Chesapeake Bay Real Estate Blog

This blog is dedicated to the real estate market on the Eastern Shore of Maryland and the surrounding Chesapeake Bay region. We are here to let you know about ourselves, our services real estate listings, and why we love helping people achieve their real estate goals. Real estate isn’t just about selling or buying houses; it’s about people and their families. That is why we do our best to make a difference in each person’s move.

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Location: Easton, Oxford, St Michaels, Cambridge, Queen Anne's, Kent, Eastern Shore of Maryland

While Penny was raising their four children, Bob worked in the corporate world for 20 years and became President and CEO of a major, publicly held, transportation company. Afterwards, we decided to leave the hustle and bustle of New Jersey and move to Vermont where we became entrepreneurs in a successful small business. We established an apple orchard, a vegetable farm, a popular country store as well as a multi state mail order operation. Fifteen years later, we “retired” to Florida, where we spent eight years as full time real estate agents. After deciding to be closer to our family, we moved to the Eastern Shore, to continue serving homebuyers and sellers as associates with RE/MAX On The Bay serving Talbot, Dorchester, Kent, Queen Anne’s and Caroline Counties. Our business experience helped us to develop extensive sales programs using leading edge technology such as websites, e-mail systems, digital photography, virtual tours, and multi-media presentations. Our customers and clients benefit directly from these advanced marketing tools because The Halls can offer unparalleled exposure and attractive promotions for the home seller as well as fulfilling the needs of home buyers

Tuesday, January 17, 2006

Dream Home May Be Affordable Today, But Not Tomorrow

Home Buyers Advised to Consider Effect of
Appreciation When Deciding Time to Buy

Homes in the United States continue to appreciate at a record pace—12.02 percent (from third quarter 2004 through third quarter 2005) according to a report by the Office of Federal Housing Enterprise Oversight. That’s music to the ears of the 68.3 percent of Americans who already own a home, but first-time home buyers may be watching the home of their dreams slip further from reach every year.

Home buyers tend to focus on mortgage interest rates and the size of the savings account they have established for their down payment when deciding the right time to buy. The impact of appreciation is not typically top of mind for home buyers, but it should be. Appreciation can have a significant financial impact on the home buyer’s pocketbook and their ability to purchase a home.

For example, a home for sale a year ago at $200,000 would cost $224,040 this year, based on the 12.02 percent average appreciation in the United States. That $24,040 hike in price not only makes a big difference over the life of a 30-year mortgage, but it also has an immediate impact on the wallet.

Assuming that mortgage interest rates remained steady at 6.5 percent, the homebuyer would need $4,808 more in savings to contribute to a 20 percent down payment. In addition, principal and interest on the monthly mortgage payment would increase by $121* per month.

With interest rates still historically low today, and with no end in sight to the trend of rising appreciation, we advise home buyers to jump into the market now. For most, it is the better financial decision, especially when prices are increasing at a faster pace than consumers can save.


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