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Community Leaders Have a Duty to Responsible Reporting

Thursday, October 29, 2009

by Don DeHanas, Associate Broker

In response to the Maryland Independent article dated October 28, 2009, “Sale in the News at Summit”, Steve Griessel, the developer of St Charles communities, was quoted as saying “the housing market collapse had been less severe in St. Charles than in Washington DC or the Nation as a whole”, and that “foreclosures are a complete nonevent for us”. It amazes me that anyone would make such an unsubstantiated, off-the-cuff statement belittling the plight of so many families in Charles County that are in fact, losing their homes. And for others, foreclosures have resulted in dramatic devaluation of our homes.

According to First American Core Logic, a company who provides information to the Multi Regional Information System, there are more than 950 homes in Charles County, currently in some state of Foreclosure. There are as many as a 100-120 new defaults in the county each month according to data from Realtytrac.com.

Ironically, this article came out on the same day as WTOP News broke an article titled “New Flood of Foreclosures Likely to hit Area”. The article cited research from the Urban Institute on the study of housing in the Nations’ Capital where Charles County ranked number two, behind Prince Georges County in the percentage of foreclosures during the month of June. Further, in July and August the number of new foreclosures outpaced the number of total home sales by 10%.

Everyone in our community continues to be impacted by home foreclosures. Property values are still declining, and jobless rates continue to increase. We are not looking into someone else’s back yard. This is happening right here at home. Community leaders have a responsibility to report accurate information. Misstatements of this kind like the one made by Mr. Griessel, will only undermine the importance of finding a resolution to our current housing crisis.

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Tax Credit Extension Looks Promising

Wednesday, October 28, 2009

by Don DeHanas, Associate Broker

Top Democrats in the Senate have reached an agreement to extend the soon-to-expire $8,000 tax credit for first-time homebuyers, Senate Banking Committee Chairman Christopher Dodd said Tuesday. Dodd did not offer any details on the extension, but said that “it was done”.

As part of a package that would extend unemployment benefits, the vote is expected Tuesday evening. According to a top Republican, there is still some negotiating to be completed on the proposal.

The popular tax credit, which has helped lift the housing market out of its worst slump since the Great Depression, is set to expire on Nov. 30, 2009.

Dodd and Republican Johnny Isakson want to extend the credit through June of next year and broaden it to anyone buying a primary residence, not just first-time buyers.

Senate Majority Leader Harry Reid had backed a narrower version which would extend the full credit through March and gradually phase it out through the end of 2010, through decreasing increments of tax credits. Dodd said that the deal would merge the two proposals.

The next stop for this bill would be the House, which has yet to discuss it.

According to the White House, an extension of the credit would cost tax payers as much as $1 Billion.

An extension of the tax credit, as well as extending it to all purchasers and not just first time home buyers would, in all likelihood, would put an end to the current housing crisis. Should this bill not be passed, the housing market is likely to continue to see a flood of foreclosures for several more years.

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$8000 Tax Credit Extension

Monthly Real Estate Market Report - September

Wednesday, October 14, 2009

by Don DeHanas, Associate Broker

The real estate market outlook, based on results for the month of September 2009, remains fairly consistent with the findings for the month of August. There were 119 homes sold in Charles County during the month of September compared to 115 homes sold in August. While the number of transactions was about the same over the previous month, when we saw a 20% increase in sales activity over August of 2008, the number of sales transaction actually fell over 10% in September compared to September of 2008.

On a very positive note, the decline in the average price, while still down, rose from -22.57 in August to -16.39 in September. We are also seeing an increase in the amount of homes selling in the “over $400,000” price range which has been lack-luster for most of the year. I have been in several $400k+ transactions this month where there have been multiple offers. There is an article on Yahoo News indicating homes that are priced correctly to the market are seeing multiple offer situations, and I can verify that to be the case.

Inventory remains consistent and unchanged compared to the data for August 2009. Out of 1274 listings Active on the market, 256 new active listings were added during September, and there were 166 new contracts pending, which is down slightly from August.

As for properties in Foreclosure, Realtytrac.com reported 181 new properties in default for the month of September in Charles County. The rate of new defaults continues to out-pace the total monthly rate of sale, which is an ongoing trend. The total number of properties in Charles County that are in some state of Foreclosure (including Bank-owned) has remained steady at 942 properties, compared to 938 during the month of August. The number of properties in a state of Foreclosure continues to be of concern, and all these numbers are not reflected in the MRIS Trends Report because the majority of these homes are not currently being actively sold at this time.

Last month I told you that Lennar Homes had come out with some aggressive pricing on 3-story, 1-car townhomes. They have just broken ground on a new subdivision of single family homes, called Gleneagles, located on Billingsley Road, near Piney Church Road in Waldorf. They have introduced 2-car garage, 3 bedroom, 2.5 bath, single-family homes beginning at $259,990, which is also seen as fairly aggressive.

The $8,000 tax credit program is scheduled to end on November 30, 2009. There has only been speculation that this program, or something like it, will be extended. I would expect the public will be made aware of the plans prior to the Thanksgiving Holiday.

Rental activity continues to remain strong. There are currently 198 rentals on the market. Over the past 30 days 62 homes have been rented in Charles County. The available rental inventory has remained consistent all year.

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A Letter from Steny Hoyer

Monday, October 5, 2009

by Don DeHanas, Associate Broker

Dear Mr. DeHanas,

Thank you for contacting me to express your support for extending the First-Time Homebuyer Tax Credit. I certainly appreciate your taking the time to make me aware of your concerns about this important matter.

The Housing Assistance Tax Act of 2008, part of the Housing and Economic Recovery Act of 2008 (P.L. 110-289), created a refundable tax credit for first-time homebuyers purchasing a principal residence after April 8, 2008, and before July 1, 2009. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) modified the credit for taxpayers purchasing homes after December 31, 2008, and extended it to include purchases through November 30, 2009.

First-time homebuyers generally include individuals who have not had a present interest in a principal residence within three years before buying the new property. The credit is based on 10% of the purchase price of the principal residence, but may not exceed $7,500 for residences purchased in 2008. Those purchased in 2009 may result in as much as an $8,000 credit. The credit may be reduced or eliminated for married taxpayers with income over $150,000 or other taxpayers with income over $75,000. To be eligible for the credit, taxpayers must purchase property after April 8, 2008, and before December 1, 2009. The property must be used as the taxpayer's principal residence.

There have been several proposals introduced in the 111^th Congress that would expand the First-Time Homebuyer Tax Credit or extend the program beyond the November 30, 2009 deadline. The most recent bill, H.R. 2905, was introduced by Representative Jerry Moran of Kansas. H.R. 2905 would expand the credit to all individuals purchasing a principal residence and extend this credit through 2011. H.R. 2905 has been referred to the Committee on Ways and Means. While I am not a member of this committee, you may be certain that I will keep your views in mind should H.R. 2905 or additional relevant legislation come before the full House of Representatives.

Thank you again for sharing your thoughts with me. To stay informed, please visit my website at www.hoyer.house.gov. While there, you can sign up for the Hoyer Herald, access my voting record, and get information about important public issues. If I can be of further assistance, please do not hesitate to contact me.

With kindest regards, I am

Sincerely yours,

Steny H. Hoyer