Real Estate Information Archive

Charles County home values continue to be in a state of “free-fall” in spite of optimistic projections that March real estate statistics would be more favorable than in the preceding quarter.  There continues to be an overall supply of inventory in Charles County that extends more than 13 months. The surplus of supply, increased by 11% during the month of March, adding further pressure to already falling prices. 

Hardest hit price points seeing the most price pressure, as well as days-on-the-market, are homes priced over $400,000, where there is a 26 month supply of inventory compared to the rate of sale.  Homes priced at $600,000 and above saw no sales activity during the month of March. Homes priced between $200,000 and $400,000 are sitting in a 14 month supply of inventory.  A healthy real estate market sees an inventory of 3-6 months. Only one category is currently considered healthy which are homes priced below $200,000, where there is a 4 month supply of inventory, creating multiple offer situations.  This category is largely investor driven due to the fact that rental prices and monthly mortgage payments have equalized.  While this may seem to be a silver-lining, an overwhelming majority of these homes are Bank-owned foreclosures, and are not producing any move-up buyers to stabilize home prices over $200,000.

The median sales price also continues to fall.  The largest drop of the first quarter was seen during the month of March, down 9.2% over last year, and down 8.6% year to date.  The median sales price currently stands at $270,000.  For prospective purposes, a house valued at $400,000 a year ago, now hold s a value of $365,600, according to current market statistics.

Another noteworthy statistic is the average sales price as a percentage of the average list price, which currently sits at 87.76%.  For prospective purposes, a home is listed at $300,000. Market statistics tell us that a buyer will end up paying $263,280, which is 12.24% below the original list price.

While this is a difficult market to be selling a home in, it has never been a better market in which to buy a home. First time home buyers are receiving an $8,000 tax credit, interest rates are as low as 4.5%, and Government money from the Housing Relief Fund will soon be hitting Charles and St Mary’s Counties creating down payment assistance for specific Bank-owned properties. Details are still emerging on this program which was expected to be released at the beginning of April.

There remains a strong demand for affordable rental properties which have seen little to no negative impact on monthly rental rates, creating a comfort-zone for investors.  The quickest moving rental rates are $1,800 and below, and most affordably priced rentals are seeing occupancy within 30 days.

Rachel DeHanas, Broker/Owner of DeHanas Real Estate Services in Waldorf is proud to announce the affiliation of Liz Benitez.  Liz has joined the DeHanas Team as a full time, full service Realtor, servicing home buyers and sellers in Southern Maryland.

Liz was born and raised on a small family farm in southern California. She has moved across the US five times in support of her husband’s military career. Prior to real estate, Liz was a full-time mother and CEO of her home. She has two kids in the Charles County School system, works with children every Sunday at her church, is an assistant coach in the Waldorf soccer club, and Cub Scouts den leader for pack 901. Liz understands the need to have a home where a family can grow and find comfort. Her experience in military relocation is invaluable.  

DeHanas Real Estate Services is family owned and operated, and has been a leader in Southern Maryland Real Estate for more than a decade. The DeHanas Team not only services Southern Maryland home buyers and seller, but also is licensed in Virginia and Washington DC.  For a free home buyer or seller consultation, please call The DeHanas Team today at 301-870-1717 or 800-842-0190.

The answer to that question depends on your unique situation.  For the first two months of the year Charles County homeowners overall are seeing a decline in property values again this year. Multiple Listing statistics place the decline, year-to-date, at -8.6% compared to this time last year.  A home for sale in a healthy market is on the market between 3 and 6 months. The overall Supply and demand ratio for Charles County suggests a years worth of inventory is currently on the market, with a move towards more supply than demand by 2.5% per month.  Homes priced at over $500,000 are siting in an inventory that will last 7 years at the current rate of sales.

There is however a silver lining in all this not-so-good news.  The homes priced below $200,000 in Charles County and most of Southern Maryland are seeing multiple offers. Mainly we are seeing investors making these purchases.  When a homes value reaches a price point equal to what you might pay in a monthly rental fee for that home, it is considered a good investment.  There are many of these home now available, and many of them are Bank owned or pre-forclosures, also known as short sales.

According to Realtytrac.com more than 100 homeowners every month in Charles County Maryland are receiving Foreclosure notices.  There is a huge need for affordable rental homes and the investors are answering that call.  DeHanas Property Management has seen a dramatic swing in the number of rental applications from prevcious homeowners who have lost their home to Foreclosure.

OK, so I have gotton off track, but my point is, the market is still moving, and perhaps the beginning of the end is rearing its head.  The trickle up affect will begin once we have cycled through all of the inventory of Bank owned properties.  This is a very good sign and once that has been long awaited.

There is much in the news today about the effects the housing market is having on the recession, but there are a few facts that are often overlooked by the media.

While it is true that the median price of an existing single family home actually did drop by 1.8% from 2006 to 2007, it is important to put it into context. Over the previous six years, the typical length of time an owner stays in one home, the median price has risen nearly 40%. Those owners simply gave back a small percentage of that gain, still leaving them with a very handsome appreciation rate.

Mortgage interested rates today are hovering around 5.5% and lower, about the same as they were 45 years ago. Interest rates on fixed rate and adjustable rate mortgages have been trending down. Falling rates do not portend a recession.  Interest rates on jumbo loans, however, remain well above the conventional mortgage rates, as they are above the Freddie Mac and Fannie Mae limits. Therefore, it isn’t surprising that the share of single-family homes selling for more than $500,000 fell to 12.4% in early 2008 from 14.2% just a year earlier.  This could also account for some of the drop in the median price over the past year.

Low mortgage rates trump the job markets during a recession. The last recession was in 2001 and the Federal Reserve was cutting rates, and mortgage rates were falling. As a result, home sales began to rise sharply.

Past deep housing recessions were accompanied by prolonged job losses and rising interest rates. We have falling interest rates today.

The economy added about 4 million jobs over the last two years preceding the recession. Household formation is about half of what it should be given the employment growth, which indicates that many buyers are sidelined now.

When the housing market begins to recover, this will signal the beginning of the overall economic recovery. We have historically low interest rates, while higher interest rates have been characterized in past recessions. The National Association of Realtors predicted economic expansion to slow in 2008, but the bottom line is, with lower interest rates we are likely to avoid a deeper recession.

For information about real estate trends in your local community, please contact your local real estate experts; The Rachel DeHanas Team at 301-870-1717 or 1-800-842-0190, or visit their website at www.DeHanas.com.

A Realtor is a licensed real estate professional who is a member of the National Association of REALTORS, The Voice For Real Estate, and subscribes to its strict code of ethics and standards.

The term Realtor is a registered collective membership mark that identifies a licensed real estate professional who is a member of NAR.

There are approximately 2.6 million licensed real estate professionals in the United State, but only 1.3 million are REALTORS. NAR membership is composed of residential and commercial REALTORS who are brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry. There are more than 1,400 local associations and boards and 54 State and territory associations of REALTORS. Members join NAR through their local Realtor association.

The term “Realtor” and REALTORS” is not synonymous with “real estate agent” and “real estate agents”. The NAR code of ethics obligates REALTORS to be honest with all parties involved in a transaction, whether buyer, seller or cooperating agent. The Code requires REALTORS to identify and take steps to illuminate practices which may damage the public or which might discredit or dishonor the real estate profession.

REALTORS must take a refresher training course and pass an examination on the CODE of Ethics every four year cycle. Real Estate licensees who join NAR are required to take orientations classes on the code.

The role of REALTORS in our communities goes far beyond the real estate transaction process of buying and selling. As local business owners and residents, REALTORS are vested in building healthy and vibrant communities across the country neighborhood by neighborhood.

REALTORS across the country participate in many several NAR programs that improve our communities. The Housing Opportunity Program provides tools and recourses for promoting affordable housing at local, State and National levels. The Good Neighbor Awards honor REALTORS who have made an extraordinary commitment to improving the quality of life in their communities through volunteer work.

State and local Realtor Associations also initiate community projects of their own to improve the communities in which their members work and live. Many REALTORS work with local and State Habitat for Humanity Programs, food drives, and A Day For Caring programs.

For more information about public outreach and community programs sponsored by the National, State or Southern Maryland Association of REALTORS, please contact The Rachel DeHanas Team at 301-870-1717 or 1-800-842-0190, or visit their website at www.DeHanas.com.

Don DeHanas, Associate Broker with DeHanas Real Estate Services in Waldorf, recently returned from one of the most educational courses pertinent to our times, ‘Becoming an expert in helping home owners  avoid Foreclosure’. Presented in a comprehensive three-day course by the Distressed Property Institute, in Orlando, Fl, this course is updated daily to include all of the latest changes from mortgage companies and government laws and bills. DeHanas has earned his designation as a Certified Distressed Property Expert or CDPE, specializing in the short sale process. 

“A staggering 1 in 10 home owners across America is facing Foreclosure and that figure is likely to go up. Out of necessity, I became a short sale expert”. Says DeHanas. “One of the most difficult times a family endures is financial crisis, and when I am able to help a family avoid Foreclosure and further crisis, it is the most satisfying feeling to have. The best case result is that the family gets to keep their home, and not have to relocate. My affiliation with the Distressed Property Institute has provided me countless avenues in which to advise my clients. It helps me keep up with the latest information, and has armed me with the tools to properly execute a successful short sale transaction for both buyers and sellers. There are no second chances when it comes to keeping a home from foreclosure, and entrusting this transaction to an expert who is completely familiar with the ins and outs of the process, and who possesses knowledge of “insider-tips” is essential.”

 There are many reasons to avoid Foreclosure. One of the greatest myths is that foreclosures and short sales are the same. This could not be further from the truth.  A Foreclosure is one of the credit report items that is almost impossible to repair. In most cases credit scores will be lowered by more than 300 points. Security clearances and government positions, including, but not limited to, military and law enforcement, can be jeopardized by foreclosure, adding loss of job on top of loss of home. 

Don DeHanas is also a graduate of the Realtor Institute. He has been a resident of Southern Maryland since 1968, a graduate of La Plata High School, and Towson State University.  DeHanas Real Estate Services is a family-owned company licensed in Maryland, Virginia and Washington DC, specializing in residential real estate services.

STEPHEN NICHOLS JOINS DeHanas REAL ESTATE

Rachel DeHanas, Broker/Owner of DeHanas Real Estate Services in Waldorf recently announced the affiliation of Stephen Nichols with The DeHanas Team, adding to the teams cadre of Realtor Specialists. "We are very pleased to welcome Stephen to our company. His enthusiasm for helping people is very evident when you meet him. He has a very outgoing personality that makes for a perfect fit to our family team", says Rachel.

Nichols says, "I chose to work with The DeHanas Team because of the warm and friendly atmosphere, as well as their business-like approach to selling real estate. Their systems for seamless real estate transactions are innovative and cutting-edge. I couldn't think of a better company to work with".

Stephen has lived in Southern Maryland nearly all his life. He attended Lackey High School, Prince George's County Community College, and is currently attending University of Phoenix where he is finishing up his business degree. He has over 20 years of experience in the hospitality industry which enables him to provide a high level of customer service and satisfaction to exceed his clients expectations. Stephen's office is located at DeHanas Real Estate Services in the St Charles Town Plaza, next to JoAnn Fabrics.

DeHanas Team Participates in National Conference with

Top Real Estate Minds in the Industry

Rachel DeHanas, and The DeHanas Team, of DeHanas Real Estate Services in Waldorf recently returned from attending the top educational opportunity offered in the real estate industry—the Star Power Annual Conference, in Orlando, FL.

Presented by internationally acclaimed educator and trainer Howard Brinton, this conference brought together over 1,800 of the most progressive, forward –thinking professionals in real estate today to share their methods of success. The DeHanas Team were a part of the faculty, which consisted of 170 of the continent’s top-producing real estate professionals, all ranking in the top 1% of all Realtors in North America.

The DeHanas Team was inducted into the Star Power faculty in 2001, and have since been teaching other Realtors across the country on various topics, including the Art of Negotiating a contract, Building a business plan, Advertising techniques that work, and Systems to keep you organized.

Rachel DeHanas, Broker/Owner of DeHanas Real Estate Services, had this to say about the Star Power Conference: “This experience allows me to continually build a tremendous network for referring my clients to the best agents all over the country when they are considering a move or looking to buy a second home. I also receive invaluable insight on the benefit of operating from a business philosophy and incorporating the latest technology to keep on the leading edge.

The DeHanas Team is providing consumers with a free Home Buyer or Home Seller guide, developed through this conference. Included is information on hiring and evaluating a real estate professional, and how to avoid costly mistakes when selling or buying a home. Anyone wanting a free copy may contact DeHanas Team via e-mail at homesales@DeHanas.com, or by phone, 301-638-3443.

The DeHanas Team has been Southern Maryland’s leading sales team for more than a decade. They specialize in residential home sales, new construction, Foreclosure sales, short sales, and bank and government owned properties.

As reported to me by the Southern Maryland Association of Realtors, the Charles County Commissioners, during a recent budget meeting have preposed to increase the environmental impact fee, which will show up in your property tax bill.

What is an environmental service fee?  Its a fee for the County's recycling and stormwater management maintenance programs and is included on the homeowners' property tax bill.  It is shown on the bill with the designation ESF.  The fee is currently $62.00 per year.

After many questions of staff and a great deal of healthy discussion at the Commissioners' FY08 budget worksession held on Tuesday, the Commissioners agreed to take forward to the public hearing on the FY08 Budget a proposed increase of this fee to $65.00 per year.

Homeowners can find their property tax bills on-line by visiting the Charles County website at:

http://www.charlescounty.org/treas/taxes/index.html#realproperty

Click on property tax inquiry, and follow the instructions given to search for the tax bill.  A detailed breakdown of a property tax bill in a given year may be found by clicking on the year.