Lord knows it’s been hard to find “good news” in real estate the past few years. So, when a cautious, financially conservative voice like the Wall Street Journal opines It’s Time To Buy That House, you have to believe there’s something to it. While the WSJ article focuses on national figures, we believe it applies quite well to Howard County Maryland real estate and Ellicott City home sales in particular.

The gist of the WSJ article is that, just like using a stock’s price/earnings ratio helps determine whether a stock is a “bargain”, a home’s price/rent ratio can likewise reveal whether it’s time to buy.   In either case a lower number indicates a better “bargain.”  Nationwide the price/rent ratio hit 18.5 at market’s peak. Today it’s down to 11.3.

Price/rent ratios aren’t available anywhere for Howard County or Ellicott City homes for sale, but we do have recent sale price statistics for Howard County and Ellicott City home sales. Monthly home sales for Howard County Maryland, September 2011 vs. September 2010, show Howard County home prices are stable:  the average price increased 0.2% and median price increased 0.33%.

Likewise, statistics for zip code 21042 (west Ellicott City) for September 2011 vs. 2010 reveal the average price dipped 2.47% ($549,225 to $535,666) but the median price rose 4.0% ($500,000 to $520,000).  Taken together, we read these figures to say Ellicott City home prices have reached “balance”.   Click here to request monthly updates of Howard County home sales or Ellicott City home sales.

So, the Ellicott City home you buy today will cost about the same as last year – but, the mortgage will cost much less. The cost of borrowing money is near all-time lows at just 4.25% for a 30-Year fixed rate according to WellsFargo.com.  For comparison on a $500,000 mortgage, an Ellicott City home buyer today would pay 22% less than if rates were at 6% (as many had predicted for fall 2011) - $2,460 today vs. $2,998/mo at 6%.

So, to paraphrase the WSJ, yes, it is time to buy that Ellicott City home.

Remodeled Centennial Beauty

If you’re looking to buy in the Centennial Lane Elementary school district there are currently 23 homes for sale. There are nine priced between $375,000 to $600,000, including the home to the right, a spacious-and-updated colonial on an over-sized lot priced below recent sales.  There are a total of 49 homes for sale in the entire Centennial High School district, including 28 priced between $180,000 to $600,000.

If you are looking for homes for sale in specific school districts, like Centennial High School or Marriotts Ridge High School, click here to set up an AccuSearch® home search. Now you can be the first to know when your dream home hits the market – and only AccuSearch® gives you the ability to include school district(s) as one of your search criteria.

Use our Contact Form to request regular market updates on Howard County Maryland real estate and/or Columbia Maryland or Ellicott City Maryland homes for sale, OR if you would like to speak with one of us about buying or selling a home.  Thanks!

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