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June 2010 Real Estate Market Update

June was a good month for real estate sales in Garrett County & Deep Creek Lake. The highest ever sale at Deep Creek Lake ($3.5 million) close on June 11. Railey Realty had the listing part of the transaction. I had my first million dollar sale! Surprisingly, I have come close several times but this is the first ‘official’ sale over a million (and ironically, my first transaction at Railey Realty).

There were 30 homes that sold in the month of June, which is nearly double that of May 2010. Late spring and summer have always been among the best months of the year for real estate sales, partly because of the start of ‘vacation season’ and it’s easier to look at homes when kids are out of school, etc. Plus, you don’t have to wade through 23 feet of snow to look at houses 🙂

There were 27 sales during the same period last year, so that is a positive.

By my count, 6 of these properties sold at full price or higher.

There are 48 properties currently under contract, the exact same as last month. I look for this number to be affected by a very slow month for the local economy in June. From folks I have spoken to, rentals were down slightly and that led to lower sales for restaurants, shops and other ‘tourism dependant’ local businesses. The consensus that I have gotten from these local business owners is that the weather from January & February led to longer school years and less available vacation time. When people aren’t in town to look at houses, its also affects real estate sales.

11/12 of the 30 sales appear to me to be vacation homes, or at least in the Deep Creek Lake area. The rest seem to be primary residential homes scattered across Oakland, Granstville, Swanton and Accident.

The average list vs. ORIGINAL sales price was 88.88%, up 3.66% from last month (85.22).

The ADJUSTED list vs sale price is 93.22% – up again from last month (92.37%).

The current number of active/for sale residential listings (minus timeshares) is 774 as of today. This is up from last month (737) considerably. We are still gaining more inventory than we are selling and this will continue to drive down prices from a supply and demand standpoint. With current state of affairs, this is a number that is unlikely to come down anytime soon. That’s a 26 month supply of homes available, which is a very challenging stat to overcome.

Here are the statistical breakdowns:

Average Sale Price: $448,350 (last month) $409,316 (understand this is affected by the $3.5 million lakefront sale)

Average Days on Market: 177/241 (last month 256/267) (days on market with current broker/total days on market)

Of the $26,901,000 in total dollar volume in the month of June, Railey Realty was responsible for $16,039,900 – a whopping 60% of the Garrett County real estate market!

#1 in Garrett County & at Deep Creek Lake since 1995.

I’ll blog later about about year to date numbers – from a company standpoint, you will be impressed at the level of production we have been able to maintain even in the sketchy market conditions that exist today.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

Deep Creek Lake Info, Business Directories, Classified Ads, Events & more! Advertise on http://www.deepcreekalive.com/!

Cash is still king in real estate market

Cash buyers account for more than 25% of U.S. real estate deals
By Andrea V. Brambila, Thursday, July 8, 2010.

Inman News

This may be a buyer’s market, but not all buyers are on equal footing in the homebuying process. Cash is still king, and those who have it are taking full advantage of the comparatively speedy and reliable closings they offer sellers.

Cash buyers have made up at least a quarter of home purchasers since the beginning of 2010, a figure buoyed by more affordable home prices and a substantial volume of distressed properties.

According to the National Association of Realtors’ monthly Realtors Confidence Index survey, buyers paid all in cash in 15 percent of transactions in October 2008, the first month the association conducted the survey.

Fast-forward to May 2010, and an estimated 25 percent of transactions were in cash. That’s a jump from 12 percent in May 2009. From January through April, cash buyers’ share of transactions hovered at 26 or 27 percent, according to the NAR survey.

Read the rest here.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350 Deep Creek Lake Info, Business Directories, Classified Ads, Events & more! Advertise on www.DeepCreekAlive.com!

Federal Tax Report – Closing Date Extended to September 30

From NAR

Federal Tax Report
Closing Date Extended to September 30

It wasn’t pretty, and the debate went well into the evening, but on June 30 the Senate passed a stand-alone bill that extended the date for closing on a tax credit-eligible home from June 30 to September 30, 2010. The bill passed the Senate on a voice vote in a process known as “unanimous consent.” A stand-alone bill is a single issue bill that contains just one provision (and, if needed, its “pay-fors.”) Stand-alone tax bills are a rarity in the Senate, but the urgency was well understood. Earlier in the week, the House had passed a stand-alone extension (HR 5623) by a vote of 409 – 5.

The White House has said that President Obama will sign the bill, although the timing for the signing is not yet known. The extension is seamless, so closings that occur between July 1 and the date the President signs the legislation will satisfy the requirements of the credit. In order to get the benefit of this closing date extension, the parties must have entered into a contract for the purchase on or before April 30, 2010.

Avoiding the trap – Outdoors Girl Maryland Park Quest

Following the progress of Candy Thomson as she passed through Garrett County yesterday:

July 7, 2010
Avoiding the trap
Third Quest in the can and it’s not even noon yet.

Can I do five parks in one day?

Ranger Dave Best and I walked along the water’s edge at Deep Creek Lake State Park and through the woods looking for the five metal medallions that tell the story of the park and its resources.

Made a rubbing of each to complete the Quest.

Temperature is near 90 now. Still, making my first three stops near the water has made a big difference.

Off to New Germany State Park now.”

Read the rest here.
If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350 Deep Creek Lake Info, Business Directories, Classified Ads, Events & more! Advertise on http://www.deepcreekalive.com/!

Garrett could see heated commission races

From Staff Reports
Cumberland Times-News

Oakland — OAKLAND — Garrett County voters will see heated races for county commission and several other local offices in the Sept. 14 primary election.

The filing period for candidates closed Tuesday at 9 p.m. In the final week before the deadline, four more candidates — two Republicans and two Democrats — filed for the District 3 county commission seat now held by Denny Glotfelty, R-McHenry, bringing the total number of candidates seeking the seat to six.

Glotfelty will face challengers Louis Newcomb Jr., Oakland, Timothy E. Thomas, McHenry, and Robert “Bob” Gatto, Oakland, in the Republican primary, while two Democrats, Bill Welch, Oakland, and George Falter, McHenry, also square off.

Three challengers have filed to run against current commission chairman Ernie Gregg, R-Mountain Lake Park, for the District 1 seat on the commission. Gregg will face Republican challengers Gregan Crawford, Oakland, and Leroy Bernard Sr., Swanton, in the primary. The winner will take on Democrat Eric Robison, Oakland, in the November general election.

Incumbent Commissioner Fred Holliday, R-Grantsville, will vie in the primary with current board of education member Jim Raley, R-Finzel, for the District 2 seat.

Two Republicans and one Democrat are seeking the office of sheriff. Skyler Hebden, D-Oakland, will take on the winner of the primary race between Republicans Robert E. Corley, Oakland, and Larry Gnegy, Oakland, in the November general election. The office is currently held by Gary Berkebile.

In the nonpartisan board of education races, Rodney Durst, Oakland, filed to retain his District 3 seat, but faces a challenge from Rodney Reckart, Oakland. Both current president Donald Forrester, Mountain Lake Park, and current vice president Thomas Carr, Accident, are unopposed to retain their District 1 and 2 seats.

Seven candidates have filed for three open positions as judge of the orphans court. The three candidates from each party who receive the most votes in the primary will go to the general election; of those, the three who receive the most votes will be selected to fill the positions.

On the Republican side, incumbents Clifford C. DeWitt, Oakland, James F. Margroff, Accident, and H. Wayne Wilt, Oakland, are seeking re-election, and face challenges from David C. Beard, Oakland, Aria Knust, Oakland, and Fred Sanders, Oakland.

Only one Democrat has filed for the office, Everett B. Deberry, Deer Park, so he will advance to the general election.

Incumbent Rita L. Watson, Oakland, will face Republican challengers Traci Royce, Oakland, John K. Sines, Oakland, and Bryan Paugh, Oakland, for register of wills. Watson was appointed register of wills after the retirement of Joseph DiSimone in June 2009.

Incumbent Sondra R. Buckel, R-Bittinger, is running unopposed for re-election as clerk of the circuit court. It will be Buckel’s first time seeking the office in an election, as she was originally appointed to fill the vacancy created by the death of David K. Martin in 2007.

Timothy W. Miller, Mountain Lake Park; Arzella Parsons, Oakland; DeCorsey Bolden, Oakland; Brenda Butscher, Mountain Lake Park; Tom Sheahen, Deer Park; and Ruth Hinebaugh Umbel, McHenry, filed for a seat on the Republican Central Committee. The committee seeks to fill eight seats, based on the number of registered Republicans in the county. The six candidates will fill the seats as result of the primary election.

Candidates for the office of Democratic Central Committee all filed Tuesday. They are Andrew “Andy” Diliddo Jr., Grantsville; Patricia Duck, Oakland; Timothy Duck, Oakland; William Goldsborough, Mountain Lake Park; Jeff Jovis, Friendsville; and Zelma Neary, Mountain Lake Park. The committee seeks to fill seven seats, based on the number of registered Democrats in the county. The six candidates will fill the seats as a result of the primary election.

Incumbent State’s Attorney Lisa Thayer Welch, R-Oakland, filed to retain her position and is running unopposed.

At the state level, Sen. George Edwards, R-Grantsville, has filed to retain his seat representing District 1 in Annapolis, and Delegate Wendell Beitzel, R-Accident, has filed to retain his District 1A seat in the House of Delegates. Edwards is currently running unopposed, while Beitzel will face Democratic challenger James “Smokey” Stanton, Oakland, in the general election Nov. 2.

Yet another reason I Love Garrett County

The state of Maryland is suffering from extreme temperatures, but Garrett County is pleasant by comparison. Upper 80’s, low 90’s with much lower humidity is the norm in the summer here. From the Baltimore Sun weather blog:

“Heat Advisories were posted once again across almost all of Maryland, with exceptions only for Garrett County and the Lower Eastern Shore. A Code Orange air quality alert was up for the entire state, noting that air pollution levels are unhealthy for sensitive groups, including the very young, the elderly and people whith respiratory or heart diseases.”

Candy Thomson – Baltimore Sun – Outdoors Girl Blog

So, I read her piece on the Maryland Park Quest yesterday, blogged about it and then had an idea – what if I could meet her while she was in Garrett County? Well, I sent her a quick email, she liked the idea and we just finished meeting at the Deep Creek Lake Discovery Center. Candy Thomson, the ‘Outdoors Girl’, is in Garrett County for the Maryland Park Quest ‘marathon’ of 24 state parks in 7 days. She’s done with 3 and on her way to New Germany State Park next, hoping to finish up the day at Rocky Gap.

She camped last night at Swallow Falls and hit the Garrett County park trail at 7am. Next, off to Herrington Manor and then…Deep Creek Lake State Park. It worked out perfectly to meet her at the Deep Creek Lake Discovery Center – where she was greeted to a hero’s welcome by the staff and Patty Manown Mash. You could tell they were all following her quest (and they are all readers of the ‘I Love Deep Creek’ blog, too, apparently – thanks for the great comments!)

She promised to be up again for the black bear hunt in October, and I agreed to attend, as well! She says she loves it up here and loves coming back!

Without wanting to hold her up from the rest of her Quest, she smiled for a quick photo in front of the lake, and was off to New Germany…good luck, Candy!

Opponents of Garrett County wind farm threaten lawsuit

Megan Miller
Cumberland Times-News

Deer Park — DEER PARK — Opponents of a Garrett County wind power project have warned developer Constellation Energy and the county government that they plan to sue unless Constellation seeks a special permit from the U.S. Fish and Wildlife Service.

The Constellation project consists of an electrical substation and 28 415-foot wind turbines atop Backbone Mountain, spread along an 8-mile stretch near Eagle Rock.

In a June 23 letter, the Garrett-based opposition group Save Western Maryland and the Maryland Conservation Council stated that the wind project will adversely affect Indiana bats and Virginia big-eared bats, both classified as federal endangered species. The project would therefore violate the federal Endangered Species Act.

To prevent a lawsuit, the opposition groups stated, Baltimore-based Constellation must seek an incidental take permit from USFWS. The permit effectively protects developers from violating the act by creating a plan in advance to deal with the possibility that endangered wildlife could be harmed by a project.

In April, Constellation spokesman Larry McDonnell said the developer planned to voluntarily seek an incidental take permit.

“Even though the risk of a negative impact to an Indiana bat is very remote, Constellation Energy will voluntarily seek the U.S. Fish and Wildlife Service’s approval for any incidental impacts,” McDonnell said. “We will commit to developing Indiana bat habitat improvement projects that will result in far greater benefits to the species than any remote risk posed by the project.”

When reached Tuesday, McDonnell said the company was preparing its permit application, though he was uncertain of when it will be filed.

The application requires developers to create a habitat conservation plan for mitigating the effects of an incidental killing of wildlife. USFWS can also require that applicants conduct biological surveys of the project area.

The length of time needed for USFWS to review a permit application can range from less than three months to one year, depending on the scope and complexity of the conservation plan, according to USFWS permit instructions. The time frame can also be affected by other factors, such as public controversy.

In a news release issued after its letter to Constellation, Save Western Maryland called on Constellation to halt construction on the project “until a conservation plan is completed and a permit is issued.”

“The big wind developers purport to be responsible, corporate citizens,” the group said. “As such, they must live up to their green image by complying with all laws, especially those designed to protect the environment such as the ESA.”

McDonnell said that Constellation’s bat protection measures “have been and will continue to be very comprehensive.”

As evidence of a potential threat to bats, the wind farm opponents cited studies done at the Mountaineer wind farm, a 44-turbine facility in nearby West Virginia, and at a 20-turbine facility near Meyersdale, Pa. The studies showed significant bat mortality at both locations, including one six-week monitoring period when researchers found 398 bat carcasses at the Mountaineer wind farm and 262 at the Meyersdale site.

For legal precedent, they cited a 2009 case in which a federal judge halted development at the Beech Ridge Energy wind farm in Greenbrier County, W.Va., until the developer secured an incidental take permit from the USFWS.

The opposition stated that not only Constellation, but also Garrett County government, could be held liable for any violations of the act, since county government entities granted a number of permits required for the construction to move forward. The county also owns land on which three of the project’s turbines will be placed.

The liability could also extend to the project’s previous owners and other interested parties, such as Old Dominion Electric Cooperative Inc., which has entered into a power purchase agreement with Constellation.

Price Reduction on 1104 Alexander Ln – backs to Broadford Park

One of the best values in Oakland for a single family home in nearly mint condition:

Tastefully updated colonial on quiet cul-de-sac, backs to Broadford Lake park. Move-in ready! Fresh paint inside/out, re-carpeted, new kitchen in Oct 08: cherry cabinets & granite tops. Dining, family room, library, 1/2 bath & deck access on 1st floor. A tranquil 2nd floor master suite w/ 2 walk-in closets, en-suite bath & deck with views. Lower level boasts new media room! Perfect entertaining!

Now $299,000!!!

Great Summary of the Second-Home Market Nationally

Some interesting data & analysis that mirrors the Deep Creek Lake second home market:

July 6, 2010 by cloeffler
Check out this post originally published in the Tahoe Daily Tribune by Richard Bolen, REALTOR(R), McCall Realty:

(A quick “shout out” to all our friends in the Lake Tahoe area who helped NAR host the 2010 Resort and Second-Home Symposium. We couldn’t have done it without you! We have only heard wonderful comments about the successful event with 214 participants in attendance. Lake Tahoe is truly a national treasure — both in its natural beauty and the hospitality of its residents!)

SOUTH LAKE TAHOE, Calif. — About 65 percent of South Lake Tahoe Homes are second homes or vacation properties. I often write about, or use the phrase second home buyer characteristics, which makes sense. South Lake Tahoe is very much a second home resort real estate market.

Some 65 percent of area homeowners live elsewhere. This means that about a third of South Lake Tahoe homes are primary residences.

The National Association of REALTORS did a specific study on vacation or second home buyers. I thought it would be of interest to look at the most recent findings.

Before looking at the particulars, there are a few key characteristics of the vacation and second home buyer to always have in mind. These are important, especially as it relates to style and manner when representing a buyer:

• The vacation or second home buyer lacks urgency.
• The vacation or second home buyer is overqualified financially.
• The vacation or second home buyer is looking for a family retreat.

Of these, lack of urgency is really important to understand to best represent a buyer. What I like to do is “mirror” a buyers pace if I can. If a buyer seems to want to move quickly, I quicken my pace. If the buyer moves slowly, I respond in kind.

Sometimes, though, a particular house or situation does require urgency. An underpriced house, or one that is right priced and exceptionally attractive can require immediate action to get it.

In cases such as this, I do recommend that the vacation or second home buyer move as quickly as they possibly can.

If I ever quicken my pace, it is because I don’t want a buyer to miss out on something they obviously really like. I am never in a hurry just to make a sale. Buyer comfort to me is king.

2010 Vacation Home Buyers Survey (based on 2009 buying trends)
Sales and prices:

• Some 10 percent of U.S. home sales were vacation or second home properties.
• 1 percent more vacation or second homes sold in 2009 compared to 2008.

Buyer characteristics:

• The median age of the vacation or second home buyer in 2009 was 46 years of age.
• 28 percent of vacation orsecond home buyers were older than 55.
• The median household income of 2009 vacation or second home buyers was $87,500.
• 39 percent of vacation or second home buyers had a household income that exceeded $100,000.
• 73 percent of 2009 vacation or second home buyers were married.
• 49 percent of 2009 vacation or second home buyer households had no children younger than 8. • 86 percent of 2009 vacation or second home buyers were Caucasian.

Property characteristics:

• 55 percent of 2009 vacation home sales were in a small town or rural area.
• 50 percent of 2009 vacation home sales were in the South.
• 71 percent of 2009 vacation or second home sales were single-family homes.
• 74 percent of 2009 vacation or second home sales were existing properties (not new).
• The median distance away from primary residence was 348 miles.

Method of Purchase and Financing:

• 54 percent of 2009 vacation or second home buyers used a real estate agent or broker.
• 10 percent of 2009 vacation or second home sales were a foreclosure or trustee sale.
• 27 percent of 2009 vacation or second home sales were directly from an owner (17 percent that buyer knew, 10 percent that buyer didn’t know).
• 32 percent of 2009 vacation or second home buyers looked first on the internet to shop for a home.
• 12 percent of 2009 vacation or second home buyers contacted a real estate agent first to shop for a home.
• 26 percent of 2009 vacation or second home buyers found the home they purchased on the internet.
• 25 percent of 2009 vacation or second home buyers found the home they purchased with a real estate agent.
• 70 percent of 2009 vacation or second home sales used a mortgage.

Internet use:

• Nine out of ten home buyers use the Internet in their home search process.
• Is our experience that buyers contact us after internet searching first.
• More often we find the home the buyer buys, rather than what they exactly saw on the Internet.

Buyer Motivations and Expectations:

• 89 percent purchased their vacation or second home as a family retreat.
• 29 percent purchased their second home because it was a “good investment” opportunity.
• 25 percent purchased their second home to rent to others.
• 14 percent purchased their second home for tax benefits.
• 26 percent purchased their second home as a future primary residence.
• 80 percent purchased their second home because they believe now is a good time to purchase.

Original Link: http://www.tahoedailytribune.com/article/20100704/NEWS/100709931/1054