Real Estate Information

The Baltimore Business Journal reported that the mid-Atlantic housing market continued to show signs of recovery during the second quarter with both sales and prices up.

Rockville-based Metropolitan Regional Systems Information Systems Inc. says unit sales volume in the second quarter was up 60.6 percent from the first quarter, and up 15.9 percent from a year ago. The average sale price in the second quarter was up 4.2 percent from the second quarter of 2009, the third straight quarter prices have risen compared to the same period a year earlier.

Houses are also selling faster, with the average time it takes a listing to sell falling to 56 days, compared to 71 days in the first quarter and 93 days a year ago. That is the fastest houses have sold on average since 2006.

The mid-Atlantic housing market includes: Anne Arundel County, Baltimore City, Baltimore County, Carroll County, Harford County and Howard County.

“While the mid-Atlantic housing market is not yet performing at the robust levels of 2005, it is clearly showing some important signs of recovery that are crucial to reestablishing a stable housing market,” said MRIS CEO David Charron.

The average sales price of a home in Baltimore County was $165,959 in the second quarter of 2010, an increase of 3.2 percent from the 2nd quarter of 2009. The second-quarter 2010 average sales price is down 17.5 percent from a peak in the second quarter of 2008.

Nick Gioia | www.NGRealtyGroup.com

The number of foreclosure filings in Maryland more than doubled in June, while the state’s foreclosure rate also ranked 13th overall for the first half of 2010.

Maryland’s 6,304 foreclosure filings in June was nearly a 104 percent increase from the same month last year, according to report released Thursday by market research firm RealtyTrac. Nationally, the number of foreclosure filings declined nearly 7 percent in June to 313,841.

For the first half of the year, January to June, Maryland’s 28,293 filings was a 56.2 percent increase from the same period a year earlier. That comes out to 1.2 percent of Maryland homes receiving a foreclosure filing during the six-month stretch.

Between January and June, foreclosures jumped 8.3 percent nationally to 1.7 million.

“The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market,” RealtyTrac CEO James J. Saccacio said in a statement.

Nick Gioia | www.NGRealtyGroup.com

Home sales across the Baltimore area continued to increase in June by nearly 9 percent, while median sale prices also took their biggest jump in three years.

During the month, 2,579 homes sold across Greater Baltimore, according to Rockville market research firm Metropolitan Regional Information Systems Inc. That was up from 2,375 in June 2009.

The median sale price in the Baltimore area — Baltimore City and Anne Arundel County, Baltimore County, Carroll County, Harford County and Howard County — increased 2 percent to $255,000. That was up from $250,000 during the same month last year. In May the median sale price dropped more than 4 percent to $235,000.

MRIS’ report comes one day after Clear Capital released data saying the Baltimore area was among two major markets not to see housing prices rise in the past year.

Meantime, the average number of days home stayed on the market in June across the Baltimore area also improved to 100 days, a more than 17 percent decline, according to MRIS.

In Baltimore City, the number of homes sold in June increased 11 percent to 579 compared with 521 during the month last year. But the median sale price of homes fell nearly 8 percent to $143,000.

Baltimore County home sales jumped nearly 1 percent to 681, and the median sale price held steady at nearly $230,000.

Anne Arundel County saw the biggest bump in home sales in the Baltimore area. Sales increased more than 15 percent to 556 in June. The median sale price spiked 5 percent to $325,000.

Nick Gioia | www.NGRealtyGroup.com

           Floor Plans:   First Floor     Second Floor     Basement

The Asssociated Press reported that homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Senate Majority Leader Harry Reid, said Thursday that he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal would only allow people who already have signed contracts to finish at the later date. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the deadline.

Reid introduced the proposal as an amendment to a bill that would extend jobless benefits through the end of November. Joining him were Sen. Johnny Isakson, and Christopher Dodd.

The Senate is expected to take up the amendment next week. Senate Democratic leaders hope to finish work on the jobless benefits bill next week, but they have yet to secure enough votes.

Reid, who faces perhaps the toughest re-election campaign of his political career, represents a state that has the nation's highest foreclosure rate.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

"Time is of the essence," said Lucien Salvant, a spokesman for the group. "It's important for Congress to get this done, because there's whole bunch of loans that aren't' going to close on time."

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

Nick Gioia | www.ngrealtygroup.com

The Baltimore Business Journal reported that a group of green building advocates is opposing plans by Baltimore County Council to change the way the county rewards environmentally conscious homeowners.

The U.S. Green Building Council has launched a campaign seeking to defeat county legislation requiring homeowners to show how much they’ve reduced their energy costs to qualify for a reduction in property taxes.

The county council is scheduled to hold a work session at 2 p.m. Tuesday on Bill 43-10, which is slated for final vote June 7. The bill was sponsored by Councilman Vincent J. Gardina, who could not immediately be reached for comment.

The legislation changes Baltimore County’s current tax credit program, which is based on homeowners meeting standards the building council established called LEED for Homes. The designation, short for Leadership in Energy and Environmental Design, outlines certain steps a homeowner can take to make their properties more energy efficient like installing better-insulating windows or using appliances that do not use as much power to operate.

Meeting LEED does not guarantee homeowners will save a certain percent on their utility bills, which is why council is looking to change the program. Under the proposed bill, homeowners would only qualify for a reduction in their property taxes if the improvements they make to their homes cut down on their energy usage by 40 percent or more. That would be measured not by the green building council but another standard called Home Energy Rating system.

Nick Gioia | www.ngrealtygroup.com

If you're looking to live in an area that features a versatile housing market with an assortment of single-family homes in suburban neighborhoods, charming townhouses and contemporary condos, look no further than the charming community of Reisterstown, Maryland. Like the real estate market, Reisterstown's school districts are exceptional, and the various recreational and cultural amenities abundant. Home prices in Reisterstown are affordable, making this the perfect time to invest in your dream property. Whether you're looking for a historical Reisterstown property or two-story residential home on a tree-lined street in Reisterstown, one of our local Realtors are ready to help you.

History of Reisterstown

The community of Reisterstown was named after German immigrant John Reister, a farmer who founded the town in 1758. John Reister first farmed corn and tobacco in the area, and after seeing that the road alongside the land he purchased was one that was frequented by travelers, decided to open up a successful tavern and inn. Schools in Reisterstown Reisterstown's first schools were private. Franklin Academy became the first public school in 1849 and in 1874, a high school was added making it the first high school in Baltimore County. The building now houses the Reisterstown Library. Today, students in grades K-12 attend Franklin High School, Franklin Middle School, and one of five elementary schools: Franklin, Cedarmere, Glyndon, Reisterstown, and Chatsworth. Private and parochial schools are also readily available to serve the educational needs of students in a faith-based setting. These schools include Chestnut Ridge-Grace (preschool), Hannah More Schools (grades 4-12) and Sacred Heart Parochial School (grades K-8). Recreation Residents in search of recreational opportunities don't have to go very far as Baltimore County is rich in parks, history, and recreational areas. If you're looking to quietly observe wildlife anytime throughout the year, then check out the Gwynnbrook Wildlife Management Area and its many miles of wildlife viewing areas and nature trails. The 17,000-acre Gunpowder Falls State Park and the Soldier's Delight Environmental Area provide visitors with a number of iron ore pits, wooded nature trails, a marble quarry, meadows and streams. Historical sites in the area are numerous and include the Fort McHenry National Monument and Historic Shrine, Hampton National Historical Site and Rockburn Branch Park. Reisterstown's real estate market is diverse and affordable, not to mention architecturally charming with countryside, American, traditional, and contemporary styled homes dominating the market. Prices for single-family residences in Reisterstown can start as low as $150,000 for charming starter homes on treed lots to the $500,000s for a 4 bedroom/2.5 bath home. Reisterstown homes in the low $600,000 range are usually multi-storied, grand, made of brick and stucco, and are usually located in a quiet suburban neighborhood. Homes that start from the $850,000 to $2.5 million range are usually historical properties and contemporary estate homes in exclusive enclaves. Townhouses and condominiums are also available for purchase throughout Reisterstown, with prices starting from the $112,000 to $385,000 range.

Are you interested in Reisterstown, MD homes for sale? Top real estate agents with the NG Realty Group of Remax Sails will provide you with any information or assistance you need with buying or selling your home.

Nick Gioia | www.ngrealtygroup.com

Fannie Mae is using a new addendum for their REO properties.  What shocked me is that some REO agents did not even know about these changes in Baltimore. 

As you may know all banks use their own addenda for REO sales.  For many years now Fannie Mae has been using basically the same addendum which stated that the buyer MUST use the seller's title agent and that the cost of transfer taxes and stamps would be borne in full by the buyer.  Fannie Mae is in fact EXEMPT from the payment of transfer taxes and stamps, although some local jurisdictions push the entire burden on the buyer without taking the exemption into account.   The burden on the consumer for the payment of all transfer taxes and stamps, as you might imagine, can sometimes make or break a deal.

The addendum has been dramatically changed in that it now states "The closing shall be held at a place so designated and approved by the Purchaser".  This is an absolute turnaround from previous versions wherein it stated that the purchaser MUST use the seller's title agent! Additionally, the contract no longer states that regardless of local custom Fannie Mae will NOT pay any portion of the transfer taxes and stamps!  These two major changes have long be awaited by those of us who do REO work in Baltimore, Maryland.

The net effect of this new addendum is that the buyer can now make his/her own selection as to title agent and will then be better protected against any prior title defects.  The fact is that the seller's title agents do not do 60 year title searches because they are not required to.  In most cases, the title agent who is "representing" the seller is merely acting as a liaison between Fannie Mae and the buyer.  Even in cases where the seller's title agent is doing the closing they still don't do a full title search. I have been told time and again that the only thing they (the seller's title agent) do is to get the title report from the foreclosure attorney who has reviewed title from the date of the foreclosed deed of trust forward.

CLICK HERE to view the new Fanne Mae Addendum

Additionally, and most importantly as far as the consumer is concerned,  is that Fannie Mae will split the transfer taxes and stamps, AND, they won't use those transfer taxes and stamps costs as part of the buyer's closing cost credit!! This is a huge win for the consumer.

You may ask why did they change their addendum? The obvious answer, from a buyers perspective, is that there are more Foreclosures on the market and they wanted their properties to be more desirable to buyers. Unfortunately, the truth is that Fannie Mae is now trying to market their properties through REO agents and www.homepath.com for TOP Dollar to Home owners. As a common practice, over the first 30 days of a listing, they will reject all offers below list price - No Exceptions. That's right Reject! So if you are looking for a deal, don't expect to find one listed with Fannie Mae. On the 60th day Fannie Mae has started to co-list their properties on the MLS and with an auction house similar to Hudson & Marshall. The catch, if you are the listing agent, is that you have done all the pre-marketing and property management for the last 6+ months and the auction company gets the commission. The agent does NOT even get so much as a thank you. Buyers are still able to post a pre-sale bid with the auction company, but their pre-sale floor is usually 95% of list sale price. 

It should also be noted that they have started to put deed restrictions on Investor non-owner occupant deeds. The restriction is as follows: "This deed restriction applies to non-owner occupied purchases. Buyer is restricted from selling/encumbering property for more than 120% of purchase price for a period of 3 months from date of close."

Nick Gioia | www.NGRealtyGroup.com

The Baltimore Business Journal reported that sales of existing homes in April were up 7.6 percent from March, led not only by the homebuyer tax credit, but by improving consumer confidence and favorable affordability conditions, according to the National Association of Realtors.

Compared to a year ago, existing home sales were up 22.8 percent!

In the NAR's South region, which includes Baltimore County, Baltimore City, Howard County, Harford County and Carroll County, existing home sales increased 8.6 percent and were up 23 percent from a year earlier. The median price in the region was up 1.2 percent to $150,000.

In the Baltimore City and Baltimore County, the median sale price rose 1.5 percent to $245,900 year-over-year. Sales grew 34 percent compared with a year earlier.

"The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, bit other factors are supporting the market, " said NAR chief economist Lawrence Yun in a statement. "For people who were on the sidelines, there's been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low."

While sales rose sharply nationally, the number of homes on the market also rose, with total housing inventory at the end of April up 11.5 percent.

The NAR also notes rising prices, saying median existing home prices were up 4 percent from April 2009. Foreclosures and other distressed sales accounted for 33 percent of sales in April.

The biggest jump in April prices was for condos, up 9.1 percent from the previous month, according to the NAR.

The biggest month-over-month increase in sales regionally was in the Northeast, surging 21.1 percent.

Nick Gioia | www.ngrealtygroup.com  

In Maryland, there seems to be some confusion about what the phrase “as is” means in practical terms in a real estate sale.

You’ll see “as is” with an increasing number of listings on the MLS as more and more homes are hitting the market either as short sales or as REO sales.

Here’s what an “as is” typically means in actual practice: the seller will not make any repairs to the property nor will the seller credit the buyer at closing for physical problems that may be uncovered during the home inspection.

So your analysis as a buyer is very simple: if a home has been neglected and the listing says “as is”, you’d better plan on handling repairs at your own expense after the closing when you are the owner.  (There are ways to finance repairs; Section 203K loans are a good avenue to explore with certain ‘as is” sales.)

To help clear up what seems to be widespread confusion about what an “as is” listing entails, here’s a review of what an “as is” sale does NOT entail in Maryland:

1. “As is” does not relieve home sellers of the obligation to truthfully reply to buyers’ questions about what the sellers knows about the home.

2. “As is” does not relieve listing agents from complying with Maryland  laws requiring an agent to disclose to buyers information the agent knows about the property that might reasonably be deemed to be material to a buyer’s purchase decision making.  Note that with bank owned homes (REO sales), the bank (and hence the listing agent) rarely knows anything about the property, so you’d best perform a lot of buyer due diligence with bank-owned homes.

3. “As is” does not prohibit buyers from inserting a home inspection contingency into a purchase offer.  Home inspections can be conducted and sale agreements may be terminated pursuant to a home inspection contingency, just as with any other home purchase.

So with an “as is” listing, by all means get a home inspection.  Just understand that “as is” typically means the seller will not undertake repairs, so if your inspector finds expensive defects, you’ll most likely have to terminate, get your deposit money back and move on to another home.

Here’s a complication with REO (bank-owned) sales: often during the cold months of the year, the homes have been“winterized” (water and utilities turned off, water pipes drained and often filled with anti-freeze.)  So there is no way to do a complete home inspection without “de-winterizing” the home and then re-winterizing it again once the inspection is done – a very expensive proposition that lenders frown upon (if not outright bar) and thus not very practical.

Nick Gioia | www.ngrealtygroup.com