Posted on February 27th, 2008 by pratt
This week more bad news about home sales came out. “The median price of an American single-family home fell last year for the first time in at least four decades, and sales of those homes dipped 13 percent last year, the biggest annual decline in a quarter-century.”
This means that many home-owners have decided to wait out the downturn making the downturn worse than it would be otherwise as the market gets more restricted than normal. And the new lending rules are tightening the market even more, by taking some buyers out of the market that would have been there ten years ago…
But as in all things, there were some hidden gems in the report. Single family homes sales have actually gone up slightly. Condominium and apartment sales have dropped so much that they have dragged down the overall sales statistics down.
But as in all things, it must be remembered that when buying and selling a home, local conditions are much more important for decisions than the national condition of the market. The national condition of the market tends to affect the mortgage interest rates not the actual selling prices of homes.
The good is that actual prices here in the Annapolis area, have dropped slightly, not anywhere near the national average. In fact the average home prices in some communities have continued to rise. And given local conditions…Annapolis tends to rise sooner and higher than national averages as well.
So now is the best time in a generation to buy…here in Annapolis.
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Posted on February 22nd, 2008 by pratt
It snowed some last night and then this misty rain fell and promptly turned the roads and trees and everything else icy.
And the Governor is busy helping homeowners and making business conditions icy as well.
To set the broad picture In Maryland, there were 9,722 foreclosures in the fourth quarter of 2007, up from 7,001 the previous quarter, according to data O’Malley released yesterday.
So yesterday Martin O’Malley announced emergency regulations yesterday requiring loan service companies to tell the state when residents are in danger of losing their homes so the government can offer preemptive help.
O’Malley (D) said the mortgage industry has failed to help troubled homeowners, pointing to poor customer service at major loan service companies, which collect mortgage payments and are authorized to negotiate and modify loan terms. The governor has summoned industry officials to meet with him in Annapolis next week
O’Malley’s administration has several bills pending in the General Assembly to address troubles in the housing market, including proposals to lengthen the time before a home can be foreclosed on and to strengthen penalties for mortgage fraud.
Unlike most states, Maryland licenses loan servicing companies so the state government has more teeth to force the companies to listen. The government can and in fact has threatened to revoke some companies’ operating licenses.
We’ll have to wait till after the Legislative session is over before we find out which laws will take effect and how the will impact the real estate market…
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Posted on February 21st, 2008 by pratt
Yesterday it snowed. Today, it’s beautiful—sunny and thirty degrees. We’ll probably need to wait a day or two before the snow melts. But at least the roads are clear so the traffic nightmares will not start.
Now is the perfect time to start getting your house ready for sale.
Just some things to think about doing. Or better yet, to start doing…
Decluttering
Cleaning
Making repairs
Getting paperwork together
Contact an agent to go over your house with you.
Replace any old or missing light bulbs
Now is the time to get rid of any books, videos or toys you don’t use.
Catch up on all the little fixes and maintenance you’ve let slide.
Maybe call in a home inspector and find out what your buyers will, only have time to fix it by shopping around.
Items that he said frequently need attention: the heating and air-conditioning system, the water heater and carpets.
Painting can be done inside and out as long as it’s not raining or snowing, Kelly said.
It’s easier to find contractors now, and at lower prices” than in the spring.
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Posted on February 20th, 2008 by pratt
If you’re living in a rental house, and you think buying a house will be too expensive, you might want to consult a tax or finance expert. They generally know the tax laws and will be able to help you figure out when it is best to buy a home.
It is usually sooner than most people think.
Even with today’s stricter rules, first time home-buyers have some amazing programs to get them into a home sooner than most think.
If you buy a home where the payment is basically the same as your rent, you are much better off. Why because you get to write off none of your rent and most if not all of your mortgage payment.
And buying the first home gets you onto a very nice financial cycle. The current tax law encourages you to buy and then sell homes as soon as possible. What? Yes… the current tax law encourages you to buy and sell homes as fast as possible. If you live in a home as a primary residence for at least two years up to five years, a pro rated portion up to 100% of your gains on the sale of your home will be tax free.
What this means is that if you have lived in a home for five years, and can reasonably make the same mortgage payments–and most people find that in the course of five years they can actually afford more—then it makes sense to at least look at selling your home collecting some capital gains and using it for…well whatever you like to invest your money in…
As in all things financial check with a tax/financial expert to figure out the details of your specific situation..
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Posted on February 19th, 2008 by pratt
So you’ve been in Annapolis for awhile renting and you’ve been looking at homes off and on for awhile. Not intending to buy immediately, but you just found the perfect house. The neighborhood is awesome. The schools are great. The home is perfect except for not now. What should you do?
Assuming your finances are in line—and if you don’t think they are, it is time to talk to a finance professional to see how accurate your estimate of you financial situation really is—then you probably need to put in an offer.. Why?
Because despite what everybody knows about the market. It is still quite common, not usual, but common, that a good house appropriately priced, gets multiple offers.
The chances are that if you think it’s the perfect house somebody else is likely to think so to. Put in an offer that you think the owner will accept. If they do in fact get another offer, you will still be in the conversation at least…
So best advice, start getting ducks in a row before you buy. It will save headaches and frustrations later.
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