Stephen Howell's Blog

Pileup in the Court Room - More Lawyers Needed?

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 03 Nov 2009 08:46:46 -0600

There's been a pileup in the court room with foreclosures cases glutting local courtrooms in Anne Arundel County, Maryland according to an article published in The Capital. Staff Writer Elisha Sauers states in a November 1, 2009 article, there aren't enough lawyers to go around for all the struggling homeowners - legal aid lawyers, that is, willing to help struggling homeowners at reduced rates or even pro bono.

The article suggests that manditory mediation between lender and borrower might be the solution. And states that Gov. Martin O'Malley introduced legislation last week in Maryland to require mortgage companies to participate in re-negotiations of loan terms before resorting to litigation. This seems like a good idea, move the process out of the courts and into the mediation conference room (do we have enough mediators?).

In reality, in Maryland, especially in Anne Arundel County, we've been relatively immune from foreclosures. With only about 2,300 year-to-date foreclosures - according to the story - we experienced nothing like areas in other parts of the country. Although the foreclosure numbers for our local area might be up and more lawyers might be needed, there's a strong economic base thanks to the Federal government and its contractors keeping area homeowners employed and in their homes!!!

It does seem to make sense for foreclosure mitigation to occur through mediation. But, the process, whether madated by law or voluntarily adopted by mortgage companies, will take time to become established. And by the time a process is worked out, the crisis may have already passed and too many homeowners who deserved to keep their homes may have already lost them.

The bottom line is "you pay you stay, you don't you go" as one of the settlement officers I've worked with liked to say about the foreclosure process detailed within the hundreds of pages buyers sign when they purchase a home. Whether its foreclosure or mediation before foreclosure for the homeowner who is in arrears, its really capitalism at work. Homeowners in trouble with their mortgages need to wake up to their financial situation and make changes and make them fast (for financial stratgies that work see Robert Pagliarini's e-book Plan Z). But in an era where we bail out big banks, forcing them to the mediation table instead of allowing litigation resulting in foreclosure could well be each and every trouble homeowners personal bail out plan.

Market Assessment - What's Next?

Stephen Howell (Coldwell Banker Residential Brokerage) — Sat, 05 Sep 2009 10:31:01 -0500

What's next for the real estate market? Since December last year we've been on a steady climb from the bottom. But, the buyer's market is not where near over. While Months of Inventory has fallen to 8.2 months this August, last year it was 10.6. And, while that represents a 23.0% decline in available inventory in Anne Arundel County, there are still 3,706 active listings - down from 4,601 this time last year. Sold prices are off 3.4% year-over-year in Anne Arundel County, but, have declined 10.2% in Annapolis since last year. While it is optimistic to think that the local area real estate market has stabilized, there is still a long road ahead before there is a shift from buyer's market to seller's market.

The S&P/Case-Shiller Home Price Index for the Washington DC marketplace improved 2.8% in June. The Baltimore Metro Home Price Index for the same period also improved by 1.3%. The Anne Arundel County Index declined very slightly by 0.1%. And, the Annapolis Index declined again by 3.4% in June over May.

The total sales volume for Anne Arundel County was down 5.3% in August over July. The number of units sold was down 7.7% and the number of active listings was down 12.5%. The number of pending sales was up 6.7%. The average sold price was up 2.7% from $354,099 to $363,546. There were 453 units sold in August down from 491 units sold in July.

The total sales volume for Annapolis was down 0.5% in August over July. The number of units sold was down 1.3% and the number of active listings was down 3.7%. The number of pending sales was up 9.3%. The average sold price was up 0.8% from $411,423 to $414,768. There 76 units sold in August down from 77 sold in July.

Sales activity is likely to remain slow this fall while buyers continue to pursue great deals and sellers continue hold out for higher prices.

In Conclusion

If you are thinking about making a change, let us help you take advantage of these trends. So, if you're buying or selling a home or know someone who is, for a confidential, private, professional real estate consultation without any obligation, contact Stephen Howell at 410-923-3217.

Cash for Clunkers Succeeds But Bucks for First-time Home-buyers Fails

Stephen Howell (Coldwell Banker Residential Brokerage) — Sat, 22 Aug 2009 08:07:08 -0500

It seems that the cash for clunkers program has been a big success. Manufacturers and local dealers were all advertising the program. The program has been so successful that the government added additional funds to keep it running.

The U.S. Government's bucks for first-time home buyers (the $8,000 tax credit) has not been so successful. Although some first-time buyers in the real estate market expect to take advantage of the program, this is a rare group indeed.

While both programs were aimed at stimulating the economy, the cash for clunker program may in the final analysis have done more for the automobile industry than the bucks for first-time buyers program will have done for the real estate industry. There are several ways in which these programs differed that may have made the difference in their respective success and lack thereof.

First, the car companies figured out how to give buyers the incentive at the dealership when the buyer purchased the car. While the real estate companies didn't figure out how to give home buyers the incentive at the settlement table. Getting the incentive at the "table" in a world of instant gratification versus having to wait to file your income tax is a much better solution. Instant versus deferred. Now or at tax time. Draw your own conclusions.

Second, the cash for clunkers rebate - between $3,500 and $4,500 - must be used to purchase a vehicle less than $45,000 - that's a $1 to $10 ratio. Should that same incentive been offered to first-time home buyers, $4,500 would have barely made a dent in the cost of residential real estate - which is what $8,000 barely does. In Baltimore-metro regional area where the average price of a home was $297,948 in July 2009, a $4,500 credit would have been equal to a $1 to $66 ratio. If the credits were leveled, a first-time home buyer might have received $29,795 at the settlement table - that could have easily covered closing costs and down payment with a little left over for new living room furniture!!! Kind of like $4,500 does for a car ... $2,000 down, tax and tags, and maybe a leather interior upgrade!!!

Third, anyone - with the right car - could take advantage of the cash for clunkers program but not so with the bucks for first-time home buyers. It seems like almost anyone might have a car that would meet the clunkers program quidelines, while it seems less likely that someone hasn't owned a home in the last three years in order to secure a $8,000 tax credit incentive for buying a home.

Since the cost of a new car is between $20 and $30 thousand dollars and a home is between $200 and $300 thousand dollars, cars are simply more affordable right now than homes - certainly so with such a large incentive. So the way I read it is that consumers spent their money buying new cars rather than buying new homes. What's it going to take to get buyers off the sidelines and into a new home?

FORECAST: Housing Market 2012

Stephen Howell (Coldwell Banker Residential Brokerage) — Thu, 20 Aug 2009 12:18:12 -0500

You might have read the online story from Business Week's June 29, 2009 issue titled Where Housing Will Be In 2012. I was anxious to learn that the Baltimore-Towson metro area has a projected decline of 14.8% and Maryland overall has a project decline of 12.3%.

Metro: Baltimore-Towson
What a Home Will Be Worth in 2012: $214,692
Q4 2008 price: $252,000
Projected price change by MSA: -14.8%
Projected price change by state: -12.3%

Source: BusinessWeek - What Your Home Will Be Worth in 2012

Further drops in home prices would certainly be unwelcome by most homeowners especially those who might need to sell in the next few years.

In Anne Arundel County where the Average Sold Price of a home in July 2009 was $355,099, our local housing market has declined 10.82% from this time last year according to MRIS, our local MLS.

Anne Arundel County - July 2009	2009	2008	% Change
Total Sold Dollar Volume:	$ 173,862,389	$ 163,200,495	6.53 %
Average Sold Price:	$ 354,099	$ 397,081	- 10.82 %
Median Sold Price:	$ 310,000	$ 332,900	- 6.88 %
Total Units Sold:	491	411	19.46 %
Average Days on Market:	128	121	5.79 %
Average List Price for Solds:	$ 394,990	$ 437,012	- 9.62 %
Avg Sale Price as a percentage of Avg List Price:	89.65 %	90.86 %

The forecasted decline in home values could mean that the Average Sold Price could drop to $310,545 in Anne Arundel County over the next two years.

If you want to know if the Annapolis, Anne Arundel County and/or Maryland housing market has stablized, see for yourself instantly at www.AnnapolisMarketConditions.com.

Has Our Real Estate Market Stabilized?

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 04 Aug 2009 08:28:25 -0500

Has the local area real estate market stabilized? Now is not the seller's market of we had in 2004 and 2005. The local area real estate market in Anne Arundel County declined slightly in July continuing the buyer's market trend. Sale volume and sales prices were down month-over-month and year-over-year. And, since April, May and June are often the best selling months of the real estate cycle, the dog days of summer lie ahead. Economic stimulus continues to drive sales of the entry level priced homes (those between $0-500K) but hasn't had much effect other price points. Now that August is here the local real estate market may suddenly slump.

The S&P/Case-Shiller Home Price Index for the Washington DC marketplace improved 1.3% in May. The Baltimore Metro Home Price Index for the same period declined 0.2%. The Anne Arundel County Index also declined 0.3%. And, the Annapolis Index declined 4.9% in May over April.

The total sales volume for Anne Arundel County was down 11.6% in July over June. The number of units sold was down 11.8% and the number of active listings was down 10.4%. The number of pending sales was down 7.2%. The average sold price was up slightly 0.2% from $353,284 to $354,120. There were 426 units sold in July down from 483 units sold in June.

The total sales volume for Annapolis was down 9.7% in July over June. The number of units sold was down 4.9% and the number of active listings was down 2.5%. The number of pending sales was down 32.9%. The average sold price was down 5.0% from $433.409 to $411,423. There 77 units sold in July down from 81 sold in June.

Sales activity is likely to slow in August as summer wanes and buyers and sellers alike take end-of-summer vacation. Sellers may see declining prices while buyers will benefit from low prices, low interest rates and plenty of inventory.

In Conclusion

Market Assessment - Are We Past Bottom?

Stephen Howell (Coldwell Banker Residential Brokerage) — Sat, 13 Jun 2009 07:24:14 -0500

Are we past the bottom of the market are do we have a ways to go? Many indicators suggest that have in moved beyond the bottom of the market. Pending sales in Anne Arundel County are up month over month for the fifth month in a row. This is a very good sign. There is no guarantee that the trend will continue. As economic conditions improve buyers who were once sidelined may now be in the market looking for a new home and buyer!!! But sellers beware; August is just around the corner and is typically one of the slowest months in real estate. So it is entirely possible that the market could hit a sudden slump.

The S&P/Case-Shiller Home Price Index for the Washington DC marketplace declined 1.2% in March. The Baltimore Metro Home Price Index for the same period declined 2.0%. And the Anne Arundel County Index was up 1.4%. The Annapolis Index was also up 2.6% in March over February.

The total sales volume for Anne Arundel County was up 18.5% in May from April. The number of units sold was up 16.8% and the number of active listings was down 7.6%. The number of pending sales was up down 1.2%. The average sold price was down up 1.4% from $ $349,031 to $353,985. There were 410 units sold in May up from 351 sold in April.

The total sales volume for Annapolis was up 21.8% in May from April. The number of units sold was up 24.6% and the number of active listings was up 2.0%. The number of pending sales was down 5.1%. The average sold price was down 2.3% from $489,616 to $478,572. There 71 units sold in May up from 57 sold in April.

The quickening sales pace is likely to slow in June and July and summer begins. Sellers may see stability in prices but buyers will continue to benefit from lower prices, low interest rates and excess inventory.

In Conclusion

Market Assessment - At A Tipping Point?

Stephen Howell (Coldwell Banker Residential Brokerage) — Sun, 10 May 2009 07:16:26 -0500

Are we at a tipping point or do we still have a long way to go? Many indicators suggest that have reached a tipping point. While pending sales in Anne Arundel County were up over last month, there are still more listings coming onto the market than coming off. Overall inventory levels declined in the county, while Annapolis remains about the same level. The activity continues to be in the $0 to $499K price range. Although activity and prices remain below that of this time last year, there are signs that the market is starting to stabilize. A large inventory, low interest rates, hesitant buyers, stubborn sellers best describe current market conditions.

The S&P/Case-Shiller Home Price Index for the Washington DC marketplace declined 2.3% in February. The Baltimore Metro Home Price Index for the same period declined 0.2%. And the Anne Arundel County Index declined 1.1%. The Annapolis Index was up 4.5% in February over January.

The total sales volume for Anne Arundel County was down 14.3% in April from March. The number of units sold was down 7.4% and the number of active listings was down 5.7%. The number of pending sales was up 84.8%. The average sold price was down 7.5% from $380,072 to $351,605. There were 326 units sold in April down from 352 sold in March.

The total sales volume for Annapolis was down 5.2% in April from March. The number of units sold was down 6.6% and the number of active listings was up 0.4%. The number of pending sales was up 52.6%. The average sold price was up 1.5% from $482,453 to $489,616. There 57 units sold in April down from 61 sold in March.

The quickening sales pace is likely to continue for May, June and July. However, it may be mid-summer before sellers see stability in sales prices. Buyers will continue to benefit from lower prices, low interest rates and excess inventory.

In Conclusion

Market Assessment - Turning A Corner?

Stephen Howell (Coldwell Banker Residential Brokerage) — Mon, 06 Apr 2009 11:25:35 -0500

Have we turned a corner? Has the market shifted? Has spring finally arrived? Many indicators suggest that we have turned the corner. There is statistical and anecdotal evidence that a new market is evolving. Pending sales at the end of March in Anne Arundel County were at 697, up 74.7% from February. There were 45.1% more units sold in March than in February. We are seeing multiple contracts and escalation clauses for well priced properties. Homes priced below $400,000 are selling while more expensive properties continue to sit. Across the U.S. there were 3.2 million homes for sale in February, up 2.6% from January. We have a 9.1 month supply of homes nationally and a shadow inventory that is estimated at 700,000 homes. We're not out of the woods yet but were getting there!

The S&P/Case-Shiller Home Price Index for the Washington DC marketplace declined again in January. The Baltimore Metro Home Price Index for the same period declined 4.0%. And the Anne Arundel County Index declined 0.8%. Only the Annapolis Index was up 5.2% in January over December 2008.

The total sales volume for Anne Arundel County was up 50.4% in March from February. The number of units sold was up 45.1% and the number of active listings was down 4.2%. The number of pending sales was up 74.7%. The average sold price was up 3.7% from $365,599 to $378,054. There were 338 units sold in March up from 233 in February.

The total sales volume for Annapolis was up 43.9% in March from February. The number of units sold was up 64.9% and the number of active listings was up 7.2%. The number of pending sales was down 0.9%. The average sold price was down 12.7% from $552,930 to $482,453. There 61 units sold in March up from 37 sold in February.

The quickening sales pace is likely to continue for several more months. However, it may be early summer before sellers see stability in sales prices. Buyers will continue to benefit from lower prices and excess inventory.

In Conclusion

Market Assessment - Spring Conditions

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 10 Mar 2009 16:53:52 -0500

Over the last couple of weeks in the $0-500K price bracket it seems like property is starting to move. Perhaps this is just an early spring market, or there is some demand that hasn't been satisfied, but, now that demand is being fulfilled. I've been working with a few clients who after looking at a house, thinking about it, finally getting interested in it, only to find that there were now multiple contracts to contend with!!! Hmmm ... feels like a "tipping point" from buyer's market to seller's market and maybe we're transitioning into a new market. You see, it's like a recession ... you don't know that you're in one until after it's almost over. My intuition (gut instincts) suggests that we're certainly transitioning from the winter market to a spring market. Showings are up, contracts are up, all of which leads to an uptick in sales. Are these signs of a transitional market - yes - a seller's market - maybe - only time will tell. Buyers, take note!!!

Market Update - Annapolis Condos

Stephen Howell (Coldwell Banker Residential Brokerage) — Thu, 26 Feb 2009 09:48:27 -0600

As of February 25, 2008, there were 236 condos that had not yet sold in Anne Arundel County. The average days on market for these condos was 191 days. And the average asking price was $319,905. There were 27 condos that were pending sale that had been on the market an average of 126 days with an average asking price of $236,788. In the past 90 days 25 condos had sold. They were on the market an average of 162 days and sold for an average price of $258,014 (92.3% off their original listing price).

In Annapolis there were 105 condos that had not yet sold. The average days on market for these condos was 174 days. And the average asking price was $415,244. There were 10 condos that were pending sale that had been on the market an average of 121 days with an average asking price of $262,960. In the past 90 days 8 condos had sold. They were on the market an average of 134 days and sold for an average price of $382,350 (75.5% off their original listing price).

Along the Bestgate corridor there were 14 condos that had not yet sold. The average days on market for these condos was 148 days. And the average asking price was $281,507. There were 4 condos that were pending sale that had been on the market an average of 104 days with an average asking price of $279,950. In the past 90 days 4 condos had sold. They were on the market an average of 158 days and sold for an average price of $277,200 (92.5% off their original listing price).

While the local condo market might appear to be dormant, when looked at in context with the rest of the local area real estate market, the overall market in Anne Arundel County hasn't faired much better. At the end of January 2009, there were 3,791 properties that had not yet sold in Anne Arundel County. There were 344 properties pending sale and 722 new listings taken for the month. In January 2009, there were 205 properties sold in Anne Arundel County. They were on the market an average of 142 days and sold for an average price of $371,647 (88.21% off their original listing price).

Anne Arundel County ALL PROPERTIES Market Statistics for January 2009 and 2008

	2009	2008	% Change
Total Sold Dollar Volume:	$ 76,187,655	$ 107,209,001	- 28.94 %
Average Sold Price:	$ 371,647	$ 413,934	- 10.22 %
Median Sold Price:	$ 304,000	$ 325,000	- 6.46 %
Total Units Sold:	205	259	- 20.85 %
Average Days on Market:	142	134	5.97 %
Average List Price for Solds:	$ 421,327	$ 457,447	- 7.90 %
Avg Sale Price as a percentage of Avg List Price:	88.21 %	90.49 %

While the condo market represents only 584 of the 3,791 active listings (15% of the whole market), it represents a much smaller fraction of the overall sales in January (4% of the whole market). In January 2009, there were only 8 condos sold in Anne Arundel County. They were on the market an average of 133 days and sold for an average price of $223,706 (88.84% off their last listed price and 84.65% off the original listing price).

Anne Arundel County CONDO Market Statistics for January 2009 and 2008

	2009	2008	% Change
Total Sold Dollar Volume:	$ 1,789,650	$ 5,373,750	- 66.70 %
Average Sold Price:	$ 223,706	$ 298,542	- 25.07 %
Median Sold Price:	$ 179,500	$ 240,950	- 25.50 %
Total Units Sold:	8	18	- 55.56 %
Average Days on Market:	133	110	20.91 %
Average List Price for Solds:	$ 246,500	$ 315,858	- 21.96 %
Avg Sale Price as a percentage of Avg List Price:	88.84 %	92.68 %

In conclusion, the Anne Arundel County real estate market did not fair well in January 2009. The number of pending transactions are up and we can except stronger sales before the end of the first quarter of 2009. However, overall, sluggish market conditions can be expected for at least the rest of first quarter and well into second or third quarter of 2009. Current economic conditions will continue to impede sales for sometime to come despite favorable interest rates and incentives (for example, first time home buyer tax credits). While inventory levels remain high, sales prices will continue to decline until such time that buyers perceive a value shift in the marketplace. Inventory level are likely to continue to climb in the spring and new listings come to market. So, sales prices are likely to continue to decline further. Serious sellers are encouraged to price ahead of the market in order to get their home sold sooner before market condition further erode home prices. Serious buyers have many choices from which to choose. Well qualified buyers ready to make a move should be able to obtain the very best price and terms.

Market Assessment - Market Shift Ahead?

Stephen Howell (Coldwell Banker Residential Brokerage) — Fri, 06 Feb 2009 17:32:52 -0600

By the end of last year most real estate was in rough shape. Volume and units in January for Anne Arundel County were down 32% from December 2008. This comes as no surprise to anyone buying or selling real estate. While inventory levels and prices seem to have stabilized they are off 10% from this time last year. Market conditions may start to level out. When looking up from the bottom of the trough one can either complain about how far the market has fallen or how much the market could go up on the next wave.

The Baltimore Metro Home Price Index for January 2009 was down 4.0% from December and down 8% from January last year. The Anne Arundel County index was down 0.9% from the December and down 9.4% from January last year. And, the Annapolis index was up 5.2% from December and down 19.2% from January last year. The Washington metro area S&P/Case-Shiller Home Price Index published for November was down 2.4% from October and down 19.4% from the year before.

The total sales volume for Anne Arundel County was down 32.3% in January from December. The number of units sold was down 32.9% and the number of active listings was up 2.9%. The number of pending sales was up 91.3%. The average sold price was up 1.4% from $364,760 to $369,957. There were 202 units sold in January down from 301 sold in December.

The total sales volume for Annapolis was down 1.8% in January from December. The number of units sold was down 22.6% and the number of active listings was down 5.0%. The number of pending sales was up 39.5%. The average sold price was up 12.4% from $443,461 to $498,234. There 41 units sold in January down from 53 in December.

The sluggish sales pace will continue into second quarter 2009. It will be late spring before sellers see relief to falling prices. Buyers will continue to benefit from lower prices and excess inventory.

In Conclusion

Market Assessment - No Relief in Sight

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 13 Jan 2009 12:27:09 -0600

The New Year is finally here! Hurray! Unfortunately there really is not much to cheer about. Although 300-plus homes did sell in Anne Arundel County in December, sales volume is off 23.7% and sales units is off 13.0% from this time last year. In Annapolis only about 45 homes sold in December, sales volume and sales units are off 39.3% and 26.2% respectively from last year.

The Baltimore Metro Home Price Index for December 2008 was down 2.2% from November and down 6.2% from December last year. The Anne Arundel County index was down 3.4% from the November and down 8.9% from December last year. And, the Annapolis index was down 7.5% from November and down 19.4% from December last year. The Washington metro area S&P/Case-Shiller Home Price Index published for October was down 2.6% from September and down 18.7% from the year before.

The total sales volume for Anne Arundel County was up 9.7% in December from November. The number of units sold was up 13.2 % and the number of active listings was down 11.0%. The number of pending sales was down 16.3%. The average sold price was down 3.1% from $376,320 to $364,760. There were 301 units sold in December up from 266 sold in November down from 401 sold in December of last year.

The total sales volume for Annapolis was down 11.3% in December from November. The number of units sold was up 10.4% and the number of active listings was down 10.4%. The number of pending sales was down 25.5%. The average sold price was down 9.2% from $488,330 to $443,461. There 53 units sold in December down from 48 units sold in November and down from 57 units sold last year.

The sluggish sales pace will continue throughout the first quarter of 2009. It will be late spring before sellers see relief to falling prices. Buyers will continue to benefit from lower prices and excess inventory.

In Conclusion

Market Assessment - No Relief in Sight

Stephen Howell (Coldwell Banker Residential Brokerage) — Fri, 05 Dec 2008 05:41:50 -0600

With no relief in sight anytime in the immediate future, the government continues to flounder in its attempt to resolve the current economic crisis. Bailouts, stimulus packages, and the recession are topics of casual conversation both at home and at work. Financial gridlock could be a better term to describe the current situation.

The Baltimore Metro Home Price Index for November 2008 was down 0.8% from the month prior and down 1.7% from this time last year. The Anne Arundel County index was down 2.0% from the month prior and down 7.4% from this time last year. And, the Annapolis index was down 4.6% from the month prior and down 4.7% from this time last year. The Washington metro area S&P/Case-Shiller Home Price Index published for September was down 2.5% over August and down 17.2% from September the year before.

The total sales volume for Anne Arundel County was down 33.5% in November from October. The number of units sold was down 34.2% and the number of active listings was down 5.2%. The number of pending sales was down 3.7%. The average sold price was up 1.1% from $380,261 to $384,560. There were 229 units sold in November down from 347 sold in October down from 346 sold in October of last year.

The total sales volume for Annapolis was down 19.4% in November from October. The number of units sold was down 29.4% and the number of active listings was down 8.8%. The number of pending sales was down 9.7%. The average sold price was up 14.2% from $427,536 to $488,330. There 48 units sold in November down from 68 units sold in October and down from 61 units sold last year.

As the year comes to a close, our attention turns to the holidays. There is not likely to be good news for sellers any time soon. This is an extraordinary period for buyers looking to find bargains.

In Conclusion

If you are thinking about making a change, let us help you take advantage of these trends. So, if you're buying or selling a home or know someone who is, for a confidential, private, professional consultation without any obligation to discuss today's real estate market, please contact Stephen Howell at 410-923-3217.

Have We Reached a Tipping Point?

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 11 Nov 2008 07:13:15 -0600

The evening of November 4^th was a historic night. The new President-elect faces a daunting array of challenges. One of the most important will be to halt the falling tide of home prices. More and more Americans face declining home values, overwhelming mortgage payments, and the real possibility of foreclosure. Will President-elect Obama be able to turn the tide and stop America slipping from recession into a depression?

The Baltimore Metro Home Price Index for October 2008 was down 1.7% from the month prior and down 1.8% from this time last year. The Anne Arundel County index was down 1.2% from the month prior and down 7.4% from this time last year. And, the Annapolis index was down 6.5% from the month prior and down 10.3% from this time last year. Although the Washington DC metro area S&P/Case-Shiller Home Price Index published for August was down 0.3% over July and down 15.4% from August the year before.

The total sales volume for Anne Arundel County was down 19.0% in October from September. The number of units sold was down 14.7% and the number of active listings was down 9.9%. The number of pending sales was up 14.8%. The average sold price was down 5.0% from $403,687 to $383,348. There were 331 units sold in October over 388 sold in September over 401 sold in October of last year.

The total sales volume for Annapolis was down 30% in October from September. The number of units sold was down 9.3% and the number of active listings was down 5.3%. The number of pending sales was down 9.6%. The average sold price was down 22.8% from $553,594 to $427,536. There 68 units sold in October up from 75 units sold in September up from 64 units sold last year.

As the year comes to a close, our attention will soon turn to the holidays. There is not likely to be good news for sellers any time soon. This is an extraordinary period for buyers looking to find bargains.

In Conclusion

If you are thinking about buying or selling a home or know someone who is, for a confidential, private, professional consultation without any obligation to discuss today's real estate market, please contact Stephen Howell at 410-923-3217.

Strategies and Solutions for Distressed Homeowners

Stephen Howell (Coldwell Banker Residential Brokerage) — Mon, 10 Nov 2008 19:39:33 -0600

Do you know anyone who is facing foreclosure? Anyone who is behind on their mortgage? Anyone who has lost their job? Anyone that has not been able to refinance their current mortgage?

Today's distressed homeowners need answers and they need an advocate to offer options and help them understand their rights. When homeowners find that their home is worth less than they owe, they often have no idea of what to do. It seems impossible to get answers to critical questions about options and how each option might affect their credit in the short-term and ability to purchase a home in the future.

As a REALTOR, it's not only my job, it's my passion to provide the help homeowners need when they need it. So if you, a family member, friend or colleague is faced with an uncertain future, for a confidential professional consultation about options, please contact me at showell@cbmove.comor 410-923-3217 or visit my website online at www.Annapolis-REO.com.

Stop Mortgage Defaults and Foreclosures!!!

Stephen Howell (Coldwell Banker Residential Brokerage) — Mon, 03 Nov 2008 08:04:26 -0600

A reported by Robin Sidel in a November 1st article in The Wall Street Journal online "J.P. Morgan Chase & Co. launched an ambitious plan Friday to modify the terms of $70 billion in mortgages for borrowers who are behind on their payments or soon could be." J.P. Morgage Chase appears to be leading the way in halting the rising tide of foreclosures and homeowner defaults on mortgage payments. I congradulated J.P. Morgage Chase for stepping up to the plate to address the problem headon.

Six to Twelve More Months

Stephen Howell (Coldwell Banker Residential Brokerage) — Wed, 29 Oct 2008 07:23:40 -0500

We're not there yet. We can expect six to twelve more months of declining home prices. Although not all gloom and doom, "Home prices have already tumbled 20% from their peak three years ago, and will probably sink another 10% before stabilizing. Some 12 million homeowners currently owe more on their mortgages than the houses are worth..." as reported in June Fletcher's article today in The Wall Street Journal.

Although Annapolis, Anne Arundel County, and much of Maryland has been relatively immune from foreclosures, they do exist. Everyone knows someone (whether they realize it or not) who may be in trouble and might be behind in their mortgage and facing foreclosure. This morning (10/29/08) there are 4,822 active listing in the MLS in Anne Arundel County of which 95 home (1.97%) are flagged as one of foreclosure, HUD-owned, preforeclosure, or REO property. Compared to Prince Georges County where there are 8,269 active listings in the MLS this morning of which 377 (4.56%) homes were flagged in one of the four troubled status. Of course these statistics don't reveal just how deep the problem may run. When searching for "3rd party approval" in the MLS remarks, 229 (4.75%) active listing were returned indicting that these homeowners may be distressed.

While the numbers seem remarkably low, the selling season for real estate wains as we approach the end of October, followed by the presidential election and then the holidays and really cold weather not far behind. What can we expect for the fourth quarter? Falling sales and falling temperatures. Overall, the real estate market well be headed for hibernation and not awaken until late spring!

What You Can Do to Avoid Foreclosure

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 28 Oct 2008 17:39:26 -0500

Via Amy Cordell:

RISMEDIA, May 27, 2008-(MCT)-Mortgage broker Joe Adamaitis spends much of his time in Florida, where foreclosure is almost an epidemic. But the story that sticks out in his mind is that of a Manchester, NH woman who called him one day looking for advice.

The subprime lender who issued her mortgage had gone out of business and the woman's adjustable interest rate had jumped to 10 percent - well beyond what she could comfortably afford.

Eventually, the woman was able to negotiate down to a 5 percent fixed rate, which dropped her monthly mortgage payment by nearly $1,000. But the story is not entirely triumphant. It took nine months of phone calls, written pleas to her congressmen and a formal complaint with the New Hampshire Banking Department before the woman finally caught the ear of someone at the lender's office.

If she had given up after the first phone call, the house probably would belong to the bank.

"It really is all about persistence," said Adamaitis, president of Direct Mortgage Services, which has an office in Bedford. "Half of the battle is just getting someone to listen because these people are hearing it every day."

Whether you haven't paid the mortgage in two months or have never missed a payment but are worried about making ends meet in a tough economy, there are steps you can take to keep your home out of foreclosure.

The resources available vary depending on your situation - someone who is anticipating trouble has more options than someone who is seriously delinquent, but experts agree the absolute worst thing you can do is nothing at all.

- Call your lender

Calling your lender should always be the first step, whether you're behind on the mortgage or just concerned that you won't be able to make the payments a month or two down the road when your adjustable interest rate goes up.

"Do not avoid your creditors," Dick Lavoie, vice president of marketing for Triangle Credit Union in Nashua, said. "In this economy, they will work with you."

There are no guarantees, but it's possible to work out a deal that lowers your interest rate, converts a risky adjustable rate mortgage to a predictable fixed rate plan, or allows you to pay only interest during a period of financial hardship, Lavoie said.

Keep in mind: the "lender" you should call is usually not the bank. It's the loan servicing company that sends you a monthly bill.

Adamaitis said the hard reality is this: It sometimes takes being persistent to the point of being rude if the first or second person you speak with doesn't want to help. Lenders can be reluctant to talk to people before a loan is 90 days past due, he said - and by then the situation is dire.

"You have to get past the first clerk, the second clerk, to the supervisor," Adamaitis said.

Adamaitis also suggests calculating how much you can afford to pay on a monthly basis before calling the lender, so you can offer the amount as an alternative payment plan.

For a specific list of names and phone numbers of people to call at each lending institution that serves New Hampshire, call the New Hampshire Banking Department hotline.

- Call a mortgage or credit counselor

If you're not having any luck with the lender, try an agency that has a little more pull.

Mortgage counselors know exactly who to call within the lender's office, and often have developed a relationship with the person authorized to help you.

Neighborhood Housing Services of Greater Nashua offers free mortgage counseling. A counselor will review your current mortgage and income, and try to work out a deal with your lender to save your home.

The agency hosts free clinics about twice a month for people in danger of losing their homes to foreclosure, but also schedules appointments for anyone who cannot attend during those hours.

Some lenders are more responsive to a call from a mortgage counselor than a homeowner, according to Mary Febonio, homeownership director for Neighborhood Housing Services.

But Febonio stressed that mortgage counselors are there to act as a guide, not do all the work for you. They will review the letter of hardship you write and tell you where to send it, but they won't write it for you, she said.

"Don't bury your head in the sand," Febonio said. "This is your house, your problem . . . people have to take responsibility."

If your situation is not as urgent - maybe you're just struggling to make mortgage payments but haven't missed one - call Consumer Credit Counseling of New Hampshire and Vermont. The nonprofit can help you reprioritize a budget to comfortably make mortgage payments or prepare for an increase in variable mortgage interests rates.
Consumer Credit Counseling has an office in Nashua, but you'll have to call the main office in Concord to make an appointment.

- Find a new lender

If your lender refuses to work with you, try to find a company that will.

"If the bank is not talking, look for another," Richard Arcand, spokesperson for the New Hampshire Banking Department, said.

But be warned: this is not an easy thing to do. Banks have tightened credit restrictions in the wake of the subprime crisis, and are not likely to buy your loan if you have bad credit or are behind on payments.

Arcand said this option works best for people who are making mortgage payments now but are facing an adjustable rate increase that will make the payments unaffordable.

This spring and summer, an estimated 2 million Americans will see an adjustable rate increase.

Arcand said you can try calling banks and other lending institutions on your own to find a new lender, or you can call the Mortgage Relief Fund.

Five banks in New England have joined forces and committed $125 million to help homeowners with adjustable rate mortgages get a fixed rate.

To be eligible for the program, your house must be worth more than you owe, and your payments should have been made mostly on time.

- Hire a lawyer

This option is for people who have tried all of the above with no success. It's going to cost some extra money but could potentially save your home.

"I would recommend hiring an attorney if you truly wish to stay in your home," said Adamaitis, who writes a financial advice column that is not published in The Telegraph. "Many people going into foreclosure are turning to attorneys who are finding some success with the dismissal of foreclosure status. It doesn't happen everywhere, however there has been success."

Even if foreclosure is eminent and it's too late to save your home, it also may be a good idea to call a lawyer.

Arcand suggests calling a free service called New Hampshire Legal Assistance for guidance if you've exhausted all other options.

"It way down the list of options," Arcand said. "But a lawyer may be able to buy them more time or help you through the foreclosure process."

Where to call for help

-New Hampshire Banking Department hotline, 1-800-437-5991, provides help understanding the terms of your mortgage and lists people to call within specific lending institutions.

-The Homeownership Preservation Foundation HOPE helpline, 1-888-995-4673, connects you to a local nonprofit mortgage counselor.

-Neighborhood Housing Services of Greater Nashua, 882-2077, provides free mortgage counseling to people in Nashua and the surrounding towns. The nonprofit also runs free mortgage help clinics about twice a month. The next is May 29 at 6 p.m. at the 63 Temple St. office.

Appointments are not required.

-Consumer Credit Counseling Service of New Hampshire and Vermont, 1-800-327-6778. Call this number to make an appointment in Nashua. Or try online credit counseling at www.cccsnh-vt.org.

-Mortgage Relief Fund, www.mortgagerelieffund.com, helps people who are in good standing with their current mortgage save money by getting out of adjustable rate loans and into fixed rate plans. For more information call one of the following participants: Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank or Bank of America.

-New Hampshire Housing Finance Authority, 472-8623, offers homeownership workshops throughout the state and provides low-income housing assistance.

-New Hampshire Legal Assistance, 1-800-562-3174.

Copyright © 2008, The Telegraph, Nashua, N.H.
Distributed by McClatchy-Tribune Information Services.

Once In A Centry Credit Tsunami

Stephen Howell (Coldwell Banker Residential Brokerage) — Fri, 24 Oct 2008 08:30:59 -0500

Alan Greenspan called current conditions a "once in a century credit tsunami". You can read more about Greenspan's comments in front of the House Oversight Committee on the FOXNews Website.

Real Estate Market Assessment

Stephen Howell (Coldwell Banker Residential Brokerage) — Mon, 13 Oct 2008 17:54:10 -0500

For the sixth month in a row, inventory levels remain above the 4,500 level. In September the number of active units in Anne Arundel County trended down 1.1% and was down 2.0% from last year. The average sold price was $403,687 and was down 8.5% from last year. The pending transaction to active listings ratio was 9.5% up from 9.2% last month.

In Anne Arundel County in September the total sold volume was down 3.9% from August. The average sold price in September was up 7.3% from August. The number of homes sold in September was down 10.4% from August. And, the average days on market in September was up 12.4% from last month.

There were 388 units sold in Anne Arundel County in September, down from 433 units sold in August. The number of active listings was 4,552 in September, down from 4,601 in August. The number of new listings taken in September was 889, up from 861 in August. The number of listings with pending contracts in September was 432, up slightly from 423 in August. The average sold price was $403,687 in September, up from $376,301 in August. The average number of days on market was 136 in September, up from 121 in August. The average list price to sold price ratio was 86.55% in September, down from 90.60% in August. Total sales volume for September was $156.6 million, down from $162.9 million in August.

In Annapolis the total sold volume in September was up 52.4% from August. The average sold price in was up 19.9% in September. And, the number of homes sold in September was up 27.1% from August. And, the average days on market in September was up 19.4% from August.

There were 75 units sold in Annapolis in September, up from 59 sold in August. The number of active listings was 977 in September, about the same as 987 in August. The number of new listings taken in September was 194, up from 170 taken in August. The number of listings with pending contracts in August was 125, up from 92 in August. The average sold price was $553,594 in September, up from $461,751 in August. The average number of days on market was 160 in September, up from 134 in August. The average list price to sold price ratio was 93.83% September, up from 94.74% in August. Total sales volume was $41.5 million in September, up from $27.2 million in August.

So what can we expect for the fourth quarter of 2008? Inventory will start to fall as year-end approaches. New listings will decline as the holidays approach. Pending sales may also decline. The ratio of pending sales to active listings is likely to stay around 1 to 10. And, prices are likely to be soft as the fall selling season comes to a close. There's no tipping point on the horizon when sales might improve. What has to happen? While the number of buyers in the market remains relatively constant at any time and they believe that homes are overpriced and loans are difficult to obtain. Sellers must lower their asking price and do so before their competition. Sellers should take all competition seriously and must price below properties under contract. When the buyers' perception is homes are overpriced, sellers must price their homes to look like a bargain. The lowest price and most favorable terms will result in the fastest sale!

While no one can predict the future with any certainty, one thing is certain; it's a buyer's market. A firm understanding of the market trends and forces is needed to make the best real estate decisions. So, if you are serious about buying or selling a home in today's real estate market, call Stephen Howell, Associate Broker, REALTOR®, Coldwell Banker Residential Brokerage, at 410-923-3217.

1035 Miller Circle, Crownsville, MD 21032

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 07 Oct 2008 12:08:11 -0500

This custom designed and built "pegged post and beam" contemporary is situated on private wooded 2.6 acre lot features 3 BR / 2.5 BA, soaring ceilings and exposed beams, wide plank floors, an open floor plan, 2 fireplaces - one with a large brick hearth, 1^st floor master bedroom and spacious master bath, 2-car side-load garage, screened porch, vaulted ceilings, skylights, and many updates. Water privileged community with beaches and boat ramps nearby. Well located a short distance from BWI, Annapolis, Washington and Baltimore. Owner/Agent. Offered at $699,000 (AA6890839).

This unique home and location cannot be duplicated. It's the only one!

Detailed Listing | Virtual Tour

Home Price Indexes Continues Decline

Stephen Howell (Coldwell Banker Residential Brokerage) — Fri, 03 Oct 2008 09:25:47 -0500

The S&P/Case-Shiller Home Price Indexes were released on Tuesday, September 30th. According to the data prices the Washington DC metro area fell 15.8% in July 2008 from the same period last year while only falling 1.1% from June 2008. In Anne Arundel County the home price index for July 2008 was down 5.1% from June 2007 but the index was down only 0.1% in July from June. In Annapolis the home-price index was up 1.6% in July 2008 over one year ago and the index was up 1.3% in July over June.

Although the Washington DC metro area S&P/Case-Shiller Home Price Index is not yet out for August or September - it's published with a two month lag - the Baltimore metro area index is down 3.2% in August 2008 over the same period last year and down 3.2% in September from this time last year. The Anne Arundel County home price index is down 5.6% in August 2008 from the same period a year ago and is down 6.1% this month from the same time last year and is down 0.6% from last month. The Annapolis home price index is up 2.3% in August 2008 from the same period last year and is up 1.0% this month and is up 1.1% from last month.

Since November 2007 the Annapolis home price index has been higher than the Washington DC metro area home price index. The Anne Arundel County home price index has been higher than the Washington DC metro index since July 2008. Both remain higher than the Baltimore metro home price index.

All home price indexes are likely to continue to decline as the end of the spring/summer selling season is nearly upon us. As we transition from fall into winter, the presidential election, the bailout/rescue plan, and other national events will all have an impact on local real estate sales. Once upon a time a booming economy bolstered support for a rapidly appreciating local market. Our market has now been relatively level for two years and is position for another period of appreciation once current events are behind us.

In Conclusion

Real Estate Market Assessment

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 16 Sep 2008 18:16:20 -0500

While summer turns fall without fail, there is no sign of change in the local real estate market. Although outdoor temperatures are not nearly as chilly as sellers think, buyers have rarely enjoyed a better climate. Buyers have the upper hand with little competition, lots of inventory to choose from, and government sponsored incentives to name just a few.

In Anne Arundel County in August the total sold volume was down 30.8% from August 2007. The average sold price was down 5.0% from last year. The number of homes sold was 27.1% from last year. The average days on market was up 27.4% from August 2007.

There were 433 units sold in Anne Arundel County in August, up from 411 units sold in July. The number of active listings was 4,601 in August, down from 4,699 in July. The number of new listings taken in August was 861, down from 959 in July. The number of pending sales was 423 in August, down from 462 in July. The average sold price was $376,301 in August, down from $397,081 in July. The average number of days on market was 121 in August, down from 125 in July. The average list price to sold price ratio was 90.60% in August, down from 90.86% in July. Total sales volume in August was $162.9 million, down from $163.2 in July.

In Annapolis in August the total sold volume was down 47.8% from August 2007. The average sold price was down 0.9% from last year. The number of homes sold was down 48.2% from last year. The average days on market was up 21.4% from August 2007.

There were 59 units sold in Annapolis in August, down from 76 units sold in July. The number of active listings was 987 in August, down from 997 in July. The number of new listings taken in August was 170, down from 195 in July. The number of pending sales was 92 in August, down from 104 in July. The average sold price was $461,751 in August, down from $527,212 in July. The average number of days on market was 134 in August, down from 147 in July. The average list price to sold price ratio was 94.74% in August, down from 95.10% in July. Total sales volume in August was $27.2 million, down from $40.1 million in July.

So what can we expect for the fourth quarter of 2008? Inventory, new listings and pending sales will decline. There's no tipping point on the horizon when sales might improve. What has to happen? While the number of buyers in the market remains relatively constant, they believe that homes are overpriced. Sellers should lower their asking price to maintain the best position in their marketplace, take competition seriously and price below homes under contract. When the buyers' perception is homes are overpriced, sellers must price their home to look like a bargain. The lowest price and most favorable terms will result in the fastest sale!

While no one can predict the future with any certainty, one thing is certain; it's a buyer's market. A firm understanding of the market trends and forces is needed to make the best real estate decisions. So, if you are serious about buying or selling a home in today's real estate market, call Stephen Howell, Associate Broker, REALTOR^®, Coldwell Banker Residential Brokerage, at 410-923-3217.

7760 Glen Avenue, Pasadena, Maryland 21122

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 02 Sep 2008 08:04:47 -0500

This custom built 2,800-plus square foot home features four bedrooms, five full baths, five porches, two decks, separate in-law quarters, and 450 feet of rock waterfront, new pier and private boat ramp. Most Updates were completed in 2000. Two parcels estimated at 2.89 acres. Well located close to Rt. 100 for access to Baltimore, Washington and BWI. This unique home and waterfront location cannot be duplicated. It's the only one! Offered at $2,950,000 (AA6855968).

DETAILED LISTING | VIRTUAL TOUR

1001 Round Bay Road, Crownsville, Maryland 21032

Stephen Howell (Coldwell Banker Residential Brokerage) — Tue, 02 Sep 2008 07:56:48 -0500

Live a Chesapeake Bay lifestyle in this 3 BR / 2 BA retreat on a corner waterfront lot and cul-de-sac location. Enjoy an expansive view of Round Bay on the Severn from the house or savor a morning sunrise off the 100' private pier (3 slips - up to 50' LOA and 8' Draft). Extensively updated from the foundation up in 2001. National Flood Insurance Not Needed. Community pier and ramp. Easy access to Rts 50/97, BWI, Washington and Baltimore. Offered at $1,050,000 (AA6844497).

DETAILED LISTING | VIRTUAL TOUR