Real Estate Information

The real estate market outlook, based on results for the month of October 2009, saw one of the best months this year in terms of volume of sales.   There were 127 homes sold in Charles County during the month of October compared to 114 homes sold in September. This increase represents a 27.8% increase over sales this time last year, certainly the direction we all hoped we would be heading. Currently, year-to-date, sales are down just 3.3% to sales in 2008. Based on pending sales, currently up 60% to last year, we should see a modest gain in overall sales for 2009 by years end.

 On a continued positive note, the decline in the average price, while still down, rose from -16.39 in September to -9.05 in October. Year-to-date median pricing is down 13.3% to last year.  Another important note is the “average sale price as a percentage to list price”. In a healthy market, this figure comes in around 98%-99%. Currently it is at 89.58%. This means buyers are getting an average of 10.5% off the original list price for homes that are selling. For sellers, this means the pressure for lower prices is still very strong.

Inventory remains consistent and unchanged compared to the data for September 2009, with just a modest decline.  Out of 1216 listings Active on the market, 231 new active listings were added during October, and there were 150 new contracts pending, which is down slightly from September.

As for properties in Foreclosure, Realtytrac.com reported 80 new properties in default for the month of October in Charles County, which is significantly down.  However, the total number of properties in Charles County that are in some state of Foreclosure (including Bank-owned) has increased to 992 properties, compared to 942 during the month of September.   The number of properties in a state of Foreclosure continues to be of concern, and all these numbers are not reflected in the MRIS Trends Report because the majority of these homes are not currently being actively sold at this time.  

Rental activity continues to remain strong.  There are currently 183 rentals on the market. Over the past 30 days 60 homes have been rented in Charles County. The available rental inventory has remained consistent all year.

Some very good news in all of this is the “new and improved” tax credit. It is official. The tax credit of $8000 for homebuyers who have not owned a home in the past three years has been extended until April 30, 2010. In addition, a tax credit of up to $6500 has been included for homebuyers who are selling a home in which they have held as their principle residence for the past 5 years.  I have included a more detailed outline within this report.

In response to the Maryland Independent article dated October 28, 2009, “Sale in the News at Summit”, Steve Griessel, the developer of St Charles communities, was quoted as saying “the housing market collapse had been less severe in St. Charles than in Washington DC or the Nation as a whole”, and that “foreclosures are a complete nonevent for us”.  It amazes me that anyone would make such an unsubstantiated, off-the-cuff statement belittling the plight of so many families in Charles County that are in fact, losing their homes. And for others, foreclosures have resulted in dramatic devaluation of our homes.

According to First American Core Logic, a company who provides information to the Multi Regional Information System, there are more than 950 homes in Charles County, currently in some state of Foreclosure. There are as many as a 100-120 new defaults in the county each month according to data from Realtytrac.com.

Ironically, this article came out on the same day as WTOP News broke an article titled “New Flood of Foreclosures Likely to hit Area”. The article cited research from the Urban Institute on the study of housing in the Nations’ Capital where Charles County ranked number two, behind Prince Georges County in the percentage of foreclosures during the month of June.  Further, in July and August the number of new foreclosures outpaced the number of total home sales by 10%.

Everyone in our community continues to be impacted by home foreclosures. Property values are still declining, and jobless rates continue to increase.  We are not looking into someone else’s back yard. This is happening right here at home. Community leaders have a responsibility to report accurate information. Misstatements of this kind like the one made by Mr. Griessel, will only undermine the importance of finding a resolution to our current housing crisis.

Top Democrats in the Senate have reached an agreement to extend the soon-to-expire $8,000 tax credit for first-time homebuyers, Senate Banking Committee Chairman Christopher Dodd said Tuesday. Dodd did not offer any details on the extension, but said that “it was done”.

As part of a package that would extend unemployment benefits, the vote is expected Tuesday evening. According to a top Republican, there is still some negotiating to be completed on the proposal.

The popular tax credit, which has helped lift the housing market out of its worst slump since the Great Depression, is set to expire on Nov. 30, 2009.

Dodd and Republican Johnny Isakson want to extend the credit through June of next year and broaden it to anyone buying a primary residence, not just first-time buyers.

Senate Majority Leader Harry Reid had backed a narrower version which would extend the full credit through March and gradually phase it out through the end of 2010, through decreasing increments of tax credits. Dodd said that the deal would merge the two proposals.

The next stop for this bill would be the House, which has yet to discuss it.

According to the White House, an extension of the credit would cost tax payers as much as $1 Billion.

An extension of the tax credit, as well as extending it to all purchasers and not just first time home buyers would, in all likelihood, would put an end to the current housing crisis. Should this bill not be passed, the housing market is likely to continue to see a flood of foreclosures for several more years.

The real estate market outlook, based on results for the month of September 2009, remains fairly consistent with the findings for the month of August.   There were 119 homes sold in Charles County during the month of September compared to 115 homes sold in August. While the number of transactions was about the same over the previous month, when we saw a 20% increase in sales activity over August of 2008, the number of sales transaction actually fell over 10% in September compared to September of 2008.

On a very positive note, the decline in the average price, while still down, rose from -22.57 in August to -16.39 in September. We are also seeing an increase in the amount of homes selling in the “over $400,000” price range which has been lack-luster for most of the year.  I have been in several $400k+ transactions this month where there have been multiple offers.  There is an article on Yahoo News indicating homes that are priced correctly to the market are seeing multiple offer situations, and I can verify that to be the case.

Inventory remains consistent and unchanged compared to the data for August 2009.  Out of 1274 listings Active on the market, 256 new active listings were added during September, and there were 166 new contracts pending, which is down slightly from August.

As for properties in Foreclosure, Realtytrac.com reported 181 new properties in default for the month of September in Charles County.  The rate of new defaults continues to out-pace the total monthly rate of sale, which is an ongoing trend.  The total number of properties in Charles County that are in some state of Foreclosure (including Bank-owned) has remained steady at 942 properties, compared to 938 during the month of August.   The number of properties in a state of Foreclosure continues to be of concern, and all these numbers are not reflected in the MRIS Trends Report because the majority of these homes are not currently being actively sold at this time.  

Last month I told you that Lennar Homes had come out with some aggressive pricing on 3-story, 1-car townhomes. They have just broken ground on a new subdivision of single family homes, called Gleneagles, located on Billingsley Road, near Piney Church Road in Waldorf. They have introduced 2-car garage, 3 bedroom, 2.5 bath, single-family homes beginning at $259,990, which is also seen as fairly aggressive.

The $8,000 tax credit program is scheduled to end on November 30, 2009. There has only been speculation that this program, or something like it, will be extended. I would expect the public will be made aware of the plans prior to the Thanksgiving Holiday.

Rental activity continues to remain strong.  There are currently 198 rentals on the market. Over the past 30 days 62 homes have been rented in Charles County. The available rental inventory has remained consistent all year.

Dear Mr. DeHanas,

Thank you for contacting me to express your support for extending the First-Time Homebuyer Tax Credit.  I certainly appreciate your taking the time to make me aware of your concerns about this important matter.

The Housing Assistance Tax Act of 2008, part of the Housing and Economic Recovery Act of 2008 (P.L. 110-289), created a refundable tax credit for first-time homebuyers purchasing a principal residence after April 8, 2008, and before July 1, 2009. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) modified the credit for taxpayers purchasing homes after December 31, 2008, and extended it to include purchases through November 30, 2009. 

First-time homebuyers generally include individuals who have not had a present interest in a principal residence within three years before buying the new property. The credit is based on 10% of the purchase price of the principal residence, but may not exceed $7,500 for residences purchased in 2008. Those purchased in 2009 may result in as much as an $8,000 credit. The credit may be reduced or eliminated for married taxpayers with income over $150,000 or other taxpayers with income over $75,000. To be eligible for the credit, taxpayers must purchase property after April 8, 2008, and before December 1, 2009. The property must be used as the taxpayer's principal residence.

There have been several proposals introduced in the 111^th Congress that would expand the First-Time Homebuyer Tax Credit or extend the program beyond the November 30, 2009 deadline.   The most recent bill, H.R. 2905, was introduced by Representative Jerry Moran of Kansas.  H.R. 2905 would expand the credit to all individuals purchasing a principal residence and extend this credit through 2011.  H.R. 2905 has been referred to the Committee on Ways and Means.  While I am not a member of this committee, you may be certain that I will keep your views in mind should H.R. 2905 or additional relevant legislation come before the full House of Representatives.

Thank you again for sharing your thoughts with me.  To stay informed, please visit my website at www.hoyer.house.gov.  While there, you can sign up for the Hoyer Herald, access my voting record, and get information about important public issues.  If I can be of further assistance, please do not hesitate to contact me.  

With kindest regards, I am

Sincerely yours,

Steny H. Hoyer

Rachel DeHanas, Broker/Owner of DeHanas Real Estate Services in Waldorf, recently acknowledged Stephen  Nichols as the top agent for the month of September, 2009.  “While Steve lists and sells homes, 100% of his transactions during the month were from buyers.” Says DeHanas. Nichols settled more than $1.5 million in residential home sales during the month.

Nichols says, “I hear a lot of people talk about how slow the real estate market is, but not from what I see. Most of my buyers, lately, have been taking advantage of the $8000 tax credit promotion, which is scheduled to end on November 30, 2009. With only a few short months left buyers are coming out of the woodwork. It is also a great time for investors.”

Stephen has lived in Southern Maryland nearly all his life. He attended Lackey High School, Prince George’s County Community College, and is currently attending University of Phoenix where he is finishing up his business degree. He has over 20 years of experience in the hospitality industry which enables him to provide a high level of customer service and satisfaction to exceed his clients’ expectations. Stephen is licensed in Maryland, Virginia and Washington DC.

DeHanas Real Estate Services is family owned and operated, serving buyer and seller clients in Southern Maryland, Northern Virginia and Washington DC. In addition, DeHanas Property Management effectively represents Home owners choosing to invest in residential rental property.

Lennar Homes has just released pricing for its newest planned community in Waldorf, MD. Gleneagles is situated just off of Billingsley Road near the White Plains Regional Golf Course. Lennar is featuring 2-car garage single family homes starting at just $259,990.

The most recent homes sold in Gleneagles include:

The Victoria Mae at $259,990 to $279,990

The Princeton at $305,990

The Patriot at $307,990

The Briarwood at $325,990 which includes a brick front.

There are only 2 homes left at $259,990.

If you are thinking about new construction, please call our office at 301-870-1717.  DeHanas Real Estate Services offers "FULL TIME" Buyer Representation, at no cost to the buyer.

Dear Mr. DeHanas,

Thank you for contacting me about a homebuyers' tax credit in "The American Recovery and Reinvestment Act of 2009" (AARA, H.R. 1, Public Law 111-5). I have introduced legislation to create and expand such tax credits.

Whole communities are being affected by the housing crisis that is roiling our national, state and local economies, causing cutbacks in services, and hurting millions of hard-working Americans and their families at a time when they most need help. It is important to encourage prospective home buyers to jump into the housing market now.  First-time homebuyers account for more than 30 percent of the market.  In some communities, they account for 60 percent of the market or more.

I offered an amendment to AARA that would extend help for the ailing U.S. housing market through the end of this year by changing the date qualified first-time homebuyers could purchase a primary residence through December 31. Extending this tax credit through the end of this year will give many Americans the time to act smartly and swiftly to determine their first step into the housing market.

The American Recovery and Reinvestment Act as agreed to in conference and signed into law by the President on February 17, 2009, would provide first-time homebuyers in 2009 a credit against their federal income tax equal to a maximum of 10 percent of a home's purchase price, or $8,000.  The tax credit is refundable, which allows lower-income households with little or no tax liability to take full advantage of the credit. 

In addition to my amendment to AARA, I introduced S. 312, First-Time Homebuyers' Tax Credit Act of 2009 with Senator John Ensign (R-NV).  This legislation would provide a $20,000 refundable tax credit to first time-homebuyers for their principal residence. The credit is per purchase, not per person. Individuals with incomes at or below $75,000 and couples with incomes at or below $150,000 would qualify for the credit. This provision would expire one year from date of enactment.

Again, I appreciate your letting me know of your support for the homebuyers' tax credit.  Please be assured that I will continue to support efforts that minimize hardship in the event of foreclosures and help ensure homeownership.  If I may be of further assistance with this or any other matter of importance to you, please do not hesitate to contact me.

Charles County Mandatory Building Closures and Real Estate Transactions 

Due to another $5.5 million cut in State aid to the County, the Charles County Commissioners have imposed a 10 day work furlough on County employees.  Four of these days will comprise mandatory building closures that will include closing the County Treasurer's Office. 

REALTORS® and affiliates be aware that County buildings will close November 25, December 24 and 31 in 2009 and May 28, 2010.  Particular attention should be given to real estate transactions scheduled to settle near the end of the calendar year.  The County Treasurer's office will not be open for business on December 31st. 

Because the County will be closed on December 31st, December 30th will be treated like the last day of the calandar year when it comes to recording home sales.

The real estate market outlook, based on results for the month of August 2009, continues to show signs of improvement in some areas, compared to last month as well as this time last year.   There were 115 homes sold in Charles County during the month of August compared to only 103 homes sold in July, which represents an increase of nearly 20% over 2008 figures.  As a result the current overall inventory supply has dropped to 11 months.

Home prices continued to decline at the largest monthly rate we have seen this year with average sold prices down over 22% compared to last year.  The highest percentage of sales continues to fall in the $150,000 to $350,000 range with very little sales activity on homes over $400,000.  In fact, less than 10% of home sales in Charles County during the month of August were over $350,000.

Inventory “appears” to be falling, and some news sources are reporting this as good news for the real estate market. Granted it is “good news”, but it is only temporary.  What they are failing to see is the amount of inventory that banks are holding onto.  With more than 100 new defaults being recorded by the County each month, and total sales which include resales and new construction, at about the same amount, don’t add up to “continued good news”.  Also given the Foreclosure data as listed by the Multiple Listing System, the inventory numbers remain grossly understated.

As for properties in Foreclosure, Realtytrac.com reported 105 new properties in default for the month of August in Charles County.  The rate of new defaults continues to out-pace the total monthly rate of sale, which is an ongoing trend.  The total number of properties in Charles County that are in some state of Foreclosure (including Bank-owned) has dropped, modestly, to 938 properties, compared to 954 during the month of July.   The number of properties in a state of Foreclosure continues to be of concern, and all these numbers are not reflected in the MRIS Trends Report because the majority of these homes are not currently being actively sold at this time.  

Currently there are discussions taking place in the Presidents’ Cabinet, surrounding the “streamlining of the short sale Process”.  At this point, 3^rd party approvals for this process are taking from 3 to 6 months and in some cases as long as 9 months.  Most buyers do not have the luxury of waiting that long to see if they are even approved for the purchase. By instituting some consistent systems into the approval process, transactions could be shortened to just 60 days.

New construction has continued to be very aggressively priced and marketed, with builders paying all closing and adding tons of high-end extras as standard features.  Lennar Homes continues to build luxury 3-level  townhomes starting at $233,000.  About 20% of the inventory listed in the Multiple Listing System for Charles County is new construction.

Rental activity continues to remain strong.  There are currently 200 rentals on the market. Over the past 30 days 147 homes have been rented.  It is an excellent market for investors.   There is a high demand for single family rentals under $1800 a month in the Waldorf area.

If you know of anyone looking for a career in real estate, now is the time to begin one.   DeHanas Real Estate is looking for high quality people to help our clients buy, sell and rent homes.   A number of new systems we have recently instituted within our organization are producing a large volume of business.   In the past, we have found some of our best agents are former clients.  Please call us to discuss the opportunity at 301-870-1717.

Metropolitan Regional Information Systems, Inc.  Real Estate Trend Indicator - <$100K to >$5M Format

Charles County, MD
From: 08/01/2009 to 08/31/2009                Statistics generated on: 09/09/2009

Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data