About Queen Annes County, MD

Okay, here we are approaching the end of 2009 and approaching a new year of hope in regards to the housing market. But do we have good news to declare for 2010? Here is what I do know and what I forecast to happen.

First, I will discuss national predictions, then here locally in Maryland. As of Sept 09, the country declared 3 million in default. True, some of these were first notice default, yet we have so much more now to consider. We have not yet bottomed out. Based on current predictions, June, July, and August of 2010 is when we will bottom out. We are just approaching the end of the recession-December, and there are many more foreclosures that still need to be released into the market. So, excluding government intervention, our housing market will be saturated with inventory. Now, if the government does intervene, we may see loan modifications. For FHA loans we may see raising the acceptable credit score of 620 up to around 660. So, credit margins will be harder for buyers. Fannie Mae may be modifying some guidelines beginning Nov 1st. Perhaps they will place moratorium on releasing foreclosure inventory into the market; which in reality just postpones the inevitable. We shall see how all this plays out.

Now, Maryland real estate has fared better than most due to the abundance of government jobs which have kept unemployment low. However, the state is not immune to the foreclosure epidemic, and many of the communities face a long climb to recover from damage done by the housing crash. The prices of homes have fallen more than two years in most of Baltimore, which has been devastated by the foreclosure epidemic. But the first time home buyers tax credit and lower home prices have influenced the marketplace. While it may appear that home prices have stabilized, my guess is, they have not. I predict we’ll continue to see overall prices remain at their current levels and, in some areas, to decline well into next year. I think foreclosures and short-sales will keep pressure on home prices for another 2 to 3 years.

Now, if you would like to know more specifics in your locality, feel free to contact me. I will be glad to discuss this with you.

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Termites cause an estimated $5 billion in property damage a year in the United States, according to the National Pest Management Foundation. Yet, many homeowners know very little about the danger that termites pose to their property. "You don't usually notice them until the damage is extensive. Termites may take up residence in a home for years-even decades- eating away at the structure from the inside out until the damage shows itself- hence the unsettling nickname "silent destroyers", says entomologist Ron Harrison, technical director for Orkin, Inc.

So how can you protect your investment from these crawly insects? Harrison offers these preventative measures:

* Keep moisture out. Use downspouts and gutters to divert water away from your home's foundation

* Store mulch, firewood, and wood chips away from home.

* Make sure shrubs, vines, and other plants aren't planted too close to the home and aren't covering vents

* Ventilate crawl spaces to reduce humidity

* Eliminate gaps and cracks in attic vents, window joints, and roof eaves.

* Remove old tree stumps and roots near home.

However, a home owner's best defense is to schedule regular inspections with a termite specialist.

The U.S. Department of Housing and Urban Development's web site provides information by state about areas most prone to termite damage. Go to www.hud.gov and search for "Termite Infestation Probability Zones".

Is FEAR keeping you on the fence about buying a home? Realtors hope a stimulus offer from Uncle Sam will help you make the move. But, as I talk to other agents it seems they're starting to notice an increased interest.

What is holding people back?
A big fear. Fear of losing their jobs, fear of the economy in general, fear of what's going on.

FEAR Is the perfect emotion!
Politicians use it all the time. In fact, I have seen special interest groups use it to the "max" to invoke a fear reaction to get an exaggerated response. I am not saying the government is using fear to prevent people from buying homes, but I am saying fear can move mountains.

Is the government helping the housing industry?
Yes, I think now, they are trying to stimulate sales for the first time homebuyer. But, it can be so confusing and people who bought before Jan. 1, 2009 are sounding off as being resentful. But they really shouldn't, because if the stimulus wasn't in place at all, their home values could possibly be falling even further. The $8000 credit helps stabilize the home values.

So who actually qualifies for the $8,000 tax credit?
The government is giving first time home buyers or people who haven't owned a home in three years, $8,000 if they buy between January 1 and December 1 of 2009. It certainly does give hope for what's happening in the housing market. It really would have helped if it would have applied to all home buyers.

Here's how the tax credit works:
1) The home you buy has to be your primary residence, it can't be a second home
2) It pays $8,000 or 10% of the purchase price, whatever is lower. If you buy a $65,000 home, you'd get $6,500.
3) The credit pays less if you are a single buyer who makes $75,000 or married buyers who make $150,000 or more.
4) You don't have to pay it back if you live there for three years or more.

Did you know you can amend this year's taxes?
If you already did your taxes and let's say you bought the home today you can go back and file an amended tax return and get the money now.

Example please..
If you owe $3,000 and buy a house, you'd get $5,000 back. If you buy a house and owe nothing on your taxes, you'd get the full amount of money.

No Down payment credit
Can't be used as a down payment because you can't get it at the closing table but you certainly can get it very soon after purchasing the home.

This is the time to buy, with historically low interest rates.

*Building Your Own, Pre-fab and Mobile Homes
If you're going with a pre-fab, or Design home type of purchase, builders say to qualify, you have to be living in the home by December 1, 2009. Mobile homes have to be on a piece of property, not in a park. If you want to build a home, you can get the tax credit, but you have to close on the sale of the home with your contractor by December 1, 2009. If you own land and are acting as a general contractor, I believe you have to be living in the home by Dec. 1, 2009. *

*Check with your accountant and state laws for building your own,to get the credit.