Harford County Real Estate Down, BUT....

I don't have to tell you that the real estate market in Bel Air, Forest Hill, Abingdon or any other town in Harford County is down from the trends we saw in the past few years. Wow, what a surprise, right? Did anyone really think that the incredible appreciation that sellers benefited from could continue? I don't think anyone who had any time in the market actually thought that the trend of 10-50% gains in a 12 month period would realistically continue. We all were fooling ourselves. It was great for some, but for others it really was the starting point of a downward spiral. Lots of home owners began to depend on the increasing values as a way to supplement their incomes. Does this seem right to you? As you can imagine this hasn't panned out for a large number of households. The banks and any other entities in the real estate business just rode the wave. Well, unfortunately, earlier this year that wave came crashing down. Home prices across the county are lower than a year or two ago, BUT prices are still up over the past 5 years. Hmmmm, so what this tells me is that home owners who have actually lived in their properties for 3-5 years shouldn't be as effected as the investor who wanted to make a quick dollar or the home owner who has grown tired of his house after 18 months. Surprise!

I'm saying all of this to get to my point. Yes, there are circumstances where families or individuals have to buy/sell in a short period of time, but this has historically been the exception. Historically people have purchased properties to live in them. How many homes have your grandparents lived in? The average real estate market can absorb the military relocation or the estate sale or the many other cases where a home is bought and sold sooner than expected, but when thousands begin to follow suit and it becomes the rule rather than the exception, then there will be consequences.

The banks that provided the "exotic" mortgages, that got buyers into homes they knew they shouldn't be able to afford, or that got an investor a property and that investor would walk away from settlement with thousands of dollars in his pocket, were just capitalizing on the current situation. Were they right in doing it? Well, when you're faced with the option of a customer using your services or that customer going down the street, or on the Internet, and getting the same services from someone else, you'd probably choose have the business rather than handing it off to someone else.

Where does this leave all of us? Are we all going to continue to feel the pain of a multitude of bad decisions? I don't think so. Right now, homes are selling. Everyday someone is looking for their first home, or down-sizing, or relocating. This is what makes the market go 'round. Right now, interest rates available are still at 30 year lows and responsible buyers are able to get reasonable loans.

In Harford County there is about a 10-12 month supply of properties available for buyers to choose from. Is that bad? No! If you recall that in '05 buyers were putting offers in on properties and bidding 5%, 10% and sometimes 20% over the asking price because there were multiple parties interested in the same property. When making one of the most important purchases in your adult life, you shouldn't have to settle for what you were the first to stumble upon. Yes, as a seller it is frustrating having buyers offer prices well below what you're wanting to get for your home, but you don't have to take it. Also, if you're not being transferred, expanding your family or dealing with a situation that dictates that you sell, then DON'T SELL! But, if you are in a situation where selling your home is necessary, then a properly priced and marketed home is still selling in a reasonable amount of time.

Here in Harford County we have reasons to feel a little safer than some other areas. First off, we have neighbors, Baltimore City, Philadelphia, New York City and DC, that help with business and contribute to our economy. Next, we are one of the few local areas that offer affordable housing. That's right, affordable. Try Anne Arundle,Montgomery or Howard Counties and see what $350,000 gets you. Also, I'm sure you've heard of BRAC(Base Closure and Realignment Commission). BRAC is reportedly going to bring thousands of jobs to our area in the next 2-5 years. While I don't expect BRAC to be the shot in the arm that the local market needs, I do believe that it will help work through some of the inventory we have stockpiled and help get us back into a more stable local real estate market.

The real estate market is one that is cyclical in nature. There are ups, downs and flat times, but one thing is for sure, there are buyers and sellers in every market. Make sure you have a professional who is in tune with the local conditions and knows the current inventory.