Just posted on ActiveRain: New Energy Efficient Mortgages Coming Soon from Fannie Mae and ENERGY STAR http://activerain.com/t/1479677
It’s not uncommon to be asked how the real estate market is, and the good news is that it’s getting better. But depending on which side of the equation you are on, the answer really is “It’s great”.
Investing 101 will tell you to “buy low and sell high” but reality tells us that most people do the exact opposite. When the market (real estate or stock) is booming, everyone wants to get in, so they buy, which drives the market higher, which makes more people want to get in, and drives the market higher and so on. But what those people really did was to buy at the top of the market, when prices are high. Then when the bust came, everyone wanted out so they sold, low. And the worse it gets, the more they want to sell and the lower the prices go.
I don’t claim to be able to tell the future but since we are sitting at what many people believe to be the bottom of the real estate downturn, or hopefully the very beginning of an upturn, if your goal is to buy low, now would be that time.
Of course, there are many reasons that people are not scrambling to buy. They could be dealing with unemployment, concerned about the security of their job, trying to save money or pay off bills. All very valid reasons not to buy a home right now. But if you are not in that situation, now could be your time.
Interest rates are low, the tax credit has been expanded and home prices have come down. If you are a seller this isn’t exactly good news, but for buyer’s it is great.
Last week it was announced that home sales in Pittsburgh increased 7.4 percent, median price rose by 3.4 percent, and foreclosures are down for October 2009 vs. October 2008. That’s good news. Hopefully it means that a recovery is on its way, but it also means that prices are starting to creep up. So if your goal is to get a great deal then now may be the best time to buy a home!
Now is a great time to buy a home in Pittsburgh! Call Christa Ross from RE/MAX Select Realty, at 724-933-6300 x214 (office) or 724-779-1437 (direct) or visit my website at www.greenhomespgh.com.
It’s great to see all the new green development happening in Pittsburgh, I have to admit it makes me want to go buy a new house. I am also thinking that we might be ignoring the fact that most of the homes in our region are existing homes and some are downright old. Being green rarely means tossing out the old for the new and this is true with homes as well. Instead, we need to renew those homes and improve them so that they too are friendly to the environment, and there is no better time to do that than when you are buying a new (to you) home.
Perhaps one of the most under utilized tools available to existing home buyers is the Energy Improvement Mortgage or EIMs. These mortgages allow buyers to have a home they are purchasing audited for energy use. The audit results in a rating on the home. This rating is based on the HERS index with zero being a home that uses no energy (or more likely generated everything it needs) and 100 being a home that meets the 2004 International Energy Conservation Code (IECC). For example, an Energy Star home must score an 85 or below. Many older homes in our area likely rate well over 130. Each point represents a 1% increase or decrease in efficiency.
Once a home has a rating, the auditor will provide a list of energy saving upgrades that will result in decreased utility bills. This report is used in conjunction with the EIM to roll those upgrade costs into the purchase price. Once the retrofits are done, the homeowner will see a reduction in their utility bills that will be at least equal to and most of the time greater than the increase in their mortgage payment. That’s why EIMs are such a great tool, they let you spend less to live in your home while at the same time making your home more comfortable (no drafts, warmer in the winter and cooler in the summer) and being good for the environment.
It’s a shame that more people don’t take advantage of the programs since if everyone got on the bandwagon we would see a real improvement in the efficiency of our existing housing stock here in Pittsburgh, in addition to all the exciting new construction going on.
Got this email today, this is important for homeowners that want to use low interest loans to pay for the cost of energy efficiency improvements to their homes…
It is imperative that you contact your state representative, state senator or the governor’s office immediately to let them know how Keystone HELP not only helps your customers but also helps you grow your business. Also endangered by the budget negotiations is the Small Business Energy Efficiency Grant program. At a time of contrained credit, a tough economy and rising energy costs it makes no sense for the legislature to cut the one program designed to help moderate income Pennsylania families save energy and money.
Keystone HELP, Pennsylvania’s special loan and rebate program for energy efficiency improvements is considered one of the most successful such programs in the nation. Over 6,000 homeowners have applied to the program in just the first four months of the enhanced program which was expanded with lower interest rates and rebates in early 2009 with funding from ACT 1, Pennsylvania’s innovative energy legislation. Nearly 2,000 contractors have become Approved Contractors using Keystone HELP to drive their sales of energy efficiency improvements and helping their customers save money and energy. Keystone HELP has been cited by Energy Star, DOE and many other groups as the model of how a state program should work – a true public-private partnership that leverages state money into private investment. Over $30,000,000 of improvements have been made since the program was innovated in 2005 by the West Penn Power Fund and the Pennsylvania Treasury Department. With the additional support of the Pennsylvania Housing Finance Agency, Department of Environmental Protection and the legislature’s Act 1 Keystone HELP’s loans and rebates are a critical option for Pennsylvania consumers looking to reduce their monthly utility bills and save energy.
Rest assured, funding for Keystone HELP is in place for 2009, but as a result of current budget negotiations is in jepoardy for 2010 and beyond.
Please contact your state senator or representative to support Keystone HELP. You can find contact information at this site: http://www.legis.state.pa.us/ by entering your zip code in the upper right hand corner. Your involvement is vital in helping Keystone HELP grow and prosper.
I am not quite ready to get started yet but if you come back in a few weeks you can read about what is going on in the Pittsburgh Green Real Estate market and how I can help you buy or sell your home.