Carroll County Tries to Get a Grip on the New Art of Buying, Selling a Home

Questions about real estate market recovery continue to keep agents and consumers scratching their heads. The “For Sale” sign is a common visual not only nation and statewide, but also in Carroll County.

The signs are indicative of a market that has more supply than demand, which would lead one to believe a buyer’s market abounds.

Since 2007, when the market began its downward spiral, consumers and real estate professionals have been trying to get a handle on the new “art” of purchasing and selling a home.

One major factor is the change in a home's appreciation. Historically homes have had positive appreciation rates, but all that changed nearly five years ago when appreciation rates went on the decline.

Walter Molony, spokesperson for the National Association of Realtors said, “Prices from 1968 to 2006 were appreciating steadily and then in 2007 we began to see a decline. Nationally in 2007 there was a 1.8 percent drop, followed by a 9.5 percent drop in 2008, and then 12.5 percent decrease in 2009. Price remained almost flat in 2010, but we’re projecting about a one percent decrease in 2011.”

Some real estate experts believe the deflated prices were a result of too many buyers and not enough houses.

“There was an availability of money from the banks and this placed a strain on the [housing] supply," explained James Billingslea of Billingslea Insurance and Real Estate in Westminster. “There was not enough housing for the flood of people who wanted to buy and this allowed sellers to get the highest bidder.”

Molony said that predictions are tough to make, but he and other realtors believe consumers need to watch the market that he believes is beginning to flatten out.

“It’s important that people looking to sell recognize what the market is doing,” explained Steve Ferguson, a real estate agent with Westminster’s Long and Foster office. “It’s also important for agents to help them know what they need to do to sell a house; show them the facts and be able to explain sales history in the area.”

Even with the changes in the market over the last five years, Ferguson and other real estate agents are cautiously optimistic about the current status of the market. They say there are many factors that come into play, but he feels recent indications are more positive than negative.

“With my experience, I would say that right now, the market is coming back,” explained Ferguson. “I don’t know if it’s a seasonal adjustment or an economic turn. Typically in the summer, more houses are listed and sold because that’s when people tend to sell and move.”

Another factor that is challenging regular home sales is the increasing number of foreclosures and short sales.

According to RealtyTrac, trends nationwide continue to climb showing about 1,647,811 homes in foreclosure as of July, 2011.

Maryland ranks 29 in the nation for number of foreclosures, according to RealtyTrac, showing one house out of every 1,358 homes is in foreclosure.

RealtyTrac also reports that Carroll County currently has 31 active foreclosures, ranking it at number 11 in the state.

Billingslea acknowledged that the effects of foreclosures and short sales further impact regular home sales as banks and mortgage companies push prices down further to make sales.

“As long as we have the number of foreclosures and short sales, the market will suffer and make it more difficult for regular sales,” he said.

Billingslea said that while it is extremely difficult to predict what can happen, he too remains optimistic about the future.

“There is an increase in sales from this time last year. I am hopeful that we will continue to see improvement in the fall,” he said. “I think more and more people are accepting that prices have to come down. You can sell a house in this market, you just have to be realistic about the pricing.”