Camille O'Donnell

Heads up......If you are a homeowner in Maryland you need to take notice and understand that you are now being required to submit an application to receive the state Homestead Property Tax Credit (capping at 10%). This is a credit on your property tax credit bill.

On Jan. 30th at 1 pm in Annapolis, SB 239 (sponsored by many Democrats and Republican senators including our own Senator EJ Pipken) will be heard to repeal the requirement (to file an application to the State Department of Assessments and Taxation to qualify) and take the burden off of the homeowners.

If you are like me, one may wonder why was the process changed? When I inquired, the reason I was given was that there have been many property owners who were not eligible to receive the credit. Here's a look at the new application, and I can assume how cumbersome this will be for homeowners or if you forget to file or become confused by the new requirement, or try to file electronically and can't find your access number and simply do not file for fear of being in violation.

In 2007, the Maryland General Assembly enacted legislation that required homeowners to fill out a one-time application for the Homestead Credit. The legislation takes effect with the 2008 assessments. If the property is designated as you principal residence, an application was included with your tax assessment notice. Even homeowners who have previously received the credit must fill out the application or apply online. This form is due by April 1. For more information call 410-767-2165.

Please attend the hearing on 1/30/08. Here is the address below that you can submit your support of the bill.
The Honorable Ulysses Currie, Chair
Senate Budget and Taxation Committee
3 West Miller Senate Office Building
Annapolis, MD 21401

I believe you and me, need to look this straight in the eye and deal with it. But first, lets talk about recession. Or are we heading into a recession? Definition of recession in a short version: two consecutive quarters of negative GDP growth. What that means to you and me, is that the US is in the "red" and that, is not good. In other words, we are not making any money. According to the experts, some say "yes" while other predict the signs:

• Growth in construction dropped to a 14-month low while home prices fell to a six-year low. And we haven't reached bottom yet.


• Experts predict zero gross domestic product growth for the first quarter ending in March. Our strong export numbers can't overcome weakening domestic end product demand.


• With all the rising housing inventories - it is evident customers aren't buying--an early danger signal of recession, according to experts. This is weakening the market nationwide. Some economic real estate experts say to sell your home in this market, the seller has to find the five lowest priced homes in your comparative market and list yours 10% below that number and you are sure to sell!!


• Unemployment is holding up so far, but we're only 100,000 away from a shaky grounds. Employment growth has eased to a nine-month low and unemployment is steadily increasing-expect big layoffs in banking and housing.


• Looking at the nation, experts say recession will develop in Florida and other states first. On top of all this we have the media pounding away with negative financial economic turmoil. This is all difficult to stomach. Plus, the psychology of it is making sentiment bad because housing prices have fallen, and without equity the consumers cannot borrow money to make consumer goods purchases.


• Unfortunately, the massive injections of credit and lower interest rates have not solved the subprime debacle and the freezing up of credit markets. The financial services index has dipped to a 14-year low. It's not clear easy money can save us from a recession. They say, keep an eye on January sales to see if consumer goods are leaving the stores.
  
  

Here in QAC, we were down almost 43% for the total dollar volume for the month of Dec. 2007 compared to Dec. 2006.

We are down 38% in total units sold for the month of Dec. 2007 compared to Dec. 2006. FYI, some 31 homes sold for the month of December in QAC compared to 50 homes in December 2006.

You can see other stats by clicking on the chart twice to enlarge. To see homes that sold for Dec. 2007, click here for details.
Read more information at my personal blog: www.qachousingmarket.com