Can You Afford a Down Payment Now?

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I have some exciting news for you if you plan on buying a home anytime soon. Fannie Mae and Freddie Mac are now only requiring a 3% down payment to purchase a home (down from a required 5% down payment). This change is the difference between thousands and thousands of dollars, and this will allow an unprecedented number of people to begin putting down payments on homes. This should spur a significant amount of activity in our Philadelphia real estate market.

Another development is that President Obama recently announced that he is going to reduce the percentage of the Private Mortgage Insurance (PMI). When you buy a property and put a down payment of less than 20%, you're required to buy PMI. Last year that percentage for PMI was about 1.35%, and this year it is down to around 0.85%. 

There is no certainty as to when these changes will occur, but they are coming soon, so be  prepared. The biggest takeaway here is that FHA financing is going to be a great option for buyers right now. 

If you have any questions about these changes or if you'd like to speak with me about the Philadelphia real estate market, please reach out to me via phone or email. 

What Do Recent Market Trends Mean for Your Homes Value?

The Greater Philadelphia real estate market is diverse with both buyers and sellers alike seeking a variety of different properties. As a prospective seller, you can find out the market value of your property with a free home value report right here, or if you're looking to purchase in the Greater Philadelphia area click here for full MLS access. Always feel free to reach out to us for any questions regarding the current market conditions, or the value of your property at 215-664-1010

Over the last few years, we've seen the real estate market make a strong recovery. In 2013, we saw many significant improvements in Greater Philadelphia and the nation as a whole. Since the recession, prices have risen, days on market have fallen, and homes are often receiving multiple offers.

Last year was more of a roller coaster. We got off to a slow start because of bad weather on the East Coast, but sales really took off in April and May. Things slowed down in the fall, but picked back up again in November and the market has been pretty active ever since. This January, homes are moving very quickly - many properties we listed during the holidays received more than five offers a piece and sold for well-over asking price.

Because our market is so robust right now, buyers are often finding themselves in highly competitive situations. If conditions continue this way, we're probably going to see an increase in prices. The force behind much of this activity is the incredible affordability of interest rates, which have just recently dipped as low as we've seen them in years. This combination of low rates and low inventory is really fueling our market right now.

As you can see, there are a lot of positive things on the horizon for the Greater Philadelphia market. If you have any questions about conditions in your specific area, or would like real estate assistance of any kind, we're happy to be your most trusted resource. Don't hesitate to give us a call or shoot us an email, we would love to hear from you!