Farewell to 2007 Housing Market in Frederick

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Today is the last day of 2007. We say goodbye to a year that has brought us joy, pain, and all of the other roller coaster analogies you can think of… We have watched the prices drop almost 1-1.5% a month in the housing market. We have watched interest rates have some fluctuation, but still remain at all time low.

The only time mortgages were cheaper than they are now was four years ago, when 30-year rates briefly bottomed out at an average 5.28% — the lowest they’ve been since Interest.com (and its print predecessors) began its weekly survey of major lenders in 1985. (ref: Baltimore Sun)

We have had a gamut of predictions for 2007 and will continue to see them for 2008 from the NAR Chief Economist Lawerence Yun (remind you he is on the payroll to keep the rank and file enthused about the industry.)

“The improvement in the Northeast reaffirms a trend apparent for some months now that shows signs of recovery, noteworthy because that was the first region to slump, and the gain in the West indicates some easing of interest rates for jumbo loans,” Yun said. “Lawmakers need to understand that raising the loan limits on FHA and GSE-backed conventional loans will markedly improve mortgage availability.”

There will always be a debate on the creditability of the predictions, but it is just that a prediction.

Thank goodness for local real estate blogs to provide cogent, pertinent analysis. The credibility of the NAR’s economist is whittled away every day by himself and real analyses. Here is the most recent “forecast.”

The weather man predict the weather everyday, with a little more accuracy, but you get my drift. I prefer to stick my finger out the window to see if it’s raining. Real estate will always be local… (Kinda like what Jim said above.) One of the reasons blogging has become so popular, local REALTOR®, local information and not a pre-empted positive spin. I don’t want to mislead anyone…just calling it like I see it. You may not like what I have to tell you, but you can guarantee it will be what is going on in the neighborhood.

Today, I am not going to stand on a soapbox and make my Real Estate predictions…Because they have been made all year in a previous posts and still stands true today. I especially stand behind this one used from my good friend in Eastern Connecticut, Linda Davis -

I will say that the holidays have helped lower the inventory just a little, but I imagine that all the sellers that pulled out late this fall will try it again in the Spring. Stay tuned for another increase in the inventory. Here are a few tips that still stand true for 2008:

• Casual Dress Friday or is it -Staging your home

• An Open letter to the Sellers in Frederick County

• What is your definition of a bad housing market?

Sellers need to get serious about selling their home. To coin a phrase from another local real estate agent in Bonita Springs – Chris Griffith “You can’t sell a $100 bill for $125!” Pricing is everything. Foreclosures are becoming ramped compared to what we have been used to…this will be affecting your appraisal and what the buyers mortgage will be. Buyers are now more qualified than ever, but they are running scared. Remember this is not day trading, you are buying a home for the long haul. Homes have appreciated for the last 5-10 years. It is only recent homes that were purchased around 2004-2006 that have depreciated when they were sold. Think about it…they unfortunately purchased at the peak of the market…they could have never predicted this quick decline, nor have none they needed to sell so quickly. To create a successful sale, the buyers still need to get off the fence…

Sounds simple enough?

Have a safe New Year Eve and I will catch you back here next year.

Bob is a licensed Real Estate agent in Maryland and Pennsylvania. You can contact him via email at bob@gotbob4homes.com or call him on his cell phone at 240-285-4918.  He has been the Assistant Manager at the Mt Airy office for the past two years. Not only does he list and sell residential real estate, but can help you with your commercial real estate needs as well. He has been a resident of Frederick County for the past nine years.