Real Estate Taxes

While writing this I had a gentleman stop by my office asking about his current real estate assessment. Once again the county is playing games with land values and house values and this is causing confusion. Bottom line though is that the county needs to generate "X" number of dollars in real estate tax revenues. They have 3 numbers they can play with to do so, land vaules, improvement values and the tax rate. It is always unpopular to raise the tax rate and actual house values are easier to track because of neighborhood comps. So switching land and improvement values around further confuses the issue and the homeowner. At the end of the day though folks do not let that cause you any stress. Simply look at the total value that you are assessed and then look at your local neighborhood comps. If the comps are higher then there is no argument but if they are lower then we can argue with the county. If you need us to send you comps we are happy to do so; just let us know. While I hate paying the taxes I am tired of seeing my assessment go down!!

Out on a Limb

Not that the snow is gone I look for a surge in inventory, especially in the single-family sector. Typically March is when inventory really starts to grow and I believe that many who would have come on in February were prevented from doing so by the weather. I also feel that many savvy sellers are umping in early trying to catch those buyers that are active now trying to buy so they can get the tax stimulus incentive before it goes away in April. I think that is a smart strategy. I still look for interest rates to start creeping up, regardless of what the fed does, in response to the government getting out of the mortgage backed security business. I must admit that I am somewhat reassured that we have not already seen a larger spike in rates and believe me this is something I hope that I am wrong about. I think there is pent up demand for good housing to come on the market and I think that what comes on in March that is good will be snapped up. I look for increased relocation activity to boost that demand. I am heartened to see the short sale process drawing the attention of the bigger banks and efforts being made to somewhat streamline that process. That would be a huge plus to the marketplace and would certainly go a long way to relieving the fears of the looming foreclosures and shadow inventory. All that being said I believe that March will be a great month in the marketplace and that the influx of inventory will be gobbled up by current demand. The townhome market will continue to generate multiple offers and be fiercely competitive. The single-family market will also continue to move well although the highest brackets will not see the same level of activity as the lower and mid level price ranges. As our market continues to unfold I will as usual keep you informed.

Front Lines

Well, let's start off by saying Thank God the snow is almost gone! It sure put a chill on the market. We had come out of the gates strong in January but this stopped everything in its tracks. The month however saw improvement, just not what it could have been in my opinion. Sales of townhomes increased 54% going from 46 sales in January to 71 in February. Still below the 80 we sold last February but I think that is purely a function of there being far fewer homes on the market and this February only 51. The average Days on Market for townhomes was 28 days up slightly from 20 in January, a HUGE improvement from the80 plus days of last February. Single family homes also showed improvement although not the same high numbers as townhomes. The number of sales increased by 21% from 23 in January to 28 in February. This is 33% higher than the 21 sales last February so I think it is a good trend. I also think this is a direct result of the bounce in the townhome sector allowing folks to move up in the housing market. Lets hope that continues!! Inventory only increased slightly from 34 in January to 36 in February, still less than half of last year's available inventory in the same months. Sellers that have come on the market are for the most part optimistic in their pricing. That means they are pricing higher than even the most recent comps in hope that the market will come to them. For townhomes this is much easier to do than it is for single family homes. There is much demand in the lower price ranges that you can try higher and then reposition if you have to and you will not have lost any ground. This is harder in the mid and higher levels because there is just not the same amount activity and there is more inventory to choose from. If you miss that buyer they are not necessarily going to be there when you change your price because they are not a first time buyer or an investor, they are either relocating and have to buy quickly or they have their home sold already and have to buy quickly. I expect, or maybe just hope, to see a "bounce" in the single-family sector or at least the bottom. I base this upon incoming relocation levels and move up traffic that we have not seen in the past. As long as the surge in inventory is not more than what we typically get I think the stage is set to at least see the bottom. As our market continues to unfold, I will as usual keep you informed.