Stephen Howell

The evening of November 4^th was a historic night. The new President-elect faces a daunting array of challenges. One of the most important will be to halt the falling tide of home prices. More and more Americans face declining home values, overwhelming mortgage payments, and the real possibility of foreclosure. Will President-elect Obama be able to turn the tide and stop America slipping from recession into a depression?

The Baltimore Metro Home Price Index for October 2008 was down 1.7% from the month prior and down 1.8% from this time last year. The Anne Arundel County index was down 1.2% from the month prior and down 7.4% from this time last year. And, the Annapolis index was down 6.5% from the month prior and down 10.3% from this time last year. Although the Washington DC metro area S&P/Case-Shiller Home Price Index published for August was down 0.3% over July and down 15.4% from August the year before.

The total sales volume for Anne Arundel County was down 19.0% in October from September. The number of units sold was down 14.7% and the number of active listings was down 9.9%. The number of pending sales was up 14.8%. The average sold price was down 5.0% from $403,687 to $383,348. There were 331 units sold in October over 388 sold in September over 401 sold in October of last year.

The total sales volume for Annapolis was down 30% in October from September. The number of units sold was down 9.3% and the number of active listings was down 5.3%. The number of pending sales was down 9.6%. The average sold price was down 22.8% from $553,594 to $427,536. There 68 units sold in October up from 75 units sold in September up from 64 units sold last year.

As the year comes to a close, our attention will soon turn to the holidays. There is not likely to be good news for sellers any time soon. This is an extraordinary period for buyers looking to find bargains.

In Conclusion

If you are thinking about buying or selling a home or know someone who is, for a confidential, private, professional consultation without any obligation to discuss today's real estate market, please contact Stephen Howell at 410-923-3217.

Do you know anyone who is facing foreclosure? Anyone who is behind on their mortgage? Anyone who has lost their job? Anyone that has not been able to refinance their current mortgage?

Today's distressed homeowners need answers and they need an advocate to offer options and help them understand their rights. When homeowners find that their home is worth less than they owe, they often have no idea of what to do. It seems impossible to get answers to critical questions about options and how each option might affect their credit in the short-term and ability to purchase a home in the future.

As a REALTOR, it's not only my job, it's my passion to provide the help homeowners need when they need it. So if you, a family member, friend or colleague is faced with an uncertain future, for a confidential professional consultation about options, please contact me at showell@cbmove.comor 410-923-3217 or visit my website online at www.Annapolis-REO.com.

A reported by Robin Sidel in a November 1st article in The Wall Street Journal online "J.P. Morgan Chase & Co. launched an ambitious plan Friday to modify the terms of $70 billion in mortgages for borrowers who are behind on their payments or soon could be." J.P. Morgage Chase appears to be leading the way in halting the rising tide of foreclosures and homeowner defaults on mortgage payments. I congradulated J.P. Morgage Chase for stepping up to the plate to address the problem headon.

We're not there yet. We can expect six to twelve more months of declining home prices. Although not all gloom and doom, "Home prices have already tumbled 20% from their peak three years ago, and will probably sink another 10% before stabilizing. Some 12 million homeowners currently owe more on their mortgages than the houses are worth..." as reported in June Fletcher's article today in The Wall Street Journal.

Although Annapolis, Anne Arundel County, and much of Maryland has been relatively immune from foreclosures, they do exist. Everyone knows someone (whether they realize it or not) who may be in trouble and might be behind in their mortgage and facing foreclosure. This morning (10/29/08) there are 4,822 active listing in the MLS in Anne Arundel County of which 95 home (1.97%) are flagged as one of foreclosure, HUD-owned, preforeclosure, or REO property. Compared to Prince Georges County where there are 8,269 active listings in the MLS this morning of which 377 (4.56%) homes were flagged in one of the four troubled status. Of course these statistics don't reveal just how deep the problem may run. When searching for "3rd party approval" in the MLS remarks, 229 (4.75%) active listing were returned indicting that these homeowners may be distressed.

While the numbers seem remarkably low, the selling season for real estate wains as we approach the end of October, followed by the presidential election and then the holidays and really cold weather not far behind. What can we expect for the fourth quarter? Falling sales and falling temperatures. Overall, the real estate market well be headed for hibernation and not awaken until late spring!

Alan Greenspan called current conditions a "once in a century credit tsunami". You can read more about Greenspan's comments in front of the House Oversight Committee on the FOXNews Website.