Ryland Homes Names New Chairman and New Homes To Be Built in Baltimore County

Ryland Homes Inc., a builder who has been behind many popular communities in the Baltimore area, has named Bill Jews as its new Chairman, reports the Baltimore Business Journal.

Mr. Jews was the CEO of Maryland’s own Carefirst BlueCross BlueShield and brought it back from the point of it almost shutting its doors in 1993 to a successful company by the time he stepped down in 2006.  Jews is on a number of boards in the Maryland area, including Fortress International in Columbia, Maryland, and Camden Learning Group in Baltimore.

Though Ryland Homes is based in California, they are a pillar in the Baltimore real estate community. Their developments have won awards and have shown to be well planned.

If you would like more information on new Ryland Homes in Baltimore County, Harford County, and surrounding areas, please contact me so I can help!

Nine Weeks Left in Homebuyer Tax Credit Extension — Will It Be Extended Again?

A discussion I have been involved with here in the Baltimore area about the crippling snow and the effect on the Baltimore real estate market has people in the real estate world wondering if the homebuyer tax credit may be extended again.

On Monday, the Wall Street Journal wrote an article about the credit, and how lobbyists are gearing up to try to have it extended.

In the northeast, the sheer fact of houses not being able to be shown for the majority of a month due to the snow is a big part of the issue.

Other areas of the country make the point, as recounted in the Wall Street Journal article, that banks often are often taking a long time to approve short sales. I personally have found that this delay creates the issue of buyers who qualify for the credit not considering these homes as options.

It will be interesting to see if it will happen. Washington stated that it would not be extended further, and I can understand if that does not happen. Without the urgency of it ending, the credit cannot do its’ job, which is to help people get into homes.

The other looming deadline we have right now is the upfront Mortgage Insurance Premium for FHA loans, and the fact that that rate is going up from 1.75% to 2.25% for loans whose case numbers are assigned after April 5, 2010. This means that buyers desiring to use FHA financing should be pushing to have a home under contract by the third week in March, giving them about three weeks from now, to ensure their case number is assigned prior to April 5, 2010.

Two very important deadlines are looming, and I will be following how the Baltimore real estate market responds to them.

Baltimore Real Estate Market Third Week of February 2010

As we enter the fourth and final week of February, I am reminded as to where the market was last year at this time versus this year.

I have seen showings become more frequent in the past week and the excitement over spring’s arrival in the next few weeks definitely brings people out to look.

The snow storms we had this month really put a halt to the market, as some homes were inaccessible (all of them for a long period of time) until just recently.

February is not notoriously a great time to sell your house. Often times people wait “until spring” to make sure the snow is over and the buyers are out looking.

This year we have the First Time Homebuyer Tax Credit end looming, and sellers are taking notice and attempting to get their homes on the market. The other driving force we have right now is the April 5, 2010 deadline for FHA to avoid the higher up front mortgage insurance premium.

It appears that tomorrow we will have heavy rains which should melt a lot of snow, and may cause some flooding. These are issues that sellers most likely usually don’t have to handle, and buyers need to be aware that these are highly unusual circumstances.

Many gutters have fallen, and one of my clients, who is making a claim on his gutter system said that his insurance company told him they are declaring the Baltimore area a “disaster area”. This means that roofers are overwhelmed and not available, which means this rain tomorrow and possible snow Thursday could be big problems for many Baltimore homeowners who no longer have their usual defense against water coming into their basements and main levels on their homes.

Sellers have to be aware of what is happening, and be prepared. Buyers need to be understanding and patient, and realize that these homes most likely do not usually let the elements enter!

Hopefully March will bring us much needed warmer weather so Baltimore homebuyers can get out and take advantage of these credits and lower upfront PMI, and sellers can have their homes returned to their usual states.

Homebuyers Claiming Tax Credit Cannot E-File

Homebuyers who are claiming either the $6,500 move up credit or the $8,000 First Time Homebuyer Tax Credit cannot file electronically, according to the IRS.

One of my past clients let me know of this after she read an article on MSN. (Thank you for the information and link!)

The reason for this restriction is that unfortunately there were many suspicious claims last year, and the government is trying to curtail tax fraud. There is also an additional form and a decent amount of supporting paperwork that needs to be sent in to prove eligibility for the credit.

The additional paperwork First Time Homebuyers claiming the credit need:

For purchasers of conventional homes, a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties’ names and signatures, property address, sales price and date of purchase.

For purchasers of mobile homes who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.

For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

For those long time homeowners who moved and qualify for the $6,500 credit, this is the additional paperwork they will need to submit:

Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,

Property tax records or

Homeowner’s insurance records.

Here is Form 5405 from the IRS.gov site. For instructions on how to fill it out, click here. For long term owners looking to claim the $6,500, here is Form 1098.

The good news is that homebuyers who are going to claim the credit can still use the electronic tax preparation programs they would to e-file, but instead of clicking a button to submit, they will need to print it, attach the supporting documents, and mail!

(All in all, the few extra steps and the longer time it will take are worth the up to $6,500 or $8,000 credit that the filer will receive!)

Chili Winter Days at Boordy Vineyards — this Weekend and Next!

Weekends have gotten a bit more interesting in Baltimore County at Boordy Vineyards.

Each weekend in January, Boordy hosts the “Chili Winter Days” from 1-5 pm, where you can drink Wassail while you tour the winery, and eat chili paired with their red wines if you are of age. Dean & Brown Catering is supplying the three chili choices, and the cost is $12 for adults, $10 for teens, and $5 for children aged 2-12.

Live music is on tap each weekend as well.

February brings “Fond of Your Fondue” weekends complete with marshmallow roasting on an open fire!

So if you are looking for something neat & different to do, then Boordy is the place to be on weekends in Winter.

Boordy Vineyards is located in beautiful Hydes, MD, (also known to many as Kingsville) right on the border of Baltimore County and Harford County. For a map and directions to Boordy, click here, and enjoy a taste of what Baltimore County has to offer!

Cockeysville and Hunt Valley Home Sales Statistics Year 2009

Cockeysville and Hunt Valley home sales in 2009 statistically were very stable.

There were consistently over 100 houses on the market for sale in Hunt Valley. December 2009 was a slow month with only 4 houses going under contract, but other months on average 10-16 did. That same average applies for properties that settled.

From December ‘08 to December ‘09, there was a 16.1% increase in sales price for homes under contract & 8% in properties that settled.

The median list price remained the same, around $359,000. The median price of those under contract is much lower, though, at about $317,000. The ones that settled averaged around $320,000. This shows that the higher priced ones are staying on the market longer, with about a $40,000 difference from average list to average sold price. It appears once reduced to a certain level, the houses do go under contract and settle.

Not even just price went up, but number of units as well. Things have definitely improved in 21030 home sales in the last 12 months. With the First Time Homebuyer tax credit extension, I foresee more homes going under contract through April 30, 2010 in Cockeysville, since the price range is very popular for those who are eligible and taking advantage of this credit.

Home sellers in Hunt Valley and Cockeysville need to take advantage of this credit, and sell to those who are out there now, and won’t be after April 30.

21204 Towson Home Sale Statistics 2009 Year In Review

Reviewing the 21204 zip code sales, contracts and listings for December of ‘08-December of ‘09, there are many interesting variations throughout the year.

The good part for the owners of Towson homes in the $500,000 and higher range, is that finally these seem to be selling! 11 properties in December went under contract with a median price of $500,000. 14 properties settled in the same time period with that same median price.

The graph through the rest of 2009 has shown that houses have been consistently selling, but that the average sales price was under $400,000 (some months by a large amount).

Other good news is that sales and prices are up a tremendous amount over the same time period at the end of 2008, showing that Towson and 21204 seem to be in a recovery & stabilizing mode.

Click here for the full report.

I am excited to see how January’s numbers look, because I have been seeing quite a number of higher priced homes in 21204 going under contract since the beginning of a year. I will update you when those numbers come out!

Update on Questions on Homebuyer Tax Credit for Married Couples

When the Homebuyer Tax Credit was extended to include long-time homeowners buying new houses and getting a $6,500 credit, a whole new group of questions came into play.

Unfortunately for a few clients of mine (and I am sure many others out there), the answers were not what they were hoping.

• One person owns a house that s/he has lived in for 5 out of the last 8 years. S/he got married in 2009, and the partner has never owned a home. Do they qualify for either credit? Unfortunately, according to the IRS, NO. From the IRS site below, the answer:

A. No. Both you and your spouse must be first-time homebuyers in order to qualify for the first-time homebuyer tax credit. Since you had an ownership interest in a principal residence during the three-year period ending on the date of purchase, neither you nor your spouse qualifies for the credit. Similarly, both you and your spouse must be long-time homeowners of the same previous principal residence in order to qualify for the long-time resident homebuyer credit. Since your spouse is not a long-time homeowner of your current principal residence, neither of you qualify for the credit.

 

• A newly married couple each has owned their own personal residences for 5 out of the last 8 years. Do they qualify for the $6,500 credit? Also, unfortunately, NO. They must have owned the SAME residence together for that time period. From the IRS site below:

A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new principal residence to be eligible for the credit. Since you and your spouse owned and used different principal residences, neither of you qualify.

If these couples were unmarried, and co-buying a new house, they would qualify.

For people who are planning to buy something in 2010 and were counting on that tax credit, this is not very helpful. That being said, if you have a house to SELL, you need to keep in mind that the buyers of the house you are SELLING may still qualify, so you should try to sell while people will still be buying.

Many times sellers forget how these credits may impact the sale of their home, because they are only indirectly affected. My thoughts are that if you are considering selling your Baltimore or Towson home in 2010, get the sale in BEFORE the credit runs out. With the number of days on the market averaging 60-180 in some areas of Baltimore and Towson, then that means getting your home ready to sell NOW!

Short Sale Tax Update for Anne Arundel and Montgomery Counties — is Baltimore County to Follow Suit?

Starting immediately, Montgomery County and Anne Arundel County in Maryland will be collecting transfer taxes on the UNPAID BALANCE OF THE MORTGAGE on short sale properties INSTEAD OF the sales price.

Derek Massey, President of Mid-Atlantic Settlement Services, reported this information on his company’s blog yesterday.

This could mean a difference of a lot of money to a seller who is already upside down in their mortgage and cannot pay the deficiency. It sounds like the county will pursue this money AFTER settlement, letting the buyer proceed with buying the house, as this SHOULD NOT be their problem/issue. If the county will not let the sale go through without this, and the seller does not have the money to pay, it is possible the buyer would be looked at to pay the deficiency (though how fair is that to a buyer?), but with the new RESPA laws and new Good Faith Estimates in place, this could cause a decent delay in settlement.

The question that I have is how the counties can do this, meanwhile regular sellers don’t have the option of taking that reduction in their transfer tax? Let’s say a seller who bought the house for $150,000 8 years ago is selling for $225,000 now. Shouldn’t they, therefore, be able to pay transfer on their mortgage left from the $150,000 technically?

I am sure that the Maryland Association of REALTORS (R) and other organizations will be fighting this new policy, hopefully before it comes into effect in Baltimore County and Baltimore City short sale house transfers.

Towson Residents Help Determine West Towson Elementary School Boundaries

Over 300 people attended the meeting at Loch Raven High School last night about where the boundaries may be drawn, and which children in Towson may be redistricted to the new West Towson Elementary School.

The Towson Families United group, which is “A coalition of parents and residents seeking a long-term solution to Towson’s overcrowded schools”, reports on their site that four different options were presented, and then the attendees were split into smaller groups to discuss what factor was most important to them in making a boundary change, and each individual was asked to choose which of the four they would prefer to see. The data collected will be sent to an independent research facility for analyzing and the results sent to the committee for further review.

The boundary committee making these recommendations to the Baltimore County School Board is run by Central Area Assistant Superintendent Barbara Walker, and is comprised of parents, community representatives (for example, there is one from the Ruxton Riderwood Lake Roland Improvement Association and one from the Rodgers Forge Community Association) , teachers, and Administrators.

A formal recommendation will be given to the Baltimore County School Board by school officials on February 9, 2010 at its regular Board Meeting. After that point, another meeting will be held for public commentary on February 24, 2010 at Loch Raven High School.

The final decision will be announced March 9, 2010 at 7:00 pm.

It is wonderful that Towson residents are given this opportunity to voice their opinions and be such a large part of this large decision making process. It makes it more and more prevalent why living in Towson is such a great thing!

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