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Looking ahead in the real estate industry in Maryland: Recovery is in sight after two years
After many setbacks in the U.S. economy ranging from unemployment, less government spending, escalating home foreclosures and corporate bankruptcies, there are still signs of optimism for real estate investors and home buyers.
Let’s recap some of the highlights of last year with the ups and downs in the economy. The gross domestic product (GDP) was down at the beginning of 2009, but saw expansion of 5% by end of the year and the beginning of 2010. Fixed investment rates have decline to a more reasonable manner.
The sales in U.S. domestic products have increased 2.5%. The sales of U.S. goods and services have improved, which is an encouraging sign for the housing sector. Is this going to be slow recovery? Yes, the clouds are lifting letting in a few rays of light.
“With the extension of the $8,000 tax credit and the new income guidelines to qualify for the credit, people who wish to home should take advantages while they last,” said Ian Johnson, Pillar Property Group.
Not many consumers know about the new income guidelines to qualify for this tax credit. Single buyers can now earn as much as $125,000 and still receive the full benefit of the credit, while a married couple may earn $225,000. New homeowners will be able to claim the credit on their taxes.
Maryland is experiencing the positive aspects of this tax initiative to get consumers to become first-time home buyers to stimulate the economy as well as the market. There has been 14 percent decline in active inventory of unsold homes. This is good news investors too in the area because values will start to increase, which equates to profit and more investing.
“This is a prime time for investors as well as first-time home buyers in the Maryland area. It is a win-win situation. You have these tax initiatives as well as prime properties for sale to buyers and investors,” said Johnson.
In many Maryland counties, the supply of homes has become quite limited. As home inventories decreases the stabilizing of sales prices will follow. This means the value of property in Maryland will start soaring again.
“The market currently favors the buyer, but it will be a reverse role in the near future. Investors and people considering to buy their first home need to jump before prices start dictating the market rather the consumer,” said Steve Tavenner, Pillar Property Group.