Real Estate Information

The Associated Press has just reported that new home sales are down for the third month in a row, with February sales at its’ lowest in over 50 years.  Evidentially, economists say that a healthy pace for new home sales is 700,000 a year, nationally, while we are currently on pace to building just 250,000….seems like we might have more than our share of new homes being built right here in Southern Maryland...at least in Waldorf.

Perhaps coincidentally, we have noted that it was about 3 months ago that the national builders in our area raised their prices, across the board by as much as $50k-$60 or more.  Consumers are obviously telling new home builders that they no longer see a value in buying new as a result of the price hike.

Another recent change in the market, and perhaps as a result of prices going up in new construction, is the rental inventory has fallen dramatically over the last 3-4 months, and we are seeing an increase in rental rates as a result.

This all sounds like a lot of bad news, but it could mean good news for the resale market. If home buyers are finding less choices, when it comes to selection, they might find resale homes, foreclosures and short sales more attractive options. If this happens, and I believe it already is happening, we might get out of this housing crisis that is currently upon us, sooner than later.  Prices are still declining and there is still an unknown amount of “shadow inventory” of bank foreclosures hitting the market, so there are still some unknown factors that will affect the outcome.

If you are an investor of residental properties in Charles County, the market couldn't be any better than it is now!  There are plenty of bargains on the market for the taking, especially if you are not afraid of a fixer upper.  And on the other hand, the rental inventory is at it's lowest in years, having recently dropped to less than 90 units in Charles County, and less than 50 in Waldorf. As a result rental prices are on the rise.

Investors are moving in and buying homes at unbelievably low interest rates, making some minor updates, paint, carpet and cosmetic repairs, and renting them within 30 days creating a positive cash flow for themselves of $200, $300, $500 and more a month!

Investors are either paying via mortgage loans or cash. We are also seeing investing groups (individuals, pooling their money together) who are making these kinds of purchases.

If you are in a position to buy two, three or four of these homes or townhomes, and turn around and rent them out, your monthly income could be as much you are currently making at a normal 9-5 job. There are tons of possibilities.

DeHanas Real Estate Services works with investors, helping them to reach their investment goals. Call today for more information, or to get started. 800-842-0190.

A total of 3.83 million Foreclosure filings were reported on a record high 2.87 million properties in 2010, up 2 percent from 2009 and an increase of 23 percent from 2008, according to a year-end study from Realty Trac, an on-line marketer of foreclosure properties.  The report concludes that 2.33 percent of all housing units in the United States (1 in 45) received at least one foreclosure filing last year. Nevada, Arizona and Florida posted the highest foreclosure rates in 2010.

On a positive note, the Foreclosure rates fell during the 4th quarter of 2010, which might be short-lived, as it is being attributed to all of the controversy surrounding the banks' mishandling of foreclosure documents.

If you want to know the current market value of your home, call 800-842-0190, or click on What's My Home Worth.

If you or someone you know owes more on thier home than it is worth, we may be able help you avoid Foreclosure. Contact us today!

DeHanas Real Estate Services is family-owned and operated.

Step back in time, through the magestic wrought iron gates and into this completely fenced 10.23 acre Historic estate known as "Bellevue". Features include 7 fireplaces, 5 BR and 5 BAs, including a tenant house and classic Greek Temple w/Grotesque perched high atop the columns. Seasons never change in the Orangery, offering a peaceful retreat with a 30 minute commute to Washington, DC.

Listed on the National Historic Registry, Bellevue is a fine example of an early 19th Century plantation house with deocrative elements in the Greek Revival Style. It exemplifies a house style typical of successful small planations of the period. It is one of only three surviving examples in Prince George's County of this onece popular 'Tidewater' house style. Bellevue is in excellent condition and retains its free standing chimneys with brick pent, as well as its roughly contemporary kitchen wing. It is a fine example of the early archetecture of the region.

PHOTO TOUR 

For more information on this home, or to schedule an appointment to preview it, please call Don DeHanas at 800-842-0190 x106

12 Important Steps to Buying a Home

HOSTED BY                   

Now is the time to buy!  Don't miss your chance to take advantage of a very HOT buyers market!  The homebuying Strategies you will learn will give you a competitve edge over other buyers competing for the same properties, AND provide you with the knowledge to save thousands of dollars when purchasing your next home.

Learn About “Free Money” to use towards your new home purchase.

Learn from some of the best in the business!  You will have an opportunity to talk one-on-one with Title Attornies, Tax Accountants, Home Inspectors, Insurance Agents, Movers, Contractors, and of course a Mortgage Loan Specialist and Experienced Real Estate Agents.

• When: Wednesday May 4th, 2011
• Time: Doors Open at 6PM Seminar begins at 6:30PM
• Where: Waldorf Jaycees (at the corner of RT 301 and RT5/RT228 in Waldorf)
• Cost: FREE
• Refreshments Provided
• Door Prizes Awarded

  Bring a friend and learn together!!

RSVP by Friday April 29

Sign up today to reserve a seat at our Home Buyer Seminar on Wednesday May 4, 2011 at 6PM. Seating is limited.

CLICK HERE TO REGISTER

Libyan unrest continues to support the treasury market today, with treasuries and mortgages opening slightly better than Friday’s close.  This week’s financial calendar is full of economic news.  Some of the more important releases include Personal Income and Spending this morning, which came in mixed and ISM Manufacturing on Tuesday.  The critical February Unemployment Report will be out on Friday.  Look for the federal government budget battle to be in the forefront this week as well, as a failure to come to a resolution could shut down the government, although most reports would seem to indicate a brief government shutdown would have little impact on mortgage lending.

Rate Trend: Slightly Lower!

Since the glut of foreclosures began several years ago, previous home owners flooded the rental market, causing the cost of renting to go up slightly.  While this was happening, the cost of homes was going down. As a result, in 72% of US cities, it makes more financial sense to buy a home than to rent it. In a recent study conducted by Real Estate website, Trulia, median home prices were compared with median rental prices on apartments, condos and townhomes. Trulia CEO, Peter Flint says "Following the principles of supply and demand, renting has become relatively more expensive than buying, in most markets.

The local market has seen a dramatic shift in rental inventory over the past several months. During the last quarter of 2010, we saw an average of 500 units of rental inventory available, compared to less than 100 now, and the supply continues to drop.  As the rental inventory becomes limited, the quality of the property goes down, while the prices inch up.

In addition, property owners tend to want better qualified renters with better credit. In some cases it is not only cheaper to buy than to rent, it is also easier. With some banks having relaxed their tight standards renters with lower credit scores have another option.  Wells Fargo is now offering loans to home buyers with as low as a 500 score.

For more information on rental properties or puchasing a home, call 800-842-0190 or e-mail at realestate@dehanas.com

If you haven't taken the time to look at the 2010 Census results, you are missing some interesting trends surrounding population migration. As you might expect, States with heavy unemployment like Michican and Ohio saw declines in population. States with high Foreclosure rates like Florida saw no signficant increase or decrease, however Nevada, with one of the highest foreclosure rates in the country saw the highest population increase of any other State in the Union.

Not surprising, the Washington DC area also saw an increase in population.  Southern Maryland gained 15%-25%. With a population of over 146,000, Charles County lead the way in terms of growth in Southern Maryland.

That's right! Just when you thought it wasn't safe to go back in the water, along comes a loan product that might calm some of the waves in an otherwise turbulent housing market.

If you think your only option is to rent someone else's home, or wait for your credit score to get better, think again. It is no secret that the past few years has been tough for both individuals and businesses to get a mortgage.

Financially responsible people have found themselves compromised by situations beyond their control. Coupled with the tightening of mortgage guidelines these compromises have taken away the ability for many people to obtain a new mortgage.

Wells Fargo Mortgage thinks home buyers deserve a chance and have adopted New FHA Guidelines intended to bring home financing options back to deserving people.

You can now get a loan if your credit score is as low as 500!  Here are some of the details:

• Credit Scores from 580 to 599. 5% down (2 months PITI reserves may be required)
• Credit Scores from 500 to 579. 10% down (2 months PITI reserves may be required)
• Maximum seller concession is 3%
• Down payment can not be a gift. However, Reserves can come from a gift.
• Tightened Debt to Income Ratios for credit scores below 600.
• All other Guidelines remain the same for FHA Purchase Customers.

 At DeHanas Real Estate Services, we have helped a number of buyers to make home ownership a reality, instead of something out of reach, using this loan program provided by Wells Fargo. If you are interested in knowing more, e-mail us at realestate@dehanas.com or call us at 800-842-0190.

As the real estate market has changed, so have the home projects that increase value and pay for themselves when it comes time to sell. One of the first topics of conversation I have with my clients when they come to me to sell their home is, what imporovements they can make in thier home to make it more sellable.

In years past when we were all benefiting from growing equity, it made since that your home's value would increase if you did a full kitchen remodel or add on a master bedroom addition, but as prices have eroded, the money spent on these projects might not be such a good investment.

I always recommend that my clients focus on the changes that are relatively free or low cost, such as painting, cleaning, and light landscaping. But sometimes a larger-scale remodel or repair is needed. According to Remodeling Magazine, exterior projects offer a larger return, than do inside projects. For example, the average cost to replace a garage door is $1,291, and according to research compliled by Remodeling Magazine, 80% of the cost of this project is recouped during a resale. Other renovations and remodels woth their price tags, including replacing your front door with a steel door, recouping 102.1% at resale, minor kitchen remodeling, 72.8% recouped, replacing wooden windows with vinyl, 72.4%, and some siding replacements can result in as much as an 80% recoup.  Master suite additions and adding bathrooms came in at around a 50% recoup during resale.

Overall, this report concluded that it is more profitable to focus on exterior projects rather than interior renovations.

If you are thinking about selling your home, I would be happy to preview it with you so that we can determin the best course of action to getting it sold for the highest amount of money and the least amount of hassle. Call me at 301-870-1717 x106.