NAR Reports Existing Home Sales Surge

The National Association of Realtors is reporting that "sales activity is at the highest pace since February 2007 when it hit 6.55 million". First-time homebuyers, who have embraced the first-time homebuyer credit, are the driving force behind the sales increase which is evident by the spike in activity in the lower price ranges. NAR President, Vicki Cox Golder, reported that in some areas of the country the demand has increased so much so, that NAR has been receiving reports of multiple bid situations. Golder states" In fact, low-end inventory has become very tight in many areas and in some cases buyers are becoming more aggressive. In this kind of environment, it's important to work with a Realtor® who can walk you through the process and help you negotiate a satisfactory deal."

Lawrence Yun, chief economist for NAR, is optimistic about stabilization in the housing market in the second half of 2010. He states " ....if home values show consistent stabilization or even a modest increase, then home sales could remain at normal healthy levels because consumers would no longer be worried about a price overcorrection."

Another positive highlighted in this report is that the supply of homes available on the market has dipped to its lowest level in over two and half years, which creates more of a balanced market.

MD Foreclosures: 1 in 14,537

Realty Trac, the nation's online leader for foreclosure reporting, recently released its foreclosure trend report for October. Although the number of foreclosure filings did decrease slightly from 16,867 households receiving foreclosure filings in September to 14,537 foreclosure filings received in October, the number of foreclosure properties in Maryland still remains at an all time high. The average foreclosure sales price in Maryland dipped again from $230,659 reported in September to $209,604.00 in October.


Although foreclosure properties continue to flood the market, the news is not all bad for Marylanders. Contrary to what many Sellers believe to be a "bad" market, homes are still selling and more homes are selling now than sold a year ago at the same time. In fact, the Maryland Association of Realtors statistics show an increase of the number of settlements taking place throughout the State of 39.5% compared with October of 2008. Pending units have also increased substantially compared to October of 2008. The biggest increase in sales is ocurring in the $200,000-$300,000 price point, which is being driven largely by first-time homebuyers eager to take advantage of the $8,000 tax credit.

For more information on foreclosures or the tax credit, please e-mail info@newcolonyrealtors.com.

Help For Cash-strapped Homebuyers in HOCO!

Are you a homebuyer living or working in Howard County who has limited cash resources? If so, Howard County has now come to the rescue with a new settlement down payment loan program! The program, called SDLP, (settlement down payment Loan Program) is designed specifically for those borrowers who have good incomes, but lack the cash resources to come up with the 3.5% down payment required by FHA. The County is offering 5 different programs, 2 of which are available to borrowers who are NOT first-time homebuyers. Some more good news for County residents is that the SDLP loan program also includes a "Revitalization" initiative which is reserved exclusively for the purchase of homes which are in foreclosure or pre-foreclosure (short sale) status (in designated zip codes 21045 & 20723).

The following are some basic guidelines for the program:

• Minimum contribution by the Borrower - $1,000


• Borrower must have cash reserves of projected mortgage payment (p.i.t.i) of 1 month. Cannot include borrower's minimum of $1,000


• Minimum cash reserves can be received as a gift


• Projected income is used for eligibility, not average income


• Maximum Purchase Price $429,620


• Home Buyer Counseling Required