ARTICLE INDEX
The Benefits Of Using Just One Agent
Don't Forget To Prepare For Your Move
How Buyers And Sellers Can Benefit From The Same Market
How Important Is A Roof Inspection?
Important Terms Concerning Representation
The Market for the Second Half of 2007
Understanding Key Elements of Buyer Representation
Understanding Key Elements of the Sales Contract
Understanding Key Elements of Seller Representation
Understanding Maryland's Property Disclosure Law
Understanding Maryland's Required Agency Disclosure
What Questions Should You Ask An Agent?
What's More Important - The Price My House Sells For Or My Sellers Net?
How Rising Interest
Rates Could
Affect The Local Real Estate Market
The Federal Reserve Board has recently been giving signals that it will start raising interest rates to control rising inflation. There has been a lot of speculation about what this would do to the real estate market. There is no question that this would slow sales somewhat. How dramatically sales would be affected would vary from area to area.
The overall market in the Greater Baltimore area should stay strong. Housing in the Washington, D.C. metropolitan area has gotten very expensive, and many people who work in Washington are migrating to outlying areas, such as Southern Maryland, Annapolis, Frederick and Baltimore. Unless there is a sharp rise in interest rates, which is not expected, this trend is not likely to die off any time soon.
The hot real estate market in Baltimore has also caused home prices in many area neighborhoods to rise substantially. Home values in some communities have increased 50% in the past year. This hasn't hurt home sales because low rates have allowed buyers to purchase more expensive properties with the same payment they would have had a few years ago with a property selling for less money. When rates go up again, monthly payments on the same houses will go up accordingly, and many buyers will find the higher prices out of their reach.
This does not mean that the local housing market will die off, or that home values will drop back down. Instead, it's more likely that the local market will return to a period of more moderate gains in home values. Most homeowners who have been in their house for more than two or three years could still reasonably expect to sell for a nice profit. How much an individual house would sell for depends on the exact location, features, size, condition and other factors.
©2004
Doug
Barry
LONG & FOSTER REAL ESTATE, INC.
Direct
410-207-4751
Office 410-823-8111
Doug@RealtyComplete.com