This Month in Real Estate February 2012

This Month in Real Estate for February 2012 has been released!

Home sales in January were on pace to have 4.6 million homes sell in 2012, up from the pace of 4.4 million in December. The median home sale price was at $165,000, up $1,000 over January 2012 This Month in Real Estate. The average interest rate dropped slightly to 3.88% from 3.91% last month.

The top news, presented by Jay Papasan, adds onto last month’s topic of what buyers are looking for in a home to the eco-friendly things buyers would like to see. They are:

1) Double Paned Windows

2) Energy Efficient Appliances

3) Upgraded Insulation

4) Efficient Heating & Cooling Systems

5) Solar Power

In News You Can Use with Bryon Ellington, he discusses your credit report, and what you can do to manage your numbers and keep them as high as they can be. Your credit scores often have a large part in determining loan rates, loan availability, and loan terms.

Things to do to keep your credit shining or improve your credit score:

A) Be consistent and punctual with payments.

B) Keep your balances low.

C) Don’t take out more credit cards than you need.

D) Be careful of opening or charging to accounts if you are under contract (talk to your mortgage lender before opening accounts or making significant purchases!)

E) Watch your credit-to-debt ratio. (Don’t take on too much debt!)

For more information on how to buy a home in Baltimore, contact me. I would be happy to help!

This Month in Real Estate January 2012

This Month in Real Estate January 2012 has been released!

Home sales activity was down to 4.4 million homes last month, a drop from the pace set from December 2011 This Month in Real Estate of 4.97 million. It makes me wonder about the number of sales that may have been canceled last month. It is up, though, according to the numbers, 12% over the same period of 2010. The median home sale price was $164,000. The average interest rate for December was 3.91%, down from November.

The Top News, presented by Jay Papasan, is about home buyers, and the surprising things they look for in a home.

Most homebuyers start their searches online, and it takes, on average, about three months to find a home. Weather is less of a factor than in past years, because so many buyers view the house and the areas online to see if they are places they would want to consider.

In News You Can Use with Bryon Ellington, he discusses why listing your house NOW instead of waiting for the Spring may be a good decision.

1) As noted earlier, it takes, on average, about three months for a buyer to find their house. That will be Spring — so you are listing for those who are looking to settle in that time frame!

2) You have less competition. Many people wait to list in the Spring. If you list now, there are fewer houses for buyers to choose from — which may make yours more attractive!

3) Lenders, appraisers, movers, home inspectors, contractors, and other vendors also see a decline in business during these months. Therefore your sale/home/buyer gets more attention.

If you’d like more information on whether now is a good time to sell your house in Towson, contact me. I would be happy to help!

This Month in Real Estate December 2011

This Month in Real Estate December 2011 has been released!

Home sales activity was at a pace of 4.97 million for the year, which is up slightly from last month. The median home sale price was $163,000, down from $165,000 for This Month in Real Estate November 2011. Average interest rate was 4%, down slightly from 4.1% last month.

Jay Papasan presents The Top Story this month, with the top reasons sellers decide to move.

1) Desire to “move up” to a bigger house or different neighborhood.

2) Need to relocate for a job.

3) Change in Family Status such as having a baby or retirement.

To learn how to make the most of the sale of a house, Bryon Ellington discusses News You Can Use.

He states that you should know how a full service agent can help you versus a limited service brokerage.

A full service agent can help you:

A) Price your home according to the market.

B) Market your home to other agents who are working with qualified buyers.

C) Post your home on other internet sites besides the MLS.

D) Full service agents, in general, have proven results.

For professional, full service Baltimore home sale assistance, contact me. I am happy to help!

Fannie Mae Deed-For-Lease Option

Fannie Mae has a Deed-for-Lease option available for those who cannot make their mortgage payments on their homes anymore.

This is an option for people who want to stay in their homes but cannot afford to keep them. For many Baltimore homeowners, this may be a viable option.

What happens in this case is that the bank agrees to a “Deed-in-Lieu of Foreclosure”. The bank essentially buys the house back from the current owner, and rents it back to them for a period of a year or so. The good news is that the lease amount is based on rental amounts in the area — not on the mortgage payment the owner had before.

The Deed-for-Lease option is for Fannie Mae owned loans. They state on their “Know Your Options” website that:

Deed-for-Lease is an alternative to foreclosure and may be an option if:

• You are ineligible to refinance or modify your mortgage
• You are facing a long-term hardship
• You are several months behind on your mortgage payments
• You may owe more on your home than it’s worth
• You have not been able to sell your home
• You want to remain in your home and neighborhood

If you are trying to prevent foreclosure, then this may be an alternative for you. Another choice which could possibly cause less credit implications could be a short sale.

Please contact me to avoid foreclosure in Baltimore. There may be multiple options for you!

This Month in Real Estate August 2010

This Month in Real Estate August 2010 has been released.

As I mentioned in my July 15 post, “Mortgage Rates at Lowest Point in Five Decades,” mortgage interest rates have dropped to their lowest level in the past 50 years. On July 29th, that number was 4.54%! Freddie Mac’s current average interest rate is at a historic low of 4.6% — right at the lowest since it began recording in 1971 (but up from Thursday!).

While it is tempting to wait for a price for a home to drop, what tends to happen is that when prices drop, interest rates rise. Therefore, your payment, even if the price of the house is lower, may be the same or higher than it would be right now!

Contact me more information on buying a Baltimore home using historically low interest rates!

Baltimore City Property Tax Bill Errors

Baltimore City property tax bill errors were popping up in large amounts last week. Approximately 7,900 city residents received additional bills because of a computer issue, stating that their taxes were past due.

Many of those who received the erroneous additional property tax bill were newer Baltimore City homebuyers who bought their homes sometime between July 1, 2009 and June 30, 2010.

The mix up occurred partially due to the Homestead Tax Credit, which many homeowners collect, but new homeowners cannot until they have lived in the house for a year.

Jamie Smith-Hopkins reported in the Baltimore Sun:

New buyers can qualify for the credit after living in their homes for one full tax year. They can end up paying much higher taxes than the previous owner, especially if that owner lived in the home for a long time. But the increase doesn’t kick in until the new homeowner’s first July 1 in the property — because any taxes before that point are calculated based on the previous owner’s liability.

Here’s what went wrong: The Homestead credit amount for the last tax year was somehow erased from the property accounts for at least some of the more than 5,000 people who bought in the city during those months. Suddenly, it looked as if they’d underpaid.

City officials state that this week owners should receive a correct bill.

If you are a Baltimore City homeowner and received what you feel is an incorrect bill, you can check the Baltimore City Government’s website to find your correct amount due.

Mortgage Rates at Lowest Point in Five Decades

Mortgage rates are at the lowest point they have been in five decades.

The national average is 4.57% for a 30 year fixed conventional loan.

MSNBC reports that:

Rates have fallen over the past two months. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on long-term Treasurys.

Though the rates are very low, many people have already taken advantage of the low rates that have been in place for months now. These rates also don’t include add on fees, which Freddie Mac reports right now theirs are averaging about 0.7% of the loan amount.

Others are not refinancing due to the fact that they actually cannot. They have less equity in their home than is on their current mortgage, and do not have the money to make up the difference. So despite the possible lower payments, these distressed people cannot take advantage of the historically low rates.

Many Baltimore homeowners are in the same situation, putting them at risk for a short sale if they need to sell.

People who have been on the fence about buying a home should consider the moment to be now. With rates this low, plus Baltimore home prices being so low, there has rarely been a better time to buy!

If you are ready to buy a Baltimore home, contact me today to take advantage of these incredible low interest rates.