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February 26, 2010, at 9:21 pm
In what must be a major league sign of the times, dueling and competing auctions are planned tomorrow for the Bahia Vista condominium project in Ocean City, Maryland:
“Developer and landowner Spiro Buas will auction 11 units from the Bahia Vista I & II condominium buildings. At the same time, his former partners — namely, Jeff Thaler, Lew Bush and James Bergey with Ocean Mist LLC — will auction 11 of their units at an Annapolis hotel.
Straddling Edgewater Avenue in Ocean City, the five-story bayside buildings feature three- and four-bedroom units now valued from $500,000 to $800,000. At the height of the market, some sold for as much as $1.5 million, property records show.”
Most interestingly, the comment by the auctioneer, Doug Marshall:
“Auctioneer Doug Marshall, who will conduct Buas’ auction, said auctions are good for Ocean City because they can quickly put “a great big dent in the inventory.”"A lot of people don’t realize that 600 units sold in Ocean City last year, and those condos are being removed from inventory on a daily basis,” he said. “What’ll happen here is, once there are 400 or 500 units left in Ocean City, there’ll be a run on them, and then the market will turn around. That’s why people need to pay attention to these auctions. You always hear people say, ‘I’m going to wait until the market hits bottom.’ When you see absolute auctions of bayfront buildings, you better pay attention.”
We shall see…
The full article-
http://www.delmarvanow.com/article/20100226/NEWS01/2260301/Ocean-City-bayside-condos-to-be-sold-at-dueling-auctions
February 21, 2010, at 2:49 am
It appears that the auction scene is significantly heating up in the Ocean City market with the announcement of 2 condo project auctions in the same day, as reported in yesterday’s Ocean City Today:
“Competing auctions will be held later this month for units in a bayside condominium because of a fractured partnership.
“I’ve never seen anything like this,” said Spiro Buas, one of the developers of the Bahia Vista condominium on 10th Street.
The collapse of the real estate partnership led to the competing auctions for the bayfront and bayview condominiums and created an opportunity to get a bargain. The lower prices at auction make the condos affordable to people who otherwise would not be likely to own a unit at the beach.”
The full article -
http://www.oceancitytoday.net/news/2010-02-19/Business/TWO_AUCTIONS_SET_FOR_OC_CONDOS.html
February 11, 2010, at 9:44 pm
CNNMoney.com is reporting today:
“The real estate roller-coaster ride continued last year as the median price of U.S. single-family home plunged 11.9% to $173,200.”
Take your pick where we go from here:
“Michelle Meyer, Barclay Capital’s economist for new home construction, is predicting continued price declines through early 2010. By the second quarter, however, she expects an upturn.
She thinks that as the homebuyer tax credit expires at the end of April, it will add volatility to the market during the second quarter. People will rush to get in under the wire, boosting volume and shoring up prices.
After that, markets will moderate, with few showing any substantial increases.”
Or perhaps:
“On the other hand, David Crowe, chief economist with the National Association of Home Builders, said he expects home prices “will moderate and stay where they are” for a long stretch.”
The full article -
http://money.cnn.com/2010/02/11/real_estate/latest_home_prices/
February 9, 2010, at 8:53 pm
The Maryland Coast Dispatch is reporting the latest non-tax-increase tax increase this week proposed at the meeting of the Worcester County Maryland Commissioners:
“An attempt to recoup about half a million dollars for the tight Worcester County budget next fiscal year by reducing the discount for early payment of property taxes to half a percent will wait until other budget trimming measures are considered.
“I just think it’s a back-door tax increase,” said Commissioner Louise Gulyas. “We said we’re not going to raise taxes. This is a tax increase any way you look at it.”
Commissioner Bobby Cowger said the reduction is a good idea proposed at a bad time. “Cutting that is like raising taxes,” Cowger said.
Commissioner Judy Boggs liked the proposal, particularly in light of home values declining throughout the county.
“I think it’s a prudent way to go,” said Boggs. “They’ll be paying less because they have lower assessments.”
The full article –
http://www.mdcoastdispatch.com/article.php?cid=30&id=8065
February 3, 2010, at 7:45 pm
CNNMoney had a very thought provoking article today that should be a must read for any home owner, particularly those pursuing a short-sale or deed-in-lieu end to their troubles:
“Former homeowners may still be on the hook if there’s a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these “deficiency judgments” are ticking time bombs that can explode years after borrowers lose their homes.
Lenders may release property liens in order to facilitate short sales without releasing borrowers from their obligations to pay under the promissory notes. The secured debt can convert to an unsecured one after the sale.
Zaretsky had one client who was so relieved to have arranged a short sale that he signed every paper his real estate agent shoved at him, even a confession that clearly stated he still owed the debt.
“He had no idea what he was doing,” said Zaretsky. “All the lender had to do was go to court to convert the confession into a deficiency judgment.”
Those facing foreclosure, including homeowners considering a short- sale or deed-in-lieu solution to their problems would be very wise to seek the services of an independent, competent real estate attorney during this process.
The full article –
http://money.cnn.com/2010/02/03/real_estate/foreclosure_deficiency_judgement/
January 26, 2010, at 8:14 pm
With wages dropping, unemployment rising and a shift towards sales of lower priced homes, among other factors, December sales took a big hit:
“Sales of previously owned homes took their biggest tumble in at least 40 years last month as the impact of a buying spree spurred by a tax credit for first-time buyers waned, according to industry data released Monday.
Those who rushed to meet the original November deadline to take advantage of an $8,000 tax credit for first-time home buyers caused a surge in sales earlier in 2009, but left the market wobbly by the end of the year. First-time buyers, who made up more than 50 percent of sales earlier last year, represented just 43 percent of the market in December. The shift also resulted in fewer sales of lower-cost homes, which first-time buyers typically seek.
After three months of increases, sales of existing homes, including condos and single-family residences, fell 16.7 percent to a seasonally adjusted annual rate of 5.45 million in December compared with the previous month, according to National Association of Realtors data.
It was also the biggest monthly decrease on records that date to 1968, according to the industry group.“(Emphasis added.)
The full article -
http://www.washingtonpost.com/wp-dyn/content/article/2010/01/25/AR2010012502164.html
January 23, 2010, at 10:21 pm
The Maryland Coast Dispatch had an article yesterday on the effects of the popping of the housing bubble on Worcester County Maryland property tax assessment values and tax revenues:
“Worcester County can expect $10.4 million less in property tax revenue in the next fiscal year compared to the current, according to recent land reassessment numbers.
The just completed reassessments in the Berlin and Ocean Pines areas, roughly the north end of Worcester County, excluding Ocean City, show a 36-percent decline in property market value.
Much of the decline can be attributed to falling property values in the Glen Riddle development, (Worcester County Chief Financial Officer Harold) Higgins noted. Homes in the $300,000 to $800,000 range are at the greatest risk for value reductions.
Worcester County, with a 20-percent reduction overall, lost more value in the recent reassessments than any other county in Maryland except Frederick, which lost 22 percent of its cash value.
House values in Ocean Pines declined 12 percent to 39 percent on average, Commissioner Judy Boggs noted. Overall, the greater Ocean Pines area shows a 20-percent decline.”
The full article -
http://www.mdcoastdispatch.com/article.php?cid=30&id=7969
January 17, 2010, at 4:07 pm
Michael David White at NewObservations.net had an interesting piece last week arguing that defaulting on one’s mortgage is a patriotic duty:
“The government is dropping nuclear bombs on the mortgage market and nobody is dying. They can’t move the product. What has been taking off are foreclosures. They are soaring. The general feeling is that foreclosures are terrible and should be stopped because of the distress they bring both to a family and a neighborhood. The more important truth, widely ignored, is that foreclosures promise to bring back cheap prices.
In our post-bubble world, foreclosures are the surest mechanism for creating affordable housing. Consumer advocates should now welcome this method of price correction. Those true to their mission will embrace a mass-foreclosure remedy.
In a credit bubble, the smart economist makes the highest goal a true reckoning with phony debt. The common man now has a chance to play the smart economist.
Let the house go back to the lenders. The bank will throw the mortgage in the garbage. Reality will return. Prices will fall – perhaps dramatically from our current 30% loss. Systemic mortgage debt in the United States should be reduced in amounts equal to the losses in real estate values. It’s trillions in the plural.
The government has screwed up management of the financial crisis by granting debt assets special status. It’s time for the owners of debt assets to take losses. It’s time for the people to fix the financial crisis. Give the debt investors the losses they bargained for.”
The full article -
http://newobservations.net/2010/01/12/default-is-a-patriotic-duty/
January 16, 2010, at 10:11 pm
I’ve often thought that many homebuyers seem way too comfortable with way too little due diligence prior to making an offer on a property. I recently came across this article which addresses some of the other considerations Ocean City Maryland area home buyers should concern themselves with:
“Before you move, take a few minutes to make sure you’re well-acquainted with your new city and neighborhood.
Learn how to evaluate your new home’s vulnerability to thieves, research the history of your house…
Look up sex offenders to find the safest neighborhood and zip code for your kids.
If you suspect your… (prospective) neighbor… of suspicious activity, run a criminal background check…
Check your old home’s value or the general neighborhood value of your future community…
Compare school districts and find public school rankings…
Run local crime reports so you know which neighborhoods and cities are safest.
Beyond safety, you’ll want to make sure your new community has lots to offer in terms of social activities, grocery stores and more. Use… local guides…”
These tools are worth a bookmark and a careful review with your buyer agent–
http://www.criminaljusticeusa.com/blog/2009/50-tools-to-research-your-new-home-neighborhood-and-community/
January 13, 2010, at 10:46 pm
DSNews.com is reporting an increased shift by lenders towards Short Sales as a solution to their problems:
“Nearly 2 million housing units in the United States are in foreclosure or are bank-owned, and more are expected to follow, RealtyTrac said. Citigroup experts say the government’s current solutions have been ineffective at keeping people in their homes, and they anticipate lenders could foreclose on another 8 million loans as the economy worsens.
With foreclosures on the rise, homeowners are looking for a viable solution to their problems.
Banks are beginning to go along with short sales in increasing numbers, three years into a U.S. housing slump that pushed the economy into a recession and cut resale values by 30 percent from the peak in July 2006,…”
This trend will only pick up momentum, given the alternative.
The full article -
http://www.dsnews.com/articles/homeowners-turn-to-short-sales-as-an-alternative-foreclosure-2010-01-12
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Contact Us 
Joe Warth, President & Broker
Email: Joe Warth
Voice: 410.524.5000
HomeBuyerPower, Ltd.
7800 Coastal Hwy., 2nd Floor
Ocean City, MD 21843-0677
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