The percentage of Americans who own a house is 65.1%: the lowest since 1995.
Chart of US homeowner %
Rent are on the rise
Home Affordable Modification Program (HAMP) may lower your monthly mortgage payments in order to make them more affordable and sustainable for the long-term. Well a recent audit shows more than a quarter of the borrowers in this federal mortgage workout program have re-defaulted, costing taxpayers at least $815 million. The audit found that struggling borrowers who entered the program in 2009 and 2010, who make up more than half of all HAMP participants, had re-default rates of 46 percent and 38 percent, respectively.
CNBC’s Diana Olick reports that sales of existing homes were down 1.2 percent in June. They had been up 3.4 percent in May. Inventories were up, too, though they were lower year-over-year. http://www.cnbc.com/id/100903814
June existing home sales miss. Are Investors are moving out of housing?
Lower North Philadelphia on some street blocks have more vancant houses/lots than people (home owners / tenants). Philadelphia City Planners have begun work on the blue print of the future of Lower North Philadelphia. Take a look at the map below of all the vacant houses and lots in this area.
Overall the population in this area (excluding Temple U) has significantly decreased since the 1950s. Income levels in the area are low and a the poverty level in this are is high. With the lack of demand with regards to re-development in most of these area what can the city of Philadelphia do about it? To read more…
Philadelphia Parks and Recreation brings the beach to Philadelphia on the Benjamin Franklin Parkway., which is call The Oval (I dont think this was Ron Swanson’s idea). Below is a picture of The Oval.
So what does this $180,000 project provide the citizens of Philadelphia.
- The “beach” is painted to resemble sand and will offer two 16-foot square boxes filled with the real sand
- mock lifeguard stations and several spray misters
- the “blanket” will include painted chess, checker, and Twister boards laid upon bright stripes
- the ”boardwalk” will play host to a revolving group of local food trucks, accompanied by generous cafe tables and chairs.
- 40 Adirondack chairs
- iniature golf course and bocce, volleyball, and badminton courts
Dire Predictions For Philadelphia Housing Recovery
- The market has seen rising rates before, but never so far so fast
- Short Term impact in sales: The spike is causing a sense of urgency now, a rush to buy before rates go higher
- Home sales and home prices will both come down if rates don’t return to their lows, and the expectation is that they will not
- When the $8,000 credit went away: New home sales fell 25 percent year-over-year, and existing home sales fell 24 percent year-over year
- Increased contract cancellation for buyer’s that did not lock in thier rate
- Mortgage applications have been falling for the past month
- Applications to purchase a home are down 28 percent in the past month and up only 4.5 percent from a year ago. They should be up far higher, given that prices and demand are rising so fast
- Mortgage rates going from 3.5 to 5 percent is roughly a 15 to 20 percent decrease in what the average buyer can afford
- Rising rates are the number one worry for the majority of buyers right now
But to keep in prespective interest rates are still near historic lows. Unless employment and incomes increase it will be harder to keep a strong demand in housing purchases if interest rates continue to rise.
A vacant Baseball Factory in Fishtown section of Philadelphia, PA is converting to 30-unit apartment building. The plan is to have one and two bedroom apartments. The only is lack of parkling. To read more…
Wall Street is becoming the new landlord in certain areas of the US, that saw price stock rocket and then plumet (Vegas & Phoenix). Large investment firms have spent billions of dollars over the last year buying homes in some of the US’s most depressed markets.
At the rate these firms are buying homes in those areas prices are increasing quickly. Is this a short term spike? Will prices level out? Will they decrease again in these areas once Wall Street firms stop buying?
Mortgage Rates at Highest Level in a Year
However, we are still historically low.
Drexel is calling thier recent real estate developments and acquistions thier Campus Master Plan. Seems like what Drexel U is planning in West Philadelphia are new planters, benches, upgrades to existing buildings, etc. However, Drexel University has acquired a property at 32nd and Market, a 26,675 square foot triangular parcel. The parcel’s exact future use hasn’t been determined.
Additional potential real estate develpment has Drexel going east to 30th Street, west to 40th Street and north to Spring Graden Street. This pushes Drexel into residential West Philadelphia neighborhoods and will they have resistance as UPENN did? To read more…