With the Spring Market just around the corner, it is important for buyers to be aware of the inventory and interest rates available to purchase a home.
Currently, rates remain low. If you search online, you will see that FHA rates quoted can be as low as 2.25% on a 5 year adjustable rate mortgage and 3.25% on a fixed rate (www.bankrate.com). These FHA loan rates are quite low and you only need a 3.5% down payment in order to purchase a home. This 3.5% can also be a gift from a family member. Did you know you can also get up to $10,000 out of your IRA for a down payment if you are a first time homebuyer? You can also take a loan against your 401k in order to purchase; this is how I bought my first home in Frederick, Maryland.
The foreclosures in Frederick, Washington, Montgomery, Carroll and Howard Counties are all but gone. No one is quite sure how much “shadow inventory” will come on the market in the next 6 months, but economists seem to think we have hit bottom (undisclosed source). January records indicate a stable marketplace in 3 counties: Montgomery had a 3.5% month inventory, Frederick a 5.5% inventory and Washington a 7.4% inventory. Each percentage indicates how long it would take to sell all the houses on the market if no other homes listed. Now we know with spring almost here in March, more houses will list. The big question is: Will the markets get saturated with more listings? This is the question that remains to be answered. In my opinion, I don’t think so. Homeowners are still a bit leery about selling because prices are still too low. There are homeowners who are up-side-down and cannot sell unless they short sale their property. Investors don’t want to sell because they don’t think there are high enough yield investments to deposit their proceeds.
All this being said, it is a great time to buy! The Buyer’s Best Realtors are offering 2 seminars in March to help you, the prospective buyer. One is March 10th for First Time Homebuyers and one is March 13th for Investors. Call or email me and I’ll give you all the details and sign you up! Or just call me if you’re ready to start looking now!
With so many short sales still on the market in Frederick and Washington Counties, I’d just like to report that my closing success rate for short sales is 90% in the last 12 months. I have helped 6 out of 7 families successfully move into their desired homes; one client decided not to wait for the bank to respond to their offer. Since it seems impossible to predict how many more short sales and foreclosures, for that matter, will hit the market in 2012 and beyond, it is important that any Buyer Agent and especially, an Exclusive Buyer Agent, become certified and an expert in this segment of the market.
I took the CDPE class in January 2011 and it has certainly been an advantage to my buyers! I am able to explain the short sale process, walk my client through the whole process and get the home to closing. If you have extreme patience, it could be a great way for you to obtain your new home. Call me and we’ll get together and see if it’s the right way for you!!
Here’s to a happy, healthy and successful 2012!
The Washington, DC, real estate market has come to life this year. I’ve been able to help several home buyers through the purchase process and achieve their dream of home ownership. Only one buyer this year was not able
Yes, amidst the snowflakes and icy sidewalks, there are people out there shuffling through the muck, hoping to find a new home. Maybe some are first-time homebuyers who want that tax credit that expires soon. Maybe a few of you are moving back to the area. Maybe some are thinking of buying in the springtime and want to start looking now. All these reasons are great reasons! Why not buy yourself a new home for Christmas or Hanukkah?
I found a great cost analysis of buying vs. renting on our MRIS website. Continue reading Snowflake House-Hunters
Buying a home this winter or spring? The very First step is finding an Exclusive Buyer Agent who has your best interest and goals in mind. For a full description of Exclusive Buyer Agency, please go to their website at www.NAEBA.com.
Follow these steps with your Buyer Agent to make the experience fun and successful!
This information came to me from a lender in Frederick County, MD. I think it is a good summary of tax credits for a homebuyer. However, I urge you to double check with an accountant to make sure these figures are correct for YOUR tax situation.
If you have any questions, please call me or email me. I’m always here to help! – Joanne Spivey, Exclusive Buyer’s Agent, The Buyer’s Best Realtors, Urbana, MD
Great News! Congress has passed a bill extending and expanding the tax credit provisions for buying a home. These provisions become effective for homes that close on or before June 30, 2010. Here are some of the key elements of the bill.
FEATURE RULES AS THEY APPLY TO THE EXPANSION
1st Time Buyer $8,000.00 or 10% of the purchase price of the home for individuals
Amount of Credit or married couples. ($4,000 per individual if married filing separately) **
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1st Time Buyer May not have had an interest (title) in a principal residence for 3 years
Definition of Eligibility. prior to purchase
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Current Homeowner $6,500.00 ($3,250 married filing separately)
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Current Homeowner - Must have used the home sold or being sold as a principal residence
Definition of Eligibility consecutively for 5 of the previous 8 years
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Binding Contract Rule So long as a written binding contract to purchase is in effect on April 30,
2010, the purchaser will have until June 30, 2010 to close.
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Income Limits $125,000 – single (phase out up to a maximum $145,000 income)
$225,000 – married (same as above with a maximum of $245,000)
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Limitation on Cost $800,000.00
Of Purchased Home
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Anti-Fraud Rule Purchaser must attach documentation of purchase to tax returns
Note: If a parent, who will not live in the property, cosigns for a mortgage, the child will be eligible for the credit as long as they meet all other eligibility.
Other restrictions that might apply per the IRS in which no tax credit would be due:
- Buying the home from a close relative (spouse, parent, grandparent, child or grandchild. (purchase from a step-relative is allowed as long as there is not a direct blood relationship)
- They do not use the home as a principal residence
- They sell their home before the end of the year
- They are a nonresident alien.
- Their home financing comes from tax-exempt mortgage revenue bonds.
** Tax credit is not required to be paid back as long as the buyer lives in the property as their primary residence for at least 36 months.
Hello Homebuyers –
As many of you know, the first-time homebuyer’s credit was front-and-center on many peoples’ minds last week. We also mentioned that we thought chances were good the credit would be extended. This could be materializing… maybe.
Senate negotiators reached a tentative deal to not only extend the current credit but also add a few bells and whistles: namely, a new credit of up to $6,500 (with income limits). The new credit would be available to all homebuyers who resided in their current residence for a consecutive five-year period in the past eight years (effectively excluding real estate investors). But it’s not a done deal yet; a few House members have balked at the added costs.
Many property experts have cited the credit as the principal reason for the housing recovery. Although new home sales fell 3.6% in Sept., homebuilders could find comfort in the news that home prices continue to rise while inventory continues to fall. Based on the latest data, it should take only 7.5 months to sell all homes at the current sales pace. This is true for the Frederick, MD area as well. Keep your eyes and ears open for new housing reports this week too. They will show the latest in pending home sales.
Low home prices, low interest rates and an extended homebuyer tax credit make it a great time to buy a home. But buyers beware: housing inventory is dropping so the sooner you buy, the better.
Please contact me for your next purchase in Frederick, Washington, Montgomery County, MD; or the lower central-PA area! I’d love to help you find a home for your family or for an investment purpose.
Hello Homebuyers –
As many of you know, the first-time homebuyer’s credit was front-and-center on many peoples’ minds last week. We also mentioned that we thought chances were good the credit would be extended. This could be materializing… maybe.
Senate negotiators reached a tentative deal to not only extend the current credit but also add a few bells and whistles: namely, a new credit of up to $6,500 (with income limits). The new credit would be available to all homebuyers who resided in their current residence for a consecutive five-year period in the past eight years (effectively excluding real estate investors). But it’s not a done deal yet; a few House members have balked at the added costs.
Many property experts have cited the credit as the principal reason for the housing recovery. Although new home sales fell 3.6% in Sept., homebuilders could find comfort in the news that home prices continue to rise while inventory continues to fall. Based on the latest data, it should take only 7.5 months to sell all homes at the current sales pace. This is true for the Frederick, MD area as well. Keep your eyes and ears open for new housing reports this week too. They will show the latest in pending home sales.
Low home prices, low interest rates and an extended homebuyer tax credit make it a great time to buy a home. But buyers beware: housing inventory is dropping so the sooner you buy, the better.
Please contact me for your next purchase in Frederick, Washington, Montgomery County, MD; or the lower central-PA area! I’d love to help you find a home for your family or for an investment purpose.
Good Fall Day and Good News! The home values seem to be stabilizing in our area in Frederick. The number of listings currently on the market are about 1200 which is considered a “normal” selling market. Fairfield, Gettysburg and Littlestown, PA are still experiencing slower sales.
I found the following information at www.clearcapital.com. This article goes into greater depth about the general area market. Read it for more detail.
Micro Markets (Aug. 27, 2008 – Sept. 25, 2009)
This section highlights a single market every month with a deeper dive into how the micro- and macro-markets relate to each other.
Baltimore’s micro markets returned to a positive quarterly gain (0.1%) after seven consecutive quarters of decline, contributing to a 21.0 percent decline in home values since its market peaked in late 2006. As a whole, the Baltimore market performed similar to much of the Northeast and South, returning modest pricing declines compared to the national decline of -31.6 percent since the market peaked. REO saturation rates in Baltimore also remained below the national rate, peaking at only 19.5 percent last spring.
However, a disparity exists within Baltimore’s micro markets, with notable differences between the REO-saturated city limits and the more distant suburbs-particularly those suburbs to the Southwest which are closer to the better performing housing markets of Washington, D.C. Within the city limits of Baltimore, REO saturation peaked last winter at 31.5 percent due to declining non-REO sales amidst growing REO activity. These conditions reflected a -17.7 percent decline in price the last year alone; significantly worse than the more suburban southern counties of Carroll (-11.7%) and Howard (-7.9%), which peaked at less than 19 percent REO saturation.
While its market has not fully recovered, the suburban city of Laurel (ZIP 20723) is proving more resilient to price declines (-0.9%) this past year than the Baltimore market as a whole. Laurel seems well-served by its location between the two metro cores of Baltimore and Washington, D.C. and its proximity to Interstate 95 and the Baltimore-Washington Parkway. Even though Laurel has seen its number of REO sales grow over the past year, in recent months the city has maintained a healthier amount of non-REO sales activity than the city’s core.
I received an email from a fellow Realtor in Pennsylvania today talking about the expansion at Fort Detrick and how it will enhance housing sales in 2010. For all those waiting to get a home, you may want to act now. We may see a rise in housing prices when new folks move to the area.
With financing now approved, it is the real beginning of biotechnology expansion to a research park and will mean a lot as Frederick City annexes property to make this county a research center. Builders will need to provide housing for people moving to Frederick and the surrounding areas. There will also be a demand for commercial building to support NCI.
I am quite excited about this news. Yes, some people feel there is too much traffic along route 15 during rush hour. Perhaps it is time to expand route 15 which has been on the city books for years. But this research park will bring welcomed jobs in a downtrodden economy — from scientists to support staff.
To learn more, please find more information at: www.fortdetrickalliance.org
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