We’ve all seen a barrage of “shocking” headlines on foreclosures, including this Reuters posting declaring September 2010 set an all time record with 100,000+ foreclosures nationwide. Howard County home buyers and sellers want to know what impact are foreclosures having on our local market?  Are foreclosure homes in Ellicott City above, below, or equal to the national average? And, how are prices of non- foreclosure homes in Columbia, Maryland affected by foreclosure homes in Howard County Maryland?

A foreclosure certainly decreases the value of the foreclosure home itself, estimated to be an average of 27% according to a posting by Molly Line.  But studies on the affect foreclosure homes have on other homes’ values are less clear and vary in their conclusions, but one study impressed me personally.  A Federal Reserve Bank, Cleveland, Sept 2010 report suggests that where foreclosure rates are “moderate” the impact on housing prices is just -1.6%.

So – do we have “moderate” rates of home foreclosures in Howard County, Maryland?  Are home foreclosure rates in Ellicott City above or below the Howard County average?

For the second quarter of 2010 foreclosures represented 24% of all home sales nationwide.   Statistics from our local Realtor® database of homes (“MRIS”) shows that there were 430 foreclosure home sales in Howard County Maryland from January to September, 2010.  Out of  2,140 total home sales, foreclosure home sales in Howard County represented 20.1% of all home sales.  (Find all Howard County MD or Ellicott City homes for sale here, or search specifically for foreclosure homes in Howard County MD or Ellicott City here).

While every foreclosure is a heartbreak for the family involved, it is partially good news to know that the Howard County rate of foreclosure home sales is less than the national average.

We have broken down statistics even further, to show the impact of foreclosure home sales by neighborhood (Centennial High School area home sales had fewer foreclosures, by far, than the county average) as well as by price range (you’d be shocked to see which price range had a 48% foreclosure average vs. which had a 0% average).

You can request our full analysis of Howard County Foreclosure Homes – By Region And Price Range here.  We hope to publish bits and pieces of the full report, by area, in future blogs.   As per usual, you can call 410-772-5400, M-F, 9-5 with any questions about Howard County real estate, or send us an email here.  Blessings

4BR Columbia colonial under $250,000!

In the course of earning a living selling real estate in Howard County I come across homes for sale that strike me as being better-than-average bargains, even considering that the current market has lots of homes priced pretty low. (Clear her to receive my current the complete list of “Top Ten Howard County Home Bargains” … I’m willing to share!).

One such seemingly under-priced bargain is the home pictured below.  Although it has a county tax assessment value of $379,900 the asking price is only $249,900 – a whopping $130,000 below tax assessment value!  For a 4 bedroom colonial in a quiet Columbia neighborhood, it seems like a steal.

True, it likely is a bit dinged-up on the inside – but for $130,000 off, what would you expect?  If, as I suspect, it could be easily spruced up for around $20k or so, it’s still a raving bargain.

What are the “best deals” in Howard County real estate today? Are they foreclosures? Short sales? Or perhaps “regular” sales where the owner has a lot of equity and wants it priced to sell quickly?

The answer is: yes… any and all of the above may represent the “best home bargain” in the county.

In my experience real estate “bargains” come in lots of places, and if you focus on just one, you’re probably missing out.  Buying foreclosures at the actual auction is both highly risky and typically more expensive than you’d think.  Buying short sales involves certain time delays and contract risks, and buying bank-owned (or “R.E.O.”) homes also involves risk.  However, in their proper place, each can be a source of excellent value when buying real estate.

For a complete list of my current “Top Ten Howard County Home Buys” click here.  And/or, if you wish, you can shedule our famous “No Hassle, No Obligation Home Tour” of any home on the list.

(And if you’re really in a goll-busted hurry, call my cell phone at 301-922-2007).

Thanks!

If you are a Howard County home buyer, some of the most emotionally loaded words out there are “foreclosure”, “short sale” and “for sale by owner.” How do I know this? Because, in my 20 years of helping folks buy and sell homes here in Howard County, I have never seen buyers focus so much on these terms.

I wrote in a previous blog that “foreclosure” is often a misunderstood term. I also wrote that “foreclosures” may or may not, in fact, be the “best deal” on the market.  Sometimes they are, at other times they are not and can often be priced insanely high – higher than other, “normal” home sales.  (Search Howard County home bargains here).

In fact, it just occured to me that terms like “foreclosure” or “short sale” or “for sale by owner” are adjectives, yes, but they modify the type of seller that is involved, not the type of home. A non-foreclosure home in Howard County may well be a “better deal” than a foreclosure home. Then again, sometimes foreclosure homes are the better deals in Howard County.

So… without regard to the type of seller involved, I am again “in the hunt” for the “top bargains” currently for sale in Howard County.  Sometimes these will be homes that we, as Realtors®, are listing for our seller clients, but just as often they won’t be “our” listings but rather simply homes we’ve found on the Realtor® MRIS system.  (Totally Free MRIS Home Search Here).

Today’s “top bargain” is a single family home in Columbia for just $227,500 – which is $89,000 below its tax assessment value.  This split level home has three bedrooms, one full and one half bath.  This would appear to us to be one of the “better buys” in Howard County real estate at this time.

3br Columbia single family just $227,500!