Frederick County Short Sale Blog | Homes for Sale in Frederick Md

First-time Buyers are Jumping off the Fence in the Frederick Real Estate Market

Welcome back first-time buyers...we haven't seen you in years...about 6 or 7 years if my memory serves me well.  We've talked to more first-time buyers this second half of the year than we probably have in the last 2 years combined.  What makes the market good for first-time buyers?  Basically 3 things:

1. Affordability:  We have seen prices drop 15% county-wide, from this time last year, and as much as 25% in some communities.  The number of foreclosures is on the rise, and they act as an anchor on home prices.  We're seeing multiple offers on the bank-owned properties, and banks are lowering prices to move properties in 90 days.  Realistic sellers are pricing their homes accordingly.  We're seeing many townhouses under $200K, some closer to 100K, and many in passable condition. Yes, there are some deals to be had.        

2. Historically low Interest Rates:  Having lived through the 70's and 80's, having seen double digit interest rates, anything under 7 is historically low. We don't know if that will change or if it does, how much.  (Oh for that crystal ball:-)

3.  FHA loans:  For many years, FHA has been irrelevant.  But with conventional loans tightening up, FHA is relevant for buyers again.  FHA uses common sense underwriting, whereas conventional products have relied mostly on credit scores.  If you have paid your bills responsibly for the last 18 to 24 months, and you have steady income, FHA is for you.  The buyer has to come up with 3% downpayment, and after January 1st, that will increase to 3.5%, but that can be in the form of a gift, a grant from an employer, or there are government and community programs available.  Maryland has a USDA program, and the CDA program.  There are limits to income and limits to housing price with these programs.  Call us for information:  301-831-9947

To search the MLS for some of these great deals:

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The Highland Group

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