Jul 13, 2008 1:47 pm US/Eastern
Housing Market Has Sellers Frustrated
HOWARD COUNTY, Md. (WJZ) ―
Good news if you're looking to buy a new home: prices are way down. If you're trying to sell, that's another story.
Jessica Kartalija reports in some areas, the average home price has dropped to a four-year low.
Take a drive through any residential neighborhood and you'll find For Sale signs peppering city and county streets.
"We are selling properties. Yes, it is taking longer and yes, there is more adjusted prices, but they are selling," said realtor Creig Northrop.
He says it isn't so much a housing slump, rather some homes were priced too high to begin with.
"Values aren't coming down. They're just adjusting. Meaning that from 2001-2004, they've gone up, at a 90 degree angle, in essence. It rose quickly, almost too quickly. Now they're just adjusting," he said.
But with tougher mortgage standards, some say they're too scared to buy.
"I'm a renter and only because the market is so skeptical right now, you don't know what you're getting into. You don't know whether you're going to have a house that is at market value or whether you are going to put some money out there and lose it with some shaky mortgage bankers," said Rodney Thomas.
According to Metropolitan Regional Information Systems, sellers are forced to reduce the price of their home as much as 13%, dropping to a four-year low.
But the housing slump has also increased affordability for some people who had been priced out of the market before. In Anne Arundel, Carroll and Howard counties, sales of homes under $250,000 have gone up.
"Right now is a crucial time. People are moving for school. You have urgency. The next 30 days is a crucial time. If you are going to put your house on the market, you should put it on now," Northrop said.
Baltimore City is the only area to have posted a gain on the average price of a home.
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