Baltimore Housing Values Have Climbed

Study Shows Housing Values Have Climbed

News reports have been packed with stories about declining home values, but a recent government report shows that the situation is not nearly so dire as some reports make it sound.Despite big loses in some areas of the country, the majority of markets continue to show growth in home value over the last five years.According to the third-quarter survey released by the Federal Housing Finance Agency, out of 292 metropolitan markets, 273 showed positive net home values in the last five years. Only 19 percent were negative. While home values declined 4 percent on average in the last year, values were up nearly 29 percent over the past five years.According to the Federal Housing Finance Agency, markets that gained the most over the last five years were:

• Honolulu: up 78.7 percent
• Virginia Beach: 72.6 percent
• Flagstaff, Ariz.: 66.5 percent
• Bellingham, Wash.: 65.6 percent
• Wilmington, N.C.: 62.1 percent
• Baltimore: 60.6 percent

Source: The Washington Post Writers Group, Kenneth R. Harney, (12/06/08)

It is a great time to buy a house...

It is a Great Time to Buy A House!

Motivated Sellers and Inventory

Now is an ideal time to buy, in most markets prices won’t go any lower and there is an abundance of inventory. Inventory of homes for sale is at a 15-year high. There are many options out there for many buyers and many sellers who are willing to negotiate and work towards a win-win situation that works for both parties.

Log on to www.LivingMD.com to see all active properties for sale in the MLS.

The Market is Strong in 2008 and Every Market is Different
Remember that all real estate is local and that all markets are different. There are opportunities out there for a buyer if you are willing to investigate your options. There are many grant programs out there, which can virtually mean free money for home buyers.

2007 was the fifth best year on record for existing home sales despite the public apprehension about the real estate market. In fact 2007 was very similar to the home sales and price gains experienced in 2002, when consumers were very confident about the market.

FHA Loans Set to Increase
There are many choices for buyers looking for mortgages in this market. One option, FHA home loans are a viable alternative for many first time buyers. The Federal Housing Administrative (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal, offering low down payments, low closing costs, and easy credit qualifying. FHA market share for home purchases is expected to triple over the next 3 years, from an estimated 4% in 2007 to an estimated 12% in 2009.

Benefits of Ownership
Owning a home is the American Dream. It not only provides amazing tax benefits, but it also provides shelter and security to families. Did you know that:
▪ Dollar for dollar the rate of return on an individual’s cash down payment on a house is substantial? And that repeat buyers are able to put 19% more down on a new home due to appreciation?
▪ Home owners move less often and are more likely to vote and volunteer time for political and charitable causes than renters?
▪ When you own a home you can deduct the property taxes and mortgage interest from your income taxes?
▪ The gains that you make on a primary residence that you’ve occupied for two years out of five can be tax free?
Contact your accountant to verify this information.