Another View of Our Market from Colony Title

Thanks to Colony Title for sharing the following: "Fractional ownership, shared ownership, better utilization of real estate use are the wave of the future. In today’s market with Sequestration diminishing some household incomes by up to twenty percent, there is a way for families to continue to own their homes. In our last newsletter, we broached the topic of families participating in the ownership of property. Case in point, daughter and son in law own a home, but due to a cut back in family income, the mortgage payment is becoming problematic. A better solution to the situation might be a co partner sharing the cost of the monthly obligation. Rather than losing the home, falling behind in the mortgage payments, the family partner supplements the obligations. Structuring a partnership wherein both parties benefit, makes sense for both parties. Along the same line of thinking, a new concept of ownership of vacation homes has arisen. Fractional ownership makes perfect sense for an owner who wants to have a home where the family wants to spend time on a regular basis, but the property remains unused for the majority of the year. Why not own a fourth or fifth of a property with the ability to use the property two or three weeks every season, but only have the responsibility for one fifth of the upkeep rather than all. The upside compared to a time share is to have fee simple ownership and be able to take advantage of the tax deductions afforded and be able to realize a percentage of the appreciation in value as the property values prosper. As the real estate market is rebounding, prices are stabilizing and will start to rise as supply and demand will compel that eventuality. Currently our interest rates remain at historic lows, but when they ultimately rise, the opportunity to profit from the real estate market will change. We see the opportunity now to acquire property either individually or in partnership as a unique situation. We are uniquely qualified to assist you as we have handled many acquisitions via partnerships, LLCs or corporations and are currently involved in a fractional ownership venture. If interested in any of these options please contact me to explore the opportunities. Rates remain at the 3.5-4% range depending on the size of the loan and creditworthiness. Call us for details. We have completed our relocation in the beautiful Symphony Woods Office Center at 5950 Symphony Wood Drive. Please drop by. Our annual tennis tournament for the benefit for Shock Trauma will be on June 6. Please call for details. As always we want to be your title company and real estate law resource. Email me at tee.tillman@colonytitle.com or call at 410 884 1160 ext 3007. "

Lender update from my office affiliate

Conventional rates have remained in the upswing over the past few weeks. Current 30 year conforming purchases are at 3.49% with no points for credit qualified customers. The government rates, FHA & VA, have not moved as much. We are still at 3.25% with no points for credit qualified customers.

Lender Processing Services says that home prices in the U.S. rose by 5.8% year-over-year in the month ended in December. The average home price was $207,000.

Mark Peay

Residential Mortgage Loan Officer

RE/MAX 100 Preferred Mortgage Lender

NMLS ID: 658910

11000 Brokenland Parkway #200

Columbia, MD 21044

Office: 410-715-3285/410-729-6302

SunTrust Mobile: 410-913-9297 (Best contact number)

Personal Mobile: 443-481-8180

Fax: 410-729-3604

Email: Mark.Peay@SunTrust.com

Definately a New Market in 2013!

As I was telling some buyers today, the market definitely hit bottom some time in the past year and has become a sellers market again.  It will take months to get all the data in to convince everyone of this fact as it always does when the market turns.  As you know I have been a real estate agent for 29 years now so I see the changes happening and how they affect buying and selling trends.  I listen to the people and companies that watch and document these changes and as you know, there are always ups and downs. I take classes from world class educators on what is happening in our world that affects where we buy, work and live. Some neighborhoods and areas turn around faster than others, but this is what is happening now.  There are fewer homes on the market and they are selling faster.  This means that we are seeing more multiple offers pushing prices up slightly as time goes along and this is fueled by the incredibly low interest rates which are expected to rise slowly over time.  The area in which you would like to buy has a lot of older homes and few new ones.  The schools are very good and you are very close to everything in the Baltimore and Washington, D.C. areas , so expect prices to be steady at the very least, if not rising throughout 2013.

4th Straight Month with Double-Digit Sales Growth in Baltimore Metro

Posted on February 11, 2013 by Corey Hart

      

Townhomes lead the way; Despite strong sales, prices are flat and decline in many areas

OVERVIEW
The supply of active listings in the Baltimore Metro Area housing market continues to shrink, and is at the lowest January-level in eight years.  However, the pattern appears to be changing slowly with new listings, which had the highest year-over-year gain since Spring 2011.  New listings are also up across all property segments, which has not occurred in over 2 years.  Even with the shifting pattern in new listings, the overall inventory still remains low.  There are a wide range of factors that could be keeping sellers from listing their properties.  Many could not have enough equity at current prices to “trade up” into a larger unit.  Others may have trouble finding a unit to begin with because the inventory is so low.  Economic uncertainty also remains a key issue on the table for many.  Signs of demand in the market remain strong.  Sales growth has been consistent in the region, and new contract activity has exceeded its 10-year average.  Despite the sales growth and low inventory, prices are flat metro-wide, and have declined in several jurisdictions.  This could be an early indication of softening demand, but it could also signal a change in the types of units purchased.  Evidence of this can be seen in the townhome market, which led in year-over-year sales growth for the first time in 3 years, and year-over-year new contract growth for the first time in 1 ½ years.
Click here to view PDF version of this report

CLOSED SALES
Fourth straight month of double-digit sales growth, townhomes lead growth for the first time in 3 years.  There were 1,538 sales in January in the Baltimore Metro region, a 15.3 percent gain from this time last year.  Sales fell sharply from last month, down 20.9 percent, but this is in line with seasonal patterns.  While sales numbers have improved from last year, the region is still roughly 200 sales shy of the 10-year January average.  Townhomes had the largest year-over-year gain of all property segments, rising 23.6 percent from January 2012.  This is the first time townhomes have led in year-over-year sales growth since February 2010.  After a dramatic 41.5 percent year-over-year sales gain last month, the condo market posted only a 2.0 percent gain in sales from January 2012.  Sales of single-family detached homes rose 12.6 percent from this time last year.  Single-family homes now account for 47.8 percent of all sales in the Baltimore Metro market, which is the highest proportion in nearly 2 years.
PRICES
Median sales price flat and declining in many jurisdictions, prices for condos and townhome fall.  At $209,250, the median sales price in the Baltimore region is essentially unchanged from this time last year, rising only $880.  This is the slowest year-over-year price growth the region has seen since January 2012.  Single-family detached homes led in growth, up 5.9 percent from this time last year.  Condos and townhomes both had median sales price declines of 6.2 percent.  Median sales prices fell in many jurisdictions around the region.  Baltimore City had the largest decline, falling 12.4 percent from January 2012.  Carroll County was the only area to see double-digit price gains, up 17.6 percent from this time last year.  The decline in sales prices could be reflective of the types of properties sold in the region.  As noted earlier, townhomes had the largest year-over-year gain in sales and the price points on these units tend to be lower.  It could also be an early sign of softening demand in the region.

NEW CONTRACTS
New contract activity continues to improve and exceeds 10-year average; townhomes lead in growth.  There were 2,353 new contracts signed in January in the metro region, up 12.2 percent from this time last year, and the highest January total in 6 years.  New contract activity rose 26.8 percent from last month, but this is in line with seasonality.  Townhomes led all property segments in year-over-year growth, up 25.6 percent from January 2012.  This is the first time townhomes have led in new contract growth in 18 months.  New contracts on condos are up 9.0 percent from last year, and new contracts on single-family detached homes rose 4.2 percent.  New contract levels for all property types are near their 10-year averages for the month, with townhomes the only segment exceeding the 10-year average by 26 contracts.
INVENTORY
Active listings are at their lowest January-level in 8 years; however the pattern continues to change.  There were 9,386 active listings at the end of January in the Baltimore Metro Area, 23.0 percent below this time last year.  This is the lowest January inventory for the region since 2005.  Despite the shrinking inventory, new listings continue to show signs of growth.  There were 3,009 new listings in January, 6.2 percent higher than this time last year, and the largest gain since Spring 2011.  The pattern is taking hold across all property segments.  New listings for condos are up 14.2 percent from January 2012.  Townhomes and single-family detached listings rose 7.3 and 4.1 percent respectively.  This is the first time all property segments have had year-over-year growth in new listings in 2 years.  The low inventory of homes for sale is having an impact on the median days-on-market, which was 51 days in January, down 34 days from this time last year.  The sale-to-list-price ratio also continues to rise as a result of the inventory conditions, and is now 91.5 percent, up from 87.9 percent a year ago.

Why REALTORS(R) support FHA

http://www.ksefocus.com/billdatabase/clientfiles/172/5/1718.pdf

Third Wednesdays at ZAPATAS

This year I will be spending my dinner hour, approximately 6 to 7 pm at Zapata's Restaurant in Joseph Square on the third Wednesday of the month.    I will be doing this to be available if you would like to ask some general real estate related questions whether or not you or someone you know are thinking of actually buying or selling this year.  I'll buy coffee for anyone who comes out to join me!

Zapata's is in the Harper's Choice Village Center in Columbia at the intersection of Cedar Lane and Harper's Farm Road.  The restaurant faces the inside of the square and I recommend you park between the Florence Bain Center and Kahler Hall and walk into the square.  You can also park at the far end of the McDonald's parking lot and walk up the stairs to the square or near the Safeway. If you live close by you can just walk or ride your bike. When it warms up we can eat outside.

Local Market Insight

According to MRIS statistics calculated January 04, 2013, in the Baltimore Metro Area:

New Listings were down in December 27.7 % from the previous month and down a half percent from the previous year.

New Pendings were down 16.2 % from the previous month and up 9.3 % over the previous December.

Closed Sales were down 3.6 % from the previous month and up 12.7 % over December 2011.

The median sold price was $235,000, up 2.2 % over Nov. 2012 and up 6.9 % over the stats from December 2011.

Active Listing are down over both comparitive time frames, Average Days on the Market are down slightly compared to last month and down a bit more compared to last year plus the Average Sold to Old List Price Ratio is creaping up over last year and holding steady over last month. (All good news relative to the Baltimore region in general.)

For Howard County, MD, Monthly Market Statistics for December 2012 (compared to Dec. 2011):

Sold Dollar Volume is up 15.75 %.
Average Sold Price is down 2.87 %.
Median Sold Price is up 1.45%.
Units Sold is up 19.17 %.
Average Days on the Market is down 22.12 %.
Average List Price for Solds is down 4.35 %
Average Sold Price to Old List Price Ratio is up 1.82 %.
Ratio of Average Sold Price to Average Old List Price is up 2.39 %.
Attached Average Sold price is down 1.96 %.
Detached Average Sold Price is up 3.14 %.
Attached Units Sold is up 45.33 %.
Detached units Sold is up 2.54 %.

Inventory:

Active Listings are down 33.82 %.
New Listings are down 22.91 %.
New Under Contracts are up 32.69 %.
New Contingents remained the same (no increase or decrease).
New Pendings increased 18.28 %.
All Pendings are up 29.05 % last month over the previous December.

Financing:

No Assumptions.
29 Cash Sales.
139 Conventional Sales.
37 FHA financed Sales.
8 other.
No owner financed Sales.
17 VA financed Sales.

Days On Market (SOLD):

0 (days):    4  properties sold
1-10:        44  "
11-20:      27  "
21-30:      17  "
31-60:      34  "
61-90:      25  "
91-120:    18  "
121-180:  26  "
181-360:  27  "
361-720:    6  "
721+:         1  "

If you want more detail relative to types of homes sold in different price categories or would like this sent to you when the numbers come out next month for January, just email me at Kangrga@mris.com and I will forward you the report from REALESTATE BUSINESS INTELLIGENCE(rbi), an MRIS Company.