This Month in Real Estate November 2010

This Month in Real Estate for November 2010 has been released.

First, Jay Papasan shared from the National Association of REALTORS that home sales were up across the United States 7.6%. We’ve seen more Baltimore houses go under contract in October as well, and once those statistics are released later this week, I will compare them to the general U.S. numbers.

Nex,t Bryon Ellington describes how renters really ARE paying a mortgage — just not their own.

There are five hidden secrets to homeownership that renters should be aware of:

1) Rent tends to rise, on average, 3% per year. A fixed rate mortgage over the same time period, would not have raised at all. Yes, there would be other costs, such as taxes, insurance, and repairs, but these costs are built into rent by landlords already.

2) You can build wealth through equity. Bryon says to think of equity as a long term savings account. Each month, if you have a fixed rate standard mortgage, part of your mortgage payment goes towards your “principle”. This means that you are chipping away at what is owed on your home!

3) You can build wealth through appreciation. This is why in a buyer’s market, such as the time we are in now, it is so important to take advantage! Appreciation can happen at a quicker rate when recovering from a “down market.” Equity and appreciation generally take time. It is long term, not quick — so realize this when you are looking to buy.

4) Currently, interest on a home loan is tax deductible. So it can help your bottom line when it comes to taxes you must pay each year. Rent you pay just goes to someone else. Interest on your home loan is deductible, technically making that payment lower!

5) You can decorate it any way you want — without having to get your landlord’s permission!
So, stop renting, and start earning!

Contact me to take advantage of your buying power in Baltimore real estate!

This Month in Real Estate October 2010

This Month in Real Estate for October 2010 is here, and is showcasing undervalued markets across the US.

Pending home sales in the south, which the Baltimore housing market is part of, rose 1.2%, according to the National Association of REALTORS. Historically, more pending sales tend to eventually lead to higher prices, which is good news for Baltimore home sellers.

Bryon Ellington discusses in “News You Can Use”, that there are many areas where houses are still very much undervalued — even if they aren’t foreclosures or short sales.

The Baltimore housing market is still considered “overvalued” by 2.40%, down from its’ high point of 28% in 2006, according to the research by IHS Global Insight, and reported by CNNMoney.

To me, this says that the Baltimore real estate market has evened out, and it is a good time to buy.

Contact me to take advantage of this Baltimore real estate market!

Ten Reasons to Buy a Home

The Wall Street Journal, tired of the doom & gloom, wrote an article on the ten reasons you SHOULD buy a home in this economy.

Their ten reasons are good ones and have a lot of detail as to why they are true. Here are Brett Arends’ WSJ headlines, and my takes on each.

1) You can get a good deal. Right now, prices are low and inventory is high. What a great time for a buyer! Have a house but want a bigger one? Good for you as well! What hit you may take on the first house should help you save on the next one.

2) Mortgages are cheap. When, in the history of the Baltimore real estate market, have we ever seen BOTH prices low AND interest rates this low? (The correct answer is never. These are the lowest interest rates on record.)

3) You’ll save on taxes. How? Mortgage interest and real estate taxes are usually tax deductible. There may be other tax breaks too, so check with your accountant.

4) It’ll be yours. No more eggshell white walls (unless you want them). You can have the kitchen the way you want. You can change appliances. It’s YOURS to do with what you want.

5) You’ll get a better home. I ran rentals for the 21093, 21204, 21030, 21152, 21209, 21212 zip codes in a specific geographic area. There were a total of 44 houses for rent. Only 2 were appealing to my client. Meanwhile, there were that many appealing for SALE in the same area, even more than that for sale that did not fit their needs. So many houses have already been rented!

6) It offers some inflation protection. Statistics show that long term housing beats inflation by a few points each year. (This is the weakest reason!)

7) It’s risk capital. If the economy recovers, housing will recover as well. Equity in your home is a good part of your investment portfolio.

8 ) It’s forced savings. Let’s say your rent is $2,500/month, and your mortgage payment would be $3,000. Though that is an extra $500/month you would have — would you save it? Most likely no. As the WSJ says, that extra $500 is paying towards more equity in your house.

9) There is  a lot to choose from. There are many Baltimore homes for sale right now. You can be more picky & get what you really want!

10) Sooner or later, the market will clear. Supply & demand will meet at some point.

So, the moral of the story is, call me, because now is the time to buy a home in Baltimore!

Baltimore Home Sales Up 35% in April 2010

Baltimore home sales were up 35% in April over March’s sales as well as over April 2009 sales.

This a telling sign that buyers were looking to take advantage of the ending homebuyer tax credit, as well as hopefully previewing that the economy is beginning a recovery.

The Baltimore Business Journal reported this on information from MRIS, our local multiple listing service.

2,205 homes went under contract in April, while 1,800 happened in March. Last April at the same time only 1,632 homes sold.

I did notice a large number of homes going under contract, but I also have noticed that the first half of May has been very busy as well. I had three homes go under contract in April, and only one was eligible for the tax credit, so that was not a driving force for my set of clients.

Though I agree that it was a nice benefit for those who qualified, I think a really big drive is the combination of low housing prices AND low interest rates, which has rarely happened throughout history.

Baltimore house prices are very low and buyers really can take advantage of this market along with the affordable interest rates!

Baltimore Job Market Getting Better

The Baltimore job market is getting better, according to headhunters in the Baltimore area.

The Baltimore Business Journal reported that Maryland added 36,000 jobs in March, which is a great number. What that number doesn’t state, but the headhunters do, is that many of those jobs are temporary or not “permanent hires”. This means that people looking for long term employment are still having a harder time finding jobs. It is those who will work temporary placements who are doing well in this economy.

The Baltimore housing market is definitely affected by this because without permanent employment, people cannot buy houses. Temporary employment means that these people need to be transient-available, and not looking at long term housing — even apartment-wise.

The good news is that these companies are planning to hire long term if they find these employees fit their needs and their growth continues, which they indicate they are doing. Once these jobs become more permanent, then hopefully we will see a similar upswing in the economy, and therefore Baltimore house values.