According to RealtyTrac, one of the leading foreclosure tracking companies, in the 3rd quarter of 2009 there was 1 foreclosure filing for every 157 households in Maryland! I REPEAT 1 FORECLOSURE FOR EVERY 157 HOUSEHOLDS! To put it in perspective, the average person has 130 FACEBOOK friends so basically if you have a FACEBOOK account YOU KNOW SOMEONE WHO IS GETTING READY TO LOSE THEIR HOME! Maryland ranks in the top 15 states for the number of foreclosure filings, and the number of filings is up more than 50% from the 2nd quarter of this year and more than 80% from the 3rd quarter of last year. Don't let your friends, family or neighbors become a statistic, have them give me a call as a SHORT SALE may be an option.
view the Realtytrac article at
http://www.realtytrac.com/contentmanagement/pressrelease.aspx?channelid=9&accnt=0&itemid=7706
Well, I thought the title would get your attention, but the truth of the matter Short Sales are not simple. However, they are becoming easier and more prevalent in the Anne Arundel County, MD market. It seems as if every servicer and/or lender has their own set of guidelines and once you have these guidelines, FOLLOW THE RULES! Also, make sure that you document all of your conversations with the names of the individuals you have spoken to. I have found that in the middle of a transaction a lender may assign another negotiator or case worker. Also, when listing a short sale, have your investor clients write an offer! This will get the short sale process started, BPO ordered, and negotiator assigned. If the bank accepts the offer, it is a win/win for everyone. If not, you will have a basis for listing the property. Short sales will be here for a while, so get used to them and be informed. Your clients will really appreciate you when you have helped them stop foreclosure, sold their property, and had the bank forgive the debt.
Today the unemployment numbers were released from the Dept. of Labor, and surprisingly the numbers were much lower than expected. The unemployment rate edged down to 9.4% from 9.5%. How do potential home buyers and sellers interpret this data? Well, lets look at it this way be prepared for a short HOUSING BOOM! Before you get too excited, I said SHORT HOUSING BOOM. The housing market may be in for a "frying pan" type recovery.
A frying pan has two sides both of which are short but steep, this is the current market followed by a long handle, this is the market over the next couple of years. We may see a brief spike in housing prices, accompanied by a longer more stable type of appreciation.
Most consumers make long term decisions (such as buying a house) based on their perception of the future, ie. consumer confidence. Many consumers have been prolonging making major purchases because they lack confidence in the overall economy, once the confidence returns so do consumer expenditures. So todays employement numbers may be a pre-cursor to rising consumer confidence and will in-turn cause individuals who are sitting on the sidelines to JUMP into the housing market in droves. If you are considering buying a home, act quick or you may miss the bottom. In Anne Arundel County, MD the bottom has already come (in certain price ranges) and we are already starting to see multiple contracts, increased competition for properties, and increasing prices. If you would like to discuss your particular housing needs and the Anne Arundel County housing market, call me today!
Okay, so we know now that the past can be a good predictor of future events. Today NAR released its Pending Home Sales numbers and the results showed a gain for the fifth consecutive month. Housing markets, unlike Stock markets, show predictable patterns and trends. ie, once a housing market start a positive trend the trend usually continues (as history shows us). So with this being said, I would prepare for a return to equilibrium in housing. If you are concerned about buying a home and it dropping 20% after you purchase it, look at history as your example and breathe a sigh of relief. Locally, in Anne Arundel County your market has showed the same positive trends and we are actually starting to see a RISE in prices in certain areas. So if you are a 1st time home buyer, you should anticipate paying MORE for a house next year, compared to this year. Happy House Hunting, and if you would like your local economist to help you find the right home, drop me an email at jnewman@kwflagship.com.
Last November, I wrote the following:
Many of my clients (those of them who listen to the news, read newspapers, sit around the water cooler at work, or breathe for that matter) have all asked me about our current economy and how that affects their decision to buy a home. Yes, as I wrote several months ago, we are now formally in a recession. Several analysts today forecasted that unemployment rates may creep near 9% ( a level not seen since the early 80's recession).
But, what does this mean to you, a potential homebuyer?
To answer this question we have to look at history for the clues. Here are some major points to remember:
HOUSING WILL BE A STIMULUS TO LEAD US OUT OF THE RECESSION!!! If you take a look at the charts below you will find that our economy depends on housing and as housing starts increase/decline so does our macro economy. If you are thinking about buying a home at the bottom of the market you may not have much more time to act. The last six recessions have started after housing starts peaked and have ended several months after housing starts have bottomed.
Recessionary Periods
Jan. 1969- Nov. 1970
Nov.1973- Mar. 1975
Jan. 1980- June 1908
Jun. 1981- Nov. 1982
Mar. 2001-Nov. 2001
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