Average prices for Maryland homes are down 10.7% year over year as of November 30, 2008. Good news for buyers. Home sellers, however, are going to need to consider either lowering their asking price or postponing the sale of their home until the market recovers. This might sound crazy coming from a real estate professional but let's look at the facts.
1. Only 2,740 homes sold in November of 08. That's 1,073 less than last year this time. Demand is down. There are many reasons for this including the country's current economic condition. But the bottom line is supply is high and demand is low - therefore sellers will have to offer a discount to get the property off the shelf, so to speak. If you can not afford to do that right now you may want to wait.
2. If you must move now consider renting your home. If done right renting will cover your mortgage and should provide some income as well. Before renting you must consult a professional, like the Keys2Day Team, in order to find out what your county requires you to do as a landlord. You may have to make modifications to your property, such as installing smoke detectors, in order to obtain the rental certification from your county. Renting is a viable option in many cases.
3. Is the end in sight? No one really knows. What we do know is this - rates on 30 year fixed mortgages fell to record lows this week. The average rate for the week ending December 26, 2008 was 5.14%. Buyers with decent credit will find these rates very attractive. Hopefully this will give the market a boost.
In addition, the current rates also make refinancing a money saving prospect for alot of homeowners. If you'd like to discuss a refi call us 2Day and we'll connect you with one of our qualified mortgage pros who will answer any questions you may have.
To sum it all up - relax. Housing, like the overall economy, will level off and rise again. Over time home values will continue to increase. The Keys2Day Real Estate Team will be here through thick and thin serving as your real estate resource.
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