April 29, 2010

Lakeview Title Company Real Estate Market News

Real Estate Outlook
I love giving good news, so I'm happy to report that things are continuing to look up in the housing market. The National Association of Realtors reported that pending home sales rose in February. [Sidebar: NAR created a Pending Home Sales Index that measures housing contract activity (not closings) and is based on signed real estate contracts for existing single-family homes, condos and co-ops.] That's good news because, after peaking last November because of the original expiration of the homebuyer tax credit, sales dropped. But as the expiration date of the housing tax credits approaches, we are seeing a second surge that is above the normal seasonal rise in sales. Word on the street is that March activity was strong. And momentum should continue, at least, through April, which should help to stabilize prices and decrease inventory. 

While some believe increased home sales are attributable to the two housing tax credits, others believe rising consumer confidence and the improving national economy are also playing a role. When the economy grows, interest rates go up.  But reports show consumer mortgage interest rates at 5.1% in early April.

Another piece of good news. According to the Bureau of Labor Statistics, 162,000 jobs were created in March. That's important because housing sales bear a direct relationship to job growth and consumer confidence.

As to whether we're headed for a boom or bust remains to be seen. With the tax credits set to expire, mortgage rates expected to rise, and the unemployment rate hovering below 10%, uncertainty is the name of the game. [Sidebar: Don't you just love not knowing what's going to happen? It's enough to drive you bananas, right?! But . . I digress.]

Foreclosure Mediation Bill
The Maryland General Assembly passed the bill and Governor Martin O'Malley signed it earlier this week. As I stated in an earlier blog post "Will the O'Malley Foreclosure Mediation Bill Solve the Foreclosure Crisis?" the law will require, among other things, lenders to pursue foreclosure alternatives and file an affidavit so stating before filing a foreclosure action.

More specifically, the law requires:

"an order to docket or complaint to foreclose on residential property to be accompanied by an additional filing fee, a specified final or preliminary loss mitigation affidavit, and, if applicable, a specified request for foreclosure mediation; altering the information required to be included in a specified notice form; requiring the court to forward a request for foreclosure mediation to the Office of Administrative Hearings for scheduling; etc."

Lenders will have to pay a $300 filing fee and the law takes effect on July 1, 2010.   Notwithstanding, RealtyTrac reported that nationwide foreclosure filings -- default notices, scheduled auctions and bank repossessions -- in the first quarter of 2010 are up 16% from the same period last year. And RealtyTrac execs believe bank repossessions will surpass the 1 million mark by the end of this year. Not exactly a rosy outlook.

Despite the statistics, many believe the new law will make a positive difference for some homeowners. Speaking of statistics. . .

Howard County Real Estate Sales
Howard County - March 2010.  Here's the breakdown according to MRIS:
Total Units Sold:  230
Average Sold Price:  $378,875
Median Sold Price:  $340,170
Average Days on Market: 81
Average List Price for Solds: $401,140
Total New Listings:  614

Columbia - March 2010:
Total Units Sold:  27
Average Sold Price:  $332,678
Median Sold Price:  $294,500
Average Days on Market: 77
Average List Price for Solds: $354,701
Total New Listings:  72

That's the latest and greatest.

Until next time.

Be well.

Posted by: shana@lakeviewtitle.com