Foreclosure in Annapolis>Question Details

bonbon, Home Owner in Edgewater, MD

Is Anne Arundel Co. (MD) more stable than many other areas in the nation?

Asked by bonbon, Edgewater, MD Wed Dec 5, 2007

I don't see that many foreclosures or auctions in the area. Is it because people in general have more stable jobs and incomes, or is it the case of "the worst hasn't hit the area yet"? To my knowledge, the home inventory is higher now than it was a year or two ago, and there are some bargains to be found, which again wasn't the case prior to this crisis. However, the prices seem to be more stable than in many other regions. In short, what do you think: will the prices continue to adjust, or have they already stabilized?

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Bill Wootan's Team One’s answer
It is such a shame that our business is so controlled by the media - but they are screaming down turn so long and loud, that all the listeners are believing it, and are not buying! Just last week the Washington Post had a front page article that said New Home Sales Down 70%, and then a box dividing the country into 4 sections, NE (where we live and work) South, Midwest and West -NE + 24.3% (DID U SEE THAT PLUS 24.3%) and all the other areas down significant numbers - now the writer was here in Washington DC, and you would think with good intentions would have pointed out that our area was UP, not down!
AA county is very stable, has a few foreclosures, but well below average, but also the teaser rates that buyers got in the last 3 years (As loow as .99%) will begin to esculate in the next two years - then we might begin to see some more foreclosures - but it the govmnt steps in and makes the mortgage holders not increase their rates (glad I own no stock or was an investor) will be very damaging to the lenders and a gift to the buyer who stepped out on the thin ice, figuring that they would be ok!
Good Luck on your potential puchase - remember real estate is still the best long term investment you could ever make!

Bill Wootan
Web Reference: http://www.billwootan.com
2 votes Thank Flag Link Thu Dec 6, 2007
You know, Mansur raises a good point about growth caps. My town also has one. To a certain extent, i think it has shored up prices. It had the bizarre effect of raising land prices thru the roof. Everyone who couldn't buy a new home went & bought land with the intention of building down the road when a permit became available. There is no some talk of eliminating the cap because demand is moderating. I don't think it well effect prices too much but something to think about.
1 vote Thank Flag Link Tue Dec 11, 2007
Mansur, I like your balanced and sensible answers too! I think the fear that some potential buyers like me have is that if we buy now and the market continues correcting itself, we might end up regretting our decision. On the other hand, it's good to know that AA County is more stable, for if I find a really good deal, there is very little chance that my property would depreciate below what I bought it for. If I were in California or even Northern Virginia, I'd wait for the price will probably continue falling there. In AA County, it seems to me, it's all about finding the right house at the right price (for the buyer, of course).
1 vote Thank Flag Link Wed Dec 5, 2007
Here are some statistics for you to consider. They compare November 2008 to a year ago (November 2007) for Annapolis (21401):

Total Sold Dollar Volume: 11/08 = $14,748,850 vs. 11/07 = $14,231,456 -- Change: UP 3.64%
Average Sold Price: 11/08 = $526,745 vs. 11/07 = $592,977 -- Change: DOWN -11.17%
Median Sold Price: 11/08 = $379,500 vs. $437,450 -- Change: DOWN -13.25%
Total Units Sold: 11/08 = 28 vs. 11/07 = 24 -- Change: UP 16.67%
Average Days on Market: 11/08 = 142 vs. 11/07 = 128 -- Change: UP 10.94%
Average List Price for Solds: 11/08 = $648,726 vs. $716,092 -- Change: DOWN - 9.41%
Average Sale Price as a percentage of Average List Price: 11/08 = 81.20% vs. 11/07 = 82.81%

Total NEW listings: 58
Total Properties Marked Contract: 21
Total Properties Marked Contingent Contract: 8
Total NEW pendings (Contracts + Contingents): 29

These statistics were pulled from MRIS, as of 12/08/08. (December's stats should be out soon.)

I think these numbers help to support my position: I believe the Annapolis area has been impacted by our local, as well as, national economic conditions; however, I also believe we're stabilizing.

In my opinion, the trick to turning around this market is for Buyers to focus on what's real; their lives, the stability of their jobs and their financial situation; as well as, their objectives. Some, if not many, would probably determine, "...it's a great time to buy!"

Putting fear aside and focusing on "what's real" -- that's the trick.

;) Jenn
0 votes Thank Flag Link Fri Jan 9, 2009
Anne Arundel Co. by virtue of its robust job growth, land resources and location, has avoided the major housing problems that created havoc to other U.S. cities.
But i feel that we are still headed towards more rough waters before this crisis is over. .
0 votes Thank Flag Link Thu Jan 1, 2009
It seems this question had just been answered. Latest story on housing market in AA County:

"The number of homes sold in Anne Arundel County plunged 42 percent in November, the biggest drop in nearly a decade. The Metropolitan Regional Information Systems Inc. reported buyers bought only 346 county homes last month, down from 596 in November 2006...According to MRIS, the number of active listings last month stood at 4,243, up from 3,796 in November 2006. The homes that sold last month sat on the market for an average of 120 days, 33 days more than November 2006, MRIS figures show." (Source: Capital Online http://www.hometownannapolis.com/cgi-bin/read/2007/12_11-10/TOP)

These are difficult times for everyone. Sellers find it hard to find buyers, while buyers are afraid to go ahead given the uncertainty that persists in the market and the talk about the possibility of recession.
0 votes Thank Flag Link Tue Dec 11, 2007
Mr. Wootan, I empathize with your sentiment. I agree the media do not always paint a correct picture, especially in the view of the fact that all real estate market is local. While some regions in the nation are having a bad downturn, some other regions are still doing well. On the other hand, I can see in our local market a number of properties that have been on the market for 3-6 months. Something's gotta give! Either the sellers will have to be willing to lower the prices a bit, or the buyers will have to get rid of the fear instilled in us by the media (or a little bit of both). Otherwise, we'll end up with in a stalemate which isn't good for anyone in the market.
0 votes Thank Flag Link Thu Dec 6, 2007
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