The Lehigh Valley Association of Realtors numbers for May are out and the news is good!  One of the key indicators for our business is the number of ‘Pending’ home sales, which are the homes that are under contract but haven’t yet closed.  For the past month 471 homes went under contract, compared to 509 in May 2008, a difference of -7.5%.  This is the closest we’ve come to matching last year’s numbers so far in 2009, and it’s been a steady progression upward since the low of -22.3% in January.  If this trend continues the market will be back to 2008 numbers and we’ll see continued improvement in our local market!

Residents of townships served by the Lehigh County Authority water system face a summer without garden hoses, home car washing and filling pools.  We’ve had this happen in the past because of drought (hard to remember what that’s like with all of the rain this spring!), but this summer it’s because of growth.  The 7 townships that are members of LCA have been growing faster than the Authorities ability to add new capacity.  Two new wells have been approved but are not yet operational, and a plan to connect to Allentown’s water system is still about a year from bringing water to your kitchen.  I know we’ve had a lot of housing growth in the LCA service area, but I haven’t seen a word in any of our local papers about the water consumed by the Niagara and Nestle water bottling plants or by the Coca-Cola plant, all in Upper Macungie Twp.  It would be interesting to see how much of the 7.9 million gallons of water per day provided by LCA is used by these plants or other industries.

 Water restrictions go into effect June 1st.  More information is on the LCA website at www.lehighcountyauthority.com.

HUD has announced that consumers may now use the $8,000first-time home buyer tax credit to help cover their downpayment and closing costs on FHA-insured mortgages. The move will allow FHA-approved lenders, federal, state and local government agencies, and FHA-approved non-profit organizations to supply home buyers short-term or “bridge loans” up to the amount of the $8,000 first-time home buyer tax credit.  Previously, the home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008tax return and received the refund from the IRS.

This announcement will help all of our first-time home buyers by making homes even more affordable!

State Rep. Doug Reichley has scheduled a meeting for home owners in TH Properties developments in Upper and Lower Macungie Townships.  TH Properties is facing financial difficulties and some home owners have been left with unfinished and incomplete homes.  The meeting will be held on May 14th at 7PM at the Upper Macungie Twp Municipal Building at 8330 Schantz Rd in Breinigsville.  A local bankruptcy attorney and township planning officials will also be on hand to answer questions from residents.  All are welcome to attend.

I read an interesting article today that suggests that our current economic crisis, which is certainly not the Great Depression but is most certainly more than a recession, might be  a great restructuring of our economy.  According to Umair Haque, this Great Compression is the result of an economy built on perceived value reconciling with it’s actual value.  Robert Kiyosaki, author of Rich Dad Poor Dad (among other great titles), has been warning of such a thing for years.  Robert has been attacked for his bearish outlook on the stock market by many of the market’s cheerleaders.  He has been telling anyone who will listen that ‘a great shift in money is about to take place’.  I think it’s time to take another look at what he’s been saying!

Here’s a link to the original article “The Great Restructuring“.

I’ve read a lot of articles, blogs and newspaper stories about the reasons for the foreclosure crisis.  While there’s plenty of blame to go around, I just read one that does a great job of explaining the current challenges facing those who are trying to do something about it.  This article is a bit long and dry but if you really want to understand the problem, this is a good place to start.  From Yahoo Financial “How Banks Are Worsening the Foreclosure Crisis“.

The Morning Call reported this week that Northampton County is trying to help homeowners in a tight spot with their lender.
Homeowners facing foreclosure would be guaranteed 90 days and a chance to meet with their lenders to find ways to avoid losing their houses under a proposal being crafted in Northampton County Court.  It would direct those threatened with foreclosure to housing counselors and also offer free legal help.  The proposal has been discussed by the county’s judges and is tentatively scheduled to be presented April 1 to County Council.  The plan, which would need council approval, would be directed at owner-occupied primary residences only.

The City of Allentown is helping homeowners in the city by offering free radon test kits!  City residents can call the Allentown Health Bureau at 610-437-7759 or stop by the bureau at 435 Hamilton St to pick one up.  Radon is a colorless, odorless gas that seeps in to a home from the ground and has been identified as one of the leading causes of lung cancer.   If a home test exceeds the federal guidlines a follow up test should be done by a certified radon testing professional.  Call me if you need a referral to the people we trust to do inspections for our clients!

Countrywide Financial Corp., bought last year by Bank of America, reached agreement with Pennsylvania Attorney General Tom Corbett on a plan to help borrowers who took out risky mortgages with the company.  Homeowners having difficulties repaying sub-prime or pay-option loans from Countrywide should call 1-800-669-6607 to talk to the company about the settlement, which will delay or terminate foreclosure under the terms of the settlement.  The attorney general’s office estimates as many as 10,000 Pennsylvania homeowners could benefit from the program. 

 It’s always a good idea to talk to your mortage company if you’re facing financial difficulties.  Let them know that you’re having problems and ask what they can do to help.  The banks are starting to realize that it’s in their best interest to work things out.

Last week, the benchmark 30-year mortgage rate fell below 5 percent to reach an all-time low of 4.96 percent.

This rate is down from two weeks ago when it hit 5.01 percent.  “The outlook is very positive that these low mortgage rates will persist at least through the first half of the year. That is the timetable laid out from the Federal Reserve for pumping up to $500 billion in mortgage-backed bonds,” said Greg McBride, senior financial analyst for Bankrate.com.

Low interest rates mean more affordable mortgage payments. Act now and get into your dream home today!