In the first eight months of 2008, one hundred fifty seven (157) homes were sold in Caroline County, Maryland.  That compares to two hundred twenty four (224) homes sold during the same period in 2007 and to three hundred four (304) homes sold during the same period in 2006.  So, that equates to a drop of about 29.9% from 2007 to 2008 and about 48.4% from 2006 to 2008.  That's huge for each of the last two years! 

When will home sales pick up again?  Interest rates are still very good. The absorption rate for homes in Caroline County, Maryland, reveals that with 502 homes on the market there is over a 25 month supply of homes to be sold even if no more homes come on the market in the next 25 months.  Wow.  Given that there "will be" additional homes listed in the coming months you obviously get the picture that there is an abundance of homes on the market in Caroline County and thus . . . it's still a Buyer's Market.  Home prices have dropped significantly and seem to still be on a slow downward spiral in Caroline County, MD.  That will be a topic for my next blog.

Call me or email me if you have questions about these home sale stats or if you would like additional information about the home sale market in general on the eastern shore of Maryland.

Military personnel moving to the area who will be stationed on the western shore of Maryland or those who already are stationed there may find it advantageous to buy a home on the eastern shore of Maryland and commute to the western shore given the cost differential in homes.  Again, home prices on the eastern shore and more specifically in Caroline County, MD, will be the topic of my next blog.

* Stats obtained from MRIS MLS data only. There may have been additional sales between private individuals which were not included in the MLS data and thus not included in my stats above.

Military people and others who own property in Maryland but who have residency in another state . .  They did it again!  Effective July 1st, 2008, the non-resident "withholding tax" for individuals is increasing again. This time, it's going from 6.75% to 7.5%. This is on top of the state and county transfer taxes. If you sell property in Maryland and you are a non-resident owner your gain on the sale will be subject to the tax. If you sell real estate that's titled in your non-resident business' name the withholding tax is 8.25%.  Wow! You can complain to Maryland legislators but it doesn't seem to matter. Just about every tax in Maryland has increased in the past year. 

Maryland increased its Non-Resident real property transfer withholding tax, effective January 1, 2008, from 6% to 6.75 % for individuals and from 7 % to 8.25 % for corporations.  If you own real estate in Maryland but you are not a Maryland resident when you sell it you are subject to this tax.  There are some ways around this tax but they are few and far between.  I sold a big farm a while back when the tax was 6 % and the seller almost had a heart attack when he saw the withholding amount.  Maryland increased just about every tax one can think of in the past year.  Is Maryland becoming a business "unfriendly" state?  Time and the tax man may show us ! 

Has anyone ever heard of a Sook?  I grew up in South Dorchester County, in Maryland, and my father was a waterman.  In the Fall of the year he would always catch loads of female Blue Crabs that the local people call "Sooks."  I have heard the word "sook" locally, in Caroline County too. Ever hear of a Sook?

 

Home Sale Stats for Caroline County, Maryland, and the Denton area 21629, comparison for August 2007 vs. August 2006:  These stats were obtained from the MRIS MLS system only.  Actual home sale numbers are probably somewhat higher if private sales and sales through other MLS systems are factored in.  Though MRIS is the primary MLS system for the area some sales were probably processed through the TREND, INNOVIA, and ARIS MLS systems and there were probably a couple of for-sale-by-owner transactions.        * This is not a scientific study.  All figures and comments are subjective.

Per MRIS data, in August 2007 there were 28 home sales in Caroline County.  The average sales price was $225,885 and the average Days on Market were 176.  In August 2006, total home sales were 51, the average sales price was 281,704, and average days on market were 138.  This represents a 45.1 % decrease in the number of homes sold, a 19.8 % decrease in the average home sales price, and an average days on market increase of 27.5 %, over a one year period.

Will home prices continue to decline?  My feeling is that as long as the media continues to tout negative real estate stories prices will continue to adjust in the near term.  My opinion is that the media plays a big role in public perception of the real estate market and it may in fact foster a self-fulfilling prophecy about real estate market woes.

The reality is that now seems to be a good time to buy a home.  Mortgage interest rates are still very reasonable and there are so many homes for sale that the market in this area is definitely favorable to Buyers - a "Buyer's Market."  Will interest rates stay low and home prices continue to decrease.  It's anyone's guess.  Why take a chance?  If you see a home that you really like and you can afford to buy it now, why not buy it?

Mickey Hayward is a certified residential specialist (CRS), a graduate of the REALTOR'S© institute (GRI), a Seniors Real Estate Specialist (SRES) and a Maryland and Delaware Real Estate Broker.  His office is located at 110 Market Street, in Denton, Maryland 21629. Websites:  http://www.mddehomes.com/        http://www.sunsetproperties.net/  Maryland and Delaware For Sale By Owner:  http://www.mddefsbo.com/

After a very hot and humid summer that produced a terrrible drought in this area the rain and cool weather have arrived.  This morning the red line on the thermometer just outside my window was peaked at a very nice 47 degrees.  We actually had rain again a couple of days ago which has been a stranger here in Greenwood, Delaware, and in surrounding counties (Caroline County, Maryland and Kent and Sussex County, Delaware) this summer.  My next door neighbor is a farmer and for the first time in more than 50 years that his family can recall, his irrigation pumps could not get a prime to pump water.  As a result, his crops and many others were devastated in this area.  How many of you experienced a similar summer?        

After a dry spell around the holidays the phones are starting to ring again.  If anyone has a buyer who is looking for property on the Eastern Shore in Maryland or in Delaware or a Seller who is looking to sell on the Eastern Shore of Maryland or in Delaware I will gladly pay you a referral fee once your referral person buys or sells.  Call me or email me any time.  If you are a buyer or a seller I can help you on the Eastern Shore in Maryland and in Delaware.  I am a member of three MLS systems which cover both states fully.  My marketing is second to no one's.  - Mickey -