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Archive for September, 2009
$8,000 1st Time Homebuyer Credit Expires Soon – Is This a Bad Thing?
September 29th, 2009 Categories: In General
To take advantage of this federal tax credit, a first-time home buyer must close on their home purchase by the end of November. This means that a buyer needs to ratify a contract by the end of October. Should buyers be hitting the pavement to take advantage of this great deal? I don’t think so.
I have not been a fan of this federal tax credit for several reasons:
- A home purchase is a big-time commitment. Even looking at 5 years of ownership, $8,000 is a drop in the bucket. I don’t believe a buyer should let the prospect of getting this credit deter them from finding the right house that they can comfortably afford.
- If you “need” the credit to afford a home, then you are not in a position to buy. Don’t do it.
- Today’s insanely low interest rates really do make homes affordable. No other incentive is needed.
- If the overall goal is to pump money into the economy, then haven’t we already done that (government stimulus, cash for clunkers, GM, Chrysler, etc)? Enough already.
I could list more reasons. I guess that my fundamental problem is that, like a lot of Americans, I don’t support borrowing money to give one-time tax breaks to help prop-up home prices. Don’t get me wrong – I love a tax break as much as the next guy. But I don’t like borrowing money to do it.
The National Association of Realtors (NAR), home builders and others are pushing hard to extend the credit. Some would like to see it increased to $15,000 for all buyers. I contacted Ben Cardin and Barbara Mikulski and gave them my thoughts. You should do the same.
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Montgomery County Inventory for September
September 14th, 2009 Categories: Market Updates
A mid-September snapshot of available homes in Montgomery County shows that the trend of declining housing inventory continues. This time last month, there were 3,435 homes on the market in Montgomery County. Now there’s 3,376 – a 1.7% reduction. For all practical purposes, this month’s inventory is flat from last month. The total number of estimated distress sales is 820 down from 867 last month – a reduction of 5.4%. If you are in the market for a home right now, it’s easy to be frustrated by the lack of fresh, new homes. I’m finding that very nice, well-priced homes go quick.
Will inventory continue to dwindle through year end? I think so. I believe that inventory will stay flat or drift at current levels through the end of January. For sellers, this can be a great time to enter the market given the low level of competing properties.
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The Best High School in Montgomery County, Maryland
September 10th, 2009 Categories: Schools
What is the best school in Montgomery County? We get this question all of the time. Of course, the answer’s easy. The best school is…. OK, there is no simple answer to this question. The quality of a child’s education depends on so many complex factors that one can’t simply boil it down to a one-dimensional list of the best and the worse. I’ll summarize key statistics for all high schools later in this article, but you won’t find a “Best Schools” list here.
But let’s be frank. Most parents in Montgomery County and the Metro D.C. area have high expectations for their child’s education, and we talk a lot about schools. Parents can develop very strong opinions about the “best” and the “worse”. If you’re new to the area, you’ll get a lot of advice. When making a decision on where to buy a home, how do you find the best school for you? Read the rest of this entry »
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Fall Real Estate Market Forecast for Montgomery County
September 7th, 2009 Categories: Market Updates
Analyzing year-to-year trends for the Montgomery County real estate market is a real challenge with the highs and lows that we’ve seen over the last five years. As we enter the fall market I believe that a comparison to last year’s activity tells us a lot about our market and where it’s headed for the rest of the year.
Brisk, Blazing with Strong Momentum
After a tentative start, monthly transaction volume in Montgomery County got stronger and stronger as the year progressed. After reaching a peak in April, last year’s market activity slowly declined into the winter. Not this year. Transactions kept chugging peaking in July with 61% more contracts than July of 2008. I expect we’ll see overall activity reduce each month through year-end, but the overall momentum will continue into the Fall with brisk activity compared to last year.
Breathtaking, Blistering, Crazy-wild
Your experience as a buyer or seller in Montgomery County is very different based on your price and location. Our market has been blistering for entry level homes. To see how price affects our market, I separated contract activity by list price: $400K and lower, and over $4ooK. The market for homes $400K and lower has been crazy-wild. Read the rest of this entry »
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