About Queen Annes County, MD

From the Desk of Rich Shull...........

Market Statistics for Stevensville, MD in February 2009:

Number of Homes Sold - 6

Average Sold Price - $245,417

Median Sold Price - $209,950

Average Days on the Market - 124

Average Sale Price as a percentage of Average List Price - 85.65%.

Source: Metropolitan Regional Information Systems, Inc (MRIS)

I'm not a big fan of Average and Median Sold Price Numbers. Many variables can skew this data. A large sale ($1-$2 Million Dollars) can raise the average sold price but not be characteristic of what's going on throughout the entire market. In February, the homes sold in Stevensville, MD fell between the price ranges of $150,000 and $399,999.

We know that the market has significantly slowed down but it bares repeating with the help of numbers. As you can see, it took an average of 124 days to sell these 6 homes in Stevensville, MD. 3 homes sold in less than 120 days while 3 homes took over 120 days to sell. The main theme I want to say here is that homes are still selling! No matter how "bad" the media or others say the housing market is, houses will sell. It may take close to 120 days in Stevensville, MD to sell them, but houses are selling.

So what's the 85.65% mean? Well, it means that a house, in February 2009 in Stevensville, MD, sold for 85.65% of the original asking price. In other words, if a house is listed for $100,000 it sold for $85,650 in February. It's called a contract sales price. It does NOT take into account factors such as closing costs or closing help (if any).

All this adds up to the simple fact that we all know....it's a buyer's market. If you're a seller, you need to be prepared to understand that you may not receive the full price you're looking for and you may need to entice buyers with incentives. If you're a buyer, you're looking at great deals with great interest rates.

One last thing to mention - we get it. Michelle and I understand that there are sellers who have put a lot of blood, sweat, and tears into their home and we want to help them, realistically, get all they can for the price of their home. If you're a buyer, we understand that you're sitting and waiting for the bottom of the market to hit before you buy. Question is, when will you know when the market bottoms out? Answer is, when the market makes a comeback and it's too late for great deals!

Never forget that freedom is not free. There are many men and women who are sacrificing for us at this very moment. Some have made the ultimate sacrifice, while others are recovering from injuries sustained fighting overseas. Here's one way you can help these heroes: http://www.anysoldier.com. Thank you to all the men and women at Fort Meade, The Naval Academy, Andrews Air Force Base, and everywhere around the globe for your patriotism and sacrifice.

Rich is a licensed assistant to Michelle Bowman of Keller Williams Select Realtors in Severna Park, Maryland. To learn more about Michelle Bowman, including contact information, please visit her website at www.michellebowman.com.

Market Statistics for Stevensville, MD in January 2009:

Number of Homes Sold - 0

Average Sold Price - $0

Median Sold Price - $0

Average Days on the Market - 0

Average Sale Price as a percentage of Average List Price - N/A%

Source: Metropolitan Regional Information Systems, Inc (MRIS)

REDC AUCTION - WATCH FOR ADDED PROPERTIES

If you are planning to attend the REDC auction in Washington DC, be sure to check for added properties. Yes, additional properties have been added that may not be included in the brochure you received. Click on www.USHomeAuction.com for current details.

20407 PEACH TREE RD, DICKERSON, MD 20842 is one of the added homes in the auction for Saturday, March 14, 2009. The open house is this weekend. You should always use a buyer agent when bidding at auctions. Please contact us if you need assistance. roykelley@mris.com

20407 PEACH TREE RD, DICKERSON, MD 20842

Where are we going in real estate? I have a number of buyers and sellers who see things so different. And of course, each and everyone of them have their own justifications.

For instance, the sellers wholeheatedly believe the market is going to spike this Spring and prices will remain stable (God Bless them). So they are optimistic and believe we need to be patient, stay the track and talk up the good talk, so to speak.

Here is what has been happening: Sellers will withhold listings from the market or cancel listings that don't sell within 90 days. If they are smart, they will adjust their listing prices and have a good agent that can persuade them.

Still others will: 1. Ask themselves if they are better off selling their homes on a short sale, absorbing the hit to their credit reports and becoming renters for a few years. Many sellers will turn to a short sale or walk away than try to directly deal with mortgage lenders. 2. Sellers who are unwilling to take a hit on their sales prices will put their homes on the market as rentals


What concerns me is the hard data, the unemployment rate reflecting the recession of the 1980's and the bank trouble reflecting the depression of the 1930's. Going alittle big closer to home, our sold stats for Queen Anne's County are down almost by half. Our inventory right now is climbing, the closer we get to the warm weather(which I cannot wait for) the residential properties on the market for sale or rent hover around 700 plus.

And we have some 300 real estate agents who are registered with the Bay Area Association of Realtors and if you ask any of them (agents) they will tell you it is crazy market. Yes, I know we are supposed to say, "Everything is great and Unbelieveable," to avoid the downtrodden and rotten news about the market. That notion of accentuating the positive does work, but what happens when reality sits in?

Please do not get me wrong: I think this is a fantastic market and there are some really killer deals out there. But we are dealing with sellers who don't want to be realistic on setting their selling prices, buyers who think the market is a free for all and writing ridiculous low ball offers.

Then, you have the banks who say they want to sell their homes but, still don't want to budge on the listing prices and think they can get 90 cents on the dollar. You can't help but, ask yourself, "Do the banks really want to sell and do they understand what is going on in the market?" You would think the banks would jump at a reasonable offer and avoid the frog leaping, loop-jumping scenarios.

Okay buyers, yes it is a wonderful time, on the bright side, employed home buyers with good credit will find 2009 is an excellent time to buy. And of course, cash buyers will win every time over buyers who need financing.

Please do your homework and realize most properties have already been adjusted for the 20% reduction over the last year, the experts claim. Of course, it's a buyer's market and many think the prices are going to continue to drop, so they wait, and wait and wait some more.

Well, Mr. "Waiting" Buyer you can just wait, and hope that property does not get snatched up or you may be doomed watching the interest rate go up. And guess what? Not only may the price drop on the home, but if the interest rate goes up you will be paying more for that home. You see, if you would buy now while the interest rates are so low, you will save so much more instead of waiting for the listing price to drop. So don't wait, you're in control. Write your offer contingent upon the property appraising at the agreed upon sales price and on obtaining your loan.

Call me at 443-786-0200, I would be happy to sit down with you and crunch the numbers.

Obama's Recovery Housing Bill is full of help, or not???
To help you siphon through the legal jargon of the housing recovery aspects of the bill, I thought as a realtor, I would try to spell out exactly what that means for the home buyers or homeowners. Please let me know if you feel powerless or are you still confused over what you get out of this bill or if it hurts the responsible who lived within their means?

38% or MORE ON YOUR MORTGAGE

Get out your IRS tax statements or your W2's and take a pen to paper. To qualify for a benefit to lower your monthly payments, the bills requires that you have to be spending at least 38% of your monthly income on your mortgage. Makes you wonder if homeowners who become desperate will quit their jobs so they can qualify. I guess, that would work, as long as their spouse has a job. I mean this could make a difference if you walk. Now this doesn't apply to second homes or investment homes.

The way this works is you and me and your mortgage lender will help divvy up the costs of lowering your payments to 31% of your income. Can you imagine....that means you could have an interest rates as low as 2%. Or you may get the principal reduced. Plus, if you pay your mortgage on time, US taxpayers will pay off as much as $1,000 of your loan each year for five years. If you happen to have a mortgage payment less than 38% of their income - you my friend are out of luck.

REVERSE MORTGAGE LIMITS RAISED

If you are trying to help your parents or any senior citizen feeling the pinch , you may want to explore the reverse mortgage option, The limits for reverse mortgages backed by the Federal Housing Administration have been raised to $625,000 from $417,000.

HOUSING COLLAPSE WIPED OUT EQUITY

There maybe help for you. If you have been paying your mortgage, but because of the refi market and housing collapse that has wiped out your equity, you may benefit from the new refi assistance. So, the qualifications for the government to help you refinance your mortgage is: if you owe between 80% and 105% of your home's value. The downside is: this will only help those with mortgages owned by Fannie Mae or Freddie Mac get cut in. And it excludes many homeowners in Florida, Nevada, Arizona and California. This really stinks.

$8,000 TAX CREDIT or Really?

This one is an eyeopener or another government tease. You know how the government has been flirting with the $8000 tax credit for new home buyers, well the truth is: Anyone who hasn't owned a home for at least three years is entitled to a helpful tax credit, for up to 10% of the cost, up to $8,000, Did you get that: UP TO 10%. So for many of you who thought you would be getting the $8,000 tax credtit be careful and read the small print. And of course, you have to buy a home this year.
The good parts is it is a refundable credit - so if you don't pay $8,000 in taxes, or indeed any taxes at all, you get the rest as a check. Now, if you make a high income-you again are out of luck - the credit phases out above a modified adjusted gross income of $75,000 for one person.

CONFORMING LOAN LIMITS RAISED

The government just raised the "conforming loan" limits to $729,750 from $625,500, yea for those that can buy those expensive properties AND can qualify.



Now, I am not a mortgage banker or lender, just doing my homework. However, please comment, if you have additional information to the consumers that could help alleviate any concerns.