Rockville, MD –(February 10, 2012) – The following analysis of the Baltimore Metro Area housing market has been prepared by RealEstate Business Intelligence (RBI), and is based on the January 2012 RBI Pending Home Sales Index™ released today.

OVERVIEW
Baltimore Metro Area listing inventory ended January at the lowest level since April 2006, yet new contract activity was 2.5% higher than January 2011. Pricing continued along a stable course with a nominal year-over-year decline but the median sold price for townhouses showed a surprising year-over-year spike of 22.6%.  The market share of foreclosed listings in both sales and inventory continued the previous month’s trend of sharp year-over-year declines. New listing activity continued to decline compared to the same period last year, though there were 16.9% more short sales added in January compared to January 2011.

Read the entire article: Low Inventory Remains the Story in Baltimore Metro Market

• Pending sales increased 16.7%
• Inventory dropped 21.6%
• Months supply dropped almost 25% (5-6 months is considered healthy)

The 2012 Spring selling season will tell us a lot more about where we stand in the recovery. Watch the entire video now.

“In 2011, we’re seeing a lot of first-time buyers re-entering the market. Bidding wars have once again returned; they’re just not as frenzied as they once were,” she says. “You might have two or three people bidding instead of 25. You might have an increase of $10- or $15,000, rather than hundreds of thousands. But they have to be perfect in this market. You cannot just throw anything out there … and expect that there will be people lined up at the door.”

Listen to the entire report.

Housing Recovery At Various Stages Around The U.S.

As of September 2011, the annual rate of change in 14 of the 20 MSAs and both Composites, covered by S&P/Case-Shiller Home Price Indices, improved versus August. Atlanta, Las Vegas, Los Angeles, San Francisco, Seattle and Tampa recorded lower annual declines in September compared to August. Detroit and Washington DC were the only two MSAs to post positive annual rates of +3.7% and +1.0% respectively. Detroit has now recorded three consecutive months of positive annual rates.”

Read the entire S&P/Case-Shiller Home Price Report

This, yet again, underscores the importance of reading beyond the headlines. There is no question that some real estate markets in the US are still in crisis but in the DC/VA/MD regions, we are fortunate to have markets that were strong enough to withstand the downturn relatively well and begin to see a rebound more quickly.

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• View school district and zip code borders within your search results

As we say time and time again, real estate markets are local not national so we will never pass up an opportunity to report not only GOOD news but ACCURATE news for our market here in MD/VA/DC. Down the full report now:

10/25/2011 Case-Shiller Home Index Report

It’s a fact that our market lost 20%+ in home values during the economic downturn but we also enjoy a relatively low employment rate in the Anne Arundel County/Annapolis area and there are tremendous opportunities for just about any level of home buyer.

Located in the quaint, historic town of Annapolis, Maryland, the show features everything from luxurious motor yachts and trawlers to high-performance boats and offshore fishing machines. Although Annapolis is traditionally considered by many to be the sailboat capital of the world, the powerboat show has rightfully staked its place as the premier event for the boating community.

This year there are family cruisers, center consoles, inflatables and the world’s largest power catamaran section. Attendees will also find a wide selection of marine equipment, high-tech electronics, accessories, gear and related services such as boating lessons, rentals, insurance firms and lending institutions.

The 2011 Annapolis Powerboat Show Features:

• Take the Wheel Interactive Workshop including Boat Demos
• Seminars by Chesapeake Bay Magazine
• The Latest in Navigation Equipment and Information
• Trailerable Boats & Inflatables
• Boating Products, Accessories, Equipment & Gear
• Grand Prize Drawing – One week charter in the British Virgin Islands provided by Moorings Charters with airfare sponsored by BVI Tourism Board

Now in its 42nd year, the United States Sailboat Show, October 6 – 10, 2011, attracts more than 50,000 boating enthusiasts from around the world to the waterfront of historic Annapolis, Maryland. This Chesapeake Bay town is also home of U.S. Naval Academy. Recognized worldwide as the premier sailing showcase, this is the place to buy, sell or dream. Even if you’re just mildly curious or just looking for a fun, outdoor event with a classic Annapolis flare, the Annapolis Sailboat Show is a great way to spend an afternoon.

The Sailboat Show is followed by the United States Powerboat Show, October 13-16, 2011. Both shows are the oldest and largest, new in-water boat shows in the world.

This Year’s Annapolis Sailboat Features:

• Daily Seminars by Cruising World and Chesapeake Bay Magazines
• Take the Wheel Interactive Workshops including Boat Demos
• Smaller Boats From One Designs & Trailerables To Sailing Dinghies & Inflatables
• Sailing Equipment, Rigging & Accessories
• Maintenance Products & Services
• Cruising & Vacation Charter Information
• Hottest Domestic & International Racing and Cruising Boats
• One of the Largest Collections of Multihull Sailboats on the Planet
• Grand Prize Drawing – One week charter in the British Virgin Islands provided by Sunsail with airfare sponsored by BVI Tourism Board

With thousands more relocations expected as a result of BRAC and new jobs at Ft Meade, DOD and NSA, the new lower VA funding fees give another boost to an already strong housing market recovery in Annapolis and Anne Arundel County.

The VA funding fee is an important part of the VA loan approval process and is required on all VA loans with one exemption. Any veteran receiving VA compensation due to a service related disability and designated at least 10% disabled would be exempt from paying the funding fee.

The amount of the VA funding fee required depends on the amount of your down payment as well as whether or not you have used your VA home loan benefit previously. It is also dependent on whether you served in active duty, the reserves or the National Guard.

Contact us today to find out how to take advantage of this unprecedented opportunity to buy a home in the Odenton, Crofton, Ft Meade and Annapolis area.

For Loan Limits for your area click here.

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For VA Guaranty Calculations Examples

3 Facts That Will Directly Affect the Maryland Housing Market:

1. Maryland’s current population is roughly 5 million as reported by the US Census
2. Maryland is currently the 5th most densely populated state in the US
3. Maryland’s population is projected to grow by another 1 million people between now and 2035

This has huge implications for the housing market! Whether renting or buying, those 1 million new residents all have one thing in common: they will need housing. And when there is this type of pressure on any housing market, home prices and rents will most definitely go up.

Which brings us back to the current real estate market. Housing prices have likely bottomed out (or close to it) including places like Annapolis, Anne Arundel County and Howard County. 30 year fixed interest rates have dropped below 4%. There are still plenty of loan programs that make it easy for most buyers to purchase a home and own for less than they can rent. With a perfect storm of low prices, low interest rates and pending population explosion in Maryland, there couldn’t be a better time to buy a home.

Buyers have two choices. Become paralyzed by fear based on the generalized economic gloom and doom reported on a national level or have the vision to see this unprecedented opportunity in our real estate market today.

There is opportunity in every market. You just have to understand where to look for it. We’ll close with one of our favorite quotes:

“Be fearful when others are greedy, and be greedy when others are fearful.”
—Warren Buffet