St. Mary's - buying a house

R

remaxrealtor

Guest
Oz said:
That may be short-lived, given the lack of APF in St. Mary's County. Especially when the Presidential Helo and JSF programs start bringing people into the area.

Sellers will still command top dollar, even if they have to offer closing help. A few thousand dollars at closing to sell a house for 2-3 times what they paid for it 4 years ago? Not a bad deal...

Leonardtown and Wildewood projects may help to adjust the market. But are those projects close enough to have an immediate impact?
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Actually, I can't say I agree. For some time there was so little inventory, especially in the $200-$275K range, that sellers were able to name their price. I was listing a 3 bed/2bath split foyer in the 260's and receiving multiple offers with escalation clauses. Now, similar homes are listing in the $250's and sitting on the market. One of the biggest issues we are encountering is appraisal values not meeting list prices. You can't continue to increase prices if there are no comparables to justify that price.

As far as new projects, there are still waiting lists because of backups, but new contracts aren't coming as fast as they were, plus builders have the impact fees to contend with.

Many buyers were purchasing their maximum by taking advantage of the interest only ARMs, which are becoming less attractive w/ rates going up.
 
Oz

Oz

You're all F'in Mad...
remaxrealtor said:
You can't continue to increase prices if there are no comparables to justify that price.
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Good point! Of the three houses listed in my neighborhood, one is very overpriced ($450K and I hope they get it!) another sold for what I believe was a fair price ($440K,) and the third is more high-end ($615K) and seems underpriced. So maybe that is an exact indicator of what you are saying.

remaxrealtor said:
As far as new projects, there are still waiting lists because of backups, but new contracts aren't coming as fast as they were, plus builders have the impact fees to contend with.
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Impact fees in St. Mary's County are nothing compared to our neighboring counties. And, not high enough to stop builders. LUGM is what is stopping builders here.

remaxrealtor said:
Many buyers were purchasing their maximum by taking advantage of the interest only ARMs, which are becoming less attractive w/ rates going up.
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Speaking of which, I saw an interesting product which should help buyers in this market. A 30 Year Fixed mortgage with the first 10 years Interest Only. Taking out an ARM right now, if you plan on staying in that home is probably a bad idea. I know my HELOC was 3.75 in May 2004, 5.75% last month, and probably up to 6% this month. My first mortgage is locked at 4.5% so the HELOC is no longer the financial tool that it was before. As such, I haven't used my line at all since it started escalating, and I'm paying the small balance down as quickly as possible.
 
R

remaxrealtor

Guest
Impact fees in St. Mary's County are nothing compared to our neighboring counties. And, not high enough to stop builders. LUGM is what is stopping builders here.


Here's my thought on impact fees:

1. My point was the fact that when you're pricing homes in a subdivision, you have a resale that sells for, say $300K. If a builder puts up a spec that's identical in every way, he's not going to get a good appraisal for $12 or $15K more, but the builder still has that additional cost to contend with. This is the reasoning behind making everything an option, that's the real $$ maker for the builder. Don't get me wrong, I think there's a big difference between making a living and making a killing, which is what builders are doing. I was married to one so I've got the inside scoop and and it's rape of the consumer IMHO.

2. The objective of impact fees is to offset the impact of the new homeowner on the county. If you have a family that's been living in St. Mary's for 30 years and finally save enough to build their dream home, they get smacked with the fee. On the other hand, you have a new family with 4 kids move to the area and buy a resale and ......no fee. it's a poorly planned system.
 
Oz

Oz

You're all F'in Mad...
remaxrealtor said:
Here's my thought on impact fees:

2. The objective of impact fees is to offset the impact of the new homeowner on the county. If you have a family that's been living in St. Mary's for 30 years and finally save enough to build their dream home, they get smacked with the fee. On the other hand, you have a new family with 4 kids move to the area and buy a resale and ......no fee. it's a poorly planned system.
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In that case, St. Mary's County's Transfer Tax, charged on every real estate transaction, should cover the shortfall from our very low impact fee. Charles and Calvert don't have a county transfer tax, but much higher impact fees.
 
Boogerman

Boogerman

Pick and Flick Adventure!
remaxrealtor said:
Surprise! Take a sellers market, add volume to the inventory and climbing rates and VIOLA! No more sellers market. It has been a sudden swing, but buyers are finding themselves in a position to make offers, even ask for closing help again. If you're a seller and you waited it out to get the highest dollar, you may have missed your best opportunity. if you're a buyer and waited it out, smart move!
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:confused: are the interest rates going up higher than last year's rates?
 
Mikeinsmd

Mikeinsmd

New Member
Oz said:
I know my HELOC was 3.75 in May 2004, 5.75% last month, and probably up to 6% this month. My first mortgage is locked at 4.5% so the HELOC is no longer the financial tool that it was before. As such, I haven't used my line at all since it started escalating, and I'm paying the small balance down as quickly as possible.
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My HELOC hit 6% this month too. :yikes: Fortunately mine is small also & I have the $$ to pay it off. I'll be damned if I'm going to pay them 6%!!
 
truby20

truby20

Fighting like a girl
Boogerman said:
:confused: are the interest rates going up higher than last year's rates?
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Here is a great site with the average current interest rate for all kinds of loans (HELOC, auto, mortgage), click on the category and you can view a graph of how interest rates have trended over the last year...

BankRate.com
 
truby20

truby20

Fighting like a girl
Schizo said:
Only for PG county and DC proper... went up elsewhere.
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Argh....you need to look at that graphic again, it indicates the increase in the number of days on the market.

So everyone EXCEPT DC and PG county have seen an INCREASE in the average number of days a home is on the market before it is sold.

And we wonder how so many people are getting suckered into this housing bubble? :dance:
 
itsbob

itsbob

I bowl overhand
truby20 said:
Argh....you need to look at that graphic again, it indicates the increase in the number of days on the market.

So everyone EXCEPT DC and PG county have seen an INCREASE in the average number of days a home is on the market before it is sold.

And we wonder how so many people are getting suckered into this housing bubble? :dance:
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But nationally new housing starts have increased again last month..

The housing bubble here in St mary's and Calvert is a LONG way away, unless the press incites fear into consumers, with all their HOUSING BUBBLU BURST IMMINENT headlines.. as long as the consumer can afford the monthly payments (low interest rates) housing prices will continue to rise with their pay.

You ever wonder when and HOW car prices got so far out of whack?? Because with leasing, consumers can afford higher priced cars on their monthly income.. not based on the bottom line of Hw much does it cost, but based on the "How much will it cost me a month!!?"

If interest rates went down to 2% tomorrow, housing prices would skyrocket overnight!!
 
Oz

Oz

You're all F'in Mad...
Part of the reason that a home stays on the market too long is because it's overpriced. We have that problem with existing homes in St. Mary's County. Owners get too greedy when trying to cash out. In my neighborhood, there's a home that is almost $100K too high at $450K, and it's been on the market for a good 6 weeks. TONS of people have driven by this listing. I think that guy missed the boat, and now he's going to have to drop his price or wait for the next wave of Pax River employees. We're in the Hollywood Elementary school district. Two other homes sold within 3 weeks of their listing, ($440K and $619K) and apparently were correctly priced.
 
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