Please tell me if the housing price in frederick md,21703 is going to go up or ,go down in future.

Asked by Chi, Frederick, MD Sun Mar 1, 2009

If i buy a townhouse in frederick ,md 21703 for $190,000 in foreclosure built in 2002,living area 2100 sg ft, is it a good deal or it can get price reduction in future

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Chi’s answer
Chi, Home Buyer, Frederick, MD
Mon Mar 2, 2009
Thank you all for your answers. I'm still not able to understand one thing. The owner bought this house for $165,000. Now it is in foreclosure and listed price is $190,000. Even if owner made $0 down and took loan of $165,000 how come bank selling it for more ?
1 vote
Cathy Chapman, Agent, Frederick, MD
Tue Apr 14, 2009
Hi Chi,

Housing prices will most certainly stabilize in the future and they will go up again and they will go back down again. History has shown that real estate runs in cycles. I doubt seriously, however, we are ever going to witness the frenzy that we saw in 2003-2006 that brought us to this place in our history.

It'd be wonderful if we all had a crystal ball to know where we'll be in 5 years in this real estate market. Yes, location is critical, but price is also critical so don't get yourself upside down as others have. I don't foresee any more major drops in values but I'd still be careful not to overpay for a property.

My recommendation is that in our current market, I would not pay more than the most recent sales in a community. Although a recent sale may be low due to a Short Sale situation, it still remains a comparable that appraisers are going to look at and they will continue to bring down values, unfortunately.

I hope this helps!

Good luck!

Cathy Chapman, Broker
Signature Home Sales, LLC
0 votes
Teri Crow, Agent, Falls Church, VA
Tue Mar 3, 2009
Location location location is and will always be the first rule in real estate.
21703 has 61 town homes on the market to date built in 2002 or later.
There are tons of variables to consider when purchasing a home. A ‘good deal’ should never be your only motivator; albeit a good one if all other criteria fall into place.
You will never have an answer to your question because no one can see the future, otherwise we would all be sipping’ on pina colodas somewhere
Are you aware in Frederick you are subject to a county and city tax assessment vs. a county tax only? This can make a huge difference in your monthly payment.
You have to decide if now is a good time for you...there are many people who 'wait' for the perfect moment only to wish they would have when they could have.
You are the only one who knows when and if you are comfortable in purchasing now.
Your agent will or should give you the comparables in the area you choose to buy and you can rest assured the bank won't loan you the money for purchase unless the house is deemed worthy.
Web Reference:  http://www.TeriCrow.com
0 votes
Candice A Do…, Agent, Laughlin, NV
Tue Mar 3, 2009
I'd suggest asking your agent (and you would need one very familiar with data resources in your area) to take a look at the current housing supply.

That may indicate general trends, though it won't take into account economic conditions or any unexpected area changes.

In my area (AZ) we see changes in the market when weather is good/bad and when gas prices go up/down, as it is a resort and second home market.

Employment, politics, development etc. could likewise affect appreciation/devaluation in your area.

To know if ANY housing prices will go up or down in the future would require a crystal ball and/or a call to Miss Cleo in the Nassau County Jail. :)
Web Reference:  http://www.CommercialBHC.com
0 votes
Peggy Magnan…, Agent, Frederick, MD
Tue Mar 3, 2009
Chi,
To try to answer your second question, there are a couple of possibilities : 1) I can't tell without looking up the tax records. The house could have been purchased new and that was what they were going for at the time but has now been appraised for more. and 2) there is a very good possibility that the previous owner took out an equity loan and it just isn't reflected on the tax records. I have seen that many times. If you would like me to do some more checking please contact me and I will be happy to help you. you can go to my website at http://www.PeggyMagsSellsHomes.com and all my contact info is there.
0 votes
Chris Highla…, Agent, Frederick, MD
Mon Mar 2, 2009
Chi,

As others have indicated you can not be sure where the bottom of the market is but when homes start to sell you are close.

According to MRIS, our local Multiple Listing Service, the number of homes sold in 21703 zip code went up by over 87% in the last quarter of 2008 compared to last quarter or 2007. The sales prices during the same period declined by aprox. 23%. During the last quarter of 2008 I personally wrote offers to purchase homes for clients that were competing with other buyers 6 times. While I cannot be sure where the "bottom" is, prices tend to stop falling when people start buying.

I will provide you with a specific estimate of current value for the home you are considering if you would like. Simply provide the details of the home and I will forward you information on comparable sales in that area.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Mon Mar 2, 2009
Hi Chi, I am not an expert in your market to get this out of the way from the start. But I feel that I can add a little thought to your decision making process. I am not sure whether or not you are a first time home buyer. Then if you are you would also be able to take advantage of the first time home buyer tax deduction, that is one item to consider!
The other one is the question about where the prices are going to go. You know as home prices are going down, adjust, level out, then at one point they will start going back up. Nobody really can tell you when the real bottom is reached in the real estate market and then it will depend on type of home, age of home, size of home, price range, location, subdivision etc. etc., If anyone tells you..... truly they do not know.

But on the other hand, you should definitely work with an experienced area Real Estate Agent who will be able to run some numbers for you, first get a very solid and truthful market evaluation for the property in question, then since you are talking about a foreclosure you should definitely work with a Buyers Agent who is on your side and provides you with all additonal information and as far as Foreclosures are concerned,
there may be additional expenses that the bank will not cover, so make sure you have a Realtor on your side for advice!

If you would like me to recommend a trusted Partner Colleague of mine in your town to you --- e-mail me and let me know, I would gladly do so! edithsellshomes@gmail.com

And by the way if you ever come across anyone you know who is moving to Chicago, the larger Chicagoland area or anywhere in Northern Illinois would you send them my way? They will receive first class service!
Edith YourRealtor4Life! Working always in the very BEST interest of her clients!
edithsellshomes@gmail.com
0 votes
Peggy Magnan…, Agent, Frederick, MD
Mon Mar 2, 2009
To answer your question $190,000 is a good price for a townhouse with 2000 sq ft. BUT that being said it does depend on location and condition. There are some neighborhoods in 21703 that $190,000 is a great deal and others that $190,000 is overpaying. You may have to replace the carpet, appliances, paint the whole place, and really scrub it down. If there are a lot more repairs then it may not be such a great deal.
To answer the second part of your question, No one can really predict the future. I would have thought that last year saw the bottom. Like the other REALTOR said you will only know that we have reached the bottom when prices start to go back up. then you have missed it. Remember that the first time home buyer tax credit only goes til Dec. 1st of this year.
You should buy because this is where you want to live for at least 5 years. Make sure you check out the neighborhood crime statistics, and the sex offender registry. Talk to the neighbors. Is the commute good? Does the house have enough room for your family? If you have positive answers to all these questions then this is a good fit for you.
0 votes
Kevin O'Neill, , Frederick, MD
Mon Mar 2, 2009
Real Estate value is very dependent on the location & condition of the property. $190,000 in one location may be a great deal while $190,000 in another location may not be a great deal.

If you send me all the details about the home I will do a thorough analysis for you!

In regards to predicting the future about home values- no one really knows exactly what the future will bring. If you buy the home at a good price and plan to make it your residence, especially in that price range, you will likely be better off than renting, (Have an agent run some numbers for you to compare!), when considering the fact that you will have tax advantages. There is also a program to buy a home with a 30 year mortgage and have it paid for in as little as 1/3 to 1/2 the time, without changing your lifestyle. When you accelerate equity in that fashion the whims of the market become far less important. Let me know if I can answer any other questions in a more in depth fashion!
0 votes
Fernando Her…, Agent, Gaithersburg, MD
Mon Mar 2, 2009
The reason you should buy is very simple. There has been a huge price reduction in houses already. .chances are that if there is still some left. . it will make very little difference. You can never TIME IT to buy real estate at the bottom of the market. You can only know that the bottom of the market has occurred when is already on it's way up.
0 votes
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