Timonium Home Sale Statistics Past Six Months June-December, 2009

My compilation of the 21093 real estate market statistics for the last six months are here!  The full chart in the link includes data on sales, contract, and active homes from June 22-December 6, 2009.

 

The full chart shows that prices and inventory have stabilized in the Lutherville and Timonium real estate market. There are 4% more houses on the market in the past 12 weeks compared to the 12 weeks prior, but prices have dropped for those sold a small amount — around 2.4%. The prices of houses going under contract have dropped about 5%.

Consistently, there have been about 200 homes for sale in 21093, while on average 9 of those homes are going under contract each week (and 9 new ones listed on average, evening it out). An average of 9 are also settling each week.  There is a large inventory for Timonium homebuyers, so now is the time to buy!

These 21093 home sale statistics show me that pricing correctly is extremely important, to be able to be one of those 9 selling each week. Having your home in move-in condition, and good marketing are also needed in this Lutherville housing market.

Please note that these are statistics from the multiple list. The chart is an overview of the zip code and does not take into account the type (condo, townhouse, single family) or condition of the home. To have a true value understanding of your Timonium home or Lutherville neighborhood, these factors need to be taken into consideration. If you would like a Timonium or Lutherville home price evaluation, please contact me today.

Towson and Timonium House Values Volatile Week by Week

The past year, as most of us know, has shown a volatile real estate market in the Towson, Timonium, and Hunt Valley marketplace.

The statistics revealed, however, were very unusual. The sale prices varied very widely BY WEEK! (View the full two page chart here)

What does this mean for Towson homeowners?

It means that an exact number can’t be reached in terms of the value of your home. The price fluxuation is consistent with the interest rate flux. Depending on the interest rate, your home could be worth more or less this week!
It also means that if you are thinking about selling, you have to anticipate the market, and price on the lower side. Page two of the Market Dynamics chart shows median prices, and the ones they don’t sell are the ones that are priced too high!

First Time Homebuyer Tax Credit is Running Out of Time

November 30, 2009 seems far enough away. It’s after Thanksgiving, and it’s currently 95 degrees out. Who’s counting?

Towson First Time Homebuyers should be, that’s who!

If you want to take advantage of the First Time Homebuyer Tax Credit, you must get MOVING NOW!

It can take some time to find a house. If we start looking tomorrow, it could take you 30 days to find the perfect place, couldn’t it? Today is August 24. 30 days brings us to September 24. If you are using an FHA mortgage, banks are stating 45-60 days to ensure issues that may arise are covered/taken care of. That brings you to yes, November 24th. What is November 24th? The Tuesday before Thanksgiving. Think of all of the First Time Homebuyers across the US trying to take advantage of this credit. All under the same guidelines, deadlines, etc. How well do you think a closing may go on November 24th????

Keep in mind, if you settle December 1, you will NOT receive the tax credit benefit, even if the delayed closing is NOT YOUR FAULT. You would still not be eligible.

So what does this mean?

Contact me today to GET MOVING and get $8,000 back from the government on your taxes next year. WHAT A GIFT!

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Here is a great chart by Chik Quintans of Blue Sky Mortgage Strategies in Seattle, Washington showing just how little time is left!

Towson Realtor : One Year Blogging Anniversary on Towson Real Estate

Happy Anniversary — to ME!

One year ago today, July 28, I wrote my first blog. I wasn’t certain what to write about, how to go about it, or what to do.

I didn’t begin writing about Towson real estate because I had to learn about what topics would be useful and how to write them in the best way.

I wrote about the most wonderful time of the year, which is, yes, upon us again. FOOTBALL SEASON! Baltimore Ravens training camp has begun yet again, and next Tuesday I will be out there cheering on the boys of the Ravens.

My posts about the Ravens have certainly dwindled as my focus has moved mostly to Towson real estate and what laws, changes, etc are effecting Towson house values both positively and negatively. As writing has become easier, I may throw in the Ravens more frequently because I am posting more often.

So, thank you to those who have joined me on my journey this first year, and I look forward to many more!

Towson Condo Owners Need to Be Aware of New Law

Beginning June 1, 2009, Maryland Law HB287, approved by the Governor May 19, went into effect. The bill discusses Real Property Condominiums — Damage and Destruction. Here is a copy of the bill .

What this means for the Towson condo owner is that before this bill, condominium associations, for the most part, were responsible for structural repairs and maintenance to common areas and units, while individual unit owners were only responsible for personal property in their own units. (Some condo association policies were not this way to begin with, so this new bill will not affect you if the general insurance policy in your community did not cover this before).

The new bill states that the associations are required to maintain insurance ONLY on the common areas and not on individual units. In addition, any damage to common areas originating from YOUR unit would have YOU responsible to pay up to$5,000, the maximum deductible allowed on the insurance policy of the association.

Also, to be clear, you as a unit owner, are responsible for damage caused by your unit to other units. For example, if you live on the third floor of your Towson condo building, and you have a leak from your shower that flows down through the second floor unit down to the first, YOU, as owner of the unit where the issue originated, would be responsible to the repairs to the OTHER units as well.

Here is a summary of the bill from State Surge, a great site where you can read & review laws enacted by your local government.

The best course of action for Towson condo owners (and for ALL Maryland condo owners), is to call your insurance agent right away to find out what your personal insurance policy is, and ensure you have complete coverage so that in the event of a problem, your insurance may pay that $5,000 deductible — instead of YOU personally!

Old Towson Jail to become New West Towson Pool — Charter Members May Be Able to Transfer Membership when selling their West Towson Homes

The site of the old jail in West Towson at the corner of Bosley and TowsonTown Blvd is due to have a new life — as a community pool!

Set to be open Memorial Day 2011, this would be a great addition to the Towson community.

Loni Ingraham, of the Towson Times, wrote about it the day Baltimore County voted to lease the land for $1 per year. Here are more details in her article.

The space is also set to have office space in the old Warden’s building and possibly a cafe.

Mary Gail Hare, of the Baltimore Sun, wrote an article on June 14 about how the renovations began last week on the 3 story building, which was declared a historical landmark in 1991. Azola & Associates Inc is doing the work. They are known for their renovations on historic properties, like the one they did at the Stone Mansion in Coldspring Newtown and the Bromo Seltzer Tower in downtown Baltimore.

So what does this mean for Towson Homeowners? If you are a charter member, your membership may be transferrable with the sale of your Towson home. Once the pool is opened, as discovered at the Mays Chapel Swim Club in Timonium, they sell out quickly and there is a wait list years long. Having a charter membership could possibly help your Towson House Value for resale in the future, when memberships will most likely be hard to come by!

Misleading Towson Zillow Zestimates Explained Further

As I wrote March 2, Towson Zillow Zestimates in general, are statistically off by a large amount.

Last week I had a client call me because his HELOC was reduced by a large amount right in the middle of construction to improve his home. He could not understand how the bank could make the determination that his Towson house value had dropped over $200,000 in the past 18 months since he opened his HELOC.

Upon speaking to the bank, the representative pulls up Zillow, and proceeds to tell him this is how they discovered the value change.

“Is this true? Has my value really dropped by THIS much? I knew we were in a depressed market, but did not think it was THIS bad,” he asked me.

Based on a true market analysis, his value has really only dropped by $25-50,000. So how is Zillow off this much?

Enter the powers of social media!

I was able to find both the COO & the Director of Community Relations for Zillow on Twitter.

I contacted COO Spencer Rascoff and he tweeted back:

“Lenders shouldn’t rely on Zestimates. Use an appraisal.” “We have “a Zestimate is not an appraisal” language all over the site. http://twurl.nl/7lj6mc “

He then emailed me directly because he wanted to get to the bottom as to why they are so far off.

Director of Community Relations David Gibbons tweeted:

“…it may not change outcome by he {sic} can’t reduce heloc based on Zestimate alone.” “Lenders are supposed to use commercially licensed AVMs & appraisals, not Zestimates!”

While they are both correct, and I agree with them wholeheartedly, lenders ARE using their site, and if the site’s purpose is to provide real estate information, then the site should be more accurate.

Through emails and more discussion, I was able to find out more about how the Zestimate values are determined.

David direct messaged me that it: “looks like your purchase price and taxes have the biggest impact on your Zestimate…”

I asked what that had to do with a current value of a home, because there is no correlation whatsoever in the real estate market from what you paid for it and what it is worth now.

His answer: “homes only sell on average once every seven years so when figuring out what a home is worth its last price is important – though 2002 is…we count past sales in less and less over time … a sale last year would have much greater impact.”

NO WONDER the values are off so dramatically. And if Zestimates continue to be calculated in this respect, then we should be looking for values to be tremendously off in 2013-2014 in the other direction. So my client can be assured that in 3 years his Zestimate should be approximately $200,000 OVER true value!

Please be aware that the Zillow Zestimates, at least in the Towson market area, may have no relationship to the true value of any home.

This reiterates the point that REAL ESTATE IS LOCAL and, as COO Rascoff wrote: “a Zestimate is not a replacement for a real estate agent. Far from it.” For your free Towson Home Price Estimate, contact me today!

HUD Withdraws Offer/Statement on $8000 Tax Credit

On Tuesday I wrote about an exciting new program that HUD & FHA were rolling out to let the $8000 Tax Credit for First Time Homebuyers be used as a downpayment.

That has now been retracted, and the letter removed from the HUD site.

Yet Yesterday, HUD Secretary Donovan said that many states already were monetizing the tax credit, creating a so-called “Bridge Loan” where the money is loaned up front from the credit due down the line. This is, in essence, what the downpayment “credit” would come from. Here are more details from the National Association of Realtors conference where Donovan spoke.

Jeff Belonger, an FHA specialist ,wrote about it this morning, explaining the legal problems with the plan as proposed.

So not totally gone, but may not be available everywhere. OK, Maryland, are we going to be in? Can we get it done like Washington State has?

$8,000 Tax Credit Can Be Used for Downpayment for Baltimore Homebuyers

**Update May 14, 2009, please see my update that HUD has retracted its statement and that this may NOT be the case everywhere.**

The Secretary of the U.S. Department of Housing and Urban Development announced at the National Association of Realtors summit today that the FHA is going to allow lenders to let First Time Homebuyers use the $8000 tax credit currently in place as a downpayment rather than having to wait until they file their tax returns.

Secretary Donovan stated: “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment.”

On the heels of the Fannie Mae & Freddie Mac 105% Refinance Plus Program announced last month, this is a great indication of how the Obama Administration is working hard to stabilize the housing market and the economy in general.

More details will be forthcoming, and until then, the details can be found here.

So, what are you waiting for, Baltimore Homebuyers? THE TIME TO BUY IS NOW! Don’t miss your chance!

105% Refinance on Fannie Mae or Freddie Mac Owned Loans

Yes, believe it or not, you read that right. Tasha Linton, of Atlantic Home Equity Mortgage shared with our office that they are offering 105% Refi Plus on Fannie Mae or Freddie Mac Loans!

What’s the deal? Primary and investment properties qualify (no limit to amount of properties owned). You can refi up to 105% LTV with NO mortgage insurance.

Why? This initiative is part of the Making Home Affordable program announced on March 4, 2009. According to the Fannie Mae website:

The goal of the refinance initiative, as announced by the President, is “to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices.”

How do you know if you have a qualifying loan? You can check your qualifications right on the Making Home Affordable site, or call Tasha right away at 443-992-0783.

So what’s the catch? Well, you get limited cash out (which, in this market/economy makes sense). Also you must presently have no mortgage insurance. It is also currently only available until July 2009!

This is a great opportunity for those that have adjustable rate mortgages or interest only loans. This opportunity is not just for Baltimore homeowners, it is all over the US.

So take advantage if you are eligible. Here is YOUR bailout for being a conscientious homeowner!

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