BLOG: Severna Park Home Sales Statistics
Even though this winter has been very mild with hardly any snow fall, Severna Park real estate sales remain cool. Just take a look at the link above to see the anemic sales activity for the month of January. Click on the detailed report to the left of the bar graph for a complete breakdown. With interest rates at the lowest possible level this just may be the year to make your move.
With more foreclosures on the way and short sale activities increasing there will be plenty of bargains in 2012. For example I am working with a young couple who continues to rent vs. buy even with secure employment.
Now they want to save for a 20% down payment before they buy. My opinion was that they are better off buying because of the perfect storm that exists today. Depending on how long it takes them to accumulate cash, prices and rates could change for the worst making it harder to buy than it is today.
HUD/FHA still offers a 3.5% down payment program with reasonable underwriting guidelines. Also, the down payment can be a gift from relatives like a rich uncle or grandparent.
So why wait I ask? For the last four years local realtors have been waiting for BRAC to be the turbo charger for home sales and increased values. So the million dollar question is... what will it take to get this real estate market moving again here in The Park?
Mary King
10:38 am on Wednesday, February 22, 2012
Home prices and tax related closing costs make the cost of buying and selling homes in this region prohibitively high for many. Factor in the property taxes on the new home and it often makes sense to stay put and "enjoy" the tax cap. Perhaps it's time to restructure closing costs to get things moving.
David McCollough email: Dave@CBRhomes.com
3:51 pm on Wednesday, February 22, 2012
Great points Mary. At one time, Maryland was in the top 5 of the states with the most expensive closing costs. Buyers can negotiate to have the seller pay all or most of the closing costs depending on the finance program. However, it is still a big expense regardless who is paying it. The tax cap as you mentioned under the homestead credit is a nice benefit to home ownership, but does not do much stimulate home buying.
DioDingo
10:40 am on Wednesday, February 29, 2012
Possibly I have it wrong, but arn't closing costs money given to banks/RE agents/Lawyers to facilitate the transfer of deeds, loan documents and ensure things are on the up. Banks and mortgage originators have shown a hunger for money over accuracy and trust. Agents hopefully are doing their jobs on the up and not helping folks get into homes they wont be able to afford. Lawyers fees vary but the few times I've had closings it seems like $500+ to print some docs and make sure I sign in the write place seems a bit steep. I know we all have to eat but with this last round of crazy sales and foreclosures possibly the closing costs have become as inflated as the housing market. If your business model is based on closing costs then you work only to drive costs and not create value. I know there is a school of thought that believes you raise prices till you cause pain but closing costs have become an issue.
Taxes and other "fees" imposed by the county should also be reviewed. I don't have a huge issue paying taxes and fees as long as the money from them goes to the benefit not to blot or more fees and taxes. Government is a necessary evil, but an evil none the less.