Monthly Archives: April 2010

Is Real Estate Rebounding In Annapolis Maryland?

Is Real Estate Rebounding In Annapolis Maryland?

This morning on MSN Real Estate I read and article about the 8 signs of a real estate rebound (read the full article here). It got me to thinking about what is happening here in Annapolis Maryland – are we on the rebound yet.

The first sign is an improvement in pending home sales. In March 2010 (the most recent data available for the Anne Arundel County area) the number of homes under contract was 645, a 58.1% increase over February 2010 when there were 408 homes under contract. Year-over-year, March was up 34.4% from 2009. This may be a promising sign – but – this could also be a result of the homebuyers tax credit. So while I expect that pending sales will be up again in April for Anne Arundel County, there could be a significant drop in May after the tax credit deadline passes.

The second sign is an improvement in housing starts. In February 2010 (the most recent data available on for the Anne Arundel County area) the number of building permits issued was 74, a 38.8% decrease over January 2010 when there were 121 permits issued. Year-over-year, February was up 131.3% from 2009. While building permits are just that – permits – they are an indication that local area builders are “pulling permits” to break ground.

The third sign is new and existing home sales. In March 2010 there were 387 homes sold in Anne Arundel County, a 56.7% increase over 247 homes sold in February 2010. Year-over-year, March was up 9.9% from 2009 when there were 352 homes sold. It should be noted that in January 2009 we hit an all-time low point with only 205 homes sold. Contrast that with 1,093 homes sold in June 2005!!!

The forth sign is the inventory of homes. While the simple principles of supply and demand applies, when the inventory of homes available for sale is greater than the demand, price will fall. In March there were 3,781 active listings in Anne Arundel County, a 10.6% increase over February when there were 3,420 active listings. Year-over-year, March was down 6.7% from this time last year when there were 4,052 homes on the market. At the peak of the seller’s market in January 2005 there were only 952 active listings in the county. In June 2008 after the market shifted to a buyer’s market there were 4,729 active listings.

The fifth sign is housing affordability. The housing affordability was 88.5 for Anne Arundel County in March 2010 up 9.1% from February 2010 and up 14.5% from March 2009. Contrast that with an affordability index of 56.5 in May of 2006 when the average price of those homes sold in the county reached $443,396 (by the way the avearge sale price in March 2010 was $339,069). Looking back at January 2001, the affordability index was at 106.8 and the average home sold for $194,481 in the county.

The sixth sign is mortgage applications. While information is probably available at the county level, I don’t have access to this information at this level of detail. A good proxy is the number of pending sales (see the first sign, above) because last month 89% of the homes sold used some type of financing and 11% of the homes sold were paid for with cash. Contrast that with March of 2009 when 6% of the homes sold were paid for with cash – which is more typical of local activity. Why the uptick in cash transactions? I’m not sure. I might have expected the contrary given current market conditions and the push by first-time home buyers taking advantage of the homebuyer tax credit.

The seventh sign is mortgage interest rates. The national average monthly contract mortgage rate – a composite rate combining many products together – has been relatively stable. In March 2010, the rate was 4.6% up 10.1% from February 2010 but down only 0.1% from this time last year. Rates have been extremely favorable for sometime. Low rates coupled with high asking prices still makes homes barely affordable for most families.

The eight sign is real estate mutual funds. According to the MSN article, real estate mutual funds were returning 9.4% in the first quarter of 2010. Investing in a REIT with Vanguard, Fidelity Investments or T. Rowe Price could prove rewarding.

In conclusion … mixed signals at best. While it looks like the real estate market is turning around, the eight signs outlined above for our Anne Arundel County are giving mixed signs bordering on slightly optimistic. Caution should be exercised since it’s not yet known what the impact of the homebuyer tax credit will be and what might happen once that incentive is removed. Unclear is how many home sales might have been pulled into the first few months of the year that might otherwise have happened in during the second quarter. I remain cautiously optimistic and expect conditions to continue to be mixed for the next 12 to 18 months.

Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) now live in Winter’s Chase at Riva Trace in Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.

Want to know if Watefront home values in Annapolis, Maryland are about to take off?

Want to know if Watefront home values in Annapolis, Maryland are about to take off?

Anne Arundel County has over 150 miles of waterfront along the Chesapeake Bay, much of it right here in Annapolis, Maryland. Bordered on one side by the Chesapeake Bay and sliced by the Magothy River, Severn River and South River, Annapolis has much to offer someone seeking to purchase a waterfront home. Buyers can find condominiums, townhomes and single family homes located along the waterfront. Waterfront homes can be both riparian and non-riparian (meaning you do or don’t own the exclusive rights control access to the water from your property). The “front” of the house for waterfront homes is the side that faces the water – the “back” will be the side that faces the street. Many waterfront properties will have piers and the water depth along side the dock can vary widely from location to location – anywhere from ”zero” when the tide is out to very deep water suitable for deep draft keel sailboats. Exposures are as varied as the number of creeks and rivers the feed the Chesapeake Bay. Settings can be open with deep vistas or obstructed by vegetation.

When considering purchasing waterfront property you’ll want to consider how far it is to open water and any bridge height restrictions between those two points. The Severn River and South River both have fixed height bridges that any boater will want to consider. Consult the online charts provided by NOAA for the area to determine height restrictions by clicking here!

Another consideration when purchasing any waterfront home is whether or not your lender will require you to carry flood insurance in addition to hazard coverage. One of the key documents you might want to ask for when exploring waterfront property is the elevation certificate. The elevation certificate states the flood zone status of the house and land and will assist you and your lender in determining if flood insurance is necessary. While many waterfront homes will require flood insurance, depending on the elevation of the home above the water, flood insurance on the main structure of the property could be unnecessary. For more information on elevation certificates click here! Always check with you lender.

Oyster Harbour Waterfront Homes

There are currently 27 waterfront properties for sale in Annapolis priced below $500,000. For a list click here. There are 56 waterfront homes for sale priced between $500,000 and $1,000,000. For a list of mid-priced homes click here. And Annapolis offers 78 properties for sale with asking prices above $1,000,000. For a list of luxury waterfront homes currently for sale, click here.

The are currently 18 waterfront homes under contract around Annapolis. The average asking price for those homes is $1,443,939. They have been reduced an avearge of 11% since being listed. And that have been on the market on average 167 days.

Thee were 12 waterfront homes sold in Annapolis in the last 90 days. The avearge list price for those homes was $1,498,825 and were reduced an avearge 22.5% from their original list price. The average sold price was $1,316,646 with an average days on market of 334 days.

With only four waterfront homes selling per month for the last three months and and with 156 active listings, the months-of-inventory stands at 39-plus months.

Luxury Annapolis Waterfront Home

You can get my activity report by e-mail for waterfront homes in Annapolis or for your very own street so you can see exactly what the market is doing along the waterfront or at your own home. Goto www.MarylandMarketConditions.com to sign-up today.

If you have a waterfront home to sell in Annapolis and want a professional consultation on current market conditions or if you are interested in purchasing a watefront home in Annapolis and want to tour any home currently on the market, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.

Originally posted at: Stephen Howell, Annapolis, Maryland: Want to know if Watefront home values in Annapolis, Maryland are about to take off?

Waterfront Homes For Sale Less than $750,000 on the Chesapeake Bay, Annapolis, Maryland 21401

Waterfront Homes For Sale Less than $750,000 on the Chesapeake Bay, Annapolis, Maryland 21401

If you’ve ever thought about owning a waterfront home on the Chesapeake Bay or one of the many creeks and rivers that feed into the Bay, now is an excellent time to consider making a purchase. Today there were 135 active waterfront listings from which to choose in Anne Arundel County. The average asking price was $534,885 with an average days-on-market of 171. There were 24 waterfront homes that were under contract with an average asking price of $480,617. There were also 19 waterfronts that were sold within the last 90 days. The average list price when originally listed for those homes that sold was $542,563 and the list price at the time of sale was $486,668. The list price to sold price ratio was 81.3% from the original list price!!! With a 23 month supply of homes from which to choose, buyers should be able to find steals and deals among these homes. While prices trend upward as you get closer to Annapolis, Maryland, there is something for everyone and bargins for all to be had.

Ginger Creek, Annapolis, Maryland 21401

If you are interested in a list of single family waterfront homes for sale with an asking price less than $750,000 then click here (or for the full list of active, under contract and waterfront homes sold within the last 90 days then click here!). Most of the homes found on this list are in and around Annapolis, Maryland, including the area of Arnold, Crownsville, Edgewater, and Riva. Some homes are “true” waterfront properties while others are non-riparian waterfront home (meaning you wouldn’t own the rights to the waterfront but for all intents and purposes you are “waterfront” – for more information on riparian and non-riparian waterfront properties, click here!).

Ginger Creek, Annapolis, Maryland 21401

Many waterfronts have docks. While deep water is hard to find under $750,000, there’s often plenty of water depth for small-to-medium sized run-abouts. So if you’re looking for deep water (4-plus feet), you’ll need paitence and will need to move on any property you find. Some docks have lifts to keep boat out of the water and some don’t.

As spring turns to summer, waterfront properties become more and more in demand. Peak interest in waterfront homes around Annapolis, Maryland is from late-April/early-May until mid-September/early-October. While many camps and cottages were converted years ago for year-round occupancy, you can still find from time-to-time a older waterfront tear-down that isn’t suitable for year-round occupancy.

If you are interested in purchasing a waterfront home on the Chesapeake Bay and want to tour any home currently on the market or if you have an Anne Arundel County waterfront home to sell and want a professional consultation on current market conditions, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.

Rocky on the Pier at Ginger Creek, Annapolis, Maryland 21401

Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) now live in Winter’s Chase at Riva Trace in Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.

Note: This post was originally posted here!

Water Access, Water View, Waterfront … What’s the Difference?

Water Access, Water View, Waterfront … What’s the Difference?

Water Access

Many neighborhoods (but not all) in and around the Annapolis area are “water access“. This means that if you purchase a home in the community that you have access to the water. Access can be to the Severn River, the South River, Back Creek, Spa Creek or any of a dozen other inlets and bays along the Chesapeake Bay. Sometimes access is an established area that is well maintained and sometimes it’s not. Many water access communities have beaches, boat ramps, communities piers and boat slips. Access is usually regulated and sometimes monitored. Water access gives everyone who lives in the community (but not outsiders) an opportunity to use the inlets, creeks, rivers and the Bay that makes living along the Chesapeake Bay so wonderful.

Chesapeake Bay Water Access

Water View

Water view means that you can see the water. Water views come in many variations, from limited to full all out spectacular views. My favorite spin on a water view is the “seasonal water view” which sometimes translates into “you can see the water only when and if the leaves fall off the trees and before they grow back” and is sometimes called a “winter water view”. Water views can be that water you see between two homes, the water you see across the rooftops of the houses across the street, and from time-to-time it the water you see down at the end of the street when you stand out in front of the house in the middle of the road!!!

There are no “view rights” in Maryland. So, if you live across the street from the water and you’ve got a great view of the water over the summer cottage across the street, there’s no guarantee that you’ll always be able to look out, across, and over the house. Your water view might be wiped out in one summer when the “waterfront tear-down” gets torn down and a new multi-level home is build on the footprint of the old cottage. There went the view!!!

Chesapeake Bay - Deep Vista

Waterfront

A waterfront home is what many buyers are looking for when they come to Annapolis. Waterfront homes come in a wide variety of styles and price ranges, from tear-downs to multi-million dollar mansions, with shallow water to deep water, with and without piers, with and without the need for flood insurance. Waterfront along the Chesapeake Bay is highly desirable and often has a deep open vista. Along the creeks and rivers, a deep vista can be hard to find and the farther up the creek or river you go, the shallower the water and the view. The waterfront can also be cluttered. You can find older “camp and cottage” communities that have undergone decades of transformations from summer cottages to fully renovated year-round homes. The homes on either can be quintessential waterfront tear-downs to new construction on old cottage foot-prints. The Chesapeake Bay Critical Area regulations determine just what can be built within the 1,000-foot setback (please visit the Critical Areas Commission website for details).

Deep water around Annapolis usually means 4-plus feet of water that is deep enough where you can keep a sailboat in the water with a shallow draft or shoal draft keel. Powerboats often need two-plus feet of water for small runabouts and deep water for near-shore and off-shore cruisers and fishing boats. Many piers have lifts which are often capable of lifting 10,000 lbs. and sometimes more out of the water. There are a few waterfront homes with covered boat houses but this isn’t the norm along the waterfront. Deep water is coveted and often hard to find and comes with an expensive pricetag.

When you purchase a waterfront home, you lender will request a flood certificate that states the flood zone status of the property. Depending on the lender and the flood zone, you’ll likely need flood insurance in addition to hazard insurance on the property. Hurricane Isabel in September 2003 did significant damage along the Chesapeake Bay and many homes were damaged and flooded. When considering purchasing a waterfront home, it might be important to note when the property was last renovated. There are many homes that were rehabbed in the twelve to eighteen months following the hurricane. Ask your agent to ask the homeowner what damage – if any – was the result of that hurricane and verify with you insurance agent who might be able to check the Comprehensive Loss Underwriting Exchange (CLUE) to see what claims if any were filed on the property.

Chesapeake Bay - Waterfront Home

Riparian and Non-riparian Waterfront

Riparian waterfront is where you own property that has water (around Maryland a creek or river) as one of its boundaries. Riparian rights refers to the rights of the property owner has to the use or restrict others’ use and access to that water.

In Maryland buyers can find both riparian and non-riparian waterfront. Non-riparian waterfront usually means there is water but access to/from the water is over community (and occasionally county) property. A non-riparian waterfront property might have a road or community beach between the house and the water’s edge. Typically non-riparian waterfront means that the owner doesn’t have a private pier or dock on the water – although there are many expectations. Cape St. Clair is a good example where the community retains the riparian rights to the water with an approximate 10-foot buffer between the property line and the water line but allows homeowners to construct and maintain private docks and piers along the creek. Occasionally a homeowner purchases the land between their property and the water and converts the home from non-riparian to riparian waterfront via a “lot consolidation letter”. There can be property tax implications to doing this. So one should consult with an attorney or qualified professional before undertaking this action.

Chesapeake Bay - Water Fowl

For a list of waterfront homes for sale less than $750K in Annapolis, Maryland please click here!

If you have a home to sell along the Annapolis Waterfront and want a professional consultation on current market conditions or if you are interested in purchasing your next home in Annapolis Waterfront and want to tour any home currently on the market, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.