In General

MoCo Areas

Article Topics

Past Articles


City
Min price
Max price
Beds	+
Baths	+

Snowed In

December 20th, 2009 Categories: In General

We don’t get a lot of snow here, but this weekend is clearly the exception — over two feet from Friday to Saturday. We’ll be digging out for a couple days.

Posted by Bruce Lemieux | Currently 1 Comment »

$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.

Posted by Bruce Lemieux | Currently No Comments »

Montgomery County Is Only 1 of 3 Places Where You Should Make a Home Purchase

August 31st, 2009 Categories: In General

If you are planning a home purchase in Seattle, zip 10005 (New York City) or Montgomery County, Maryland – go for it! Don’t worry about the specific location or asking price. These are fantastic places to buy a home so purchase with confidence. Just do it!

What about home buyers in the remaining 99.5% of the U.S.? Hmmm… it’s best to stay away.

If this sounds silly, it is. But this is the advice recently given by Jim Cramer on The Today Show (Montgomery County gets referenced at minute 1.40).

Superficial, glossy guidance like this is a prime example of why home buyers and sellers are best served by turning off the TV before planning a transaction. In Montgomery County, the health of a neighborhood’s market is directly related to its location and price range. I’m not sure why we were singled out as an OK place to buy, but I doubt the advice was the product of an extensive analysis of our market.

If you are still swayed by the charms of Jim Cramer, take a look at the following video starting at 1 minute 17 seconds with his thoughts on Bear Stearns.

Stick to Jim Cramer and his pals on cable TV for sound-bites on the real estate market. You can always contact us for a more detailed, thoughtful guidance on how the status of our local market would have an impact on your home selling or buying goals.

Posted by Bruce Lemieux | Currently 4 Comments »

Celebrate! You finished your taxes!

April 17th, 2009 Categories: In General

behappy I feel great that I got my federal tax extension in on time, but I’m sure that you went the distance and actually submitted your entire tax return on Wednesday. I bet that some of you even submitted your taxes weeks ago (I know your type. You’re also the ones who have all Christmas shopping finished by Thanksgiving, have kids signed-up for summer camp by January and always have perfect yards with nary a dandelion in sight. Yeah, I definitely know your type).

So what feels better than being done with taxes? Having all your personal documents shredded and out of the house. Load them up and bring them to our community shred event this Saturday from 3-5PM. See all the details here and let us know you are coming!

Posted by Bruce Lemieux | Currently No Comments »

Hey You! Spring is coming!

February 23rd, 2009 Categories: In General

first-signs-of-spring-in-montgomery-county1 Forget groundhogs, meteorologists or the Farmers’ Almanac. In the Metro D.C. area, there’s only one reliable expert on the start of spring — blooming forsythia. In any other season, one might struggle to find kind words to describe these gangly bushes with their long, unruly stems. “They are … errr… green”. “They are really… hmmm…. drought-resistant”.

But in the final stages of winter, forsythia are pure joy. They don’t just bloom, but they reach up and out as far as they can and scream, “Hey! Spring is coming! Hey You — Yeah You – Spring is COMING!!“ Unlike tulips, they demonstrate absolutely no decorum. Ornamental cherry trees are perfectly coiffed and perfectly elegant. They show restraint and make a timely, gracious entrance. Forsythia roll out of bed with not a branch in place unaware that it’s still too cold to be in bloom. Daffodils are pretty and meek. Forsythia are loud and obnoxiously joyful.

It’s been a long, cold winter, so I’m very excited to have seen my first blooming forsythia bush while at the National Mall on Sunday. In a matter of days, they will be rousing everyone up from their winter slumber. Spring is coming! Spring is coming!

Posted by Bruce Lemieux | Currently 1 Comment »

NAR’s plan to improve the housing market misses the mark

December 23rd, 2008 Categories: In General

Everyone has an opinion on how the U.S. government should address the economy and the housing market. The professional body that represents real estate agents is NAR – the National Association of Realtors. NAR promotes many positions that I agree with — like providing better health care options for Realtors and protecting property owner’s rights. NAR’s “four-point plan” to stabilize the real estate market, however, is off target.

#1. Change the $7,500 tax credit currently available to new home buyers: make it available to all buyers, and don’t require repayment. To me, this was bad legislation from Day One. Right now, a new home buyer can take a $7,500 credit on their federal tax return and then pay it back over future years. This was never a credit, but an interest-free loan available from the government. If a buyer can’t afford a home purchase without another loan, then they shouldn’t be making a home purchase.

Now NAR wants to make this a true credit available to all home buyers. If the U.S. government is going to give money back, why single-out home buyers? If a home buyer can’t afford a home without this credit, then they shouldn’t be buying. This is a give-away that won’t make a dent in the housing market. NAR’s position on this point would make a bad idea even worse.

#2. Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. The government’s single most effective action in 2008 was to raise the FHA limits from $417,000 to $729,750. This was a big deal for our local market. Without it, the number of 2008 sales would have definitely been lower. This increase was only good for a year and now the limit is $625,500. I agree with NAR on this one. With stringent underwriting requirements, I see no reason why lenders can’t make responsible loans at the higher limit.

#3. Target bank rescue funds on mortgage relief and foreclosure modification. Amen, brother. Many responsible homeowners are getting pulled down with the undertow of foreclosures and distress sales. In many cases banks should be forced to modify loans allowing families to stay in their homes. Everyone looses when people are forced out of their homes — the homeowner, the banks, the neighborhood and ultimately the economy. How would this work? That’s the big challenge. Addressing this issue is raft with pitfalls. The government is going to do something here in 2009 – I hope they don’t screw it up.

#4. Permanently bar banks from engaging in real estate brokerage. Why is NAR even talking about this right now? Trust me, the last thing a bank wants to buy right now is a brokerage firm. They can argue the merits of this legislation later. By adding this to their ‘four point plan’, NAR demonstrates that it’s just another big, special-interest lobby that puts its own priorities over the greater good. Very disappointing.

My recommendation to NAR: Focus your considerable energy on helping homeowners stay in their homes and nothing else. Participate in the dialog and help ensure that Congress implements effective, fair legislation.

Do you have an opinion? Make a comment.

Posted by Bruce Lemieux | Currently 2 Comments »