And alas, there are real signs that home prices in Baltimore, City and County, are coming back to earth. The correction in the real estate market - at least in this region, continues briskly as home owners, who had previously held out for more are now shaving, between 30 and 50% off their 2008/2009 assessed home values - and these in many stuck-up neighborhoods.
The foreclosure contagion is gradually spreading and is expected to accelerate in 2011 as many of the ARM products sold in 2005/2006 come due with massive price reset - and too many home owners were not able to refinance (again) because their homes have been under water since 2008. So, expect the deluge of homes in the market.
One group have managed to hold relatively steady, the new home builders. That market has continued to hold steady to its market peak, or just under the peak prices with no real corrections yet. But expect some of the pressure to come down on any inventory home, and expect builders to start reflecting the new market realities in their 2011 prices.
And yes, the interest rate decline continues. At 4.75% in 2009, many so called experts predicted that those were the lowest we would see, but there is news of 3.75% in the last few weeks and if Bernake's words are to be believed, there is no knowing how much lower those numbers could get in the coming weeks.
Tis indeed the buyers market - but do your due diligence and avoid holding the short end of the deal. A good rule of thumb - find out the home price in 2000/2001 and add a compounded 5% annual appreciation until 2007. Keep the price at that 2007 level ( there has been little or no inflation since then) and you are likely to walk away with a decent deal.
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