Maryland Realtor - Proudly Serving Central Maryland and the Chesapeake Bay Region

What exciting times we live in! I don’t know about you – but I could go with a bit less excitement in 2010. The federal budget deficit reached an all time high of $1.4 trillion in September. Why is that important? High budget deficits could easily cause interest rates to rise much sooner than anticipated. Meanwhile price correction, and over correction, has wreaked havoc on the broader economy. Foreclosures spiked, defaults rose, homeowners woke up to find themselves underwater, moreover, the bulk of American families have experienced a major hit to their wealth accumulation. The key to any future sustainable economic recovery lies in home values stabilizing or, better yet, a return to historical home price appreciation rate of 3 to 5% each year. Your income doesn’t qualify you for as much of a mortgage as it used to.

The Homebuyer Tax Credit has had its intended impact of significantly stimulating home sales from about 4.5 million to 5.1 million home sales in recent months. Home values have also moved in an “improving” direction. The FED estimates that there are a current 16 million renters who can afford to buy a median priced home.

In the Baltimore Washington area new listing inventory is down, an average of about 5.7% over the same period last year. Frankly – that’s ok. Less inventory will actually begin to equalize the market a bit. Total active listings are down about 26.2% which equates to less options for buyers and in the long run will begin to equalize the market from a buyers market to what those of us who’ve been around awhile know as a “normal” market. Once upon a time your “equity” consisted of the amount of principal you’d paid down on your mortgage – not the dramatic rise in pricing that we’ve seen of late.

Pending sales (properties that have sold, but not yet settled) are up an amazing 34.9% over the same 3 month period last year which is having a positive overall effect on the days on market as well – which is currently down 8.5%% to an average of 105 days. The housing affordability index, (HAI) which has been strong for some time, has gained in momentum. The current affordability index is 143 – up 17.1% over the same period last year. (Translated – a HAI of 143 would mean that the median household income was 143% of the necessary income to qualify for the median priced home under prevailing interest rates.) Lastly, we’ve seen a decrease in the supply of inventory from a 9.8 month supply this time last year to a 7.6 month supply today or a 22.7% decrease. In a “normal” market we saw inventory supply at between 6 and 7 months.

If you, or anyone you know has been considering a move, I’d would sincerely appreciate your keeping me in mind. It would be my pleasure to help!

I received a call from a past customer asking me to represent her family in the purchase of a new home. During our conversation I came to realize that my clients have already seen the property in question. When I dug a bit deeper, they shared with me that they’ve always admired the house and when they saw that it was going to be open they simply went by for a quick visit. They didn’t call me because the “didn’t want to bother me”. During their tour they fell in love with the house. THAT’s when they called me asking that I list their home and represent them in the purchase of their new home. At that point, it’s too late.

The real estate business works on the basis of “procuring cause”. In this particular case the agent holding the house open (which may or may not be the actual listing agent) would usually be the “procuring cause” of any sale.

Frankly, the laws of agency state that you have the right to have your own representation during a transaction – i.e. you could choose to have me represent your interests in transaction that I may not have been your initial contact – but I may not be entitled to a share in the commission earned in that transaction.

So….I’m asking you to bother me! Please don’t think twice about asking me to join you at an open house – or to stop by on short notice to show you something that’s peaked your interest. Frankly, it’s not a bother at all. It’s what I do. That’s one of the reasons that working with my family is so valuable to me. If for some reason I can’t be there exactly when you need me - one of my team members can. Since they work for me – and I work for you – we’re covered!

I had a borrower recently buy a house with 3.5% total out of pocket on a $210,000 house. With seller contribution, he was able to put less money into the transaction than his $8,000 tax credit. We have been given another chance to sell the tax credit for over four months. FHA is now one of the least expensive ways that a borrower can buy a house up to $560,000 in our area. The article's proposed changes include increasing the down payment to 5% down payment instead of the 3.5%, increasing credit score guidelines, decreasing the allowed seller contribution, and increasing the Upfront Mortgage Insurance premium. We all hear the commercials that say, "this is the best time to buy" and "once in a lifetime opportunity". Rates are at historic lows, home values are down, and the government is giving 1st time home buyers a tax credit which could put a huge dent in the most buyers' "total cash investment", if not pay for it all.…and we shouldn't forget about the $6500 buy-up credit.

We all have family, friends, and 1st time homebuyers on the fence right now or thinking of buying in the next year or two. Please share this article with them. This really is the BEST TIME TO BUY.

Some areas in Maryland were hit very hard and a lot of families are suffering the effects of questionable mortgage products. In July the FHFA (Federal Housing Finance Agency) announced a HARP program designed to help some of those borrowers who are finding themselves with adjustable rate mortgages now greater than their home value. If you’d like to know more, visit http://www.makinghomeaffordable.gov/ or call me, I’d be happy to help – loosing or selling your home should be your LAST option –
it certainly isn’t the only one!

I’m always trying to find new ways to save money. We all know there is strength in numbers. That’s why we’ve formed the Champion Friends and Family Program – in hopes of using our numbers to save you money! Please keep that in mind if and when you need supplies and/or services. Our supporting companies to date are:

Browns Toyota of Glen Burnie , Lowe’s, Sears, ADT and SmartBox. If you have a relationship with a company that you think we should consider including in our program, please drop me a line and let me know. We’re ALWAYS looking for new participants!

This no obligation, easy to use program will result in real savings. Champion Realty, Inc. does not financially profit from this relationship in any way. The only benefit to Champion Realty, Inc. is the pleasure we get from passing on the benefit of the savings to you. I hope you are able to take advantage of the program on your next major purchase.

(or ANYONE who hasn’t owned a PRIMARY
Residence in the last 3 years!)
Hurry to Claim YOUR $8,000!

Purchase your new home by 4/30/2010
and settle prior to 6/30/2010 and it’s yours*!

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