From here to Urbana

It was Sunday morning when I ventured up to Urbana (only 11 minutes without traffic from Germantown) - Of the 20 or so homes that I had previously previewed and rated only 6 had any potential.

What I discovered whilst previewing the properties in Urbana (Friday) was that they had an unusual percentage (over 95%) of distressed homes (Short sale/Foreclosure) on the market. The reason for this high percentage must be that the vast majority of these properties were built after 2003 and have little to no equity, in fact, they have substantial depreciation (over 30%).

What can we learn from this:

1. New homes depreciate faster than resales in a buyer's market (Resale value is based on comparable resales that have sold - New homes have the builder profit built into the price)
2. When purchasing a new home always keep in mind the potential resale value (This is relatively easy to calculate - square footage is the key)
3. Location, Location, Location - Urbana is a really nice area to live in, however, it requires additional commute time
4. The combination of a newer area with builders still building and a depreciating market, resale prices are going to drop faster. The builder has to remain competitive and usually have deeper pockets than the regular homeowner. The builder is going to offer incentives that the regular homeowner can't or is just not able to.

So should I buy in Urbana you ask? The answer is Yes. There are some really good valued homes that will by the next market be quite desirable. As always, remember to buy quality, location and stay well within your affordablity zone.

P.S. There are other areas that are being impacted in a similar way i.e. Clarksburg and Kingsview

"Rediscovering the American Dream"

http://www.inman.com/buyers-sellers/columnists/marciegeffner/rediscovering-american-dream By Marcie Geffner, Tuesday, June 24, 2008. Inman News

Even though this was written back in June it doesn't change our need to "Rediscovering the American Dream". It doesn't surprise me that with the continuous negative news we receive on a daily basis that first time homebuyers are sitting on the fence.

Yesterday evening I held a homebuyer seminar at the Pinnacle Room in the Germantown Town Center. The following are some of the questions that I was asked by the audience:

Can we still get a loan to buy a home?
Is this a good time to invest in a home?
Will housing prices still fall further?
Are there good deals in Germantown and elsewhere?

Well the simple answer to all those questions is YES.

Limejuicer Enters the Blogosphere

Blogging has always intrigued me - I have often gone to a blog to seek answers to questions; catch up on a subject that interests me; and add the occasional comment in agreement or disagreement.

Hopefully you will be patient with my blogging inexperience, but as we go forward my goal is to provide you useful insight on various real estate topics from acquisitions (when, how, why and where) to predictions (how much, how many, how soon etc).