With the new year fast approaching we find many buyers and sellers are looking to the future of real estate. Lawrence Yun, Chief Economist and Senior Vice President of Research for the National Association of Realtors was quoted recently saying “As it has always been, housing is our bedrock investment. It will continue to generate a nest egg for us long after we’ve turned off the television and forgotten what was said in the sensation-seeking story of the moment.”
With interest rates near two-year lows and housing prices remaining stable now is a great time to consider investing in real estate. Whether you are a first time home buyer or are interested in becoming a real estate investor, the tax benefits and long term growth potential make real estate the right investment for your future.
Recent November statistics for the Baltimore area real estate market show that home prices are holding steady across Anne Arundel County, Baltimore City & County, Carroll County, Harford County and Howard County showing only a slight 0.41% drop compared to November 2006. In addition almost 1900 homes were sold in the month of November according to MRIS, the Maryland MLS.
Great news has also arrived from the mortgage industry. The Federal Reserve cut their short-term interest rate today by .25%, which brings mortgage interest rates down to the lowest they have been in two years. Dave Stevens, President of Long & Foster’s Affiliated Business says in a recent special report “Interest rates are still near historic lows and mortgage money is plentiful. With continued pressure on the dollar coming from higher energy costs as well as the increased national debt, there is a strong argument to lock in your long term mortgage rate now. Failure to act in this current period could end up being a costly error to prospective buyers sitting on the sidelines.”
This past week we saw a huge reduction in the number of homes listed for sale in Maryland. The total number of withdrawn properties across a nine county area added up to 792 homes according to MRIS, the local Maryland MLS database.
Montgomery County showed the largest number of withdrawn properties – 200, followed by Prince George’s County with 198, Baltimore City with 136, Anne Arundel County with 73 homes, Baltimore Country with 70 homes, Howard County with 42, Frederick County with 35, Carroll County with 28 and Harford County with 10 homes withdrawn from the market.
If you are currently selling your home, or thinking about listing your home for sale, this dramatic reduction in home inventory means that there is less competition in the market place. The lack of competition will help drive the current buyers to your home, and you should notice a increase in showings.
Thinking about taking your home off the market for the Holiday season? Think again! Showings during the Holidays often produce some of the most motivated buyers.