Chester County Real Estate News: November 11th, 2011 Comments Off
Westtown Township bond rating downgraded
Westtown Township is facing a credit-rating downgrade by Moody’s Investor Service, which warns that more and more municipalities are spending beyond their means as the recession continues. Westtown Township had its bond rating cut from Aa3 to Aa2 on the eve of a planned $9 million general obligation bond sale. Moody’s is concerned that Westtown will be paying more for its regional taskforce, has already borrowed too much, and is running a deficit on current property-tax revenue.
Source: Philadelphia Inquirer; 11/4/2011
Bank, apartments coming to Uptown Worthington
Uptown Worthington, a mixed-use development located near the intersection of route 29 and route 202, is digging in, this time for a PNC Bank branch site. The developer is moving earth now and will turn over the site on Matthews Road to the bank in early 2012, said Steve Forster, director of public finance and government resources at O’Neill Properties of King of Prussia. The PNC branch will be part of Phase I of the 100-acre development, a retail phase that includes a Wegmans and a Target. Those retailers opened in summer 2010. Another change for Uptown Worthington is a switch from the planned luxury condominium units to 753 apartments units to meet market demand. The housing units are part of Phase II at Uptown Worthington. With the development’s master plan amended, the next step will be to present revised land development plans to the township, said Terry Woodman, East Whiteland township manager. Much of the multimillion-dollar Uptown Worthington mixed-use project came to a halt when the project’s developer filed suit against its lender, Citizens Bank of Pennsylvania, seeking $8 billion in damages and claiming the bank reneged on some of its loans.
Source: Daily Local; 11/4/2011
Phoenixville weighs tax hike to close $241,235 deficit
Facing increases in insurance premiums for health care and workers’ compensation, the need to replace outdated vehicles and unresolved contract negotiations, Phoenixville Borough recently released a proposed $6.9 million budget for next year that hikes taxes 8.4 percent to close a budget deficit of $241,235. The proposed increase would take the borough’s tax rate from 4.41 to 4.78 mills, meaning a homeowner with a property assessed for tax purposes at $100,000 could expect to pay an additional $37 in 2012. A council meeting has been scheduled for 6:30 p.m. on Nov. 29 to discuss the budget and other Phoenixville business.
Source: Daily Local; 11/7/11
Franklin voters defeat tax for open space again
Franklin Township voters again defeated a tax for open space in Tuesday’s election. Unofficial results show the referendum for a half-percent income tax for open space was defeated, 841-591. A similar measure was defeated in the May primary election. The supervisors raised the issue for the fall ballot despite that defeat.
Source: Daily Local; 11/9/11
Chester County Budget Meeting
The Board of Commissioners of Chester County will hold a 2012 Budget public hearing on Thursday, November 17, 2011 from 7 p.m. to 8 p.m. in the Commissioners’ Board Room, sixth floor, 313 W. Market Street, West Chester, PA.
Source: Daily Local; 11/6/2011
Chester Count Real Estate News: November 4th, 2011 Comments Off
Chester County to gain state House seat
Chester County’s growing population has led to the creation of a new state House district under the proposed legislative redistricting plan. The new district in Chester County will be carved out along the Route 30 corridor and center around Downingtown and Coatesville. The county will continue to have nine state House districts, because the addition of the new district and subsequent rearranging of others will crowd out Rep. Thomas Killion (R-168), who represents one township in Chester County and has the majority of his district in Delaware County. Chester County will be divided among four — not six — state Senate districts after two of them were adjusted to keep them outside the county.
Source: Daily Local; 11/1/11
In Franklin, open space EIT back on the ballot
When Franklin Township voters cast their ballots in May, they voted to defeat a referendum that would permit the supervisors to impose a half percent income tax dedicated to preserving open space. Unwilling to drop the idea, township supervisors have voted to include the question on the ballot for the general election on Nov. 8. Supervisors’ Chairman Nan Latimer explained that the current board had voted to place the referendum on the ballot again because they believe people did not understand it entirely. She said people need to know that the current real estate tax of half a mill will disappear if the earned income tax is enacted. A mill is a tax of $1 for every $1,000 worth of assessed property value. Additionally, she said now is a good time to buy easements and land at a relatively low price. Opponents of the earned income tax have argued that the earned income tax would land the township further in debt, because of plans to “leverage” loans to buy more open space.
Source: Daily Local; 10/31/2011
A village of the future in London Grove
A fascination with green technology is helping generate interest in a new form of housing in London Grove. The Three Groves Ecovillage promises to be an opportunity for people interested in being part of a net-zero-energy neighborhood. More and more area homes are being constructed or retrofitted with solar panels to decrease energy bills, but Three Groves goes much further, aiming to be the first net-zero-energy neighborhood in the country. Using geothermal and solar technology in a community system, coupled with high-efficiency appliances, the clusters of attached homes are designed to produce all the energy they need on site. Planned are 36 homes in three “groves” of about 12 homes each. The price would be in the $200,000 range for a one-bedroom and the low $400,000s for a four-bedroom. For more information on line, visit www.ThreeGrovesEcovillage.org.
Source: Daily Local; 11/1/2011
New section of Schuylkill River Trail opens
Helping complete one of the many priority gaps on the Schuylkill River Trail in Chester County, officials unveiled a 5.6 mile section in Spring City that will eventually connect the multi-use trail with the rest of the region. The opening of the Spring City portion of the trail was hailed as a significant accomplishment because it will spur economic growth for the borough.
Source: Times Herald; 10/27/2011
Spring-Ford school district to repay $6.5 million to GlaxoSmithKline
The Spring-Ford Area school board voted to approve a $6.5 million settlement with GlaxoSmithKline PLC to end a multi-year property tax assessment appeal. Under the terms of the settlement, the new property value for Glaxo’s Upper Providence campus will be $47.5 million, a reduction from the original assessment of $114.1 million but higher than the $24 million assessment the company believed was in order. The district must pay the company $3 million and then credit the remaining $3.5 million over the course of three years. The new assessed value of the GlaxoSmithKline property will remain in effect for five years and is estimated to cost the Spring-Ford Area School District $1.612 million in annual revenue.
Source: Times Herald; 10/25/2011
Chester County Real Estate Statistics: October 2011 Comments Off
Click to Enlarge
Last month we entitled our monthly numbers review as “The New Normal”. We certainly believe that this is truly the case. So many tell us that they are going to wait until “the market gets better.” Depending on what exactly you mean by that, you could be waiting a very, very long time. Many experts are predicting that when the market does exhibit growth, it will be slow growth. At this point, at least locally, we are back to about 2003 numbers, give or take. 2006 was the peak and for the current market to traverse that same 3 years, in terms of value may take 10 years or more. So, if you are just “Waiting” for no good reason, we suggest you analyze those needs and see if it wouldn’t make sense to make a move now. Let’s take a look at what positive news there is out there right now…
SUPPLY:
Supply continues to fall, now putting the number of homes available for sale slightly below the 5 year average and about 8% off last years number, the same month. This is good news. As we will discuss, demand appears to be up and with supply trending down, this could be the remedy that we are looking for. The national news is also good as LPS Applied Analytics sites in this article on CalculatedRiskBlog.com, the delinquency rates for mortgages declined in September, in addition to the GDP rising 2.5%. These are all good signs for the real estate market. The two big factors holding the market back at this point is the overall economy/unemployment and Foreclosures. Experts predict it will be at least another few years before we see a significant reduction the overall inventory for the foreclosure supply, as stated in these two articles: “REO Sales may not peak until 2013″ and “Several more years with nearly 1m foreclosures per year”.
DEMAND:
While demand locally is still below the 5 year average, it is only down off that number by a measly 5% and it is up over last year by 10%. Additionally, NAR reports that pending sales are up, nationally, 6.45% over the same time last year, - these are all positive signs.
LIST TO SALE RATIO:
Last month we noted that the average List To Sale Price ratio seemed to have leveled out. However, the amount of money that home-seller’s were getting compared to what they were asking took a decent dive, down to 89.6%, from 91.5% last month. This is fairly typical for the season. The market did the same thing last year, just a month later in the season. While this number is not concerning in and of itself, it will be if it stays depressed.
PENDING:
Pending Sales are tracking very similar to last years numbers, which is expected. Since the pending numbers run a month behind schedule and predicts about 2 months in advance, we believe November closed sales will be very similar to last year.
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!
Chester County Real Estate News: October 28th, 2011 Comments Off
In Oxford, long wait for sewage availability is getting shorter
Anyone hoping to build in Oxford has been waiting a long time for sewage capacity, but now they can get in line for a connection when one becomes available if they pay the tapping fee. Due to a sewage connection moratorium, only a few building permits have been issued in Oxford in recent years. A waiting list exists for approximately150 projects that have already paid prior to 1994 for connections they can’t make, while around 1,000 projects are proposed but have not been paid for. Now that the Oxford Area Sewer Authority is preparing to start construction on a new storage lagoon, at least some connections could be available in less than a year. The time line for the new lagoon calls for completion in 270 days after groundbreaking. That can happen as soon as the U.S. Department of Agriculture (USDA) approves the low bidder. It is the USDA that is providing the low interest loan for the project.
Source: Daily Local; 10/20/2011
Coatesville train station project advancing quickly
The Coatesville train station will be the first of a number of stations in Chester County to be renovated, according to officials involved in the project. Bob Garrett, an executive assistant with the Pennsylvania Department of Transportation, said the Coatesville project is officially ahead of projects in Parkesburg and Downingtown after a few months of hard work. The public is invited to learn more about the project’s progress during a meeting set for 5:30 p.m., Nov. 10 at City Hall. The project involves renovating the existing train station, building a new open station with a pedestrian crossover, streetscaping along Third Avenue and preparing for the possible future redevelopment of Fleetwood Street between Third and Fourth avenues. A new station is needed because the platforms must be wider to comply with the federal Americans with Disabilities Act, and wide platforms cannot be constructed in the current station because it is on a slight curve.
Source: Daily Local; 10/21/2011
T/E School District Tax Study Group to host earned-income-tax presentation
The Tredyffrin/Easttown School District Tax Study Group will present the pros and cons of an earned income tax (EIT) for T/E residents and the School District at two public meetings on Nov. 3 at 1 p.m. at the Tredyffrin/Easttown Administration Offices (940 W. Valley Road, Suite 1700), and again at 7 p.m. at Valley Forge Middle School (105 W. Walker Road). The T/E School District is beginning the budget development process for 2012-2013. One budget strategy is to determine the impact of an EIT. All community members are encouraged to attend one of the presentations in order to make an informed decision in the event that an EIT question is placed on the primary election ballot in April 2012. To facilitate this analysis, the School Board formed a Tax Study Group consisting of community volunteers. For more information on the Tax Study Group, visit the T/E School District Web site at www.tesd.net.
Source: Main Line Suburban Life; 10/19/2011
Coatesville finance director put on leave
City of Coatesville Finance Director Stacy Bjorhus has been placed on paid administrative leave and a decision on the future of her employment will be decided in November. Manager Gary Rawlings said he would not disclose why Bjorhus was placed on leave, citing it as a personnel matter. He further said he would not disclose what his recommendation to council will be, and said he needs to have discussions with Bjorhus before making his final decision. Bjorhus’ leave comes in the midst of a difficult budget process for the city. Recently, council approved a withdrawal from the city’s trust fund of up to $2 million to cover both overdue pension fees and pay regular bills, including payroll. Bjorhus is also the finance director for the city’s redevelopment authority. The authority is also facing a budget crisis. Currently, the authority is facing an expected $117,000 shortfall for this year. The authority also has yet to make any payments to city for its loan of about $7 million.
Source: Daily Local; 10/21/2011
Chester County Real Estate News: October 21st, 2011 Comments Off
Transportation improvements coming for Chester County
A $550 million investment is being made to improve Chester County’s roadways, including sections of Route 202 and the new Route 29 slip ramp. In addition, another $66 million is being invested in public transit to significantly quicken Amtrak’s trains and to rebuild train stations in Paoli, Exton, Downingtown and Parkesburg. The Pennsylvania Department of Transportation is scheduled to begin a public meeting series for the redesign of Downingtown’s train station on the evening of Monday, Oct. 24. This charrette process will take place in Downingtown Borough Hall, and will last through Thursday, Oct. 27. The charrette will provide interested residents a great opportunity to tell PennDOT officials what they would like to see in their new station. In Downingtown, planned improvements for the new station include a new location with better parking, a ticket office, a waiting room and a handicap-accessible platform. For the Exton station, SEPTA, PennDOT and the Chester County Planning Commission have initiated discussions about improving access to the station for bus riders, bicyclists, and pedestrians. Preliminary concepts include construction of a bus loop at the station, as well as sidewalk and crosswalk improvements along Route 100 from the station to the Main Street at Exton shopping center. Road and intersection improvements will ease access to the station for cars, bicyclists and pedestrians. SEPTA and Tredyffrin Township recently asked companies and design professionals to offer proposals for the new Paoli Intermodal Transportation Center and related road improvements. Plans for the Center will feature a new train station and improved access and waiting areas for connecting buses and shuttles. Once the planned improvements are completed Amtrak riders can expect major improvements in travel times.
Source: Daily Local; 10/17/2011
London Grove considers subdivision signage ordinance
London Grove Township has tabled an ordinance requiring signage on properties that are being considered for land development. Prior to passage, supervisors will explore whether the ordinance should apply to small-scale or large-scale projects. The ordinance states that applicants will be required to apply for a sign permit with the township. The ordinance would require signs to be put up within 10 days of the application. The posted signs will be double-faced and measure four feet by four feet with yellow background and feature black lettering at least two inches high. The signs will need to be in full view of the public, and include a site plan which depicts the lot configuration of the residential applications for building with square footage, paving and landscaping. The signs must also include the applicant’s name and contact information.
Source: Chester County Press; 10/12/2011
New Garden OKs plans for White Clay Point
According to New Garden Township Manager Dan Fox, the Pennsylvania Real Estate Investment Trust, or PREIT, received approval for what he referred to as “minor modifications” to plans for the 187-acre development along Route 41.Those changes include approval of a modified subdivision plan, the reduction of two stores by small amounts, and a change to the façade on a building that will become a Walmart. A few residents from the nearby Somerset Lake housing development voiced their opposition to the project because it may impact the neighborhood.
Source: Daily Times; 10/18/2011
Coatesville authority’s liabilities a $2 million concern
The Coatesville Redevelopment Authority has $2 million more in liabilities than assets and will continue in its current financial state until a steady cash flow is created, according to the 2010 audit. Carl Hogan, an independent auditor for the authority, said the authority’s high liabilities are a “growing concern” for the continued existence of the entity. As long as the authority still owes a $7 million loan to the city, its finances will be tenuous, the audit states. On that matter, redevelopment board members agreed to ask the city for a waiver on interest payments of about $48,000 on the loan for the second consecutive year. Hogan said it takes time to acquire assets in the form of properties then maximize the resale value of those holdings for redevelopment projects. The authority has acquired properties within the city but has not made many attempts to resell them. On Monday the board approved an agreement to have its property management firm, Brite Realty, act as a listing agent and put some of the authority’s properties up for sale.
Source: Daily Times; 10/18/2011
Chester County Real Estate News: October 17th, 2011 Comments Off
West Whiteland to hold budget meetings
The West Whiteland Township Board of Supervisors will hold a series of public meetings to review and discuss the 2012 township budget. The meetings will be held at the following times in the West Whiteland Township Building (101 Commerce Dr., Exton, PA 19341).
- Tuesday, Oct. 18, 2011 – 6:00 p.m.
- Wednesday, Oct. 19, 2011 – 6:00 p.m.
- Tuesday, Oct. 25, 2011 – 6:00 p.m.
- Tuesday, Nov. 1, 2011 – 6:00 p.m.
- Thursday, Nov. 3, 2011 – 6:00 p.m.
Source: Daily Local; 10/11/2011
KCSD scuttles senior tax relief program
The Kennett Consolidated School District has suspended its Generations United program for the remainder of the 2011-12 school year. The school board indicated that copyright issues and a lack of response from the target community were the main reasons for the suspension. Under the original pilot version of the program, qualified senior homeowners earned $10 per hour up to a maximum of 50 hours per year, for a total of $500 off their next tax bill. To qualify, seniors had to be a homeowner, be at least 62, with net real estate property tax bill of at least $500. After passing a series of background checks, the seniors were assigned a variety of light tasks at district facilities, ranging from playground attendant to clerical support. Many of the applicants failed to go through all of the background procedures, leaving the district with very few finalists who actually qualified for the program. Only five people completed the program last year. The district had recently received a “cease and desist” order from another company who holds a copyright on the name “Generations United,” forcing the district to remove that name immediately from all advertising.
Source: Daily Local; 10/11/2011
East Brandywine poised to adopt official map
The Board of Supervisors of East Brandywine Township will conduct a public hearing to consider and adopt an ordinance establishing an official township map. The meeting will take place October 19, 2011, at 7:30 p.m. at the Township Building, 1214 Horseshoe Pike, Downingtown, Pennsylvania. Visit www.ebrandywine.org to learn more.
Source: Daily Local; 10/11/2011
Charlestown Township to consider additional permit requirements
The Charlestown Township Board of Supervisors will hold a public hearing on November 7, at 7:30 p.m. to consider amending the current Uniform Construction Code ordinance. The hearing will take place at Great Valley Middle School, 255 N. Phoenixville Pike in Malvern. The amendment will require the issuance of permits for certain accessory structures and for certain alterations or repairs to residential buildings.
Source: Daily Local; 10/11/2011
West Nottingham upcoming budget meetings
The West Nottingham Board of Supervisors will hold a series of public meetings to discuss the 2010 township budget on October 27 and November 10. The meetings will begin at 8:30 a.m. and will be held at the municipal building, 100 Park Road, Nottingham, PA.
Source: Daily Local; 10/11/2011
Kennett Square outlines capital improvement plans for the next 5 years
Kennett Square Borough could make a total of $13 million in infrastructure improvements over the next five years which may include public works projects, water and sewer upgrades, and an expansion of the municipal parking garage. Grant money from the state and county, or contributions from private sources are projected to pay for significant portions of these projects. The five year plan for the project outlines the timing and costs associated for each improvement. According to the presented timeline, the total expenditures would be $1.1 million for 2011, $,313,570 for 2012, $526,000 for 2013, $1.5 million for 2014, and $5.8 million for 2015.
Source: Chester County Press; 10/5/2011
Chester County Real Estate News: October 7th, 2011 Comments Off
Map ends Tredyffrin sidewalk saga
Tredyffrin Township’s Board of Supervisors adopted the “missing map” to bring closure to a 20-month sidewalk debate. The board had passed an amendment to the township’s land and subdivision ordinance regarding sidewalks, but the ordinance was missing any kind of graphic detail. The ordinance indicates where sidewalks along roads must become part of commercial-development or residential-subdivision plans or mandates township-funded sidewalk constructions. The ordinance in no way mandates the building of sidewalks by the township.
Source: Main Line Suburban Life; 10/5/2011
Group promotes ‘walkability’ around Kennett Square
Activate Chester County, a local community health initiative, is planning to petition three southern Chester County municipalities to expand the area’s “walkability.” Joan Holliday, a local nurse and community activist, said Kennett Square can be made more “walkable” by installing sidewalks and park benches in key spots in and out of town. Holliday said it would be ideal if people in downtown Kennett Square could walk safely to the Wal-Mart in East Marlborough or to the Giant Supermarket in New Garden. Activate Chester County is setting up meetings in New Garden and Kennett to urge officials there to get involved. The group is also working with Kennett Square Borough Manager Brant Kucera to facilitate grants for sidewalk construction and maintenance.
Source: Daily Local; 10/3/2011
T/E goals statement: Study and anticipation in the face of some uncertainty
Tredyffrin/Easttown School Board Superintendent Daniel Waters recently presided over a meeting focused on the outlook for next year’s district budget. According to the latest budget and revenue forecast, a deficit of approximately $800,000 is projected for next year. This year’s budget deficit was closed, in part, by the reinstatement of $1.3 million in state funding. In order to explore other possible revenue sources to help fill next year’s gap an Earned Income Tax study group has been formed. The study group is scheduled to report its findings to the community during two open forums on Nov. 3; one to begin at 1 p.m. and an evening session beginning at 7 p.m.
Source: Suburban Main Line Times; 10/5/2011
Franklin votes $1.5 million easement for Ford Farm
The Franklin Board of Supervisors voted to fund $1.5 million toward the purchase of a conservation easement on the Ford Farm on Appleton Road in Kemblesville. While there was a plan to build 100 houses on the 148 acre property, the conservation easement will keep the farm in private ownership with no development allowed. The Ford Farm is one of Franklin Township’s oldest working farms. Its sale to developers was one of the factors that motivated concerned residents to form the grassroots, pro-preservation group Friends of Franklin Township. The group then spear-headed the successful passage of a 2002 open space tax referendum.
Source: Avon Grove Sun; 9/29/2011
Courts still must review Oxford redistricting
How school board members are elected may soon change in Oxford, but it will be up to the courts to decide how the new system is structured. The school board has voted to petition the courts for redistricting because the populations of three communities have grown out of balance. The official request from the school board will suggest that the district abandon the regional system and transition to a board represented by at-large members. The final decision rests in the hands of the Court of Common Pleas, but the school board recommendation does bode well for a change.
Source: Avon Grove Sun; 9/29/2011
Buying Rental Investment Property in Chester County Comments Off
The stock market is up…. no, wait, it’s down… no wait, it’s up. ..
Over the last few years, the stock market has been on a see-saw ride and if you are like a majority of American’s, your 401k or stock portfolio is not impressing you. But where else can you put your money that creates a safer or more reliable return? How about real estate? Despite what your gut reaction might be, the return and stability on having real estate in your investment portfolio is very favorable, especially in the Chester County market.
In Chester County we enjoy a very good employment rate, along with a diverse amount of industries finding their homes here. This creates a very stable market for renters. The Chris & Caleb team are big proponents of investing in real estate and even teach seminars and classes on it. If this is of interest to you, we’d be happy to schedule a private appointment to discuss the various strategies with you.
I recently read an article on CNNMoney.com entitled “Cashing in on rental property”. It was a great article and I wanted to give a few local points to their article aimed at a national audience.
- Chester County is an amazing place to own rental units. Most of the rental options available are fairly expensive communities where renters pay a premium. There are many properties available that you can purchase that will cash flow positive and be great competition for these big game rental communities.
- Demand for rentals is going through the roof, as many people are either scared to buy or unable due to various factors. The rental market has been flooded with demand which means rental rates have headed up, but prices for purchasing real estate remain at amazing lows.
- If you are considering investing in real estate, we have a great program to plug you into, which helps you clarify your criteria and connects you with great financing options.
- I agree with the article 100% when it recommends you purchase properties in area’s that you can get to in 10 minutes and that you are familiar with. Do not buy a property just because it seems like it’s a “Good Deal.
