Howard County Real Estate Talk

MONEY Magazine ranks Columbia/Ellicott City as 8th BEST PLACE TO LIVE IN THE USA!

Brian Pakulla — Fri, 18 Jul 2008 17:32:35 GMT

And the praise keeps coming. Add all the great publicity and with BRAC jobs coming thru 2012, this maybe a great time to consider increasing your real estate portfolio in Central Maryland!

Click here to read the MONEY Magazine article

Update on the financial markets.

Brian Pakulla — Fri, 18 Jul 2008 17:28:27 GMT

It has been a tumultuous week for Wall Street but it seems that calmer heads have prevailed for the last couple of days - let's all hope that trend continues. There has been a lot of negative speculation regarding the financial health of any company associated with the mortgage industry including most banks and industry giants Fannie Mae and Freddie Mac. The failure of IndyMac seems to have been the catalyst for the latest round of fears. The fear that Fannie and Freddie are going to fail is, in my opinion, greatly exaggerated. Unfortunately, once the rumors start, they can start to become a self-fulfilling prophecy when panicked investors start dumping their shares. That is why we have seen such a public effort by the Fed and the Treasury to put in place measures to assist both Fannie and Freddie should they start to see problems raising the capital that they need for their day to day functions. The odds that Fannie or Freddie actually need to resort to any of these measures appears to be slim - Freddie Mac has had two auctions of their mortgage-backed securities this week that went fine. Both the Fed and the Treasury realize that the media-driven negative perception of this situation needs to be addressed which is why such a broad-based contingency plan is being hammered out.

The bottom line is that both Fannie and Freddie are vital not only to our industry, but to both the US and Global economies as a whole. If the average homebuyer cannot access a mortgage at favorable rates, the US economy will come to a grinding halt and the Global economy will soon follow. It is my opinion that Fannie and Freddie will weather this storm on their own merits, as will most banks. However, it is important for everyone to know that the government will step in with appropriate measures to assure Fannie and Freddie's continued viability if the need arises.

If there is anything that I can do for you, please call.

Pat Sheplee
Loan Officer
FNMC \ A Division of National City Bank
15400 Calhoun Drive Suite 100
Rockville, MD 20855
301-279-4697 Direct
301-580-7709 Cell
301-309-0240 Fax
patrick.sheplee@ncmc.com

Forbes ranks Howard County as the 17th best place to raise a family in the USA!

Brian Pakulla — Sun, 06 Jul 2008 21:21:19 GMT

Just another good reason to buy in Howard County. Howard County has been recognized by both Money Magazine and now Forbes as one of the best places to live. And when there is a good place to live, there is a good place to buy and invest in.

http://www.forbes.com/2008/06/27/schools-places-family-forbeslife-cx_zg_0630realestate_slide_5.html?thisSpeed=15000

Central Maryland Homes for Sale

Brian Pakulla — Wed, 25 Jun 2008 16:02:03 GMT

Photo	Address	Details	Price
	4829 Attenborough Way Ellicott City, MD 21043 TourID: 0	Amazing Builder's Model Home backs to WOODS! Bedroom: 4 Full Bath: 4 Half Bath: 1 5050 Sq. Ft.	$899,000

	4816 Attenborough Way Ellicott City, MD 21043 TourID: 0	NEW BRICK FRONT COLONIAL W/ENDLESS FEATURES! Bedroom: 4 Full Bath: 4 Half Bath: 1 5899 Sq. Ft.	$825,000

	9706 Gretchen Lane Ellicott City, MD 21042 TourID: 319274	Amazing Value in Howard County Bedroom: 5 Full Bath: 3 Half Bath: 1 4687 Sq. Ft.	$775,000

	9922 Wintry Day Place Laurel, MD 20723 TourID: 333337	The largest in Emerson! Over 5,500 finished square feet! Bedroom: 5 Full Bath: 3 Half Bath: 1 0 Sq. Ft.	$775,000

	4570 Doncaster Drive Ellicott City, MD 21043 TourID: 412139	GORGEOUS COLONIAL W/POOL! Bedroom: 5 Full Bath: 3 Half Bath: 1 4464 Sq. Ft.	$750,000

	4808 Attenborough Way Ellicott City, MD 21043 TourID: 0	BRAND NEW LUXURY HOME IN PRIVATE COMMUNITY! Bedroom: 4 Full Bath: 3 Half Bath: 1 3532 Sq. Ft.	$699,000

	5135 Crystal Springs Drive Ellicott City, MD 21043 TourID: 407367	SPETACULAR DESIGN EXPO MODEL HOME WITH POOL! Bedroom: 4 Full Bath: 3 Half Bath: 1 3132 Sq. Ft.	$697,900

	4529 Hidden Hollow Drive Ellicott City, MD 21043 TourID: 465646	Bedroom: 4 Full Bath: 2 Half Bath: 1 4298 Sq. Ft.	$675,000

	5108 Little Creek Drive Ellicott City, MD 21043 TourID: 463196	Amazing luxury colonial on huge open lot! Bedroom: 4 Full Bath: 2 Half Bath: 1 2750 Sq. Ft.	$600,000

	10005 German Road Ellicott City, MD 21042 TourID: 0	CUSTOM RANCHER W/ 3700+ SQ.FT.! Bedroom: 5 Full Bath: 3 Half Bath: 3777 Sq. Ft.	$599,999

	707 Old Donaldson Ave Severn, MD 21144 TourID: 424876	REMODELED & EXPANDED! Bedroom: 4 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$575,000

	9221 Osprey Court Columbia, MD 21045 TourID: 459402	REMODELED COLUMBIA COLONIAL ON PREMIUM LOT IN SOUGHT AFTER THUNDER HILL! Bedroom: 5 Full Bath: 2 Half Bath: 1 3854 Sq. Ft.	$575,000

	4504 Vinter Way Ellicott City, MD 21043 TourID: 476507	OUTSTANDING COLONIAL PERFECTLY MAINTAINED BY ORIGINAL OWNER! Bedroom: 4 Full Bath: 3 Half Bath: 1 3212 Sq. Ft.	$575,000

	4669 Stallion Court Ellicott City, MD 21043 TourID: 436617	DREAM HOME 2008! Bedroom: 5 Full Bath: 3 Half Bath: 1 3088 Sq. Ft.	$550,000

	4830 Lee Hollow Place Ellicott City, MD 21043 TourID: 431837	LUXURY TOWNHOME BACKING TO WOODS! Bedroom: 3 Full Bath: 3 Half Bath: 1 1865 Sq. Ft.	$475,000

	6201 Black Cherry Circle Columbia, MD 21045 TourID: 454374	WOW FACTOR! Bedroom: 4 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$418,000

	15803 Kerr Road Laurel, MD 20707 TourID: 378169	Updated single family on huge 1/2 acre lot! Bedroom: 4 Full Bath: 3 Half Bath: 0 2994 Sq. Ft.	$400,000

	6540 Rice Court Elkridge, MD 21075 TourID: 437310	4 BEDROOM, 3 FULL BATH ON CUL-DE-SAC LOT! Bedroom: 4 Full Bath: 3 Half Bath: 2450 Sq. Ft.	$400,000

	6433 Fairmead Lane Columbia, MD 21045 TourID: 438832	PEACE AND QUIET! Bedroom: 4 Full Bath: 2 Half Bath: 1 2656 Sq. Ft.	$400,000

	7721 Blueberry Hill Lane Ellicott City, MD 21043 TourID: 418653	UPDATED, EXPANSIVE GARAGE END UNIT! Bedroom: 3 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$389,900

	9103 Montague Ct Laurel, MD 20708 TourID: 422679	REMODELED 4 LEVEL SPLIT ON IDEAL CUL-DE-SAC LOT! Bedroom: 4 Full Bath: 2 Half Bath: 1 3910 Sq. Ft.	$375,000

	7811 Old Litchfield Lane Ellicott City, MD 21043 TourID: 434362	REMODELED END UNIT TOWN HOME IN PRIME ELLICOTT CITY LOCATION! Bedroom: 4 Full Bath: 3 Half Bath: 1 1920 Sq. Ft.	$375,000

	6671 MacBeth Way Sykesville, MD 21784 TourID: 436658	UNBELIEVEABLE 4 BEDROOM, 2 1/2 BATH SINGLE FAMILY VALUE! Bedroom: 4 Full Bath: 2 Half Bath: 1 9278 Sq. Ft.	$369,900

	8762 Ruppert Court Ellicott City, MD 21043 TourID: 433865	GARAGE TOWN HOME BACKS TO WOODS! Bedroom: 3 Full Bath: 2 Half Bath: 2 2376 Sq. Ft.	$369,900

	7722 Chatfield Lane Ellicott City, MD 21043 TourID: 448665	REMODELED 4 BEDROOM, 3.5 BATH TH.... A MUST SEE! Bedroom: 4 Full Bath: 3 Half Bath: 1 0 Sq. Ft.	$369,900

	5749 Goldfinch Court Ellicott City, MD 21043 TourID: 453120	MODEL HOME! Bedroom: 3 Full Bath: 2 Half Bath: 1 0 Sq. Ft.	$365,000

	7771Chatfield Lane Ellicott City, MD 21043 TourID: 422966	4 BEDROOM, 3.5 BATH LUXURIOUS TOWN HOME BACKING TO WOODS! Bedroom: 4 Full Bath: 3 Half Bath: 1 2160 Sq. Ft.	$350,000

	8154 Mallard Shore Laurel, MD 20724 TourID: 443334	Luxury End Unit Garage Town House Bedroom: 3 Full Bath: 2 Half Bath: 1 2316 Sq. Ft.	$350,000

	6358 Arbor Way Elkridge, MD 21075 TourID: 469703	LUXURY END UNIT GARAGE TOWN HOME! Bedroom: 3 Full Bath: 2 Half Bath: 2 2280 Sq. Ft.	$350,000

	7721 Heatherside Lane Ellicott City, MD 21043 TourID: 435993	IDEAL GARAGE TOWN HOME BACKING TO WOODS! Bedroom: 3 Full Bath: 2 Half Bath: 2 2100 Sq. Ft.	$339,900

	9437 Manor Forge Way Owings Mills, MD 21117 TourID: 441358	Luxury Brick Front Town Home in the Heart of Town Center Bedroom: 4 Full Bath: 3 Half Bath: 2400 Sq. Ft.	$339,900

	6309 Troy Court Elkridge, MD 21075 TourID: 444250	Updated luxury TH with gleaming hardwood floors! Bedroom: 3 Full Bath: 2 Half Bath: 1 2040 Sq. Ft.	$339,900

	7802 Old Farm Lane Ellicott City, MD 21043 TourID: 463778	3 LEVEL GARAGE TOWN HOME BACKS TO WOODS Bedroom: 3 Full Bath: 2 Half Bath: 1 1920 Sq. Ft.	$334,900

	8222 Tall Trees Ct Ellicott City, MD 21043 TourID: 421122	Updated Brick Front Town Home Backs To Woods Bedroom: 4 Full Bath: 2 Half Bath: 1 1920 Sq. Ft.	$325,000

	8750 Cheshire Ct Jessup, MD 20794 TourID: 451567	Amazing Single Family in Howard County at a town home price! Bedroom: 4 Full Bath: 2 Half Bath: 0 0 Sq. Ft.	$325,000

	2022 Pinecroft Court Odenton, MD 21113 TourID: 468789	GORGEOUS GARAGE END TOWN HOME! Bedroom: 2 Full Bath: 2 Half Bath: 1 1826 Sq. Ft.	$324,000

	14249 Ballinger Terrace Burtonsville, MD 20866 TourID: 459397	BRICK, END UNIT TOWN HOME ON AMAZING LOT BACKS TO TREES & POND! Bedroom: 3 Full Bath: 2 Half Bath: 2 2040 Sq. Ft.	$319,900

	8967 Skyrock Court Columbia, MD 21046 TourID: 432307	AMAZING END TOWNHOME! Bedroom: 4 Full Bath: 2 Half Bath: 1 1630 Sq. Ft.	$309,900

	8564 Black Star Circle Columbia, MD 21045 TourID: 435990	HUGE 3 FINISHED LEVEL TOWN HOME AT OUTSTANDING PRICE! Bedroom: 3 Full Bath: 2 Half Bath: 2 1655 Sq. Ft.	$307,500

	7675 Coachlight Lane Ellicott City, MD 21043 TourID: 347146	Remodeled 3 level home in Ellicott City! Bedroom: 3 Full Bath: 2 Half Bath: 0 Sq. Ft.	$300,000

	6394 Ducketts Lane Elkridge, MD 21075 TourID: 441212	REMODELED ALL BRICK END UNIT Bedroom: 3 Full Bath: 1 Half Bath: 2 1620 Sq. Ft.	$268,000

	7948-A Mayfair Circle Ellicott City, MD 21043 TourID: 459366	AMAZING 2 LEVEL TOP FLOOR MODERN MASTERPIECE! Bedroom: 3 Full Bath: 2 Half Bath: 0 Sq. Ft.	$259,900

	6723 Second Morning Court Columbia, MD 21045 TourID: 0	GREAT BUY! Bedroom: 2 Full Bath: 1 Half Bath: 1680 Sq. Ft.	$245,000

	7648 Stony Creek Lane Ellicott City, MD 21043 TourID: 453583	UPDATED LUXURY CONDO OVERLOOKS OPEN SPACE! Bedroom: 2 Full Bath: 2 Half Bath: 1010 Sq. Ft.	$245,000

	941 Olmstead Rd Pikesville, MD 21208 TourID: 441717	UPDATED CAPE COD SINGLE FAMILY IN SOUGH AFTER SUDBROOK PARK! Bedroom: 4 Full Bath: 1 Half Bath: 0 2063 Sq. Ft.	$225,000

	7637 Stony Creek Lane Ellicott City, MD 21043 TourID: 472942	OUTSTANDING 2 BEDROOM, 2 BATH CONDO IN SOUGHT AFTER WOODLAND VILLAGE! Bedroom: 2 Full Bath: 2 Half Bath: 0 Sq. Ft.	$225,000

	5484 Cedar Lane #B1 Columbia, MD 21044 TourID: 427239	REMODELED MID-LEVEL CONDO IN THE HEART OF COLUMBIA! Bedroom: 2 Full Bath: 1 Half Bath: 1 0 Sq. Ft.	$214,900

	6087 Majors Lane #11 Columbia, MD 21045 TourID: 0	OWN A HOME AT A GREAT PRICE! Bedroom: 3 Full Bath: 1 Half Bath: 1076 Sq. Ft.	$169,900

	6073 Majors Lane #1 Columbia, MD 21045 TourID: 0	AWESOME PRICE!!! Bedroom: 1 Full Bath: 1 Half Bath: 814 Sq. Ft.	$155,000

	5907 Tamar Drive #2 Columbia, MD 21045 TourID: 0	MOVE IN READY! Bedroom: 1 Full Bath: 1 Half Bath: 734 Sq. Ft.	$153,000

	5920 Great Star Drive #305 Clarksville, MD 21029 TourID: 0	2 Bedroom, 2 Bath w/Large Den For Rent! Bedroom: 2 Full Bath: 2 Half Bath: 1500 Sq. Ft.	$2,100

Loans in Maryland will NOW require income documentation

Brian Pakulla — Sat, 07 Jun 2008 16:28:48 GMT

The big news this week is that as of June 1, Maryland Senate Bill 363 went into effect, basically eliminating all lenders from closing any Alt Doc loans (NINA, NO RATIO, STATED Loans) where income has not been documented to show the borrowers can afford the monthly payments. I believe Maryland is the 4th State (West Virginia, Minnesota, Ohio) to pass this type of law. Other States currently have the same bills out for legislative review and vote. What this means is that any loan closing in Maryland must have income documentation in the loan file - pay stubs, W-2s, 1099s, and/or income tax returns, even in cases where the loan program does not require these documents (as many Fannie Mae and Freddie Mac programs with excellent credit do not). If you have clients that are unable to document income, they will not be able to get financing in Maryland, even if the lender has programs available for them.

While the intent of this law is to make sure that buyers are able to afford their homes, there will be some legitimate borrowers (self-employed with significant "paper losses", recently retired, clients in job transitions, etc.) that could be affected. Make sure that your clients are working with a knowledgeable, local lender who addresses these requirements up front so that there are no surprises for you and your buyers and sellers.

As always, I'm available to answer any financing questions that you may have. Feel free to call.

Pat Sheplee
Loan Officer
FNMC \ A Division of National City Bank
15400 Calhoun Drive Suite 100
Rockville, MD 20855
301-279-4697 Direct
301-580-7709 Cell
301-309-0240 Fax
patrick.sheplee@ncmc.com

5 new rules for home buyers from Money Magazine

Brian Pakulla — Wed, 04 Jun 2008 09:39:48 GMT

This was an interesting article written in money magazine. There is a lot of good, sound advice. However, keep in mind there are some homes in this market priced well. This is why it is important to use a good Realtor to identify the well priced homes and good deals.

-Brian Pakulla

5 new rules for home buyers

By Amanda Gengler, Money Magazine

May 27th, 2008

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(Money Magazine) -- There's no telling how long the housing crisis will drag on. Here's what you need to know before you start shopping in a rocky market.

Rule 1: You can't time the bottom

Face it: The house you buy today will more than likely be worth less next year. That could get you thinking about trying to time the bottom. Resist. It's harder to do than you think, and this is the best buyers have had it in two decades, with inventories up and mortgage rates low.

Pace yourself, find the perfect place and drive a hard bargain: Ignore the seller's asking price and bid 10% below what comparable homes are selling for. If the seller balks, move on. Remember that if you're trading up, your home could sit. So sell before you buy.

Real Estate Survival Guide

Rule 2: One reason to buy now - mortgage rates

Homes are plentiful and will remain so, but financing will be getting more expensive. True, the Federal Reserve has slashed interest rates, but fixed mortgages don't directly follow the Fed. They reflect the bond market's expectations about inflation, which remains a concern. The 30-year, now at 6.1%, will likely reach mid-6% by December and 7% in 2009, says Celia Chen of Moody's Economy.com.

That means there could be a penalty for waiting to buy even if prices fall more. Today a $250,000 loan would set you back $1,500 a month. At 7%, a $1,500 payment gets you only a $225,000 mortgage. As for variable-rate loans, the spread between conforming ARMs and fixed loans is too narrow to do you much good.

Rule 3: Another reason to buy - rates on big mortgages

Mortgages in amounts greater than $417,000 - the limit for buying by federally sponsored mortgage agencies - usually run a fifth of a percentage point above conventional products. But investors are shunning jumbos, which now average 7.2% and are unlikely to drop much this year, according to HSH Associates.

Certain jumbo borrowers could get relief, however. A new law allows Freddie Mac and Fannie Mae to buy loans as large as $729,750 in 71 high-priced areas. So far "jumbo conforming" loans average 6.6%. The program has gotten off to a slow start; you'll need to shop around. And unless Congress acts, this bargain will disappear at year-end.

Rule 4: Don't buy cheap; buy good schools

By now you've heard from somebody who knows somebody who got a great deal on a foreclosed property. But when you buy a house, you're also buying into a neighborhood. And foreclosures tend to be bunched in areas where residents and speculators alike took out exotic mortgages to get into homes they subsequently found they couldn't afford. That's not a recipe for stability. Prices and quality of life could both decline further.

Similarly, avoid developments that popped up in the past few years. They too likely have a lot of owners with risky loans and little equity, says Mike Larson of Weiss Research. Instead, go for areas with highly rated schools. They generally fare better during downturns, and that pattern is holding today, according to a recent study by real estate site Trulia.com.

Rule 5: Make sure your agent has your interest at heart

The real estate game has a built-in conflict of interest, since the listing agent and your agent both get paid by the seller. And these days more sellers are offering extra cash to buyer's agents.

So make sure you're not being steered to a house that's better for your agent than for you. Agree up front on his commission (typically 3%) and that any extra payments will go to you, says Jon Boyd, past president of a buyer's agent trade group.

End of the down market according to the Wall Street Journal......

Brian Pakulla — Sun, 11 May 2008 13:45:43 GMT

It sounds like some in the press may start writing some positive stories. In order for the market to swing around we'll need the press to start "looking at the glass half full vs half empty". It is amazing how much the press and psychology has to do with buying a home.

The Housing Crisis Is Over
By Cyril Moulle-Berteaux
6 May 2008
The Wall Street Journal

(Copyright (c) 2008, Dow Jones & Company, Inc.)

The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor.

Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. Housing starts have fallen more than 50%, and, adjusted for population growth, are back to the trough levels of 1982.

Furthermore, residential construction is close to 15-year lows at 3.8% of GDP; by the fourth quarter of this year, it will probably hit the lowest level ever. So what's going to stop the housing decline? Very simply, the same thing that caused the bust: affordability.

The boom made housing unaffordable for many American families, especially first-time home buyers. During the 1990s and early 2000s, it took 19% of average monthly income to service a conforming mortgage on the average home purchased. By 2005 and 2006, it was absorbing 25% of monthly income. For first time buyers, it went from 29% of income to 37%. That just proved to be too much.

Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst.

Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs. As a result, it now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s. Numerous households that had been priced out of the market can now afford to get in.

The next question is: Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do.

In the past five major housing market corrections (and there were some big ones, such as in the early 1980s when home sales also fell by 50%-60% and prices fell 12%-15% in real terms), every time home sales bottomed, the pace of house-price declines halved within one or two months.

The explanation is that by the time home sales stop declining, inventories of unsold homes have usually already started falling in absolute terms and begin to peak out in "months of supply" terms. That's the case right now: New home inventories peaked at 598,000 homes in July 2006, and stand at 482,000 homes as of the end of March. This inventory is equivalent to 11 months of supply, a 25-year high -- but it is similar to 1974, 1982 and 1991 levels, which saw a subsequent slowing in home-price declines within the next six months.

Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually.

Inventories will drop even faster to 400,000 -- or seven months of supply -- by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market.

Many pundits claim that house prices need to fall another 30% to bring them back in line with where they've been historically. This is usually based on an analysis of house prices adjusted for inflation: Real house prices are 30% above their 40-year, inflation-adjusted average, so they must fall 30%. This simplistic analysis is appealing on the surface, but is flawed for a variety of reasons.

Most importantly, it neglects the fact that a great majority of Americans buy their houses with mortgages. And if one buys a house with a mortgage, the most important factor in deciding what to pay for the house is how much of one's income is required to be able to make the mortgage payments on the house. Today the rate on a 30-year, fixed-rate mortgage is 5.7%. Back in 1981, the rate hit 18.5%. Comparing today's house prices to the 1970s or 1980s, when mortgage rates were stratospheric, is misguided and misleading.

This is all good news for the broader economy. The housing bust has been subtracting a full percentage point from GDP for almost two years now, which is very large for a sector that represents less than 5% of economic activity.

When the rate of house-price declines halves, there will be a wholesale shift in markets' perceptions. All of a sudden, the expected value of the collateral (i.e. houses) for much of the lending that went on for the past decade will change. Right now, when valuing the collateral, market participants including banks are extrapolating the current pace of house price declines for another two to three years; this has a significant impact on the amount of delinquencies, foreclosures and credit losses that lenders are expected to face.

More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure.

A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy.

We are of course experiencing a serious housing bust, with serious economic consequences that are still unfolding. The odds are that the reverberations will lead to sub-trend growth for a couple of years. Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now.

Are we at the bottom of the market?

Brian Pakulla — Mon, 24 Mar 2008 21:16:39 GMT

I have been telling many of my clients that it feels like we maybe at or close to the bottom of the market. Buyers are starting to act again, although buyers are still price sensitive. This means sellers still need to create value and price correctly.

This is from the "Dow Jones Tomorrow's News Today" Article dated 3/24/08. This is strong data from the nation. Our local market typically does better than the national market, so time will tell if in fact we are the bottom.

Demand rose for used homes during February, the first increase in seven months and
an indication sales have hit bottom in the housing slump.

Existing-home sales climbed 2.9% to a 5.03 million annual rate, the National
Association of Realtors said Monday. The last time sales increased was July.

Buyers took advantage of falling prices. The median home price was $195,900 in
February, down 8.2% from $213,500 in February 2007.

“We seem to be finding a bottom in home sales even as prices keep falling,” said Joel
Naroff, who runs an economic consulting firm.

NAR economist Lawrence Yun was encouraged by the 2.9% sales gain. “We’re not
expecting a notable gain in existing-home sales until the second half of this year, but
the improvement is another sign that the market is stabilizing,” Yun said.

Tax Refund Info - 2008

Brian Pakulla — Fri, 21 Mar 2008 12:17:16 GMT

* Please consult your tax advisor for legal tax advice. *

Our federal government is hoping to spur additional economic growth and therefore starting in May, the Treasury will begin sending economic stimulus payments to over 130 million qualified households. To receive a payment, taxpayers must:

1 - have a valid Social Security number

2 - have $3,000 of reported income

3 - file a 2007 federal tax return.

Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17.

Note: Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

PAYOUT SCHEDULE

Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. People who use direct deposit also will be among the first to receive the payments starting May 2. Paper checks will be put in the mail starting May 16.

DIRECT DEPOSIT

Last two SSN digits:	Payment will be transmitted:
00 through 20	May 2
21 through 75	May 9
76 through 99	May 16

PAPER CHECK

Last two SSN digits:	Payments will be mailed by:
00 through 09	May 16
10 through 18	May 23
19 through 25	May 30
26 through 38	June 6
39 through 51	June 13
52 through 63	June 20
64 through 75	June 27
76 through 87	July 4
88 through 99	July 11

People who file a return after April 15 will receive their economic stimulus
payment, but probably about two weeks later than the schedule shows. A
return must be filed by October 15 in order to receive a stimulus payment
this year.

ADDITIONAL RESOURCES

The IRS Economic Stimulus Payments Information Center website provides extensive information regarding the stimulus payment, including:

- an online calculator

- official payout schedule

- how to file for free if you are not normally required to file

- frequently asked questions

- other

Source: IRS Website - http://www.irs.gov/newsroom/article/0,,id=177937,00.html

Brian Pakulla Pakulla Properties - RE/MAX Advantage

#1 RE/MAX Team in Central Maryland

410-579-MOVE (6683)

brian@123move.net

www.123move.net

update on mortgage rates

Brian Pakulla — Fri, 21 Mar 2008 12:11:21 GMT

The Fed's action this week (reducing the Fed Funds rate by 3/4%) has brought some more much needed relief to the American homeowner. Anyone with a HELOC tied to Prime (currently 5.25%) is seeing immediate savings. The mortgage market remains extremely volatile however, with most lenders receiving multiple reprices to their rates each day. The rates that are quoted in the morning are very often different by the afternoon. This is largely due to the continued lack of appetite by the end investors for mortgage related debt. Adjustable Rate Mortgages are priced worse than 30 year fixed rates in most cases (although ARMs do seem to be one of the decent options in the Jumbo market).

With the extreme swings in interest rates daily and even intra-day, it is important that you protect your buyers. Encourage them to work with a lender that you are confident will deliver. Have the client call their lender the day they actually make any offer, even if they spoke to their lender the day before. Put deadlines on any offers that you make that force the seller to ratify within a day or two. Once your client is under contract, encourage them to lock in with their lender quickly, before the rate that they are expecting is changed.

As always, I'm available all weekend to assist you and your clients. Happy Easter.

30 year fixed conforming with 0 points…. 5.750%

Pat Sheplee
Loan Officer
FNMC \ A Division of National City Bank
15400 Calhoun Drive Suite 100
Rockville, MD 20855
301-279-4697 Direct
301-580-7709 Cell
301-309-0240 Fax
patrick.sheplee@ncmc.com

Your credit score is now going to have a huge impact on your home interest rate!

Brian Pakulla — Wed, 16 Jan 2008 00:47:56 GMT

As many know, the mortgage industry went through serious turmoil in 2007! Now, the lenders are going to be smarter about how they lend money and at what rate. Your credit score is going to either save you money or cost you.

Please see the link below to a great article that explains the credit score and interest rate increase that you may incur. Due to the ever changing mortgage market, it is more important than ever to use a trusted mortgage lender. I highly encourage all our clients to either use a mortgage lender that we know or with whom they've had previous dealings with. This will insure you are receiving good honest advice and rates.

If you would like to find out your credit situation, what you may qualify for, or need assistance to clean up your credit to increase your score and receive better rates, contact me today. You can reach me at 410.579.MOVE or at www.123move.net. I have 5-7 high quality lenders who can help you and offer you the best rates possible.

CLICK HERE TO READ ABOUT HOW YOUR CREDIT SCORE WILL IMPACT YOUR HOME INTEREST RATE!

Thank you,

BRIAN PAKULLA - Re/Max Advantage
"PAKULLA PROPERTIES"
410.579.MOVE (6683)
www.123move.net
Top 30 Realtor in USA Under Age 30*
*Highlighted in NAR's "Realtor" Magazine