccessful attempts to reach the appropriate individuals in the fraud department,  I felt like pillaging Capital One's corporate offices myself.  The truth is that Capital One is just as guilty as the person who stole her identity in that they granted this credit without asking for any identification.  This whole situation destroyed my mother's credit in the process.

 

The one thing I learned from all of this is that you can avoid identity fraud.  You need to write to all three credit companies(Equifax, Trans Union, Experian) and ask to add a "Consumer Statement" to your credit report.  This is a statement that tells any potential creditor, who is inquiring into your credit, that you must be notified by telephone before extending credit.  This is a safety net in the event that someone is using your identity.  Each time your credit is inquired this statement will appear on your credit report. 

At least this can avoid any potential future problems.  The next time someone asks you "What's in your wallet?", tell them it's none of their business.

Contact info for the three credit reporting agencies:

• Equifax: 800-685-1111; www.equifax.com
              
• Experian: 888-EXPERIAN (888-397-3742); www.experian.com
              
• Trans Union: 800-916-8800; www.transunion.com

Refinancing a Sub Prime Mortgage

From the Desk of:

Andrew Williams

President

Abacus Regional Mortgage

Many recent homebuyers have been misled into buying their homes using sub prime Option-Arm mortgages.  An Option Arm mortgage is the kind you see advertised on the internet with lower teaser monthly payments.  The buyer has the option of the lowest payment which is artificially low to start.  Ultimately, the monthly payment goes up dramatically at some point throughout the life of the loan, most likely after the 24th month.  Many mortgage brokers led unsuspecting home buyers to believe that they are unable to qualify for a conventional mortgage.  Some may not, but many were able to qualify for FHA  mortgages.  FHA stands for The Federal Housing Authority.  This agency grants buyers the ability to purchase a home with little money down and forgives some past credit problems.  The truth is that most mortgage brokers aren't able to do FHA mortgages due to regulations.  Instead of offering this type of mortgage, or referring them to someone who can, they talked the buyers into using sub prime mortgages.

The mortgages of choice for most were the Option Arms.  These rates start much lower with no required principal payment.  The buyers loved this option since they could have a manageable  payment to start.  These mortgages have a possibility of "negative amortization".  This is a phenomenon where the principal balance owed on the mortgage can actually increase over time resulting in a much higher amount owed.  Many buyers didn't see this as a problem as long as the value of their home grew faster than the increase in the mortgage balance.  Now we can see with a weaker hosuing market that these loans can be a problem for most Option Arm borrowers.  If the home prices go down over the next few years,  these people are in for a real problem.

We need to get as many people as we can to refinance into an FHA or a conventional mortgage within the  next 2 to 3 years before their mortgage rates adjust upward. Most of these loans contain a 2-3 year prepayment penalty made to deter the homeowner from refinancing out of these loans.  Almost all of these Option Arm and other sub prime mortgage rates change and adjust upward after the second year.  This can be a potential problem for the entire housing industry with potentially devastating financing repercussions.  Many of these homes will be foreclosed from the lender.  Current mortgage delinquencies are  already at twice the historic norm.  FHA has instituted and will be implementing a new emergency mortgage bail-out for homeowners with adjustable rate sub prime mortgages.  If the homeowner's mortgage has become late as a result of the higher payment adjustment,  FHA has said that they will refinance the current home.  The stipulations read that the homeowners may not have been late prior to this adjustment.  They will not rescue people who haven't shown the ability to maintain their mortgage current up to the point of rate adjustment.

For many unsuspecting misled home buyer this is a great opportunity for them to get out of their current situation, keep their house and obtain a much lower fixed interest rate.

FHA Saves the Day with Distress Refinances

FHA now allows distressed homeowners to refinance with current late payments on their credit report.  If someone has a full documentation ARM that adjusted recently and is now having trouble keeping up, an FHA refinance might be able to help.  The catch?  Late payments on  your mortgage must have only occurred since your loan adjusted.  Also, there are limits on the amount of the loan you can get depending on the county the property is located in:  Monroe County, PA is $200,160; Pike County, PA is $362,790; Carbon County, PA and Northampton County, PA are $305,666.  Current legislation in Washington proposes raising these loan limits dramatically, so these numbers could possibly change soon.

If you need more info on the FHA refi program, send me an email and I will get you in touch with an FHA-specializing lender.

The Creepy Crawly Debate

Gypsy moths (check this link for lots of info on history, life cycles, the State spraying program, etc).  Most people who live in a wooded area in the Northeastern United States knows how 'inconvenient' <intentional understatement for effect> this pest is.  The munching sounds, the poop, the effect on the trees...aarrgghh, make it stop!  I am probably one of the most squeemish of people when it comes to gross stuff and have declared publicly how 'skeeved out' I was when I found out what that brown stuff was on my car last summer (and I still haven't lived that statement down, let me tell you, people love to hear about your weaknesses :-)  ), so you may be surprised at what I have to say.

I attended the Monroe County Vector Control Gypsy Moth Meeting on August 8, 2007, to hear what I hoped to hear which is what the plan is to eradicate the gypsy moth which is eating all of our oak trees and making our outdoor living spaces unpleasant for part of the season.  The meeting was very poorly attended, considering the emotional responses one hears at the height of caterpillar season, with about 30 people sitting in the big auditorium at Pocono Mountain East High School.  Besides these few members of the public, the meeting was also attended by Tim Murasco from the Bureau of Forestry, Jacquelyn Hakim from Monroe County Vector Control, County Commissioners Nothstein and Asure, and State Representative Scavello.  The bottom line is that the Townships need to apply for the State Program through the County by October 1 and that residents who wish to contact their Township Supervisors to express their wishes in this regard are urged to to so.

Mr. Murasco was the first to speak, stating that 'the Poconos is one of the most defoliated areas in the county - ever!', and that we need to pray for a wet spring to help in any eradication effort...dry conditions are the gypsy moths' friend.  He explained that there are 29 counties in the state that may ask for help with spraying this year and that the State has increased the budget for such efforts to $3M, which could easily be spent in one county in a thorough eradication effort.

However, he also stated that the caterpillars are headed toward a 'natural' thinning out process due to a fungus that is affecting the colony.  Ms. Hakim from Vector Control agrees with this assessment, citing the cycle we saw from 1991-2005 which illustrated the natural ebb and flow of the size and scope of the caterpillar infestation.  She went so far as to say the 'prudent, scientific, unpopular but correct procedure is no spraying' <audible gasp>.  Did I mention that the people who attended the meeting were, for the most part, those who were hit extremely hard this year? I have to give this lady credit...to say this in front of that audience was very brave!

Why should we NOT spray?  1) Evidence of natural pathogens is present, and 2) One spray will not do the job properly and there is not enough money to spray twice.  Because of the severity of infestation and the size of the area needing treatment, we will spend the money to spray (one time) and STILL have a problem.  She feels it is a waste of resources to attempt to spray at all.

Of course, most of the people in the meeting were not happy to hear her assessment of the situation.  Representative Scavello was one who stood up to voice his concern and stated that he would be very disappointed if the County did not take advantage of the State's increase of this budget item because he was the one who convinced the legislature that it needed to be done.

I am writing today to take my position on the side of the scientists at the Bureau of Foresty and County Vector Control.  We need a long term solution to this problem, not a short term wasting of tax dollars just to make ourselves feel better.  Blasting the pests with lethal spray goes a long way emotionally, but is this really the solution for the long run?  As an organic gardener, I must side with the reasoning that eventually our forest will build up its own natural immunity, so to speak, to these pests by adapting the types of food available for them...the oaks that the caterpillars prefer will be replaced by species which aren't so palatable.  Natural predators of the gypsy moth, like certain types of flies, mice and wasps, will increase in numbers to meet the supply of food.  Complete eradication of the species would be nice (since it is not a native species) but I don't believe this is possible.  So, therefore, I must put my money on the idea that nature will balance itself out. But we need to allow it the time to do that.  This is not to say that individual property owners should not take steps to protect their investments, but as a forest management plan, I believe we need to listen to our scientists.

Do you agree or disagree?  Click on the comment button below and tell us why! 

Avoiding Foreclosure in the Poconos (and everywhere!)

I ran across a blog post from a fellow real estate agent blogger, Jay Thompson, which features an excellent real-life illustration of the power of the information I presented in an article back in January.  Both of these pieces point to the same advice about what to do if you get behind in your mortgage payments.  And with all the reports (still) about sub-prime lending and its effect on the number of foreclosures across the country, I feel it is important to keep this information out in front of everyone.  This is why I am re-posting the information today by providing the links above.  If you are one of many facing financial difficulties here in Monroe County, PA, or anywhere else, this information is timely and important.  So please help get the word out to people, send this to your friends and family members who you think might benefit from some sound advice.  As always, your comments are appreciated.

 

Enough Already!

Ok, I've had all I can take, I can't take anymore...the Pocono Record strikes again!  Has anyone else noticed the negativity of our local newspaper?  The articles they print, and especially the ones that make it to the front page, are awful.  You'd think that none of the staff over there live here and want the best for our area, our home values.  And any BIG (read 'the most negative they can find') news is continually reprocessed, rewritten, regurgitated and otherwise repeated over and over and over again-to make sure, I guess, that everyone has heard how awful things are around here.  Whether it is the unfortunate escapades of local political figures, criminal activity by our own residents or those that happen to land here via Route 80, homebuilder scams, or whatever, they sink their teeth in and don't let go until it's dead 10 times over.  I'm tired of it.

What has pushed me over the edge is the recent rash of articles which SCREAM about our real estate market falling into the toilet...

July  8:  'Monroe Home Foreclosures Through The Roof' (front page, Sunday paper): this article is an awesome example of twisting data to suit the purpose of generating hysteria.  What the article didn't say is that no one can figure out where they got their data...the only thing some of us can figure is that they are quoting the nmber of foreclosure filings that occur before that first notice of foreclosure gets sent out to people.  This number is always artificially high.  Homeowners get the notices and a big percentage of them pay up and get current and are no longer in foreclosure.  To compare this number to the number of foreclosures that actually happened in previous years is pure falsification which should be illegal IMO. Our foreclosure rates here are high enough without puffing them up even more to generate readership of the paper.  Luckily for us all the real estate investors out there apparently don't read the Pocono Record and are continuing to put there money into property here.

July 24:  'Home Sales Drop 29 Percent' (Tuesday morning, front page):  sure, the number of home sales is behind from last year, but the average sale price is up.  Why isn't that the headline??  I just did the figures for the community I live in, and the average sale price is up a healthy 5.6% from the same time period last year.  Is that a bad market?  Or is it just that seasonably high inventory coupled with buyers who are scared to death by the media and feel like they have to shop and wait and shop and wait and see what happens with the 'precarious' situation here, are keeping the number of sales down?  My crystal ball tells me that we are going to finish off the rest of the year with very brisk sales and make up alot of this deficit.

July 27:  'New Home Sales Slump' (Friday):  well yeeaahh...who the heck would buy in the Poconos now?  What with every other house going in to foreclosure and the builder scams going on and the death of the subprime lenders, which of course all originated in the Poconos, don't you know!!  I'm getting worked up here.....

And then yesterday (Sunday, front page, big picture making it REALLY stand out), the creme de la creme 'Construction Continues in Monroe, Despite Housing Slump': 12,000+ lots in various phases of subdivision and approval across the county.  Various builders and owners are going through all this while the market sux (according to them, not me).  And the clinching last line...'Will you still want to live here?'  AARRRGGGHHHHHHH

How much is one supposed to endure? 

New Facebook Groups-Join Us!

If you are not familiar with Facebook, you really should check it out.  It is a social utility, similar to MySpace in that you post information about yourself & your interests, but different because it offers many cool applications and unique customization options.  It is becoming a popular tool for business people to promote themselves in a new way, too.  I think they reached 30 million members this month.

So I joined and I am already liking the way it funnels relevent information to you based on the groups you join and the friends you have, and have already found a few cool links and tools  to use on my real estate websites.  For a more thorough explanation of what it's all about, read this article.

I've not found a whole lot of local stuff on the site yet, aside from groups from the local high schools and ESU, but I am hopeful that this is only because I haven't looked hard enough.  To help get this rolling, I have created two new groups (so far!), Pocono Mountains Business Network and Living in Penn Estates, PA.  I invite any of you readers to sign on and join either of these groups if they are relevant to you.  The Business group is intended to be a networking group for local business people to learn, share and refer business to/with each other.  The Penn Estates group is intended for residents of my community to meet, get to know each other and communicate.  I already have lots of ideas for other groups both business related and personal/family ones.  I imagine using this site for planning group trips and all kinds of things!

Urgent Call to Action: Say No To RTT

Click Here!

UPDATE from PAR as of 6/22/07:  'As many of you may have read in your local newspapers this morning, the state House last night debated an amendment offered by Rep McCall (D-Carbon) that would provide for local taxing options to fund mass transit.  This amendment included a local option RTT increase.  After hours of debate, everything came to a halt at the magic hour of 11:00 p.m.  No votes were taken on the amendment.  House Leadership will meet today and through the weekend to discuss a bi-partisan agreement.  The House will convene in regular session on Monday at 10:00 a.m.'

Please, people, if you haven't done so, express your opinion to your Representative!!

June 21, 2007:

Information I received from the PA Assoc. of REALTORS on yesterday-we strongly oppose any increase in RTT, one reason being that PA already has one of the highest transfer tax rates in the country:

'The Pennsylvania General Assembly is currently examining options to fund the Commonwealth’s ailing mass transit systems. One prospective option is to increase the statewide realty transfer tax (RTT) from 1.0% to 1.9%, with the additional 0.9% dedicated to mass transit funding. Another option is to give county governments the authority to increase the local RTT and dedicate the additional percentage to mass transit.
Last night, the House Transportation Committee passed House Bill 1590. This is the vehicle for the menu of local options to include creating a county RTT to fund mass transit. A vote on the House Floor could happen as early as Thursday.'


More info:  http://www.votenoonrtt.com/ 

Mass transit is found in Philly & Pittsburgh and these systems are, apparently, ailing financially...additionally, if there is enough revenue, they want to fix ailing roads & bridges across the state.  However, should this burden be shouldered by homebuyers & sellers only?

The proposed bills could also give the individual counties the authority to impose additional transfer tax to subsidize local mass transit too...in my opinion, real estate transactions are not the place to get the money for these things, either on the state or county level.  With all the discussion about affordable housing going on, how can additional fees in transactions possibly be seen as a fair alternative?

Please write to or call your Reps. in Harrisburg-check out the site for contact info and more info on this issue:  http://www.VoteNoOnRTT.com/How_Can_I_Help.htm

How is the Pocono Real Estate Market?

People (friends and family, anyway) always ask this question with a look of concern on their face or in the tone of their voice over the phone, expecting me to break down in sobs at my lack of business and, therefore, income.  However, I am busy!  Granted, inventory is up and I am always pretty busy listing homes, but there are lots of buyers out there right now too.  The phone is ringing pretty steadily at my office and traffic on my websites is definately up.

And as an even more telling example:  I have two buyers I am working with right now who both lost properties to other buyers last week.  Granted, the properties in question were in hard to find locations and priced aggressively, but the fact that there are still multiple offer situations occurring should convince you that the market is not as soft as one might think from listening to the media.  There are alot of buyers out there, still...they just seem to be taking their time and considering all of their options right now.  With inventory up (more on why later) and all the alleged 'bad news' out there, buyers are in no rush to make their purchasing decisions.   

So, to answer the question...the market is STEADY.

NEWS: Act 1 Soundly Defeated

The voters have seen through to the reality of the school tax situation and have spoken!  A tax shift will not do it and the funding formula for the whole state needs to be re-worked. This is not the solution that the lawmakers want to address because it is not an easy fix, but all of these other 'solutions' are merely bandaids.  I keep thinking back on an editorial I read in the Pocono Record some time ago calling for a true leader to step up and take on this issue, even if it means suing the Legislature...do you think that it will take something so drastic?

Here's the report on the referendums, in case you missed it:

Act 1 tax shift soundly defeated in area districts, across state

Staff and wire reports
May 16, 2007

Pennsylvania voters said “no deal” to lower property taxes in return for higher local income taxes. The Act 1 ballot question asked voters in each school district whether they wanted to shift their taxes, meaning they would increase or impose a new tax on their income in exchange for a reduction in property taxes. The ballot measure failed resoundingly in all four local school districts, with votes against the measure garnering more than two to three times the number of votes in favor.

http://www.poconorecord.com/apps/pbcs.dll/article?AID=/20070516/NEWS/70515017 

Electing Stroudsburg School Board Members

Don't forget, this coming Tuesday, May 15 is election day!  For those of you who haven't seen it, here is a link to Candidate info as found at poconorecord.com.  Below you will find my take on 3 of the candidates, the only three which I have had the opportunity to meet face-to-face.  I wish I had been able to attend the Forum that was held a couple weeks ago to meet more of them, but it didn't work out for me.

So, I will tell you what I found out about these three, and invite any and all readers out there to click the 'comment' button at the bottom of this article and tell us all about your picks and why.  Please limit your comments to 'why I'm voting for so and so' - I have a personal aversion to negative campaigns and I do not wish to encourage any candidate- bashing here.  As a matter of fact, any negative comments will be deleted immediately.  Please educate us on who deserves to be elected, not who should not be elected.

So, as promised, here is my take on some of the candidates:

Rachel Cardelle:  I was very impressed by Rachel's ideas on changing the attitude of the Board and taking a closer look at its relationship with staff and others with whom it interacts.  These ideas reminded me, alot, of issues related to a certain other organization I am involved with, and the idea of infusing new ideas and new blood in to any Board is a great idea, IMHO.  Only after meeting her did I get a chance to read her biography, and I am impressed by what I read.

Richard Pierce:  We really need someone with Richard's construction experience on this Board to keep watch over our money while our schools are expaning or being rebuilt.  Hopefully we can, under Richard's watch, avoid some of the problems we encountered, and are still dealing with, with the last build.  The fact that he has children in the District and that he will be a new member of the Board are big pluses too.

Ray Williams: I like the fact that Ray is an educator and that his number one concern, according to his responses to the newspaper's questions, is the educational welfare of our children.  With all the talk of money and new schools and taxes, it concerns me that this basic idea is not spoken about more often.  Hopefully Ray will keep the Board's eye on the main objective of the District, providing an excellent educational experience to our kids.  And, as much as I like new blood coming in, I think Ray's experience will be valuable to the new Board.   

100% Financing, the Right Way!

I am sure that you are hearing all kinds of bad press on the topic of 100% financing.  The foreclosures are increasing at an alarming rate, and the lenders are going bankrupt.  This phenomenon is due mainly to the fact that subprime lenders have been offering adjustable rate mortgages with fancy names(option arm) and lower payments to start (interest only).  The birth of the internet has allowed people to do research before applying for a mortgage.  The problem is that the borrowers get themselves into situations where they can't get out.  Once the interest rates rise, and the payments adjust upward, they come to another realization.  They can't refinance since their loan contains a prepayment penalty... upwards to tens of thousands of dollars.  Buyers need to start listening to their realtors, go with a locally experienced lender and choose a basic fixed rate loan.  With rates still very low, there is no reason why buyers need to be applying for anything other than a fixed interest rate.  I can still get many buyers approved with 100% financing including borrowers with mid 500 scores.  With a 6% sellers assistance toward their closing costs they can buy a home for as little as $ 500.  There aren't any prepayment penalties, adjustable rates, or anything other than a standard fixed rate.  People need to look no further than their own local lender for their mortgage.

Andy Williams

President

Abacus Regional Mortgage( formerly EHJM Mortgage Corp)

Visit me on the web!

Doing homework is homebuyer's best strategy

This bears repeating:  A homebuyer's best strategy is to do her/his homework.

Alot of times, potential homeowner's think that looking at houses online, before actually getting out to look at homes, qualifies as research.  While this may be true to a certain extent, finding the house is really one of the last steps.  I have written before about the importance of choosing a professional Buyer's Agent early on in the process, so I won't get in to that here.  However, the next-most-important piece of the puzzle is the money...how are you going to pay for the home that you choose, and how are you going to convince the seller to negotiate with you (ie with a pre-approval letter)?

While looking at properties online, no matter what site or sites you use, you will be bombarded with offers of financing from a myriad of companies, brokers and banks.  Be wary, be VERY wary.  Predatory lending is a huge problem these days, especially online.  I highly recommend that you get lender references from people you know who have had good experiences, work with the bank that currently handles your other accounts (checking, savings, etc), or, the absolute best choice, ask your Buyer's Agent for some lender references!  This is the best choice because your Agent knows who does a good job in the area you are purchasing in and, hopefully, the recommendations will be based solely on his/her successful transactions with them and past client satisfaction.

The two rules of thumb with regard to obtaining mortgage financing are as follows:  1) The more questions you ask, the better; and, 2)  If it sounds too good to be true, it probably is.  I am not making light of this but these are the simplest, basic truths when it comes to avoiding predatory lending and, worse, possible eventual foreclosure.

So, here is your homework: write to me at info@lisasanderson.com for a list of reputable Pocono lenders and a copy of a great pamphlet, 'How to Avoid Predatory Lending', which was put together through a joint effort of the National Association of REALTORS (c) and The Center for Responsible Lending.  It details warning signs, what can happen and what questions you should be asking a prospective lender.  This is only available in hard copy, so please send me your name, snail-mail address and phone # (in case there is a problem with your order-don't worry, I won't harrass you on the phone or give or sell the # to anyone!).

Additionally, do some reading online:  www.hud.gov/buying/index/cfm is a great place to start. 

And of course, post your questions here, give me a call, or send me an email!   

Hot Topic #1: School Taxes

I attended the presentation sponsored by my REALTOR(r) Association, 'Fighting for our Fair Share of School Funding', a discussion led by Ron Colwell, former member of the State House of Representatives and education funding expert and lobbyist.  The turnout was not that great considering how often we hear from people who are unhappy with their tax bills, but the presentation was very informative nonetheless.  While it did not present any earth-shattering revelations, or provide any miraculous remedies, it did reinforce alot of things I knew already and drove home the idea that the problem is huge and not going away anytime soon.  Mr. Colwell, over an hour and a half, presented the following main points:

Problem #1:  Education is underfunded in Harrisburg, so, therefore, all the school districts in the State are competing for a too-small piece of the pie.

Problem#2:  The funding formula in PA is easy to explain because it doesn't exist...there is no real mystery in why there are inequities in the distribution of State dollars for schools because there are no guidelines or formulas.  Changes in funding for different districts stopped in 1991, which is when the last hint of a formula was last seen.  So, any changes in a district's number of students or relative wealth has meant nothing as far as funding is concerned.

Problem #3:  The result of #1 & 2 above equates to a $2.5-3B deficit in education funding...that's right, statewide we are BILLIONS of dollars short!  These billions are made up by, you got it, our school taxes.  Where the state, under normal circumstances, should be footing 50% of the bill for an 'average' district, our local districts are getting 23-25% from the state.  So, basically, property owners are footing the bill for Harrisburg's neglect of our schools, first by not budgeting enough for them to begin with and, second by not equalizing the distribution through use of a proper formula.

Granted, this is not really new information-we've known this for a while.  What I learned from Mr. Colwell is something more fundamental and basic...something which we have not heard from our elected officials...which is the honest and brutal truth:  this problem is not going to go away and is not going to be fixed by belt-tightening in Harrisburg, nor by gambling, lotteries, or other such 'gimmicks' (his word!).  The projected revenue from slots will come no where near the $2.5 B that we need per year.  The plain fact is that we here in our beautiful state will need to pay the bill, someway, somehow, and probably generating the needed revenue through some other kind of tax.  No one seems to want to hear that or believe it, but I trust that this is the correct answer as unpleasant as that may be.  Only until we find an equitable way to distribute the costs to all of our residents, will property owners see any relief.

A couple of warnings presented by Mr. Colwell:  do not be fooled or lulled in to a sense well being on this issue by the receipt of a check from the state toward your tax bill, which some seniors might see this year...this 'tax relief' is a temporary fix, a band-aid.  Do not be fooled into thinking your representatives have done their job in Harrisburg because they bring back a check for this project or a grant for that...these 'deals' being cut by our reps. are only a symptom of the bigger problems and should be seen as a distraction from the real issues.  His advice, demand real changes and do not be swayed from the goal, which is true funding for our schools.

Any thoughts?

Further reading:

The Education Policy & Leadership Center

PA Dept. of Education 

Choices, Your Home & Our Planet

I will acknowledge up front that there are those among us who believe that the 'hoopla' over global warming is the result of a fabricated problem, created to benefit some sinister group of scientists & believers, to the detriment of all of us poor, unsuspecting & foolish residents of planet Earth.  I am not one of these skeptics, but I wanted to make sure that those of you who belong to this group don't feel slighted, even if I don't really get the whole conspiracy concept.

Regardless, going 'green' is quite popular these days and companies and corporations are beginning to respond to the demand for different choices in products and services.  Hotels are offering patrons the option of waiving the requirement for clean sheets and towels every day (this by the way is long overdue-resorts in the Carribean offered this years ago!), coffee makers are displaying 'rain forest friendly' logos on their packaging, and car makers are beginning to provide options for those looking for better gas mileage.  All of this is the result of the marketing people realizing that a good percentage of us consumers want these options and that we are beginning to realize that we are able to 'vote' on issues by simply purchasing differently.

When it comes to maintaining your home and running your household, there are many small ways to help the environment.  My friend Janet, Feng Shui guru & Conscious Language mentor extraordinaire, has addressed some of these very eloquently on her site. Personally, I have begun to switch from the 'old fashioned' light bulbs to newer, energy efficient types which are more expensive but make me feel good about even this small contribution to the fight against global warming, and organic gardening has been a hobby/interest of mine for over 15 years.  I am very concious of how easy it is to pollute our environment every day with cleaners, pesticides, fertilizers and other 'helpful' products.  That is not to say my home is totally green, far from it...but I am aware and think about my choices more and more the more I read and become informed about our planet's predicament.

I am interested in finding resources for energy saving and environmentally friendly tips for homeowners for my websites.  Additionally, my community is planning an Earth Day event in April and we need information to present.  Please let me know if you have any suggestions!

The Bursting Bubble of Real Estate

Cari McGee hit the nail on the head with her post about the media's frenzied announcements about home sales plummeting across the nation.  Her main point, that real estate markets are LOCAL, is well worth repeating...over and over if necessary and until consumers and agents hear it, understand it and take it to heart.  And her points about why listening to these 'reports' is very misleading to buyers, sellers and agents are important ones, not the least important of which concerns the negative effects this could have on her (our) good market.  Read her post, substitute the word 'Poconos' for 'Tri-Cities' and you have a commentary perfectly suited to our market, even though she's wr