Market Conditions Frederick MD

Wow…what a whirlwind we are in right now.  Countrywide was on the verge of Bankrupcy and the Feds stepped in and helped bail them out.  I haven’t watched this unfold as closely as a my friend Brian Brady does.  He is known as the Most Opinionated Mortgage Broker.  I listen to him like most investor listening to Jim Cramer on Mad Money.

What I do know…something has to happen now that Federal Reserve Cut Discount Rate to 5.75%.  For a while it was looking like like the rates were going to continue to increase.  This will help the marginal buyer afford the home.  Prices are still coming down in this Real estate slump in some parts of Frederick County but are pretty stable in some areas.  We have an election coming up next year and most people have a feeling of confidence during this time.  I would guess that this will help spark some sales in Real Estate around Frederick County. 

 Here’s some of the activity in the area.  I accumulate these numbers from Metropolitan Regional Information Systems and RealtyTrac.

Under Contract have dipped in the last few weeks…this is normal.  Everyone is finishing up their vacations and getting ready to head back to school.

Foreclosures in Frederick County are steady. 

I will leave you will this…Jim Cramer’s meltdown.  He is so passionate about his theories. 

[youtube=http://youtube.com/watch?v=rOVXh4xM-Ww]

 With all the changes in the market, now would be a time to check back with your lender to see if you can save some money on your mortgage. 

• Preferred Mortgage Lenders in Frederick MD

In-Law Suites or basement apartments – Is this right for you?

I was called today the Frederick News Post.  The reporter was looking for information about housing trends in the area pertaining to In-Law Suites and apartment like setting in the home.  I am actually working with a few buyers that are looking for this type of layout for various reasons.  A young couple tired of paying rent want to follow the American Dream of Home Ownership.  It’s tough in Frederick for a First Time Home Buyer to find affordable housing.  So, one option we are entertaining is to locate a property that already has an In-Law suite or apartment.  This way they don’t have any additional expenses.  Some couples already share their homes with friends to offset the housing expense by renting bedrooms and sharing common areas, but this couple wants their roommate to have a seperate location.   Ideally we want a house with a finished lower level that offers a kitchenette and a bathroom.  Something like this can trim off approximately $800 from their month mortgage, but the down side is that renters aren’t steady.  The new homeowners have to have the ability to maintain the full mortgage with out the help of a renter.  (for extended amounts of time)

Now the other scenario is extended families.  We are starting to see grandparents becoming a more prominent part of the nuclear family.  While everyone loves the convenience of care providers (now that’s both ways childhood and elderly) but everyone still wants their personal space.  This also helps with the financial responsibilities.  Combining families under one roof allows the the older generation the ability to still have the freedom and don’t have to concern themself with the rising cost of property taxes and utilities.  Some of the convenience for the children, they don’t have two houses to maintain.   How many of you are in this situation?   This can be trying if you and your spouse have careers. 

These are some ideas to help you get into the next house, whether renting or need to help take care of mom.   Call you local contractor for ideas on how much it would cost you to convert your basement in to an In-Law Suite…it adds value to your home.

Have a great weekend.

photo courtesy of Jason Casey of his grandmother.

Frederick MD Real Estate Market Conditions

Lets step back and take a look at the overall big picture…national trends. I have graphed Realtor.com traffic for the past year.  You can see we are not near where the traffic was last year.  Now keep in mind this is not exactly a direct reflection of local conditions but is does have a similarity of our market.

Webtrends show us that the interest is not there.  You can see the normal cyclic trends like the week before school starts and Christmas time embedded in the continually dropping traffic trends.   Like I mentioned before in an earlier post our market is moving under $500,000.  However, there are some sparks of life appearing lately above $500,000 that I am seeing in my listings and hearing it through my colleauges.  Maybe we will have a late spring market.   Instead of a chart this week, here is the raw data.   Inventory continues to climb giving buyers more homes to look at…How will your home show?