So when is the economy going to recover? According to the Washington Post, it looks like it may already be happening here in Charles County! In an article written this weekend in the Washington Post (Economic Rebound Seen for Charles County), Signs are good that the evidence of an improving economy is being seen already in our neck of the woods!
According to the article, the U.S. unemployment rate is 9.8 percent; Maryland's is 7.2 percent; and Charles's is 5.9 percent!!! In addition to this news, rising homes sales, and a continuing influx of new jobs, Charles County is becoming a much more popular place to be! Also, if you're thinking of buying or selling a home in the area, I know a FANTASTIC Realtor, LOL!!! ;-)
~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell
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Though I'm glad that our area is doing better than many others, the demographic in CC is still very different than many areas. For example, most of my neighbors/friends are gov't contractors, military and Federal employees. They historically fare better when the job market slumps.
What I love about CC is that it's a modestly priced area in relation to some of our neighbors. This makes the $8K credit a great down payment amount for FHA buyers. Thus, new home sales rose due to the credit being used for down payments.
This however is a false sense of market security. Once the credit ends Apr 2010, many 1st time buyers will be back to square 1,waiting to buy as they try to save for a down payment...thus slowing down the home sales again.
The problem is many of these buyers aren't realizing that once the credit ends Apr 2010 house prices will fall. This will bring more investors (and renters) to our area. This will drive home prices down even further.
What I'd love to see happen is the 1st time buyers who've been saving all these years/months finally be able to afford our foreclosures/short sales and they in turn become the ones who create the real market stability here in CC.
Posted by: Ana | November 06, 2009 at 01:09 PM
You're right on the money, the demographic is very different, which has been a big relief for our area.
Don't be confused about the $8k as downpayment, though. There was originally intent to allow it to be used as such (I wrote about it many months ago), but in all practicality it does not happen often.
The problem is that there needs to be a person or lender giving that $8,000 to the buyer in exchange for a promissory note from the buyer. The buyer does not get the tax credit at settlement, they get it when they file their taxes. I have yet to actually see the $8k actually used on the HUD1.
When the tax credit ends (Dec 1st as of right now, but likely April 30th), it's not going to eliminate people's ability to make an FHA downpayment any more than it does now (for reasons mentioned above), and for VA, down payment is not necessary.
This makes the tax credit an incentive, as cash back, but not as a useful down payment.
Housing prices are still falling, and because the proposed expiration date is so far off, it's impossible to tell what will happen between then and now. Can home prices fall further? They could. Will sales fall off after the credit expires? They could.
First time buyers are what will create the stability, you're absolutely right on the mark there. It's been seen that they are driving the market now. We need to see that continue into the spring to allow current home owners to move up. Only when we see a rise in purchasers that aren't first timers will we have a true picture of recovery.
Posted by: Jonathan Benya | November 06, 2009 at 01:30 PM