Isn't it hard to believe that it is April already? It seems as I get older that time starts to move at a much faster pace, giving me less time to do some of the things I wanted to do. It also means that I must make quicker decisions when opportunities present themselves.
Dundalk is presenting some great opportunities for the first time homebuyer AND the investor who utilizes a buy & hold strategy. Lets take a look at market performance in the 1st qtr of 2008.
SOLD listings in Dundalk (21222) numbered 83 (actual closed sales in qtr) with a range of listing price from $79,900 to $287,900. The average list price of all homes sold was $170,201.
Compare that to the actual sale prices of $78,000 to $280,000 with an average price of $166,912. Using the averages there is only a $3289 difference from list to sell,(170,201-166,912=$3289) or 1.9%. That means that in the first quarter of 2008 homes in Dundalk is still selling for 98.1% of list! The first quarter report of 2007 shows Dundalk homes selling for only 96% of list.
But what about the prices! OK, lets compare average sold prices in the first quarters, 2007 vs 2008.
- 2007 average sold (close) price $176,202 (136 units)
- 2008 average sold (close) price $166,912 (83 units)
- DIFFERENCE ($9290-5.3%) (-53 units-39%)
Many parts of Maryland are showing declines into double digits, with an average somewhere around 11%-so 5.3% is a relatively strong number overall.
These numbers do not account for seller assistance to the buyer! The old addage, "If you don't ask, you don't get" comes to mind-Most closed transactions that I looked through offered in the listing seller contribution toward closing, but those that didn't offer were still allowing, in many cases, help to the buyer!
Of the 83 units sold in 2008-53 paid some or all of the closing costs for the buyer. The 53 sellers allowed a total of $342,995 in closing help toward the homes sold! That is an average of $6472 (app 3.9%) per buyer! WOW!
Add to this, for the first time home buyer, the programs that are available from the State and Counties (up to $35,000) and almost ANYONE can now afford to buy their first home-especially in Dundalk!
When I started I stated its a great time for FTB or investors. It really doesn't take much to see the upside from the investors point of view. The rental market in Dundalk is holding strong with rents $1000+ per month. The buy & Hold Strategist can have a positive cash flow property from day 1.
As the market begins to change to the upside (Yes it will), prices will begin to increase steadily giving a nice return on investment ( for any buyer) within a few years. What's the wall street saying "Buy Low, Sell High". THIS IS THE TIME TO BUY IN DUNDALK!
As of today, there are 256 active listings in Dundalk, 21222. Do you think that your next home could be one of them?
If you would like a complete list of Homes available in Dundalk, or a neighborhood specific list like Gray Manor in Dundalk, just give me a call 443-912-4866, or drop me an email LuckNetREG@comcast.net. You can find what you want with the right help.
Stephen Luckett
LuckNet Real Estate Group
443-384-6000 office 443-912-4866 cell
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