Maryland Real Estate Trends

The end of 2009 showed that Maryland real estate trends are very positive.  In a nutshell, prices are starting to increase, days on the market are decreasing and inventory is declining.  Buyers and sellers seem to be agreeing to home prices as well, with the average sales price hitting just below 94% of the list price.  This represents the closest gap in over two years.

The price of a Maryland home showed an increase in the 4th quarter of 2009 when compared to the same time in 2008.  It is believed that prices will continue to rise in 2010 as there appears to be more of a balance between what a seller is willing to sell a home for and what a buyer is willing to pay. 

The average days a home is on market before it sells have also declined in the last year.  This means that the excess inventory levels seen a couple of years ago have begun to be bought up.  In fact, Maryland real estate has experienced an average of 5.3 months of listings.  This is below the 6 month average that is considered healthy, indicating that the demand is beginning to become more than the supply on hand.  This could be encouraging news for the construction industry, who will definitely benefit by having to build new homes to meet the rising demand.

Does this mean that the housing crunch is over?  Have we hit rock bottom?  Only time will tell for sure.  However, with the prices beginning to rise, inventory beginning to fall and interest rates still at reasonable prices, you definitely need to look for your Maryland home as soon as possible.  Just let me know what you are looking for and I’ll be happy to help.

Bonnie Augostino, Southern Maryland real estate

Time to Reassess Property Values in Calvert County

It is time to reassess property values in Calvert County.  Why?  The last time property values were assessed was in 2006, at the height of the real estate boom.  Since then, Calvert County real estate values of 98.5% of homes have since decreased in value.  While the county commissioners decided to keep property taxes at $1.026 per $100 assessed value for homes last spring, Calvert County has a 10% cap on how high the property taxes can rise via the homestead tax credit.  To see how this has affected your property taxes, please look at your tax bill from last year.  The amount of your homestead tax credit should be listed there.

While a decrease in Calvert County home values has happened to most residences, this should actually be considered a self-correction of the astronomical home values from a few years ago.  Those prices shot higher than anyone expected and were higher than they probably should have been in such a short amount of time.  Right now, prices seem to be settling naturally back into what they realistically should be, maybe even a little lower.  If you are a homeowner, though, don’t despair.  It is believed that Calvert County home values should be on the rise shortly.  Even if they won’t hit the peak experienced a few years ago, they are expected to start heading higher.

Bonnie Augostino, your Huntingtown real estate specialist

Southern Maryland Interest Rates Are Going Up

All good things must come to an end they say and it looks like that is true when it comes to the lowest interest rates in 40 years.  Interest rates in Southern Maryland and across the nation are on the rise.  Bankrate.com reports that interest rates have risen in the past two weeks from 4.91% to 5.45 percent.  This is the biggest jump in rates in the past six months.  The BaltimoreSun.com reports today’s rate is 5.34% for a 30-year fixed loan.

    * Interest rates are not expected to go below 5%.
    * Interest rates may hit the 6% mark.
    * Interest rates affect your buying power.
    * Interest rates affect you ability to qualify for a loan.

Interest rates are not expected to go below 5%

    * After a quick rise in interest rates, historically, interest rates fall back but only slightly.
    * Economic and mortgage experts do not expect interest rates to fall back below 5%.
    * According to a Mortgage Rate Trend Survey, it is a split decision whether interest rates will even decline slightly in the next 90 days.

Interest rates may hit the 6% mark

    * Bernard Baumohl of Economic Outlook Group states that interest rates could go as high as 6.5% in the near future.

Interest rates affect your buying power

    * A slight increase in interest rates diminishes your buying power by thousands of dollars.
    * Example:

A home purchased for $266,000 with an interest rate of 4.91% equals a mortgage payment of $1414.
A home purchased for $253,500 with an interest rate of 5.34% equals a mortgage payment of $1414.
Your buying power has been diminished by $12,500.

Interest rates affect your ability to qualify for a loan

    * The loan amount you can qualify for is based on your income.
    * Example: Sales price $266,000

At 4.94%, the required yearly income needed is $68,500.
At 5.34%, the required yearly income needed is $71,500.

Homes prices in the tri-county area of Calvert County, Charles County and St. Mary’s County are at the best affordability levels since 2004.  As the housing market stabilizes, home prices will go the way of the interest rates: up.  First-time buyers and repeat buyers can take advantage of the best opportunity in years: low prices and interest rates.

Although, interest rates have gone up, they are still very low.  Anything near the 5% mark is a great rate.  Don’t let opportunity pass you by.

Bonnie Augostino, your Southern Maryland real estate expert

Stimulating Southern Maryland Real Estate

Before I begin, let me say Happy Saint Patrick’s Day to all the beautiful Irish out there and to all the Irish by default (everyone is Irish today).  Now, back to the meat of the matter.  Stimulating the economy and the housing market are hot topics in today’s economic world.  I thought I would share a few things that may help to stimulate the Southern Maryland real estate market.
 
Tax Credit – First-time Buyers:

    *      The tax credit is for first-time home buyers only!  If you have not owned a home within the last 3 years, you qualify as a first-time home buyer.
    *      The tax credit may only be applied to homes that will be your principal residence.
    *      The tax credit does NOT have to be repaid.  The tax credit of 2008, however, must be repaid.
    *      The tax credit is not $8,000 but is equal to 10% of the home’s purchase price with a maximum of $8,000.
    *      The tax credit applies only to homes purchased on or after January 1, 2009.  Escrow must close no later than November 30, 2009.
    *      The tax credit income limits: married couples income limit is $150,000 and single taxpayers income limit is $75,000.
    *      The tax credit has an income limit phase out: for those who exceed the income limit, there is a smaller tax credit.  The tax credit is dependent on the adjusted income.  Please consult with a tax professional to see if you would qualify.
    *      The tax credit will be applied to your 2009 taxes.  Sometimes, the tax credit can be applied to your 2008 taxes.  Consult with a tax professional as to how the tax credit will best benefit you.
    *      The tax credit is refundable.  If the taxes you owe are less than the tax credit, the difference will come to you in the form of a tax refund.
 
Tax Credit – Homeowners

    *      Tax credit applies to homeowners making energy efficient improvements to their principal residence.
    *      Tax credit limit is 30% of the cost of the improvement(s) up to $1,500.  $4,500 in improvements equals a $1,500 tax credit.
    *      Tax credit applies to energy improvements, such as insulation, water heaters, doors, windows, heating and air systems.

Reverse Home Mortgage Loan Limits

    *      Loan limits for FHA-insured reverse mortgage loans was increased to $625,000.
    *      Senior citizens can buy a new home (with equity) with a reverse mortgage loan without having to sell their current home.
 
Conforming Loan Limits Restored

   *       The maximum loan limit for high cost areas has been restored to $729,750.
 
Homeowners Refinance Program – Not Behind In Payments

    *      Homeowners who have less than 20% equity may refinance their loan.
    *      Homeowners may refinance up to 105% of their home’s current value.
    *      Refinanced loans will be refinanced at the prevailing interest rate and terms at the time of the loan.  Currently, loans are hovering near 5%.
    *      Refinance options include a 15- or 30-year fixed rate option.
    *      Refinance loans are intended to lower your payment with a lower interest rate; it will not lower your principal balance or waive any debt.

Homeowners Refinance Program – Behind In Payments

    *      Only applies to the homeowner’s principal residence.
    *      Multi-family units may qualify if one of the units is owner-occupied.  Please consult with your tax adviser.
    *      Applies only to first mortgages.
    *     If a property has a second mortgage, the homeowner can still qualify but cannot refinance the second loan under the refinance program.
    *      Loans must be backed by Fannie Mae or Freddie Mac.
    *      Loans may not exceed current loan limits.
    *      Principal loan balance may be lowered with approval by the lender.
    *      Homeowners may earn a tax credit.  The homeowner must stay in the home for five years.  The maximum tax credit is $5,000.

The information above is a short summary of the various programs and is intended to be straight forward.  However, there may be other qualifying factors.
 
Bonnie Augostino, Southern Maryland Realtor

Huntingtown’s Marching Hurricanes Are Award Winners

The Huntingtown High School ‘s marching band, the Marching Hurricanes, have received top honors again!

On November 15th, the Marching Hurricane became “Gold Finalists” in the Tournament of Bands Atlantic Coast Championship which was held in Allentown , PA. The band placed fourth in their division.

This was the second award won by the Huntingtown High School Band. The Marching Hurricanes also won the 2008 Maryland State Group II – Chapter IV Championship on November 1. The Marching Hurricanes also won this award in 2007, making this their second consecutive win.

Football teams seem to get the glory while the marching bands entertain us during the game. In actuality, these musicians train just as hard or harder than any athlete with a much smaller margin of error.

Athletes can leave the field to the cheers of the crowd even after missing an important play. If a player misses a play, only that player is considered to have given a poor performance and only for that moment. The whole team is not judged by the performance of one player. 

If a musician misses one note, their performance is considered to be poor. If a band member makes a mistake, it is not the musician that receives the “bad mark” but the whole band. Marching bands are judged as a unit (a team) not as individuals. In addition, marching bands are not only judged for their musical performance, but on their visual performance as well.

The recent wins by the Huntingtown High School Marching Hurricane demonstrates that this band knows true team spirit, dedication, commitment and music.

Drum-roll, please… now a great big cheer for an awesome group, Huntingtown’s own, The Marching Hurricanes.

Maryland Provides HOPE With Foreclosure Relief

The State of Maryland is offering hope and possible relief to those currently facing foreclosure.

In a continued effort to keep Maryland families in their homes, the State of Maryland and six major servicing companies have reached an agreement to streamline the loss mitigation process. The agreement comes after months of negotiations with loan servicing companies. AmeriNational Community Services, Citi, GMAC ResCap, HSBC, Litton Loan Servicing and Ocwen have agreed to make their loss mitigation process more responsive to those facing foreclosure.

The servicing companies have promised that homeowners will receive an answer from their loss mitigation departments within 75 days of submitting a loss mitigation package. They have also agreed that in most cases they will halt foreclosure proceeding, and foreclosure penalties will not accrue during the loss mitigation process. The loan servicers may also offer incentives to their staff for successful work-out plans with homeowners.

Maryland ‘s Foreclosure Prevention Assistance Network via “Team Maryland ” (designated representatives of the servicing companies) will be the direct contact point for homeowners in crisis. The agreements will assist the state’s HOPE counselors to increase successful work-out plans for homeowners. The HOPE counselors are a part of the “Bridge to HOPE” loan program. This program provides small gap loans to distressed homeowners at a zero percent interest rate.

Maryland has been working since 2007 to help its homeowners retain their ownership and has lead the nation in creating reforms to battle the rising tide of foreclosures. The state has passed legislation to reform lending practices including a requirement for lenders to verify a borrower’s ability to pay, banned pre-payment penalties, made mortgage fraud a crime, toughen mortgage professionals’ licensing requirements, and extended the foreclosure process to an approximate 150 days. The Washington Post has called these laws “among the most sweeping in the country”.

The State of Maryland is the first in the nation to pass regulations that requires mortgage loan servicers to “a duty of care”. Mortgage loan servicers must now respond in a timely manner to homeowners seeking information and help in regards to their loans. In addition, mortgage servicers must pursue loss mitigation whenever possible.

Mortgage Late? Don’t Wait:
Call “HOPE” at 1-877-462-7555 or visit the website MDHOPE.org Servicing companies manage the loan payments and foreclosure proceedings for the lender. The loss mitigation process is when the lender/servicing company works with the borrower to avoid foreclosure.

Note:

Calvert County’s New School

The long awaited opening of Calvert County ‘s new elementary school is finally here. Barstow Elementary School , will be ringing its bells and opening its doors for the first time on Wednesday (November 5).

Principal Donna House will be welcoming 487 students and 61 staff members to Calvert County ‘s newest school.

Students will feel quite at home in their new surroundings and there should be no interruption in their learning schedules as students and teachers will be moving together to their new classrooms.

Calvert Elementary and Calvert Middle schools have done a wonderful job of sharing their facilities with the Barstow students, as they waited for their new school’s construction to be completed. The cooperative project has been a great example of what we can do when we all work together with a specific purpose in mind. Only, with the cooperation of staff, students and parents could such an undertaking have gone so smoothly.

Opening day at the new school is expected to go as smoothly as the last few months have. Everyone is well prepared and everything is in place. The Barstow staff has been working very hard since last Friday to make the move as easy and seamless as humanly possible.

Although, the staff and students of Calvert Elementary and Calvert Middle Schools will miss their counterparts, everyone is looking forward to the extra space that will be made available when the move is completed. Principal House expressed similar sentiments regarding the parting of the school families but she too is looking forward to the extra space that everyone will now enjoy, with the opening of the new school.

Calvert County Public Schools Press Release

More School News:
Flu Vaccination Clinics
New Secondary Grading Procedures
New CCPS Green School website launched

Local Economy Workshop

The local economy is a concern in every city, town and village through out the nation because our economy, no matter where we reside, is local.

Everyone is talking about the economy. In Calvert County we do more than talk, we take action. 

The Southern Region Small Business Development Center (SBDC) is hosting a workshop, at no cost, to local area business owners. The “Sustaining Profit and Position in a Changing Economy”  workshop will be held this Thursday (October 23) at the Prince Frederick Holiday Inn Express from 8 a.m. to 10 a.m.

The workshop is being sponsored by the SBDC and the Calvert County Department of Economic Development. The focus of the workshop is local retail and restaurant businesses and how they can meet the challenges they are facing in the current economic marketplace

Topics will include:
~ Recapturing the market share when discretionary income is declining
~ Re-examining business priorities and best practices
~ Reassessing opportunities focusing on financial and operational issues
~ Revitalizing sales and services

If you are a local business owner in the South Maryland area, I would encourage you to participate in this free and important workshop. If you are thinking of opening a business this workshop should definitely be on your appointment calendar.

As an aside, remember that, Famous Amos became famous in a very severe recession. Calvert County ‘s local businesses can become “famous”,  leading the nation, with good business practices and sound business principals which will translate into a very sound local economy.

To register for the workshop:
Phone: 301-934-7583
E-mail Maria Dorsett at mdorsett@csmd.edu
Website: www.sbdchelp.com.

Blessings, Oysters and Farms

Two of the many blessings that we can be thankful for in Maryland are the oyster industry and the farms that helped this state to become rich in many ways; from home-grown values to the very basic blessing of providing for our families. Southern Maryland will be celebrating and commemorating several events in the next few weeks.

This week-end (October 4th and 5th) Maryland will celebrate the “Blessing of the Fleet” which will be held at the St. Clement’s Island Museum Grounds in Colton’s Point. 2008 marks the 41st anniversary of this very gala affair.   The Blessing of the Fleet is a dual fold event.

It is firstly, a religious observance that asks for God’s blessing on the boats which will be going to sea in search of the nutritious and wonderful tasting oyster during the oyster harvesting season.

Secondly, the event celebrates and memorializes the birthplace of Maryland, St. Clement’s Island.     

The Blessing of the Fleet will begin on Saturday, at 7 p.m., followed by a spectacular fireworks display. There will be many fun-filled attractions for everyone of every age. Be sure to visit the newly reconstructed Cross on St. Clement’s Island and the Blackistone Lighthouse.

The Fleet has been blessed and now the oyster industry needs to be celebrated. The celebration will be held on October 18th and 19th, the Annual Oyster Festival (St. Mary’s Fairgrounds). There is lots of fun to be had at this event and, of course, there will be an oyster shucking contest as well as the National Oyster Cook-off. The shucking contest will be a free-for-all, followed by a men’s contest and women’s contest. The winners of the Men and Women’s competition will challenge each other later in the day.

The Oyster Festival is truly family oriented with everything from musical entertainment (from Jazz to Celtic), pony rides, a carnival (for the child in all of us) and roving clowns. Of course, no festival is complete without great food. Hmm, wonder what’s on the menu?

In keeping with the celebration of Maryland’s beginning and its many blessings, the Parlett Family will be hosting its 11th annual Farm-Life Festival. On a few rare occasions a year, the Parlett Family opens its 60,000 farm-life museum to the public. October 11th and 12th will be one of those times.

John K. Parlett, Sr, was one of the rare individuals who wanted to share the American farmer’s history with generations to come. With the help of his wife, Kitty, he collected many wonderful and some rare artifacts of Maryland and America’s rural farming community. His collection is one of the finest in the country.  

Whether you are city-bred or country-bred, whether you are young or old, the Farm-Life Festival is a place for everyone to enjoy another fun-filled day and to learn to appreciate the country farmer, who became a model for the world.

How much fun can you have in one month? Well, if you attend these three events you are sure to find out. Of course, the younger set will outdo us of the more mature types by topping off the month when they don the images of their favorite hero, villain or goblin with threats of Trick-o-Treat on Halloween night. Ohh, to be a kid again.

 Note: The Blessing of the Fleet and the celebration of Maryland’s beginnings was was founded by Father John J. Madigan of Holy Angels Church (Avenue, MD)  and The 7th District Optimist Club.

Oyster Related Websites:
Oyster Cook Books
Maryland Oysters–Recipes
Oyster Restoration in Maryland
Sea Grant Maryland

Farming Relatd Websites:
Maryland Organic Food & Farming Association (MOFFA) 
Keeping “Open Space” Open
Community/Agriculture, Farming, Produce, and ArgiTourism …

County Fair, Bread and Puppets

This is a very fun weekend in Calvert County and for all of Southern Maryland. Tomorrow is the official opening of the Calvert County Fair. On Thursday (9/25), the world-famed Bread and Puppet Theater opens at St. Mary’s College.

I am quite proud of the fact that the Calvert County Fair is not only a fun and educational event, but also cares for the needs of our Calvert County residents. The 122nd Calvert County Fair will open Wednesday evening with a special “Feed The Needy Night” Entrance fee is only $1.00 or a can donation (14oz or larger). The main gate will open at 4 p.m.

On Thursday (9/25), the fair will sponsor a free admission and lunch for seniors and the handicapped. Free admission hours are from 10:00 a.m. to 2 p.m. with lunch served at noon.

On Friday (9/26), Calvert County schools will close so that all the children may participate in the Calvert County Fair’s Youth Day.

One event you may not want to miss is the appearance of the former Redskins’ Pat Fischer and Ron McDole, who will be signing autographs on Saturday from 3 p.m. to 5 p.m. There will even be an appearance by Elvis (Joe Godbold). Other events and demonstrations include a baby contest, a prince and princess contest, pie-eating, wood carving, an antique tractor pull and so much more.

Calvert County’s Fair has long roots dating back to 1886. In 1940, the all volunteer Fair Board was established. The goal of the Calvert County Fair is to provide agricultural education, promote local farming and historic preservation.  

In St. Mary’s City, the campus of St. Mary’s College will become the playground of giant puppets when the world famous Bread and Puppet Theater returns.  This event is a combination of workshops, theatrical performance, circus and free bread. The event will conclude with an outdoor performance at 2 p.m. on Saturday (9/27) which is free to the public. The free bread is served to remind those attending that the theater and art is the “bread of life”.

The New York Times has named the Bread and Puppet Theater a “living national treasure” and The Christian Science Monitor is quoted as saying: “To live in America and never see the Bread and Puppet Theater perform is like living in Egypt and never seeing the pyramids.” The troupe has received many awards and is internationally recognized.

It is the combination of the gathering of local talent and the traveling theater troupe that makes this such a marvelous event. In just two short days after attending the workshops and intense rehearsals, the locals and the troupe give their all in the legendary performance of  “The Sourdough Philosophy Circus”.

The local community and college students are invited to become involved in the various workshops and performance. Workshops include puppeteering, music and masked dancing. For information on participating in the workshops and/or seeing the performance you can attend an orientation on Thursday at 7:30 p.m.

The Bread and Puppet theater is quite magical, but the troupe is known for its politically radical view points.  So, attend at “your own risk”.  The shows use dancing, music and old-fashioned slapstick comedy to communicate their point of view.