What you’re reading in the national newspapers, and hearing on the news regarding the real estate and mortgage market is true.  We are going through a historically rough time.  It’s harder to get a loan than it was 3 years ago.  Home prices are falling.  Houses are staying on the market longer.  Sellers are throwing in boats, cars, even cruises in order to get their homes sold.

            Although the sky is falling nationally, there seems to be an umbrella over the central Maryland region.  In the latest numbers produced by Metropolitan Regional Systems, Inc (MRIS) comparing August of 07 to the sales numbers of August 06, Montgomery, Howard, and Baltimore Counties as well as Baltimore City all showed sales price increases.  Montgomery County was the largest gainer increasing 6.8% over last year.  Baltimore County (3.01%), Baltimore City (2.54%) and Howard County (1.90%) all had modest gains. 

            Not all is roses and sunshine in the area.  Sellers are still being negotiated off of their original sales price by an average of about 5%, and their homes are on the market longer (about 80-85 days).  Getting a loan is harder as well.  Today’s lending market has tightened their qualifications.  Buyers are now required to have good credit scores, and it doesn’t hurt to have a down payment either.  Interest rates are still very reasonable for those who qualify.

            In my opinion the problem with the market is the confidence of the buyers.  Buyers believe home prices will fall and they will be making a bad investment if they purchase now.  They also believe they will get a better interest rate if they wait for the feds to cut rates.  I don’t believe we are going to see sub 6% again.  The latest numbers show home prices are rising, and central Maryland is bucking the trend of the nation. 

            The longer buyers wait to purchase a home the more expensive the purchase will be.  Our prices are rising in what is documented as a nationally ‘bad’ market.  What’s going to happen to our prices in a good or even stable market?  What’s going to happen to prices when BRAC takes affect and 50,000 jobs enter our region?  Real estate is a long-term investment.  The long term of central Maryland real estate looks even brighter than the current increasing market.  Now is the time to buy!