There are many conflicting headlines when it comes to describing today’s Waldorf MD real estate market. Some are making comparisons to the market we experienced 10 years ago and are starting to believe that we may be doomed to repeat ourselves. Others are just plain wrong when it comes to what it takes to qualify for a mortgage.
Today, we want to try and clear the air by shedding some light on what’s causing some of these headlines, as well as what’s truly going on.
Myth #1: We Are Headed for Another Housing Bubble In Waldorf MD
Home prices have appreciated year-over-year for the last 76 straight months. Many areas of the country are at or near their peak prices achieved before the last housing bubble burst. This has many worried that we are headed towards another housing bubble.
Reality: The biggest challenge facing today’s Waldorf MD real estate market is a lack of homes for sale! Demand is strong, as many renters have come off the fence and are searching for their dream homes.
Historically, a normal market requires a 6-month supply of inventory in order for prices to rise with the rate of inflation. According to the National Association of Realtors (NAR) there is currently a 4.3-month supply of inventory.
The US housing market hasn’t had 6-months inventory since August 2012! The concept of supply and demand is what is driving home prices up!
Myth #2: The Rumored Recession Will Lead to Another Housing Market Crash In Waldorf MD
Economists and analysts know that the country has experienced economic growth for almost a decade. When this happens, they also know that a recession can’t be too far off. But what is a recession?
Merriam-Webster defines a recession as “a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two consecutive quarters.”
Reality: Recession DOES NOT equal housing crisis. Many people associate these two terms with one another because the last time we had a recession it was caused by a housing crisis. According to the Federal Reserve, over the last 40 years, there have been six recessions. In each of the previous five recessions, home values appreciated.
Myth #3: There is an Affordability Crisis Looming
Rising home prices in Waldorf MD have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream – their own home.
There are many different affordability indexes supported by different organizations that all measure different data. For this reason, there is a lot of confusion about what “affordable” actually means.
The monthly cost of a home is determined by the home’s price and the interest rate on the mortgage used to purchase it. According to Freddie Mac, interest rates have risen from 3.95% in January to 4.59% just last week.
Reality: As we mentioned earlier, Waldorf MD home prices have appreciated year-over-year for the last 76 months, largely driven by high demand and low supply.
According to a recent study by Zillow, the percentage of median income necessary to buy a home in today’s market (17.1%) is well below the mark reached in 1985 – 2000 (21%), as well as the mark reached in 2006 (25.4)! Interest rates would have to increase to 6% before buying a home would be less affordable than historical norms.
The starter-home market has appreciated at higher levels (9.4% year-over-year) than any other market. One reason for this is the fact that many of the first-time buyers who have flocked to the starter-home market are being met with high competition. For some hopeful buyers, it may take more than a good offer to stand out from the crowd!
There is a lot of confusion in today’s real estate market. If your future plans include buying or selling, make sure you have a trusted advisor and market expert by your side to help guide you to the best decision for you and your family. In Waldorf MD alone you will find more and more houses are on the market. There was a shortage of supply at the beginning of summer. With the stability of the interest rates, Waldorf MD Realtor® such as us Skip Young Realtor® have seen an increase in the amount of homes for Sale in Waldorf MD. If you have not had a chance to get out and view the homes that are on the market in Maryland, give me a call and we will schedule a showing today!
Skip Young | EXP Realty | Waldorf MD Realtor®
Realtor®, Veteran, New Home Sales
888-860-7369 x 240 Broker
137 National Plaza, suite 300
National Harbor, MD 20745
Caruso Homes “Build on Your Lot”
2120 Baldwin Avenue, Suite 200, Crofton, MD 21114
Mortgage Banking Consultant
Maryland Retail Mortgage Administration
NMLS ID: #1039708
First National Bank Corp.
1000 Bestgate Rd. Suite 200
Annapolis, MD. 21401
Email: [email protected]
Waldorf MD Realtor® | Veteran | eXp Realty | Author | VAREP Director of Government Affairs Annapolis
Waldorf MD Realtor Skip Young Realtor for your Military move!
Waldorf MD Realtor – Skip Young Being very fortunate enough to have a father in the Navy who was stationed in Hawaii for 18 years, I was able to grow up as a military child with only two duty stations. After leaving Hawaii’s Barbers Point, our PCS was to San Diego. After Skip Youngs father’s retirement from the Navy my father decided to return back home to the state of Maryland. I was taught the disciplines of a Military Son. If your reading my Bio here you will understand.
I myself then signed up for the Army because I knew in my heart serving my country was the first step in manhood. I left Baltimore MEPS and headed for Fort. Benning GA. Infantry training began, then Airborne school and then Ranger Indoctrination Program RIP. Yes this was the Black Berets that came and got me from graduation of Airborne school. The rest of the story is I ended up at 1st Ranger Battalion at Hunter Army Airfield. I can go no further than this at this point. I served my country from 91 -94.
While in Ranger Battalion I was trained on Motorcycles during Airfield Seizures, I had taken my bike for training at Ft. Stewart GA where a POV pulled out in front of me. I was then removed from Battalion and took up duties on base that would allow the repairs to my knee to heal. Jobs such as maintaining the Gym, Hunter Army Airfield Reporter, and my final job was to drive General DeFransisco I performed duties on Hunter Army Airfield just like a Ranger would and it showed.
I returned to my home state of the Hawaii and was assigned to the 25th Infantry Division while there I served out my term and received a disability rating and returned home to Maryland.
I first got into Real Estate at the same time I opened my first Wireless store. Early 2000’s was great for Real Estate and a great way to learn quickly like a Ranger would. Since there was boom in the Real Estate market as a Realtor I sold 60 homes that grossed over 12.5 Million. This won an award for Rookie of the year in Calvert County MD. My success has continued ever since. I have since received a degree in Information Technology since he Real Estate Market has changed to a digital and internet based platform.
Currently I am a Realtor working at Remax 100 in White Plains MD. To help move Active and Veteran Military persons I have been certified as a Certified Military Relocator. To assist in making your transition as smooth as possible. Being an Elite Solider, there are times when I would just have to leave for deployment. In this situation you need someone you can trust and understand the security that comes along with the job. Your job title is not a factor to me, the factor is making sure you home is secure, on sale, for rent, investments protected and someone is keeping an eye on your property while you are serving your country. We work in a world where things move very fast, you need a Realtor that can handle the pressure of what pressure you experience everyday in military life.
Certified Military Relocator Maryland – Skip Young
To get in touch with Skip Young and have myself personally work for you in your PCS transition please fill out the form bellow or give me ca call and I will get right on your Maryland House Purchase, Sale or Rental. Currently working in the surrounding area’s of Patuxent Naval Base PAX River, Andrews Air Force Base, Fort Meade and Indian Head Naval Base.
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