Welcome to another edition of the Head for Home Monthly Newsletter! In this issue: Buying Real Estate - The Big Picture and the Little Picture
Buying Real Estate- The Big Picture and the Little Picture There are many things to consider when buying a home, but right now we are in the midst of such an unusual housing market and economy that I wanted to take a moment to mention to major forces which will be affecting the real estate market in the next year. You should think about these forces when thinking of buying or selling a home. The BIG Picture: The Federal Government is Propping Up the Market
By now everyone has probably heard about the First-Time Homebuyer Credit, which by now extends beyond just first time buyers. Perhaps a bigger, yet less understood part of the government intervention is the purchase of mortgage backed securities by the Federal Reserve. This action has pushed mortgage rates lower, some say by as much as .5%, and has kept interest rates near all-time lows. This program, as explained in an excellent article by Walter Hamilton and Jim Puzzanghera via RISMEdia goes into much more detail about the program. When this program ends, interest rates will go up. When rates go up, it puts pressure on home prices to stay at or below current levels. The Little Picture: You Have to Live Somewhere If you are not a homeowner, you need to move, or your current residence does not meet your needs, you probably want to make a change. The obvious answer for the first-time buyer is to buy now, while rates are low, prices are low and the $8,000 first-time buyer credit is still in effect. What about the rest of you? If you are considering a move, I suggest you do so with a minimum 5-year game plan. Yes rates are low and prices are low. However, there are still a large number of Option-Arm loans that are expected to go into default this year, putting some downward pressure on prices. Rates may tick up, adding more downward pressure on prices. With long-term demographic trends pointing toward growth in households, and prices being so low that they are generating investor interest, it is only a matter of time before prices start to rise. However, if you are planning to sell within the next five years, it is very unlikely that you will see prices increase enough to pay the fees and taxes that come with selling. You will be paying to live somewhere. If you rent, you avoid the risk of lost equity on a purchase, but you also risk the loss of possible appreciation and tax benefits. And rent never goes down. If you buy, you must consider the future price landscape (Up, eventually), the interest rate picture (Up, eventually), the tax benefits of home ownership, and the chance that your life may change in the next 5 years in a way that necessitates a move. If you have any questions, or would like to discuss these issues, as always, give me a call at 443-574-1488.
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Market Report- January '10
We are continually striving to provide better, easier, and more timely information to our clients and customers. As such, we will be providing an enhanced monthly market report for each County. If you would like the same information for any County in Maryland which is not included, just let me know and I will send it to you. And don't forget to sign up for Market Snapshot if you want market data for a specific house. If you would like more specific housing trend data for your home, sign up for Market Snapshot, which is packed with current housing data.
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Foreclosed Property List for Baltimore Region We are using a new search provider for these searches. Now, when you enter the search after clicking the link, you will have options on the left side of the screen to refine the search. You can then save the search if you wish, and have them e-mailed directly to you.
Here is the updated list of Foreclosed Properties for: Anne Arundel County Foreclosures
Baltimore City Foreclosures
Baltimore County Foreclosures
Carroll County Foreclosures
Frederick County Foreclosures
Howard County Foreclosures
(Return to Top) If you sign up for the Search Saver, you will be able to receive new listings as they occur. If you have any questions about the search system, please let me know!
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I hope you enjoy this monthly Newsletter. If you have any comments, please e-mail them to me. If you would like to see a certain topic covered in future months, let me know that too! George Belleville &
The Head For Home Team |