Real Estate Sales on the Upbeat

Real estate sales are on the upbeat all over the nation.  More importantly, real estate sales have risen locally as well.  It is a mixed bag of news on the real estate housing front and too early for any predictions.  At the same time, more and more of the Southern Maryland real estate news is upbeat.
 
The Upbeat for Buyers:

    *      It is still a buyers market.  There is still an oversupply of homes on the market.
    *      Home sales and prices are lower than the same time last year.
    *      Interest rates are still low - last week they fell to 4.6%.  Today's rate: 4.78%.
    *      Lower interest and pricing indicates that it requires about $20,000 less income to buy a home today.
    *      Lower interest rates and pricing means you can save an approximate $500 per month on your mortgage payment for the same house bought a few years ago.
    *      First-time Buyers Tax Credit/Refund is still available.
    *      100% financing is still available for qualifying properties via the United States Department of Agriculture's rural housing development program and the Veterans Affairs loan program.
    *      Lowest prices since 2003 in some areas - The tri-county region experienced a decline in home prices in 2008; statewide homes decreased about 10%.
    *      Foreclosures are up in localized areas.
    *      Affordability index for buyers is up from 46.6% (2006) to 62.2%.

The Upbeat for Sellers:

    *      Inventory is down from a 20 month supply of homes to a 14 month supply.
    *      Waterfront, vacation homes and properties under $300,000 in Southern Maryland are experiencing multiple offers.
    *      Medium sales prices up in Calvert and Charles County - 14% and 4% respectively in March 2009 over February 2009.
    *      The number of homes sold increased more than expected in March over February 2009.
    *      Statewide, sales were up 43% in March over February 2009.
    *      Homes under the $300,000 price range appear to be in recovery.
    *      Lender owned properties are not selling for less than the asking price - banks are willing to wait for buyers to meet their price.
    *      St Mary's and Calvert County home sales are up 28% over last year at this time.

Market Conditions are very local:

    *      The biggest jumps in home sales are being seen in Maryland's D.C. suburbs.  Homes prices fell 15% from March 2008 to March 2009.  However, home prices rose as much as 7.5% from February to March of this year.
    *      Baltimore is still experiencing a downward market; the number of sales decreased by 18.5% in the last year.  Prices decreased 1% in March from February 2009.
    *      Dorchester, Frederick, Howard, Montgomery, Prince George and Washington counties are all experiencing an increase in home sales over the number of homes sold for the same period in 2008.
    *      Statewide sales indicate that home sales have increased over the same period last year.

The market has not bottomed nationally or locally.  However, more and more cities, suburbs and neighborhoods are seeing stabilization.  That is the way the real estate market reaches a turnaround as a whole: one neighborhood at a time.  The bottom of the market cannot be predicated.  However, statistics will tell us when the bottom has been reached about six months after the fact.
 
Low prices, tax credit, low interest rates and buyers willing to buy seems to point to a hot summer in real estate sales when compared to recent years.  As a caveat, I did say it is too early and economic factors are still too volatile to make an accurate predication.
 
Bonnie Augostino, your Southern Maryland real estate expert