Real Estate Information

Rachel DeHanas Broker/Owner of DeHanas Real Estate Services in Waldorf will be a featured panel member at the National Star Power Confrence being held in Nashville, TN next month.  DeHanas' panel discussion regarding Bank-owned properties, is one of the hot buttons facing the real estate market today.

Guest speakers at the Star Power conference include Alex Charfen, CEO of Star Power Systems and The Distressed Property Institute, Dave Ramsey, best selling author and Financial Expert, Howard Brinton, National Speaker and Founder of Star Power Systems, Dave Linegar, Chairman and co-founder of RE/MAX, and Alex Perillio, President and CEO of Realogy.

It is an opportunity for real estate professionals to walk among the legends and learn from the best in the business.  The conference is scheduled for July 25-28. For reservations and additional information, go to www.starpowerconference.com.

Last week the Washington Post reported Charles County to have the second highest Foreclosure rate in Maryland behind Prince Georges County.  According to national real estate analyst Realty Trac, one in every 297 homes has had at least one foreclosure filing during the month of April, 2010, considerably higher than the national average of one in every 387.

Calvert County ranked number 4 in the State at one in every 311. 

The highest Foreclosure rate in the state was Prince George's County, where one in every 234 homes is threatened or was seized by a bank. Prince George's also leads the state in total foreclosures.

Maryland as a whole had a 3 percent increase in rates over March, and a whopping 51 percent increase over April 2009, the report said. The increase bucks the national trend, where the rate dropped 9 percent in the month and 2 percent in the year.

Subprime mortgages marketed to the influx of new residents are partly responsible for the high Foreclosure rate, Charles County Commissioner Reuben B. Collins II (D) said. 

My experience is somewhat different.  Early on in this crisis, many of my clients held subprime mortgages, but not now. Amoungst my many clients facing Foreclosure are a number of military and Federal Governement employees and their families being transfered to other parts of the world.  In many cases these homeonwers have impeccable credit, and are forced to take the credit hit or lose their jobs, or even worse, be separated from their families.

I also have a number of homeowners facing Foreclosure due to temporary job loss, health issues or other financial hardships that have been magnified by the current economic crisis. 

It is easy to blame those home buyers who "self-inflicted" their fate of Foreclosure, but now we are talking about credit-worthy buyers who are the actual victims.

There is speculation circulating that the Homebuyer Tax Credit has been extended.  What has actually happened is an amendment to extend the closing deadline for the Homebuyer Tax Credit has been added to proposed legislation.  The amendment would extend the closing deadline from June 30, 2010 to September 30, 2010, however, this would only apply to purchase contracts already signed prior to the April 30, 2010 deadline.  Although this specific measure has been approved to be added to the legislation, it is a part of a larger bill entitled American Jobs and Closing Tax Loopholes Act of 2010 also known as the Tax Extenders Bill that is going through the legislative process.  The bill has been approved by the House, but was voted down in the Senate yesterday over concerns about the ballooning federal deficit.  However, the Senate is currently reworking their version of the  bill and once that happens and it is approved by the Senate, the bill will need to reconciled with the House version and approved by the President.  So, although the closing deadline has not officially been extended, it appears it is likely to happen.

Additionally, an amendment to extend the National Flood Insurance Program (NFIP) is also included in this same piece of legislation.  As a result, the NFIP will be in limbo until the Senate can trim back the bill enough to get the votes it needs for passage.

Newsweek Magazine announced, this week, its list of Americas Top Schools, and in it were 4 Charles County Schools, including La Plata, McDonough, Westlake and North Point Highschools.

La Plata High School topped the County's list, ranking at 487, while McDonough at 961, Westlake at 1,043 and North Point at 1,443, in Newsweeks list of the 1,622 of Americas top schools.

The Newsweek list is based on the Challenge Index developed by the Washington Post. It ranks the number of AP tests taken in relation to the number of graduating seniors. Schools rank in the top 6 percent if they achieve a ratio of at least 1.0, meaning they had as many tests taken in 2009 as they had graduates.

More than half of Maryland’s 185 public high schools – 53 percent – were on Newsweek’s list.

“We continue to work to ensure that our students are challenging themselves by taking the highest level of courses they can. We encourage students to take Advanced Placement classes and we continue to offer rigorous coursework for all students,” Superintendent James E. Richmond said.

Richmond pointed to a new initiative, the Stars (Scholars Targeting Academic Rigor with Success) program that is encouraging rising ninth-grade students to enroll in challenging courses. The program is designed to push students with potential, especially those from traditionally underserved populations, to take the most rigorous courses possible, including honors and AP classes.

DeHanas and Nichols Complete Financing and Tax Course            

Don DeHanas and Stephen Nichols with DeHanas Real Estate Services in Waldorf has just completed a highly specialized real estate course, Financial and Tax Advantages for Agents and Their Clients, Las Vegas Nevada, presented by the Council of Residential Specialists.  The two-day course earns tow units of core credit toward the Certified Residential Specialist designation.

Every real estate transaction has tax and financial considerations. REALTORS must be prepared to help their clients understand the financial options that are available as they contemplate the single biggest purchase they likely will make in their lives. The right financial choice can save clients money and give them peace of mind.

During the two-day course, participants learned how to identify tax saving opportunities in real estate, financing alternatives, debt and mortgage management strategies, and tools to help them demonstrate financing options.  The course features applications and systems agents can use to become more effective at counseling clients about their real estate financing decisions.

“There are many new real estate financing options available today, more than you might think” says DeHanas.  “Knowing what options there are and how it can better help my clients will help me earn their trust and lead to more referral business down the road.”

The Council of Residential Specialists is a not-for-profit affiliate of the National Association of Realtors, comprised of more than 40,000 members.  It awards the CRS designation to experienced Realtors who have completed advanced professional training and demonstrated outstanding professional achievement in residential real estate.

DeHanas and Nichols specialize in residential real estate, working with investors, first time home buyers, move-up buyers and new construction.

Treasury yields and mortgage rates are lower once again today as equities suffer.  Despite efforts to contain the financial crisis in Europe, the situation seems to be deteriorating.  The minutes released this week from the last Fed meeting indicated that it will be some time before the Fed starts to sell its MBS portfolio.  Additionally, the minutes indicated the financial developments overseas had a big influence on maintaining the current policy.  Throughout the minutes, it was evident that the Fed will be on hold indefinitely as any increase in interest rates could intensify the European problems and create a spillover effect on the U.S. economy.

Over the weekend, the European Union (EU) and the International Monetary Fund (IMF) announced an aid package for Greece.  The announcement has done little to calm fears that Greece’s fiscal crisis may spread to other European countries.  As a result, Europe and U.S. stock markets have been battered and treasury prices have benefited.  Mortgage rates are down again this morning.  There are several economic reports out this week including the April Unemployment Report coming on Friday, but the focus will continue to be on the Greek situation and the resulting effects on stocks.

Rate Trend: Slightly Lower

Website presents information and answers questions on homeowner eligibility with new Foreclosure avoidance resource.

Waldorf, MD - Local Certified Distressed Property Expert, and community advocate, Don DeHanas, of Dehanas Real Estate Services, has announcd the expansion of an information website for Southern Maryland homeowners in distress.

http://hosted.cdpe.com/DonDeHanasHelpsHomeowners

Click on Government Eligibility Survey.  "These surveys will let homeowners quickly discover new options made available by the Governement," DeHanas said. "When faced with the possibility of Foreclosure, I've seen too many homeowners make mistakes because they hadn't been advised by a qualified professional.  These people didn't know the options available, or even how to find any information on their situation. My website helps to solve this problem."

This site acts as a hub for information on the facts and issues for struggling homeowners, putting all the necessary information in one, easy-to-use location. With the addition of these new eligibility surveys, the site lets homeowners make educated decisions about their future.

"Seven out of ten homes that have gone into Foreclosure did so without even being listed on the market," Alex Charfen, co-founder and CEO of the Distressed Property Institute. "Agents like Don DeHanas with the CDPE designation are helping distressed homeowners understand that there may be options available to avoid Foreclosure."

The CDPE designation provides real estate professionals with specific understanding of the complex issues confronting the real estate industry.  Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing financial hardship in today's Market.

Fore more information, contact Don DeHanas at don@dehanas.com or call 301-870-1717 x106

We are now into the second quarter of 2010, and the housing statistics are quite interesting.  As we near the end of the Tax Credit Incentive, inventory remains a primary concern.  Single-family, detached inventory is down 17.7%, and townhome inventory is down more than 30%, as of the end of March 2010.  In addition, the average days on the market has dropped by 30% to 106 days.  Typically, these are indications that our market has flattened, and values are sustained, however, the data shows just the opposite.

As of the end of the first quarter, home values were down in Charles County by 11% year-to-date over last year.  Much of the sales activity is taking place in the $200k-$299k price range, where we are seeing multiple offers on the more aggressively priced properties.

Future activity of Bank-owned properties is expected to increase significantly as evidence of the most recent pre-Foreclosure activity in Charles County.  The amount of homeowners in default remained consistent month over month last year, around 900 each month.  For the first time, we saw the number of homes in some state of foreclosure climb to over 1000 during the month of April according to Realist data. Moving forward into the summer, there are predictions of a second wave of foreclosures as reported by Credit Suisse & Clayton, and the Certified Distressed Properties Institute. This wave is expected to be as large, or larger than the last in spite of a series of lack-luster Government programs designed to help struggling homeowners.

Other factors that will shape the third and fourth quarters include;  the ending of the tax credits for homebuyers, which ends April 30, 2010; The USDA’s popular Rural Development Loan has run out of funds, and local housing initiatives like the Neighborhood Conservation Initiative (NCI) have also run out of funding.  In addition, interest rates, which have remained at all time lows, are expected to creep up through the remainder of 2010.

There is certainly no shortage of opinion and information when it comes to the Foreclosure Crisis as tv, news and on-line media have a wealth of articles favoring most any position one might have on the subject.  All, however, agree that we have a long way to go before we are out-of-the-woods.

It has been a relatively quiet week for mortgages.  Yesterday, Existing Homes Sales came in strong rising by 6.8% in March as homebuyers took advantage of the expiring home buyer tax credit.  Pending Homes Sales will be released later this morning, which is also expected higher.  Durable Goods Orders were released this morning, showing an impressive rise in business orders.  Mortgage prices sold off yesterday afternoon and that trend is continuing this morning with rates rising.  The Federal Open Market Committee (FOMC) meets again next week with an announcement coming on Wednesday.