Real Estate Market as of Today

If you are in the market to buy a house, and you are having trouble understanding where the real estate market is going, don’t feel too bad. I queried ChatGPT, an Artificial Intelligence program, and asked where the real estate market is going and here is the response I received.

The AI responded with: “I’m unable to predict specific future events or market trends, including when the real estate market will improve. The real estate market is influenced by a wide range of factors, including economic conditions, interest rates, housing supply and demand, and local market dynamics.” It went on to say, “To get a better understanding of the real estate market in a specific area, it’s advisable to consult with local real estate professionals …”

That’s where I come in. As a REALTOR®, I monitor these numbers on an ongoing basis as do most REALTORS®. It is important to understand that when ChatGPT stated that “The market is influenced by a wide range of factors…” it hit the problem right on. The mortgage interest rates are just one factor that influences the housing market.

The average mortgage interest rate for the last 48 years is 7.73% for a 30 fixed rate. The highest rate occurred in 1981 with an interest rate of 16.63%, and the lowest rate occurred in 2021 with a rate of 2.96. The current mortgage interest rate as of October 28, 2023, was 8.04%.

One of the biggest factors that is resulting in higher rates is inflation. Where higher mortgage rates affects home buyers, higher inflation affects everyone. During the Pandemic the inflation rate hit over 14%. The current inflation rate as of October 2023 is 3.7%. A healthy inflation rate is 2.0%. There has been dramatic decrease in inflation and more effort is being made to reduce it further. The Feds will be meeting this week, but I doubt that they will raise the rates this time.

The war raging in the Middle East will add to the mixture of what will happen to the economy and mortgage rates.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

Real Estate Market Update – Frederick County Maryland

Real Estate Market Update – Frederick County Maryland

After several years of a very tumultuous real estate market, there appears to be a glimmer of hope that things are becoming a little more normal. Mortgage interest rates climbed to over 7%; home prices skyrocketed; and the biggest problem is that there were/are too few homes for sale.

In the last few weeks to a month, we have seen factors coming together that will help improve the real estate market. Although real estate mortgage interest rates are higher than we would like to see, they have trended down somewhat. As of the writing of this article, VA mortgage interest rates could be found for 6.25% down from 7.5% a few months ago.

There are two things that I would like to point out regarding mortgage interest rates. The first is that there are many factors that go into an interest rate, such as credit score or buy-downs, the amount of the mortgage compared to your income etc. The other thing is that over the past several decades the average home mortgage rate hoovers around 7%, the 2.75% that we had a couple of years ago is not the norm.

There are a host of factors that play into a strong economy. One of the biggest factors is inflation. In 2021 the rate of inflation in the United States was 7.0%. In 2022 the rate dropped to 6.5%, and in 2023 it is currently at 3.2% – less than half of what it was in 2021. A healthy rate of inflation is 2%.

Home prices in the last couple of years have skyrocketed, pricing many first-time home buyers out of the market. In September of this year, 24% of the homes listed for sale in Frederick Maryland have reduced their prices. In Frederick County 22% of the homes have reduced their prices.

If you or someone you may know would like an analysis of any county in Maryland, just let me know.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

Disclosing Latent Defects

Disclosing Latent Defects

Most states, including Maryland, require that sellers disclose any latent defects that the sellers are aware of. A latent defect is an issue with the property that is not readily visible; or that the potential buyer or home inspector could not reasonably be expected to uncover during a home visit or when an inspector checks out the property.

It is important that sellers understand that latent defects of which they are aware, must be disclosed. If a latent defect is identified through an inspection, then the seller is aware of it and if the deal falls through, the defect must be disclosed to potential buyers.

Buyers who discover a latent defect after purchasing a home may have legal recourse with the seller.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

Fun Facts and Inspiration for September 4

Fun Facts and Inspiration for September 4

Inspiration…

“People do not decide their future, they decide their habits, and their habits decide their future.”
F.M. Alexander

Did you know that…

In medieval times, there was a law stating that if someone butchered an animal that didn’t belong to them, they could only be convicted if they were caught with the blood on their hands. Today we refer to a person who has been caught doing something wrong or illegal as “caught red-handed.”

Sea otters hold hands when they sleep to prevent them from drifting apart.

Recent research revealed that many East Asians do not have the gene identified as ABCC11. In fact, Koreans were found to have the lowest number of this gene. Gene ABCC11 causes armpit odor and very few Koreans use deodorant.

Tennis players can be fined up to $20,000 for swearing while playing at Wimbledon.

A city in California was originally called “El Pueblo de Nuestra Senora la Reina de Los Angeles de Porciuncula.” Today we know it as Los Angeles.

In real estate it is important to understand that selling a house “as-is” isn’t as simple as it may sound. A property that is being sold as-is may also have a home inspection, but the seller’s may or may not agree to any repairs or compensation. The matter becomes more complicated if the home inspection identified a latent defect that the seller has now been made aware of and in most states will require that they disclose on their property disclosure statement.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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One-Ingredient Cake

One-Ingredient Cake

I have a cousin who is into cooking and baking. Everything she makes looks like it just stepped out of a entertainment magazine. Her desserts are decadent, and I swear I gain weight just looking at the pictures she shares. As versatile as she is, I have never seen a one-ingredient cake. Her desserts are a mixture of many ingredients some in larger portions such as flour and some in a small little “pinch” of who knows what.

The real estate market is the same way – there is no “one-ingredient” solution to the market. All too often we focus on the mortgage interest rates when we hear the “Feds” have raised the rates again, yet in reality the mortgage interest rates are more likely to react to the 10-year treasury notes. To complicate matters, the mortgage interest rates as of this writing are running high 6% to 7%. If we look at the past several decades, this is the average rate for mortgage rates, not the 2.75% that we recently enjoyed. Nevertheless, those homeowners who have a 2.75% mortgage rate are in no hurry to sell.

It is important to remember that just as there is no such thing as a “one-ingredient” cake there are many factors that will have to improve before the real estate market can improve. There are issues such as inflation, mortgage interest rates and unemployment and many other lesser known factors that need to improve before the market improves.

But it will improve. Last year at this time the inflation rate for the United States was 8.52%, now it is running 3.18%. A healthy rate of inflation is around 2%.

The average unemployment rate for the last several decades has been 5.72%. At the beginning of the pandemic, it climbed to 14.72%. As of July 2023, unemployment has declined to 3.5%.

Another factor that, in my opinion will come to pass, is that the price of homes will drop considerably. For the last several years prices have skyrocketed with multiple offers often times taking place. As the factors affecting the real estate market normalize, the prices of homes will stabilize. The issue driving the increase in home prices right now are too few homes on the market. But it will stabilize.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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Inflation Shows Steady Improvement

Inflation Shows Steady Improvement

The impact of The Fed raising the interest rates over the past several months is showing results. The inflation rate for June 2023 came in at 3.0% and is the lowest it has been since March 2021. May 2023 had an inflation rate of 4.0%. The recent high was 9.1%.

The ideal inflation rate for this economy is 2.0%. Achieving that rate will hopefully result in lower mortgage interest rates which will certainly spur the economy in high gear. Stay tuned!

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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The Rotating Gears of Real Estate

The Rotating Gears of Real Estate

The world of real estate has been on a roller coaster for the last few years.  The last couple of years, homes were selling above asking price and there were quite often multiple offers which have been driving the price of homes sky high.  Lately, home sales have dropped dramatically but mostly in large part because there are too few homes on the market.

The increase in mortgage interest rates has played a large part of keeping home buyers on the sidelines, especially first-time home buyers.  Mortgage rates at 3.0% or less, to 7.0% or more, has clearly dampened the ability of homebuyers of making the move. But real estate is like every other part of the economy – a turn of a gear turns another gear and another and another. Some gears may speed up and some may reverse, but the economy is turning.

Lately, there has been a lot of talk about The Fed increasing interest rates, and some people expect another increase will be coming about shortly.  But there is another one of the gears in the economy that is turning, and it is turning in favor of the real estate market – in time.

Inflation has been problematic since spring of 2021 when it jumped from 1.7% in February to 2.6% in March 2021.  A healthy rate of inflation is around 2.0%.  After the pandemic the rate of inflation skyrocketed to a high of 9.1% in June 2022.  This high rate of inflation, which hurts everyone, resulted in the Fed raising interest rates to cool inflation – and it is working.  The rate of inflation has dropped almost every single month since then. In May 2023 the inflation rate dropped to 4.0% – still higher than optimal, but better than 9.1%.

The June 2023 inflation rate will be reported on July 12.  I will report it at that time.  The closer it gets to the 2.0% inflation rate the more likely mortgage interest rates will begin dropping.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland 

Real Estate Statistics for Maryland and Frederick County – May 2023

Real Estate Statistics for Maryland and Frederick County – May 2023

Whether you are looking to sell your home, buy a home, or both, the last couple of years have been challenging. May 2023 is no exception, BUT there are signs that the market is settling down.

In this blog I will try to present the market for May 2023 for the State of Maryland and Frederick County, where I do most of my business. If you would like an up-date for any county in Maryland, please feel free to let me know.

First, let me recap the statistics for the State of Maryland and then Frederick County. Followed by the glimmer of hope that I see.

For May 2023 compared to May 2022 the State of Maryland saw a decline of 31.5% for this time period. This reduction in units sold has been consistent for all of 2023 so far. The problem remains that there are too few properties on the market, which contributes to the increases in home prices. The average sales price to the State of Maryland increased by 0.5%, Frederick County increased by 5.7%. This market condition will remain until we have more properties on the market – a lot more.

Now for the issues to watch. The median days on the market has increased from a year earlier for every month this year. In Maryland May 2022 the median days on the market was 6 days; now in May 2023 the median days is 7 days. That may not sound like much, but that trend has carried on for 5 months now.

Now for more good news, the Months of Inventory is the number of months it would take to sell all of the inventory currently on the market. Generally speaking, less than 4 months of inventory is a seller’s market; 4-6 months is a neutral market and over 6 months is a buyer’s market. The market in Maryland is clearly a seller’s market; however, comparing each month to the same month last year showed an increase in the Months of Inventory which may be heading towards a neutral market.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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Analyzing the Current Real Estate Market Conditions in Maryland

Analyzing the Current Real Estate Market Conditions in Maryland

Introduction:

The real estate market in Maryland has been subject to various factors that have influenced its conditions over the years. As a prospective homebuyer, seller, or investor, it is crucial to stay informed about the current state of the market. In this blog post, I will provide an overview of the real estate market conditions in Maryland, including key trends, factors affecting the market, and tips for navigating the market effectively.

1. Steady Market Growth:

Maryland has experienced a relatively steady growth in its real estate market. The state’s strategic location, strong job market, and diverse economy have contributed to a consistent demand for housing. Over the past few years, property values have appreciated overall, making Maryland an attractive location for home ownership and real estate investments.

2. Inventory Levels:

Like many other regions across the United States, Maryland has been grappling with low inventory levels. The supply of available homes for sale has been consistently lower than the demand, resulting in a highly competitive market. Limited inventory often leads to increased competition among buyers, multiple offer situations, and potential bidding wars.

3. Rising Home Prices:

The limited housing inventory, coupled with high demand, has resulted in rising home prices across Maryland. Sellers have been able to capitalize on the favorable market conditions, leading to increased median home prices. However, it’s important to note that price growth may vary by location, with certain areas experiencing more substantial increases compared to others.

4. Shifts in Buyer Preferences:

As the real estate market evolves, buyer preferences have also shifted in Maryland. Factors such as proximity to urban centers, access to quality schools, transportation infrastructure, and neighborhood amenities have gained increased importance. Additionally, there has been a growing demand for energy-efficient and sustainable housing options, driven by environmental concerns and changing consumer values.

5. Mortgage Interest Rates:

Mortgage interest rates play a significant role in the real estate market. Currently, interest rates in Maryland remain in the 6.5% – 7.0%, making homeownership out of reach for some homebuyers. It is important to note that a 7% interest rate is more normal than a 3% rate.  The biggest problem is that wages have not kept pass with the cost of living.  However, it’s essential to keep an eye on interest rate trends as they can impact the overall affordability of properties and buyer demand in the long term.

6. Impact of COVID-19:

The COVID-19 pandemic has influenced the real estate market in various ways. While the initial months of the pandemic saw a temporary slowdown, the market quickly rebounded and demonstrated resilience. Remote work arrangements and changing lifestyle priorities have influenced housing preferences, with increased demand for spacious homes, home offices, and outdoor amenities.

Tips for Navigating the Market:

– Work with a knowledgeable real estate agent: A trusted real estate professional who understands the local market can provide valuable insights and guidance.

– Be prepared and act quickly: Given the competitive nature of the market, it’s crucial to be well-prepared with financing options and necessary documentation, and to act promptly when a suitable property becomes available.

– Research local neighborhoods: Thoroughly research the neighborhoods you are interested in to understand factors like schools, amenities, crime rates, and property values.

– Get pre-approved for a mortgage: Getting pre-approved for a mortgage can enhance your credibility as a buyer and enable you to make competitive offers when you find the right property.

Conclusion:

Maryland’s real estate market continues to exhibit positive growth and offers numerous opportunities for buyers, sellers, and investors. By staying informed about the current market conditions, being proactive, and working with professionals, you can navigate the Maryland real estate market successfully. Remember to adapt your strategies based on the unique characteristics of different neighborhoods and always seek expert advice when needed.

If you are thinking of buying or selling talk to a real estate professional – talk to a REALTOR® – who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at  301-712-8808 or email me at RolandLow1@gmail.com.

Roland 

Health Dangers in Older Homes

Health Dangers in Older Homes

With the real estate market picking up for the spring buying season, many potential homebuyers will be faced with looking at older homes to meet their budget. Older homes many times will offer items that entice the buyer. But there are also things to watch for in older homes that buyers need to be mindful of.

There are three health dangers to be mindful of when buying an older home – not in all homes, but it’s good to be aware of the chance. The three areas to watch closely are lead paint, asbestos, and mold.

Lead paint can be found in paint – before 1978, and some plumbing fixtures. In 1978 the federal government banned the use of lead-based paint. Homeowners should be mindful of painting that was done prior to that. There are two main areas of concern when it comes to lead-based paint. The first area is if there is any sanding or scrapping that needs to be done. It is possible that the particles could be airborne and inhaled. If lead based paint is suspected, it would be wise to consult a certified lead professional to determine the risk.

The other area of concern with lead-based paint is any chips that may be peeling. Young children and pets may ingest the chips. Lead in children can affect brain development, the nervous system, digestive system and more.

Another health danger that can be found in older homes is asbestos. Asbestos was used in insulation, vinyl flooring, roofing, siding, and other building materials. In 1989 the EPA (Environmental Protection Agency) issued a ban on most asbestos-containing materials. Asbestos can lead to lung cancer and mesothelioma, often times years later.

The third area of concern is mold. Mold can often times found where there is high humidity or water from leaking pipes, windows, or roofs. Good ventilation can help to reduce the risk of mold. Mold can cause wheezing, red or itchy eyes, skin rashes and an increased risk of asthma in children. It is suggested that areas 100 square feet or larger be addressed by a professional remediation expert.

One last comment about these three dangers. If you are selling your home and are aware of any of these problems the seller must disclose on the appropriate documents. Failure to do so could subject the seller to a lawsuit.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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2023 Real Estate Off to a Slow Start

2023 Real Estate Off to a Slow Start

The real estate market in Maryland, in general, and Frederick County, in particular, has gotten off to a slow start so far in 2023.

Units sold in January 2023 compared to January 2022 showed a 37.7% drop overall in Maryland and a 44.2% drop in Frederick County.

The average sales price in Maryland increased by 2.3% over last year, however, Frederick County continued the decline with a 2.2% decrease in the average sales price.

There are many issues at hand that are driving the real estate market right now: Lack of inventory and increase in mortgage interest rates are two main factors. The lack of inventory has been an issue for a couple of years now. The increase in mortgage interest rates is less of an issue other than a mindset. Over the last 30 years, the average mortgage interest rate as run a little over 7%. Even with the recent increase in mortgage rates, the average is still running around 6.1% – below the 30-year average.

In my opinion, the recent price increases on homes is what has priced many buyers out of the market, not necessarily the interest rates, although the rates have impacted buyers to some degree. As the market settles down and prices of homes drop, the market will begin to see a rebound sometime this year.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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The Sellers’ Market May Have Peaked

The Sellers’ Market May Have Peaked

The last couple of years have been like a shark-feeding frenzy! Homes that were listed on the market often received multiple offers, often times exceeding asking price, no home inspection and any other option buyers could provide to sweeten the offer.

arket

Maryland, and the nation in general, is still clearly in a seller’s market, but there are signs, albeit subtle signs, that the seller’s market may beginning to shift to a neutral or even a buyers’ market.

A sellers’ market is determined when the number of buyers in the market exceed the number of homes listed resulting in competition for the homes. A buyers’ market is the opposite – there are more homes on the market than buyers.

Here are four factors that may indicate a swing to a neutral or buyers’ market.

1. More homes are coming on the market. The national market is causing some optimism for buyers. The National June Housing Report shows an uptick in the number of homes for sale for the second straight month.

Maryland is not showing the same trend yet. Maryland’s new listings on the market shows a decline from July 2021 of 13,205 homes for sale down to 9,898 homes in July 2022. Although June 2022 had a slight uptick of homes on the market from May 2022, it had a decline from June 2022 to July 2022.

2. Homes are taking longer to sell. Both May and June 2022 median days on the market came in at 6 days, however, July 2022 had an uptick of 8 median days on the market supporting the idea of potential swing to a buyers’ market.
3. Price reductions are on the upswing. Maryland is not experiencing this factor yet. Although there are more price reductions than a few months ago, there are still more price increases that reductions.
4. Mortgage applications drop. With drastic increases in home prices and an increase in mortgage rates, fewer buyers will be coming into the market. Mortgage applications dropped for two consecutive weeks in a row in July. Mortgage rates have increased from 3.1% in December 2021 to nearly 6.0% in June 2022. Mortgage interest rates are expected to settle in around 5% range.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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Possible /Mild

Possible /Mild

Possible and mild were two words recently used by Lawrence Yun, Chief Economist, National Association of REALTORS® when he discussed the housing market in the United States. Depending on the news source you receive there is talk of a recession because of having two consecutive quarters of contraction of the gross domestic product. Nevertheless, Yun believed that although a recession was possible, he believed it would be mild.

Yet, there are other factors that point away from a recession. Namely a robust jobs market. The job market has rebounded to pre-covid 19 levels and is not expected to slow down anytime soon. In addition to the jobs market, the commercial real estate market is flourishing. Warehouse space is in high demand, hotel bookings, air travel and park attendance are now all at pre-covid levels. One area of concern is falling home prices, largely due to mortgage rate increases. As the economy settles into a more normal pattern it’s likely that talk of a recession will fade.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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Back To Normal – EVENTUALLY

Back To Normal – EVENTUALLY

Charles Dickens’, A Tale of Two Cities, opening line sums up the real estate market pretty good – “It was the best of times, it was the worst of times, …”. It depends on whether you were the seller or buyer or REALTOR® or mortgage person. The real estate market has been “rockin and rollin” out of control. After two-plus years of bidding wars, buying sight unseen, foregoing home inspections and making offers while the property was “coming soon”, the market is beginning to slow down to a more reasonable rate. This will undoubtedly allow everyone – including buyers and sellers – to catch their breath.

The recent increase in interest rates by The Fed has undoubtedly had an impact on the mellowing of the market but is far from doom and gloom that some want to predict. Overall, the housing market is expected to continue to slow down until early 2023 and put us more in line with pre-Covid trends. Economists predict that there will be no major market crash, or bubble. Mortgage interest rates may climb to 6.0% for a period but will stay close to mid to high 5’s through 2023.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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Fun Facts and Inspiration for August 6

Fun Facts and Inspiration for August 6

Inspiration…

“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark.” Michelangelo

Did you know that…

When Hattie McDaniel became the first African American to win an Oscar in 1940. Hattie played Mammy in “Gone With The Wind.” Ms. McDaniel had to make her way to the stage from a segregated table at the back of the room.

A solar eclipse helped end a six-year war in 585 BCE. When the sky suddenly darkened during a battle between the Lydians and Medes in modern Turkey, soldiers took it as a sign to cease fighting.

In Columbia, dried ants have replaced popcorn as the typical movie theater snack.

“Bloodcurdling” isn’t just an expression: Research shows that watching horror movies can increase a certain protein into our bloodstream that increases clotting.

Wisdom teeth serve no purpose. They are left over from hundreds of thousands of years ago. As early humans’ brains grew bigger, it reduced space in the mouth, crowding out this third set of molars.

In real estate, it is important to understand the market conditions and how they will affect the buying or selling of a home. After two plus years of bidding wars, buying homes sight unseen, foregoing home inspections, etc., the housing market is beginning to show signs of settling down; however, economists do not suggest any major downturn in the housing market.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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The Yin Yang World of Real Estate

The Yin Yang World of Real Estate

In ancient Chinese philosophy Yin Yang is a Chinese philosophical concept that describes how obviously opposite or contrary forces may be complementary to each other and create something that is greater than the sum of the two entities. For example: night and day, winter and summer and male and female.

Yin Yang

That appears to be what is going on in the world of real estate right now. For the last two years home prices have been climbing out of control out pricing many home buyers. This spring I had a client who wanted to make an offer on a property that was listed at $639,900. The day the property was going to go active it changed to pending because a buyer offered $799,000 for the home, nearly 25% over the list price. All too often, buyers are priced right out of the market before the process starts.

To offset the uncontrollable rise in home prices, the Feds have raised the interest rates by .75% for the second time in as many months in an effort to reduce inflation. Just as in Yin/Yang the two functions have opposing forces. Rising prices (home prices) are symptomatic of inflation and the increase in interest rates will cause inflation (home prices) to decline, unfortunately by reducing sales This will take a while but eventually the two opposing forces will balance and the market will once again be healthy for both buyers and sellers.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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Real Estate Market Conditions – Maryland/Frederick County

Real Estate Market Conditions – Maryland/Frederick

The National Association of REALTORS® recently released the June 2022 statistics for the nation. According to the NAR, nearly every region of the country saw a major decline in real estate transactions last month as more buyers are priced out of the market.

NATIONAL ASSOCIATION of REALTORS®

Nationally, home prices have continued to climb even though the number of home sales have dropped for the fifth consecutive month. Compared to home prices last year, the median price for existing home prices rose 13.4%. Couple that with the fact that the number of homes sold during the same period dropped 5.4%.

In a separate report issued by the NAR, housing affordability has dropped as mortgage payments have spiked by 51% in one year mostly due to the prices of houses increasing and the mortgage interest rates going up.

In Maryland, the number of homes sold in June of this year compared to June of last year dropped by 23.2% according to the Maryland REALTORS® Association. The median sales prices of homes during the same period increased by 8.7%.

Frederick County, Maryland had a 17.3% reduction of homes sold in June 2022 compared to June 2021; however, the median price of those homes increased by 14.8%.

The Months of Inventory clearly shows that the market is still a ‘sellers’ market’, however, in July 16.4% of the homes that closed in the last 30 days had a price reduction to the list price.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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My Love Letter to You!

With limited housing inventory and strong competition for listings, many homebuyers are forwarding personal statements, pictures, and other communications to sellers asking them to consider selling their home to the buyer based on the personal characteristics cited in the communication. These personal communications are often referred to as ‘love letters.’

Across the country attorneys have counseled real estate agents to avoid forwarding these ‘love letters’ to sellers because of potential fair housing implications. Oregon recently passed legislation prohibiting real estate licensees from transmitting these personal communications. Ohio, California and Maryland REALTORS® Associations support similar legislation for their states.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

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REAL ESTATE MARKET UPDATE

If you are like thousands of home buyers waiting in the wings to buy a home but driven out of the market because of the sky-rocketing prices, your time may have come.  The sizzling hot market of a few months ago seems to be mellowing out a bit.  May not be good news for sellers, but definitely a welcome relief for home buyers.

A few months ago, home buyers in most markets, were receiving multiple offers and quite often would sell in a matter of days and often times above asking price.  Although the market remains a seller’s market, there are signs that the real estate market may be cooling down a bit.  

However, the problem remains that there are too few homes on the market.  The homes that are on the market typically have a swarm of buyers competing for the property.  In Maryland for October 2021 there were 9,944 new listings on the market compared with 11,431 for the same month last year.  The shortage of homes on the market remains the number one effect on the housing market.

The change is coming about in the number of homes sold.  In October 2021 there were 8,665 homes sold compared to 9.676 homes sold in October 2020.  That 10.4% reduction in homes sold will result in more homes on the market which will eventually result in lower prices.

Although there were fewer homes sold, the price of homes increased for the month.  In October of this year, the price of homes in Maryland increased 7.0% up to $431,481.  The price of homes in Frederick County increased 13.3% for the same time period.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at 

RolandLow1@gmail.com.

Roland 

PLEASE VISIT AND SHARE MY BLOGS AT

WWW.ROLANDLOW.WORDPRESS.COM

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Tips for Submitting a Competitive Offer on a House

Tips for Submitting a Competitive Offer on a House

The real estate market is gradually slowing its frantic pace from a few months ago to a more normal seller’s market. (Read more about real estate markets in an upcoming blog).

But there are still things you can and should do to help you as a buyer get the home you want. Right now, in most, if not all, of the United States, the real estate market is considered a seller’s market. It is not unusual for a seller to receive multiple offers on a home, especially if it is clean, in good condition, and presents well.

Before I talk about the tips for submitting a competitive offer, let me just preface it by saying that there are two things that must be done right from the start. The first one is to find a REALTOR® that you are comfortable with, is knowledgeable, and you can, and will, communicate with. A good REALTOR® will work with you through the entire process all the way to the closing table and beyond.

The next thing that is an absolute must; talk to a mortgage broker. All too often, potential buyers plug some information into a computer program and out prints a “pre-qualified” letter. All too often that letter is not worth the paper it is printed on. A good REALTOR® can help you find a mortgage broker who can provide you with what you need.

There two things when making an offer that can bring you to the forefront of buying a house. The first and foremost is the amount of money you will offer for the house. Once again, your REALTOR® can guide you on what the price of similar houses are going for in the area. A good rule of thumb is, “Offer enough so that you don’t regret it if you don’t get it, but not too much so you regret if you do get it.”

In today’s market it is foolhardy to offer less than asking price. Buyers who are out to finagle a good deal should most likely stay home until the seller’s market changes to neutral or buyer’s market.

There is another way that a buyer can get the seller’s attention and that is by offering a larger earnest money deposit. There are pros and cons of this approach, and it is critical that you discuss this with your REALTOR® so you understand what is involved. Remember, you won’t lose the earnest money, it will be used for your closing costs, but too much earnest money may make you short for other expenses.

This week I will be addressing several tips that many real estate agents recommend when making a competitive offer on a house. Some of them I agree with and some I do not. I will address those tips that I agree with and those that I disagree with and why in upcoming blogs.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

PLEASE VISIT AND SHARE MY BLOGS AT
WWW.ROLANDLOW.WORDPRESS.COM
WWW.ALWAYSWANTEDTOKNOW.WORDPRESS.COM
WWW.SPIRITUALCHALLENGES.WORDPRESS.COM