Is This the Cheapest Time to Buy a Home?

With all of the discussions about the low interest rates coupled with the low house prices, a question keeps popping up, “Is this the best time to buy a home?”

The answer to the above question depends on your personal situation, but a better question that may be answerable is, “Is this the CHEAPEST time to buy a house?” According to data and statistics, it very well may be.

Home prices are down across the nation, and still are in many areas of our Baltimore real estate market. Though some areas have retained values better than others, they are still down from their peak. Baltimore foreclosure rates are up, and there was an increase in Baltimore foreclosure filings in February.

That being said, home prices are starting to rise, as we have seen in many areas in my monthly market updates, which compare year-to-year data. Though the amount the analysts expect is minimal (an average of about 2%, per a CNNMoney article,) rising interest rates adding to those price increases would make the same home more expensive.

So, is it the BEST time to buy a house? Maybe.

To find out if it is a good time for YOU to buy a house in Baltimore, please contact me. I’d love to help!

Baltimore Foreclosure Rate March 2012

Baltimore foreclosure rates were up in March 2012 versus the same period last year, according to an article by Inman News.

The foreclosure rate for the Baltimore-Towson area was at 3.8%, 8th highest in the select markets used in the article. This is an increase of .60% from March 2012.

There were 1,262 completed foreclosures in the last 12 months.

Also, according to the article, over 7% of homes in Maryland are 90 or more days delinquent on mortgage payments.

These numbers say to me, that in the Baltimore real estate market, we most likely will see more Baltimore short sales or Baltimore foreclosures coming through in the next year. This is not unexpected, as we saw a 41% increase in Baltimore foreclosure filings in February. Read “Baltimore Foreclosure Rates Expected to Rise.”

If you may be facing foreclosure in Baltimore, please contact me. You may have other options!

This Month in Real Estate May 2012

This Month in Real Estate May 2012 has been released.

Home sales activity reduced slightly to a pace of 4.48 million to be sold this year. The median home sale price rose $8,000 to $164,000 last month. The average interest rate for home loans jumped came back down from the average of 4.08% in March to 3.9 in April, in reviewing This Month in Real Estate April 2012.

Jay Papasan, in the Top Story, talks about how staging can help sell your home faster and for more money. According to research, spending $250 on a $200,000 home resulted in a sales price of almost 2% higher than those not staged.

In News You Can Use, Bryon Ellington discusses what updates a work may be needed in order to make your house ready to sell.

Know that if you made significant improvements to your house, you will most likely not get the full value out of them when you sell your home. Remember that you made those improvements over the years for your own enjoyment!

With the exception of changing the front door, no home improvement project gets more than 85% return on investment, guaranteeing at least a 15% loss on your investment.

Byron then continues to let sellers know that PRICE is the #1 thing to get right.

Price is is the FIRST thing buyers see. As Byron says, recently improvements can help a home make a buyer’s “short list,” but it doesn’t mean they will offer more money. Pricing your home correctly is of utmost importance.

For more information about selling a Baltimore home, please contact me. I would love to help!

944 Walnutwood New Washer and Dryer

944 Walnutwood Road in Hunt Valley Station has another NEW fantastic reason to buy. BRAND NEW Whirlpool Steam Washer & Dryer were installed Thursday, April 26, 2012!

The seller loves them already — and is sad to part with them!

They only take up part of the good sized laundry room that already has plenty of counter and cabinet space built-in!

944 Walnutwood Rd is a fantastic home, listed for a fantastic price (lowest on the market in the Huntington Manor Glen,) with a FANTASTIC master bathroom that you just can’t miss.

For more information or to make an appointment, please contact me. This is such a wonderful Hunt Valley home!

 

Five Possible Issues with Lowball Offers in Baltimore Real Estate

The market for the past few years has been on the buyers’ sides, so it isn’t surprising to have seen some lowball offers.

Recently, the market has been changing in places, and a lowball offer may affect a buyer in ways they had not thought of before. Trulia wrote a post about five facts to consider, and they are good ones. Here is my take on those five things to consider.

1) Understand the Market Temperature. What does this mean? Well, if the market is on a downturn, then a lower offer may not be unreasonable, because the market is showing that it is declining. If list prices are up, as are contract prices, take note. You can be sure the seller has been watching what is happening around them!

2) Use Comparable Homes to Decide on Offer Price. Is there a home that looks similar? What did that home have? The kitchen was original? The basement unfinished? If the home you are considering has granite counters, beautiful cabinets, hardwood floors, and a finished basement, then that house should be worth more than the one that needs all of that work done.

3) Time. How long has the house been on the market? How long has the buyer been looking? If the house has not been on the market for a long period of time, the seller may feel that their asking price is right.

4) Sellers are Human. What if the seller feels their house is priced correctly for the market, and a buyer offers a very low price? How do you think the seller would feel? Unhappy? Offended? Very possibly. If a buyer truly feels the house is worth much less than the seller’s asking price, then they should demonstrate why.

5) The Buyer May Never Get The House. If a seller feels slighted or offended, keep in mind #4 — sellers are human. Might that offense mean the seller won’t work with that buyer? Possibly. And they may sell to someone else who offers more up front, even if they negotiate to where you would have come up to.

Sellers don’t have to counteroffer. They can reject an offer outright.

A buyer should understand the market and what is happening, and a buyer’s agent can help guide them through the process by sharing facts and statistics.

For more information on a specific area of Baltimore real estate, please contact me. I would be happy to help!

 

*Please note, if you are under contract or working with another agent, I cannot be involved in that situation! Thank you!*

 

944 Walnutwood Rd Hunt Valley Open House

944 Walnutwood Rd in Hunt Valley’s Huntington Manor subsection of Hunt Valley Station, is a beautiful townhouse in a convenient location.

It has three bedrooms and two full baths upstairs, while the walk-out lower level has another bedroom and full bath.

This wonderful Hunt Valley townhouse will be open this Sunday, April 29, 2012 from 12-2pm.

For a sneak peek before visiting on Sunday, here is a slideshow of the house, area and local amenities!

We hope to see you at 944 Walnutwood Rd in Hunt Valley this Sunday!

944 Walnutwood Road – Hunt Valley, MD
Hunters Run Townhouse Offered at $349,900.

Download the brochure or contact me today to schedule an appointment to see this home.

• Schedule an Appointment
• Ask a Question
• Download the Brochure (PDF)

Explore this wonderful Hunt Valley home for sale at $349,900…

• First Floor
• Second Floor
• Finished Basement
• Exterior
• Neighborhood

(Click on Any Picture to Enlarge)

Beautiful Townhouse in Hunt Valley, Maryland

944 Walnutwood Road is a lovely townhouse in a convenient location in Hunt Valley, MD. This beautiful home is minutes from 83N and York Road, and near Phoenix to the East.

The Hunt Valley Town Centre is nearby with a Wegmans grocery store, Best Buy, clothing stores, eateries, restaurants, fast food and more.  The Ashland Marketplace is even closer, with the popular Pennsylvania Dutch Market, open Thursday-Saturday, plus a Little Gym for kids, Hair Cuttery, and Baja Fresh.

The NCR Trail is right behind the Hunters Run community, and offers many outdoor options to enjoy.

First Floor

FOYER

• Ceramic Tile Floor
• Coat Closet
• Powder Room at Top of Stairs

HALF BATH

• Ceramic Tile Floor
• Pedestal Sink

KITCHEN  12×15

• Front Kitchen
• Ceramic Tile Floor
• Bump Out Bay Window
• Large Center Light plus Recessed Light over Sink
• Pass Through to Dining Room
• Wood Cabinets
• Cream Kenmore Refrigerator with Water & Ice
• Stainless Sink with In-Sink Erator  Disposal
• Black & Cream GE Stove
• Black GE Built-in Microwave
• Additional Counter Space with Cabinets
• Black KitchenAid Dishwasher

DINING ROOM  15×13

• Hardwood Floor
• Crown Molding
• Chair Rail
• Step Down to Living Room

LIVING ROOM  13×19

• Hardwood Floor
• Crown Molding
• French Doors to Deck

DECK & BACKYARD

• Large Deck
• Stairs Down to Backyard
• Fenced & Gated Backyard
• Backs to Trees and Other Homes

Second Floor

MASTER BEDROOM  16×12

• Cathedral Ceiling
• Ceiling Fan with Light
• Wall-to-Wall Carpet
• Large Walk-in Closet

MASTER BATHROOM

• Granite Counter and Double Sink
• Separate Shower and Beautiful Tile Work
• Garden Soaking Tub with Beautiful Tile Work
• Designer Ceramic Tile Floor and Wall

SECOND BEDROOM  11×10

• Wall-to-Wall Carpet
• Double Closet

THIRD BEDROOM  11×9

• Wall-to-Wall Carpet
• Double Closet

SECOND FULL BATH

• Cabinet Sink
• Tub

Lower Level

FAMILY ROOM  19×16

• Walk-out to Patio and Backyard
• Gas Fireplace
• Wall-to-Wall Carpet

FOURTH BEDROOM  13×11

• Wall-to-Wall Carpet
• Double Closet
• Window

FULL BATH

• Cabinet Sink
• Shower

LAUNDRY ROOM

• BRAND NEW Whirlpool Steam Front Loading Washer & Dryer 4/26!
• Ceramic Tile Floor
• Shelving and Counter

Neighborhood: Hunt Valley Real Estate in Baltimore County

The Hunters Run Community is located just east of York Road and south of Shawan.

Hunters Run is also known as Hunt Valley Station, and has both single family homes and townhouses. The neighborhood backs to the NCR Trail with hiking, biking, and more. The entrance to the park is just beyond the community entrance!

944 Walnutwood Road is located within the Huntington Manor subdivision of Hunters Run. It is located across from trees rather than other homes, so it provides for potentially more privacy and nice view from the front!

The master bathroom is gorgeous and was just done in 2011! It showcases ceramic and glass tile, granite counters, as well as a garden soaking tub.

This home is CLEAN, well maintained, and READY for a new homeowner to MOVE IN!

Come see your new Hunt Valley home on the market for $359,000!

This Month in Real Estate April 2012

This Month in Real Estate April 2012 has been released.

Home sales activity remained at the pace of 4.6 million to be sold this year. The median home sale price rose $1,000 to $156,000 last month. The big change is that the average interest rate for home loans jumped from 3.87% in February to an average of 4.08% in March, in reviewing This Month in Real Estate March 2012.

Jay Papasan, in the Top Story, asks how much time you should spend with your agent prior to looking at homes. The buyer consultation should last approximately 90 minutes. This way you can learn the home buying process, and your agent can really learn about you and what you are really looking for in a home.

In News You Can Use, Bryon Ellington discusses what you will find out in your Buyer Consultation with your agent.

Here are questions that should be discussed during the consultation:

1) Which is more important? Location or size?

2) What are the benefits of buying a fixer-upper versus one that has been redone already? (Please note that not all loan types will allow a buyer using the program to buy a home that needs work.)

3) How do you maximize home values? (Which seems a lot like #5)

4) Is neighborhood stability a necessity?

5) What features and amenities offer the highest return in resale?

The homebuyer consultation is a time I really enjoy, because I get to learn so much about my buyers and their wishes and desires, and I feel like the session helps them to understand somewhat what they will be going through during the buying process.

For more information about buying a home in Baltimore, please contact me. I would love to help!

It is More Affordable to Buy Than Rent in Baltimore Right Now

According to a new report run by Trulia, it is more affordable to buy than rent in Baltimore right now!

Rentals are at over 92% capacity, per the United States Census Bureau, and rates are high.

Meanwhile, the percentage of home price decline from the peak of value is 20.4%, per the Federal Housing Finance Agency.

Per Trulia calculations, Baltimore’s Price-to-Rent Ratio is 8.1. If it is less than 15, Trulia says that if you plan to live in the house five years or more, it is a good time to buy. If you are planning to stay less, than if the ratio is less than 10, which ours is, it could still be a good deal depending on closing costs and moving expenses.

The calculations do take into account the additional costs of homeownership such as insurance and maintenance.

Here is an explanation of Trulia’s Methodology, per their website:

METHODOLOGY
Trulia calculates the price-to-rent ratio for 100 major U.S. metros by estimating the ratio of asking sales prices to asking rents, after adjusting for attributes of the properties and their locations. The ratio reflects the relationship between sales and rental prices for units with similar attributes in similar neighborhoods. The Winter 2012 report is based on asking prices for sale and rental homes on Trulia.com between December 1, 2011 and February 29, 2012.

Sample Price-to-Rent Ratio Calculation (after adjusting for property attributes and neighborhood attributes):

• Asking Sales Price: $200,000
• Asking Monthly Rent: $1500

Price-to-rent ratio: $200,000 ÷ ($1,500 x 12) = 11.1

So that means it really IS a great time to buy a house in Baltimore if you plan to stay in it for five years or more.

If you are ready, and would like to take this rare opportunity with both low interest rates and low prices, contact me. I am here to help!

Baltimore Named Top 10 Metro Area for Newlyweds

Baltimore Newlyweds have it good, according to a survey run by Rent.com.

The survey ask participants about how cohabiting helped or changed them, and how their city has treated them.

In the survey, over 75% responded that their quality of life improved since they moved in together. (I hope so! I am surprised it is not higher!) 62% said their financial situation improved.

As for the top 10 cities for newlyweds, here were the criteria per the blog:

…looking at cost of living, mean annual income, the unemployment rate, and rental inventory to identify 10 great cities for Newlyweds. In fact, the first five cities on the list are all performing better than the national average for unemployment rate, annual mean income and cost of living! These top picks are all wonderful places to create a fun and affordable lifestyle:

Baltimore came in at #10, with this description:

Baltimore, MD - A modern cultural center known for its hospitality, Baltimore offers a vibrant waterfront scene coupled with a laid-back attitude. This city is perfect for couples looking for the comfort of a smaller hometown with the benefits of urban living.

Now, that site focuses on rentals, but as recent studies have shown, in Baltimore, rentals are currently at about 92% capacity, and rent rates are high. Many articles have discussed how buying is actually more cost effective for many people right now, especially in areas like Baltimore.

With interest rates still at very low rates, and prices still low in many Baltimore neighborhoods, now may be the time to buy!

For more information about buying a home in Baltimore, please contact me. I would be happy to help!

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