Ellicott City Realtor Catonsville Realtor

When it comes to the economy, any good news is worth talking about.  Looking over recent articles, it's great to see some positive headlines.  Although, all you have to do is take a closer look to see that the financial forecast is heavily laced with caution, concern, and continued fear.

An MSNBC article from Tuesday is a great example:  The headline reads "Home prices gain for seventh straight month".  Good news, right?  The article begins by stating that "the U.S. housing market continues its bumpy recovery."  But for all of the very small gains cited by this article, the following excerpts are how the story ended:

"But there are still obstacles that could derail recovery...First, consumer confidence took a surprisingly sharp fall in February...Also, roughly roughly 5 percent of homeowners with a mortgage are in foreclosure...And, some economists fear that demand and prices will fall after two federal tax credits expire in April."

and finally...

"The most likely outcome is that it will take years to work through the glut of foreclosures, keeping home prices bouncing around the bottom for quite some time."

It's not sounding so great anymore.

So what does this mean for you?  Be optimistic.  Look at your own situation, not just the news.  Even in this economy there are people working, and there are people thriving.  You can get caught up in the fear, or determine what's best for you and your family.

In an "up market", if you wanted to move up to a bigger home, you would be able to sell your home for more, but you would be paying more too.  In a "down market", although you may not get as much for your home, moving up costs much less as well.  In fact, moving up may cost less during a down market!

So does it really matter if we are in a down market, or an up market?  The difference is really whether or not you let the news dictate the decisions that you make.

You may have heard lately on the national news that the Real Estate Market is flat.  Or you may have heard that the Real Estate Market is down, or not doing well.  But since Real Estate is sold on the local level, what's happening in other areas just doesn't apply here.

I've been working with a family the past few weeks - they are looking to purchase a single family home with an in-law suite.  They want what the area has to offer - good schools, good location, and a nice community.

We have place bids on three different homes in the past two weeks.  On the first two homes, my buyers were outbid, by other buyers willing to pay over the list price.  Currently, we are in a competing bid situation on a third property.  My buyers love the house and are willing to pay over the list price in order to get this home.

Needless to say, in this part of Maryland, in this price range (approximately $350 - $400,000), homes are moving.

The homes below represent a very small sampling of what's happening in our local market:  these homes are all located in either Howard, Carroll, Baltimore or Frederick County, have all sold in the past six months, and were all on the market for less than 30 days:

Every Monday I send out statistics on my blog and on Facebook.  More and more people are contacting me and are wondering about the Real Estate market - what do I think?  Do I think it's starting to turn around?

U.S. Federal Reserve Chief Ben Bernanke, speaking at the Brookings Institution yesterday said during a Q&A that the recession is "very likely" over, and that the "recovery is likely to be relatively slow at first", and ending his prepared remarks with "although we have avoided the worst, difficult challenges still lie ahead".

What I have been seeing in the Real Estate Market mirrors what Mr. Bernanke is saying:  I've been seeing a lot more activity and calls from buyers in recent weeks.  I've actually had competing offers on a property, a situation I have not seen in a couple of years.  .  Though activity has increased, we're not in for a steady climb right back up - the turn around in the Real Estate Market is likely to be slow going.

It does seem to me like we're at "the bottom", and that a slow come-back is starting.  Fortunately, in Howard County, people will always be motivated by location (location, location).  We are very fortunate to have a solid foundation, in that our area provides plenty of government jobs for both the Baltimore and the Washington DC areas.  We also have the added benefit of a great school system.

What's your opinion?

We've all learned a tough lesson this past year, as so many people took their eyes off the Real Estate ball, and enjoyed the spoils of the market without regard to the long term cost.  And now as prices have come down, we are all paying the price.  What's done is done, but if there's a lesson to be learned here it's that just as you review your investment, savings and retirement accounts, it's equally important to be informed about the factors that impact your largest investment:  your home.

If there's one thing I do, it's to counsel my clients to stay informed about Real Estate in our local area, because what happens in Real Estate affects you.  For instance, if there's a new development going up in your area, it may affect you in many ways - some positive, and some negative:

• If you own a business, such as a barbershop, a restaurant, or a coffee shop, a new development is a great source of potential new customers.
• If you have kids, how will the new development affect them and you?  Will the development be cause for redistricting schools?  And could this affect the way in which your kids get to school?
• What is the effect of this development on home values in the area?  Is your home worth more or less than these new homes?
• How will the new development affect traffic in the area?
• What will the development offer that might be interesting to you?  Will they have a community pool, open space, a playground or hiking trails?

What happens in your local Real Estate market will impact your life, whether you pay attention or not.  So now I ask you:  What goes through your mind when you see that sign for a new development in your neighborhood?  And do you follow the real estate market in your area?