Now that the housing market is slowing down, most real estate agents recommend that sellers put their asking price at market value or 5 percent below that. However, some home sellers are resorting to non-traditional methods of setting asking prices. Some are hoping to attract a larger number of buyers by utilizing a strategy known as "value range pricing," in which they consider offers within a particular price range. Though some agents insist that homes generally sell at a price close to the top of the range, Florida Atlantic University professor Marcus Allen says the technique extends the time it takes to sell and does not affect the actual sales price. Other sellers are slashing their asking prices only a few days after the home hits the market to show buyers that they are flexible, and still others are setting optimistic prices and cutting them each week by a particular amount. Another strategy involves setting an asking price at the low end of the price range, then reducing the price to the next bracket to attract a different pool of buyers.

Wall Street Journal (06/30/06) P. W8 ; Fletcher, June

July 20, 2006

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 6.74 percent this week from 6.79 percent a week ago, marking the first decline in five weeks.

According to Freddie Mac chief economist Frank Nothaft, rates moved downward because the market expects the Federal Reserve to boost interest rates only one more time this year.

The government-sponsored enterprise also reports a drop in the 15-year fixed mortgage rate to 6.37 percent from 6.44 percent.

Meanwhile, the one-year adjustable rate fell to 5.75 percent from 5.83 percent, and the five-year hybrid ARM dipped to 6.33 percent from 6.39 percent.

Source: Philadelphia Daily News (07/14/06)

July 15, 2006

10 AM -4 PM, September 4th

Parade through the streets of LaPlata honoring working men & women. Free. 301.743.5334; 571.238.5241

July 15, 2006

August 7th Day-long event at a variety of locations throughout the county. Free. 301.609.4844; For more information, go to www.UnitedWayCharles.org

July 15, 2006

Bankrate.com reported that mortgage rates fell for the first time in a month as the bond market waved goodbye to last week's Fed rate increase and looked ahead to the June employment report. The benchmark 30-year fixed-rate mortgage fell 2 basis points to 6.91 percent, according to the Bankrate.com national survey of large lenders.

The 15-year fixed-rate mortgage fell 3 basis points to 6.54 percent. The 5/1 adjustable-rate mortgage fell 4 basis points to 6.55 percent.

July 6, 2006

Just like most of the United States, southern Maryland is experiencing a slowdown in the sales of homes.

In Charles county which is home to Waldorf, La Plata, Hughesville and several smaller towns, the number of homes sold dropped by 9.2% from May 2005 to May 2006. The average selling price leveled to show a small 1.2% increase in that same period. The average selling price in May 2005 was $358,623 compared to $362,930 in May 2006. The more dramatic figure is the number of homes on the market. In May 2005, there were only 411 homes available whereas last month there were 1,067 homes for sale -- almost three times the inventory which gives some credence to the idea that we are entering a buyer's market.

In Calvert county, the number of homes sold slowed even more than Charles county. The number dropped by 31% -- 155 units sold in May 2005 compared to only 107 in May 2006. Calvert county, home to Lusby, Owings, Huntingtwon, Sunderland and other smaller towns, saw the selling price appreciate by 12.8% -- the average selling price in May 2005 was 368,764 compared to $415,913 in May 2006. The active inventory of homes has only doubled in the last year; there were 453 units on the market in May 2005 compared to 848 last month.

Finally, Prince George's county, home to Andrews AFB, Camp Springs, Clinton, Ft. Washington, Upper Marlboro, and Bowie saw the inventory of exisiting homes triple much like Charles county. Last May there were 3193 homes on the market compared to only 1213 units in May 2005. The average selling price saw the largest increase of the three counties going from $293,178 in May 2006 to $340,681 in May 2006.

I will post the latest statistics next month after the June numbers are released.