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Chester County Real Estate news: February 20, 2012 0

Survey: Coatesville residents want grocery store

The results of a survey given to Coatesville residents and nearby communities are clear: There is a need for more restaurants and a grocery store downtown. City Council was recently presented with the results the survey, completed by approximately 325 residents, and will use the input to create a vision for the future of the city. The survey is part of an early intervention program, which is in its third and final phase. Beyond restaurants and grocery stores, other developments that a majority of responders wanted to see in the city included office space, a performance space, hotels and residential homes. While residents may not be happy with the current state of the downtown, they were very clear about what they envision for the city. Nearly 80 percent of responders said they would like to see Coatesville resemble West Chester after it’s developed.  Responders said the top priority for the city should be to repair existing sidewalks.

Source: Daily Local; 2/14/2012

Exton mall appeals property tax assessment

A Common Pleas Court judge is weighing two competing property value estimates for the Exton Square Mall for a decision that could have a significant negative impact on the West Chester Area School District’s annual budget for the foreseeable future. The mall owners have argued in court that the downturn in the economy has reduced the mall’s overall rental income, and that the property is now worth about $95 million, not the $112 million-plus that the school district contends is its fair-market value.  Should Senior Judge Thomas Gavin side with the figures presented by attorneys for the Pennsylvania Real Estate Investment Trust (PREIT), owners of the 1 million-square-foot-plus shopping mall, the school district could lose as much as $180,000 a year in property tax revenues. That loss would not be for just 2010, the year in which the mall appealed its real estate tax assessment to the Chester County Board of Assessment. Because of state law, the lowered assessment would remain in place for as long as the county maintains its current assessment rate, no mater what the economy holds in the future for the mall. Only a countywide reassessment of all properties would return the property value to a higher amount, should the economy boom and Exton Square fill its currently vacant storefronts. The last full county reassessment took effect in 1998, and before that in 1975. Talk of a countywide examination and adjustment of property values is not currently on the county’s political agenda. The mall is one of a few large property owners appealing their property tax assessments in 2010.

Source: Daily Local; 2/13/2012

East Brandywine seeks input on Guthriesville Village

East Brandywine Township adopted a Guthriesville Village Vision Plan and Development Strategy as part of the 2009 update to the township’s Comprehensive Plan. The township is now looking for public feedback on the current conditions and potential future of the Village. A visioning meeting will be open to the public on February 22 at 7:30 p.m. at the Township Meeting Hall. If you are unable to attend the meeting, but would like to provide an opinion regarding Guthriesville’s future, please contact Township Manager Scott Piersol at scottpiersol@ebrandyine.org.

Funds approved for Paoli SEPTA station design

A SEPTA spokesperson confirmed last week that SEPTA’s board has approved nearly $7.5 million to design the Paoli Transportation Center. This funding is only for designing the station, but it will not go towards building the station. Specifically, the board resolution passed in late January calls for the provision of architectural, engineering and construction-related services [to be provided] over 2,110 calendar days [for payment] not to exceed $7,499,225. SEPTA’s 2012-13 budget lists the Paoli Transportation Center construction project as a proposed capital project for 2016-23. The finished station is proposed to be 80 feet west of the old one, better connecting with SEPTA and private buses. According to the published SEPTA budget, the Paoli Transportation Center will cost $35,615,000 and will provide an “intermodal station complete with high-level platforms, waiting area, ticket office and passenger amenities.”

Source: Main Line Suburban Life; 2/8/2012

For Sadsbury property owners, a different kind of sewer backup

Sadsbury Township is billing some landlords and business owners for five years’ worth of back charges after realizing in December that public sewer customers were not being properly billed. The township ordinance concerning public-sewer billing states that customers pay a flat rate plus a fee for usage. In December, supervisors realized that the flat fee should not be charged per customer, but per equivalent dwelling unit, or EDU. Since the public sewer system was installed more than 10 years ago, the township has been charging each customer a single flat rate. However, customers with multiple EDUs should be charged the flat rate times the number of hookups they have. Multiple-dwelling units, such as apartments, have one EDU for each residence, while businesses have a varying number of EDUs based on the business and how much sewer service it uses. Once township officials realized they had been under-charging some customers, they sent out bills for the uncharged fees dating back to Jan. 1, 2007. The board also voted to lower the flat rate to $360 per EDU.

Source: Daily Local; 2/10/2012

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Posted on: 02-17-2012
Posted in: Chester County, News

Chester County Real Estate News: February 10th, 2012 0

Downingtown agrees to suspend enforcement of U&O inspection

After discussions with Suburban REALTORS Alliance staff, Downingtown Borough has agreed to suspend enforcement of a recent requirement for point of sale use and occupancy inspections. The Borough Council will consider the passage of an ordinance in the future. Alliance staff will continue to work with the borough to ensure both residents and our members who conduct business in the Borough will be able to understand how any such adopted ordinance will impact them and their clients. Please contact the Alliance with any questions or concerns at sra@suburbanrealtorsalliance.com.

Coatesville planning to cut size of planning commission

The City Council of Coatesville will consider for adoption an Ordinance reducing the number of planning commission members from seven to five members. The meeting will take place on Monday, February 13, 2012 at 7:30 p.m. at Coatesville City Hall, One City Hall Place, Coatesville, Pennsylvania,

Source: Daily; 02/05/2012

West Bradford to consider changes to official map

The West Bradford Township Board of Supervisors will conduct a hearing to consider an ordinance amending the Official Map, to add certain public parklands and improvements. The hearing will take place on Tues., Feb. 14, 2012 at 8 p.m. at the Township Building, 1385 Campus Dr., Downingtown.

Source: Daily Local; 02/06/2012

Thornbury inspector quits

Thornbury Supervisors accepted the resignation of Ted McCandless as township code inspector. Chilli’s Inspection Service was appointed to replace McCandless. In other matters, it was announced that during re-organization of the township sewer committee, Ted Jacquet and George Morley were reappointed chairman and vice chairman, respectively. Supervisors approved the appointment of Michael Serth as a member of the sewer committee.

Source: Daily Times; 2/6/2012

Upper Uwchlan to hold hearing on Capital Improvements Plan

Upper Uwchlan Township Board of Supervisors shall hold a public hearing to gather public comment concerning the amendment and reauthorization of the Capital Improvements Plan – funded by previously approved transportation impact fees – as recommended by the Township’s Transportation Impact Fee Advisory Committee. The proposed Capital Improvements Plan is available for public inspection at the Township Office, 8:30 a.m. – 4:30 p.m. Monday-Friday. The hearing will be held Tuesday, February 21, 2012 at 7:00 p.m. at the Township Building, 140 Pottstown Pike, Chester Springs (Eagle) 19425.

Source: Daily Local; 02/06/2012

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Posted on: 02-10-2012
Posted in: Chester County, News

Chester County Real Estate News: February 3rd, 2012 Comments Off

Downingtown requires resale inspection

Downingtown Borough Council passed a resolution requiring the inspection of properties at point of sale.  The inspection fee has been set at $100. A list of the residential inspection criteria has been posted on the Alliance’s municipal database. The Alliance has questioned the validity of passing such a requirement through resolution – with no prior public notice – but encourages REALTORS to follow the requirements until further notice.

Downingtown Borough tables well ordinance

Borough Council will wait until March to make a decision on a proposed well ordinance from the Downingtown Municipal Water Authority. The ordinance is expected to be discussed again on March 7. The ordinance would prohibit the drilling, installation or use of any new wells, or the expansion of existing wells, for water service. Residents may seek written approval from the authority to construct new wells or expand existing ones. Council President Anthony “Chip” Gazzerro said the proposed ordinance would not become a “major problem” in Downingtown but rather it is a way to keeping someone from accidentally connecting a well to the water authority’s system and possibly causing contamination. The ordinance would also enforce having users connect to the water authority on a “going-forward basis,” which would apply to members of the borough, East Brandywine and East Caln. According to Borough Solicitor Andrew Rau, municipalities can provide water service in one of two ways: from a body of water or a company, or from a municipal water authority. “The borough code says if you create a system, you can make people use it” to ensure that a public system is financially able to continue to operate, said Rau. To date, neither East Brandywine nor East Caln has approved the ordinances submitted to them by the water authority. The revised ordinance is expected to be presented to East Brandywine supervisors again at a March 21 meeting.

Source: Daily Local; 1/31/2012

West Whiteland Township to consider trash fee increase

Discussions on proposed fee increases have been postponed by West Whiteland Township officials until Feb. 22. Residents were invited to the initial proposal made by the township manager last week, but township supervisors decided on an additional meeting because of the late notice residents received. Township Manager Michael Cotter proposed doubling the fee per trash bag from $2 to $4. The increase would alleviate some of the burden on the township, which has seen reduced funding for the waste removal system in recent years. The state reworked the formula it uses for calculating the amount of performance grant money townships receive, Cotter explained. The change will leave a significant gap between the cost of waste removal and the funding the township sets aside for it. In 2008, West Whiteland received $542,811 in grants compared to 2009’s $171,472. Supervisors said township residents on average pay $104 annually for waste removal. That fee would jump to $208 at $4 a bag. For 2013 and after, there was also a recommendation to create a potential series of small scale fee increases to recapture the cost of operations, stabilize reserves and address longer term capital requirements. The full presentation made by the township manager can be found at the township’s website, www.wwhiteland.org. The next meeting is set for 6:30 p.m. Feb. 22, at the township building, 101 Commerce Drive, Exton.

Source: Daily Local; 2/1/2012

West Chester Borough Council to draft changes to building height regulations

West Chester Borough Council directed its solicitor to draft changes to the borough’s building height regulations. Proposed by Council President Holly Brown, the changes would restrict a height option overlay district west of Adams Street to 45 feet by right and 60 feet with conditions. The current ordinance allows for 45 feet by right and 75 with conditional use, with an additional option to go to 90 feet only if a building has 25 percent or more residential use. As a frame of reference, the parking garage on Chestnut Street across from the YMCA is 75 feet tall. Though arguments were made for and against the proposal, most residents expressed a desire to change the ordinance to reflect the proposed heights, saying that it would preserve the appeal and charm that makes West Chester attractive for most visitors and residents. Residents and borough officials agreed the aesthetics of the building were much more important than the actual height itself. This was reflected in the vote Wednesday that gave permission for the proposed ordinance with the condition that it would not be advertised until after June 3.

Source: Daily Times; 1/31/2012

Phoenixville School District preliminary budget increases

The preliminary budget for next year’s Phoenixville Area School District increases spending about 3.89 percent over the current year. If adopted as is, property taxes would increase about $162 on a house valued at $150,000, according to district figures.

Source: Daily Local; 1/30/2012

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Posted on: 02-3-2012
Posted in: Chester County, News

Chester County Real Estate Statistics: January 2012 Comments Off

January was a very predictable month. Supply was inline with historical numbers, as was demand and the list to sale price ratio.  The average sale price was not inline with historical numbers, as it was at about $318k, when we usually see it up around $370k. This is as sign that it seems that many lower end homes settled last month and those homes went under contract in November and December when the activity was very slow.

We can say that the “word on the street” is that the market activity has begin early. We have seen it in our business – lots of calls and inquiries on listings. So it seems that the Spring market has started early. Hopefully this is sustained and the increased interest and activity carries through the rest of the year. If it does, it will be a big step toward recovery.  This activity seems to be driven by a general restlessness – people just need to do something and can’t wait any longer, or feel this is their best opportunity.

That’s our take on January’s numbers, take a look for your self!

DEMAND

SUPPLY

PENDING

AVERAGE SOLD PRICE

LIST TO SALE PRICE RATIO

What Does This Mean For ME?

IF YOU ARE SELLING OR THINKING OF SELLING:

Yes – it is still a difficult time to sell a home. However, our team continues to have great success getting homes sold. At the end of October  , we’ve sold 41 homes. In the end, you must have an exceptional agent by your side to help you get the information and perspective you need to make this critical decision. We’ve helped many clients do just that over the last year and a half. Call us today to let us know you need help.

IF YOU ARE BUYING A HOME OR THINKING ABOUT IT:

There continues to be amazing opportunities there for those who have all their “ducks in a row”. If you do not have a home to sell, that means knowing the process, having your financial options figured out and knowing, clearly, what you are looking for. If you have a home to sell, that adds that you have met with Caleb to know what the SELL side looks like and then meeting with Chris to clearly nail down the buy side. Interest rates are amazing, hovering around 4.25%.  So if you are thinking about buying, call us today to get that ball rolling.

NEXT STEPS:

  • What Is My Home Worth? Want to get a good idea of what your home is worth? Complete my Home Value Survey and find out what your Chester County Home is worth. . .
  • What Is That Home Worth? “Stop the car, honey … look at that house. I wonder what it’s selling for” Does this ever happen to you? Ever wonder what that house is selling for? Search and view all homes for sale in the Chester County area
  • What do I need to know before I sell? Typically when a home does not sell, there is one reason…and it isn’t price. Please contact me to discuss what you need to know before you sell!

BTW, We do have very specific data for every price range and area of town. Want specific data pertaining to your neighborhood or your own home? We have it! Please let me know if you would like a neighborhood-specific analysis by contacting me!

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Posted on: 01-31-2012
Posted in: Chester County, Market Update, Monthly Update, News

Chester County Real Estate News: January 27th, 2012 Comments Off

Oxford school board representation dispute continues

Opposing sides in the dispute over reapportionment of the Oxford Area School Board’s voting districts agreed to sit down together and attempt to reach an agreement on new boundaries before fighting the matter out in Common Pleas Court. A hearing was scheduled to ask Judge Shenkin to approve the at-large plan for board representation that was approved by a 5-3 vote of the board last year, as is required by law. Opponents had, however, submitted two modified plans for regional and at-large representation to the court, asking Shenkin to give his nod to one of them rather than the board’s plan. Before the hearing began, with the courtroom packed on both sides of the aisle, attorney Patrick O’Donnell, representing the at-large plan opponents, suggested to Judge Shenkin that he appoint a mediator to help the sides settle the dispute. He noted that such a technique had been successful in two other contentious voting cases, including the fight over a polling place in Lower Oxford.  Shenkin gave the sides until March 8 to report on whether any progress had been made in negotiations or whether a full hearing on the issue would be necessary. Asked if he thought the two sides could reach a compromise between the at-large plan approved by the school board last year and the modified plans supported by some district residents, President Joe Scheese told a reporter “I don’t think so.”

Source: Daily Local; 1/23/2012

Phoenixville website highlights community

Phoenixville Borough’s website includes links to a Video TourBook, which highlights various aspects of the community. The videos are all available on the lower right hand side of www.phoenixville.org and include the following topics:

  • Welcome
  • Quality of Life
  • Real Estate and Relocations
  • Education
  • Arts and Entertainment
  • Parks and Recreation

Residents object to Parkesburg tax hike proposal

Changes in how money is being allocated means the 2012 Parkesburg budget will be advertised for reopening, but the 2012 tax rate is still expected to jump dramatically. The new tax rate borough council is advertising for this year is 10 mills, a 25% increase over the 2011 rate of 8 mills. For residents with a home assessed at $100,000, the two-mill increase will mean an additional $200 in taxes. Residents attended the January 16 Borough Council meeting to question the need for the increase. The tax ordinance and budget will be considered at the February 6 Council meeting.

Source: Avon Grove Sun; 1/19/2012

Ordinance gives residents right to permit parking

West Chester Borough Council gave residents of the 400 block of West Miner Street the right to permit parking. The new ordinance designates that West Miner Street between Wayne and Brandywine Streets will be included in residential parking permit zone B from 8 a.m. to 4 p.m., Monday through Friday. Residents brought the parking issue to the attention of council last year, citing problems with county employees using their spaces. Similar parking petitions from South Brandywine Street and Wayne Street were denied because council did not feel there was the same immediate parking issue. Councilman Jim Jones suggested creating an ad hoc parking committee to examine the borough’s long term parking problems.

Source: Daily Local; 1/23/2012

Solar farm developers promise sewer hookups, buffer expansion

The developers of a proposed solar farm project in Caln Township promised residents who live north of the property that they will expand a buffer and pay for sewer-connection fees. The farm is proposed for 46 acres south of Dogwood Lane. During a township hearing, developer Harry Keares said the new plan is to move the natural buffer on the northern part of the property from 25 feet to 100 feet. The developer will also pay for both a public sewer and water line along Scott Drive and Dogwood Lane and pay the tie-in fees to the 38 residences along those streets. The Board of Commissioners has 45 days to render a decision on the proposed project.

Source: Daily Local; 1/23/2012

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Posted on: 01-27-2012
Posted in: Chester County, News

Chester County Real Estate News: January 13th, 2012 Comments Off

Early Coatesville District spending plan includes tax increase

The Coatesville Area School Board discussed a preliminary budget with a 3.36 percent tax increase during Tuesday’s finance committee meeting. The budget would require the district to apply for exceptions to increase taxes above the state-mandated 2.1 percent limit set by the Act 1 index, which is determined by various market measures. Board President J. Neil Campbell said he is uncomfortable with a tax increase over 3 percent, but he voted for the measure to move it forward and give the district flexibility. The proposed tax increase of 3.36 percent is below the estimated increase in expenditures at 3.5 percent. Many districts are filing for the exceptions at this point even if they do not plan to use them to give themselves flexibility. Two hundred districts in the state responded to a recent survey and nearly half said they are filing for the exceptions. The final budget will not be released until April or May.

Source: Daily Local; 1/11/12

Chester County’s former steel towns credit ratings shift

According to Moody’s, Chester County’s former steelmaking towns are headed in opposite financial directions. Moody’s boosted its rating on $12 million of Phoenixville’s general-obligation bonds to Aa3, citing the borough’s “ample financial reserves” and downtown redevelopment, which has put more property back on the tax rolls. Moody’s dropped the rating on $158 million in Coatesville Area School District general-obligation debt from A2 to A1 blaming the “structural imbalance in the district’s operating budget resulting in five years of operating deficits that have decreased the district financial position.”

Source: Philadelphia Inquirer; 1/10/2012

T/E board leaves options open for property tax exceptions

The Tredyffrin/Easttown Board of Education voted to publish notice of the intent to file for referendum exceptions that would enable the board to enact a tax increase of 3.3 percent.  The vote came after a presentation of preliminary budget options for 2012-13 within the context of a five-year projection of revenues and expenses. In a letter mailed earlier to all T/E taxpayers, the district had explained that it faces a deficit of about $6.2 million because of “continued revenue erosion, contractual salary expenses and benefit costs (and an) increased rate of retirement contributions to the Pennsylvania School Employees Retirement System.” That retirement-fund contribution rate is 12.36 percent of paid salaries for 2012-13 and projects to 23.66 percent in 2015-16, according to Tuesday’s presentation.

Source: Daily Local; 1/5/2012

Oxford council revisits sidewalk issue

Property owners in Oxford without sidewalks may have to install them, depending on their location in the borough. Councilman Randy Teel expressed concerns about the lack of enforcement of the sidewalk ordinance. According to borough ordinances, sidewalks must be installed on properties that do not have them when the parcel is sold. Teel has expressed concerns that Wells Fargo Bank on North Third Street was not required to put in sidewalks when ownership was transferred on the property. Enforcement of the ordinance seems to have varied over the years.  According to the borough solicitor, council can define a region for sidewalk improvements based on health and safety needs. Borough Manager Betsy Brantner pointed out that the planning commission will tell a builder if they need a sidewalk during their plan review. Now that sidewalks are being discussed again, the policies on enforcement of the ordinance are going to council’s codes committee for further discussion.

Source: Daily Local; 1/11/2011

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Posted on: 01-13-2012
Posted in: Chester County, News

Chester County Real Estate News: January 6th, 2012 Comments Off

Portion of Downingtown rezoned

Downingtown Council members unanimously approved to rezone Brandywine Avenue and the 100 block of Washington Avenue to a General Commercial District. Under previous zoning, the area included residential, industrial and commercial zones. According to Andrew Rau, the borough’s solicitor, the area will now be both residential and commercial throughout, which will allow for a variety of different uses for the buildings, including churches, legal offices and stores. “The residence can always stay as a residence,” said Rau. Homeowners can also expand upon the current building, up to 25 percent. The most significant change will occur when a homeowner wishes to sell or change a property to a commercial building. If this change occurs and remains as a business entity for more than 12 months, and the owner wishes to return the building to a residence, they must petition to do so to the Zoning Hearing Board.

Source: Daily Local; 12/29/2011

West Vincent seeks volunteer for Planning Commission

The West Vincent Board of Supervisors is searching for a volunteer to serve on the Planning Commission.  This will be a two year commitment, with meetings taking place on the 2nd and 3rd Thursday of each month.  If you have a desire to serve West Vincent in this way, please send your name, contact information and any qualifications you feel would help the Township in this capacity to tswavley@westvincenttownship.org.

Easttown approves 2.5 percent tax increase

Easttown Township supervisors approved a 2.5 percent tax increase for the township’s 2012 budget. The increase is the lowest in the past four years and follows a 4 percent increase in the 2011 budget. The millage rate will increase from 3.919 to 3.979 mills. In October, Easttown residents found they would have a 2.5 percent increase in sewer rates for the next five years due to an ongoing and urgent need to upgrade the township’s part of the Valley Creek Trunk Sewer System, and also a 4 percent increase in trash removal fees.

Source: Daily Local; 12/27/2011

Oxford officials approve tax hike to fund $3.27 million budget

Oxford Council approved an increase in the real estate tax rate for 2012, bringing it up from 11 mills to 11.20 mills. For a homeowner in the borough with a property assessed at $100,000, that translates to a tax increase of $25 for the year.

Source: Daily Local; 12/24/2011

Downingtown council OKs sale of Kardon Park

Downingtown Borough Council approved an agreement to sell Kardon Park to developers Sarah Peck and Jack Loew. Prior to the meeting, Borough Manager Stephen Sullins said the agreement will outline how the sale would proceed when and if the litigation over Kardon Park is resolved, since everything in the courts must be settled prior to the land’s transfer. Solicitor Patrick McKenna said the agreement had undergone several revisions since Dec. 22. The agreement of the sale involves three park parcels, called Parcel 1, Parcel 2 and Parcel 3. Parcel 1 is measured at approximately 17.5 acres and is located in the borough; Parcels 2 and 3, in East Caln, are approximately three and seven acres, respectively. According to the newest revision of the contract, Parcel 1′s minimum price is $2.61 million; Parcel 2′s is $900,000; and Parcel 3′s is $860,000. McKenna said at the meeting that even if the developers purchase Parcel 1 and not Parcel 2, they must still remediate Parcel 2. The developers have already deposited $300,000, which will be applied to the total purchase price.

Source: Daily Local; 12/29/2011

O’Neill, Citizens settle dispute

Litigation between two of the region’s economic heavyweights, Citizens Bank of Pennsylvania and developer Brian O’Neill, is over. Accompanying word of settlement, O’ Neill made an enthusiastic pronouncement that his long-stalled Uptown Worthington mixed-use development near Malvern — which stood at the center of the nearly two-year-long dispute — would soon rumble with new construction. As Uptown Worthington progresses, it will include modifications to the original plan. What were once envisioned as condominiums will be 753 apartments built in three phases, the first to begin within six months. Construction of a 145,000 square foot office building will also begin within the next three months. An additional 375,000 square feet of retail space is expected to accommodate 55 stores and 15 restaurants.

Source: Philadelphia Inquirer; 12/24/2011

No tax hike for residents in Pocopson

Pocopson Township residents can look forward to another year without a property tax increase from the township. According to Supervisor Steve Conary, new homes at Scaleby Farms and new construction by NV Homes have brought in taxes Pocopson had not expected. Conary also noted that the township’s open-space preservation program has officially ended. Enacted in 2006, the open space program used a 1 mill property tax to purchase open space throughout the township and place easements on those properties. At the time, the township officials limited the program to five years. The 1 mill tax, which was enacted by public referendum, will remain in place for the next few years to offset funds borrowed by the township to purchase land for the purpose of open space. The township has conserved 1,264 acres of land through the program.

Source: Daily Local; 12/25/2011

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Posted on: 01-6-2012
Posted in: Chester County, News

Chester County Real Estate Statistics: December 2011 Comments Off

Click to Enlarge

2011 is done. Over with. In the past.  The year was sort of like “medicine” in my opinion. During the Christmas weekend, my younger son (Chris speaking here) came down with Strep throat. In order to help with the pain & healing, he had to take several different medicines. This wasn’t easy, as he is only 3 years old and very strong willed. If he doesn’t like something or want to do it, he won’t. So trying to “Sell” him on taking medicine wasn’t easy. It tasted awful, but was very good for him.

That’s sort of how I look at 2011. It didn’t go down very well, but it’s a big step towards recovery.  I’ve read a lot of articles from “experts” and many are saying there are many signs that the national housing market is very near the bottom and close to recovery. Here are some of those points:

- From CalculatedRiskBlog.com:

  • In 2011, construction employment added a few jobs, first since 2006
  • Some say new home sales and housing starts may see an increase on 2012
  • Wells fargo is predicting a 15% increase in sales of new construction, best year since 2008.
  • Goldman sachs believes that housing starts have bottomed out
  • Even with a 15% increase, it’s still the third worst year since the census Bureau started tracking new homes sales in 1963 (2009 and 2010 being the worst respectively )

- Bob Denk, senior economist at the National Association of Home Builders, to CNNMoney “Inventories of new homes are very low: There’s nothing on the shelf, so any increase in new home sales will translate directly into new housing starts. That means putting people back to work.”

- Tara-Nicholle Nelson of Inman News says “- Consumers will get “hopeless”, meaning they will realize that this is the new “normal” and start to take action on things they’ve put off. “(Read her full article)

- – Beginning of the end of the housing bust? Due to a rise in housing starts permits, this expert believes so.  (http://www.businessinsider.com)

All of this does give me some hope. I have believed and been predicting that 2012 will be somewhat similar to 2012. In fact, we still feel that, due to the “Distressed Property” inventory (Foreclosures and Short Sales) that home prices will continue to slide, possibly as much as 10%. However, I believe there will be an uptick in activity, in the number of homes sold. I believe that will be due to a combination of consumers getting to that point where they realize that things aren’t going to just magically turn around and start to get off the fence and just pent up needs.

With that long introduction, let’s look at the numbers for December 2011:

SUPPLY:
Supply is the lowest it’s been in a very long time.  In our opinion, this is a good sign. When supply is down and demand is up, it means good things. As we will mention, demand is not skyrocketing, but it isn’t dropping either. As we said the last few months, we feel this is due to many people getting “out of the game” because they are seeing reality and they can’t get the price they want for their home, so they are staying in the house for now.

DEMAND:
Demand, or the number of homes sold has been pretty steady, despite the seasonal trend that activity lightens up. We’ve personally seen quite a bit of interest in the last few weeks, so we feel that January is going to be an active one.

LIST TO SALE PRICE RATIO:
This is another positive sign. In December, homes that sold received about 91.5% of asking price. That’s more than seasonally expected and shows that prices are getting to where they should be. The next 6 months will be very telling. If this number can stay closer to 93% than 90%, this is a good sign.

DEMAND

SUPPLY

PENDING

AVERAGE SOLD PRICE

LIST TO SALE PRICE RATIO

What Does this mean for me?

IF YOU ARE SELLING OR THINKING OF SELLING:

Yes – it is still a difficult time to sell a home. However, our team continues to have great success getting homes sold. At the end of 2011   , we sold 48 homes. In the end, you must have an exceptional agent by your side to help you get the information and perspective you need to make this critical decision. We’ve helped many clients do just that over the last year and a half. Call us today to let us know you need help.

IF YOU ARE BUYING A HOME OR THINKING ABOUT IT:

There continues to be amazing opportunities there for those who have all their “ducks in a row”. If you do not have a home to sell, that means knowing the process, having your financial options figured out and knowing, clearly, what you are looking for. If you have a home to sell, that adds that you have met with Caleb to know what the SELL side looks like and then meeting with Chris to clearly nail down the buy side. Interest rates are amazing, hovering around 4.25%.  So if you are thinking about buying, call us today to get that ball rolling.

NEXT STEPS:

  • What Is My Home Worth? Want to get a good idea of what your home is worth? Complete my Home Value Survey and find out what your Chester County Home is worth. . .
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Posted on: 01-5-2012
Posted in: Chester County, Market Update, Monthly Update, News

Chester County Real Estate News: December 16th, 2011 Comments Off

Easttown Township sewer moratorium

Easttown Township is currently under a PA Department of Environmental Protection-mandated Capacity Management Plan (CMP), which effectively precludes adding new or expanded sewer connections. Several updates need to be made to the sewer system in the township before the CMP will no longer be active.  In order for that to happen, there needs to be an upgrade to the Valley Creek Trunk Sewer; six sewer pump stations in Easttown need to be replaced or refurbished; and the township must continue removing clean water (inflow and infiltration) from the system. The projects should take approximately three years to complete.

First Suburbs honors Coatesville official, Gerlach

The Southeastern Pennsylvania First Suburbs Project was formed approximately four years ago to address major challenges facing inner-ring suburbs such as housing, infrastructure and education finance reform in Delaware, Bucks, Chester and Montgomery counties. The regional coalition consists of municipal, education, faith and civic leaders.  The coalition recently presented the Jonathan T. Schmidt Visionary Leadership Award to Coatesville Assistant City Manager Kirby Hudson. Hudson said he believes the coalition has helped his city improve housing issues. The Most Powerful Federal Legislator Ally of the Year award went to U.S. Rep. Jim Gerlach (R), and the Most Powerful State Legislator Ally of the Year award went to state Sen. Ted Erickson (R), of Newtown.

Source: Daily Local; 12/12/2011

Chester County residents to see tax increase in U-CF

Residents in the Unionville-Chadds Ford School District will see an increase in next year’s tax bills in Chester County, while Delaware County residents will see a slight decrease. The administration presented a preliminary budget for the 2012-13 tax year which will set spending at $71.6 million. That figure means an increase in millage rates of 3.87 for Chester County residents and an 0.60 percent decrease for Delaware county residents. A mill is a tax of $1 for every $1,000 of assessed real estate value. In Chester County, the millage rate goes up from 24.68 mills to 25.48, a 3.87 percent increase over 2011-12 rates. In Delaware County, the millage rate drops from 21.82 mills to 21.69 mills. The preliminary budget is scheduled for adoption at the Jan. 23 school board business meeting.

Source: Daily Times; 12/14/2011

Anti-eminent domain language eyed for regional land plan

In light of a recent plan to take by condemnation the Ludwig’s Corner Horse Show grounds, a Chester County commissioner has recommended that a proposed regional open space plan include language that specifically opposes using eminent domain to acquire park land. Commissioner Ryan Costello attended an East Vincent Township Board of Supervisors meeting Wednesday to make that recommendation. East Vincent is the lead municipality for the parks, recreation and open space plan being developed by the Federation of Northern Chester County Communities. The plan, two years in the making, is nearing completion and is expected to be approved in February, according to Township Supervisor Christine McNeil, who also serves as vice president of the federation. When complete, it will define a vision for parks, open space and recreation for nine Northern Chester County townships: East Coventry, East Pikeland, East Nantmeal, East Vincent, North Coventry, South Coventry, Warwick, West Pikeland, and West Vincent.

Source: Daily Local; 12/9/2011

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Posted on: 12-16-2011
Posted in: Chester County, News

Chester County Real Estate News: December 13th, 2011 Comments Off

Phoenixville council eyes 19% tax hike

Phoenixville Borough Council voted to advertise a proposed $7.6 million 2012 budget that includes a 19 percent tax increase. The proposed millage increase, .84, means a household appraised at $100,000 would pay $84 more in real estate taxes next year. The new millage rate is 5.25, up from last year’s 4.41. Borough Council was tasked with balancing the budget with a $144,338 shortfall in the general fund. The preliminary budget takes into account the debt service for a bond to complete capital improvements (.71 mill). The $10.9 million bond accounts for $2 million for repairs to water infrastructure, $500,000 in improvements to the wastewater treatment plant, and an $8 million new borough hall. After an executive session, council agreed to take the steps needed to issue the bond for the new borough hall. The proposed budget includes increases for the cost of sewer and water for residents: $5.15 per thousand gallons for sewer and $6.80 – up from last year’s $6.15 – for water. The shortfall of $144,338 was reduced to $111,000 with various adjustments. The gap was closed with an increase to the cost of safety permits and licenses and a .13 mill increase to the general fund. A public hearing is set for Dec. 13, during which Borough Council will vote on the final budget for 2012.

Source: The Mercury; 12/1/2011

Horseshow grounds condemnation sets off major debate in West Vincent

West Vincent Township Supervisors announced a decision to condemn a 33-acre tract of land last week in a news release as part of their “ongoing effort to fulfill the vision of its Ludwig’s Corner Strategic Vision and Community Design Plan.” The plan calls for “a compact, walkable, traditional village center containing a blend of municipal, commercial and residential uses.” Supervisors said they intended to incorporate the grounds into their master land-use plan as a public park, offering both active and passive recreation, such as playing fields for local youth leagues. The announcement was met with protests from members of the community and the current owners of the land, the Ludwig’s Corner Horse Show Association. West Vincent Supervisors opted to table discussion of the issue at a recent meeting, but decided not to vote to rescind the condemnation Monday night due to Supervisor Ken Miller’s absence.

Source: Daily Times; 12/6/2011

West Chester seeks volunteers for 2012 Boards and Commissions

Much of the important work of the Borough of West Chester is done by volunteers serving on appointed Boards and Commissions. These volunteer Boards and Commissions provide Borough Council with advice on various matters and help to deliver quality municipal services. Follow the link below for a list of the Boards and Commissions that will have vacancies in January 2012 along with a brief description of their function and the qualifications for serving. Click here to find out more information.

E. Marlborough raises taxes for fire department

Residents will see a $50 to $60 increase in their tax bills next year as part of East Marlborough Township’s efforts to support the financially ailing Po-Mar-Lin Fire Company. The township’s supervisors have been concerned for years that the all-volunteer fire company serving East and West Marlborough, Newlin and Pocopson townships was losing money and might one day be forced to close.  A 0.3-mill tax increase to the 2012 budget will provide an estimated $206,000 a year for fire protection.

Source: Daily Local; 12/7/2011

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Posted on: 12-13-2011
Posted in: News, Phoenixville, West Chester
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