By: Mike Kennedy mkennedy@railey.com 301-616-6106 September 30th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Garrett County Real Estate, Interest Rates and Loans, Obtaining a Mortgage

Two of the leading mortgage lenders in our area recently announced new loan programs that require less money down for real estate purchases financed in the Deep Creek Lake area and throughout Garrett County, Maryland.

John Simson, of MLend, announced a new second home loan program available for properties in the Deep Creek Lake area. This particular program will lend up to $417,000 with only 10% down for a single family vacation home. Borrowers must have a minimum 720 credit score and with only 10% down there is still PMI. This is quite a change from the past year or so when most banks were requiring at least 25%-35% down on a second home loan.  The recent tightening of credit standards requiring much more money down on a second home purchase have greatly contributed to the slowdown in the number of sales in the Deep Creek area over the past two years - especially in our $300,000 to $750,000 market segment. For more info contact John Simson at (866) 501-5625 or e-mail him at jsimson@pennswoods.net.

Another great new loan program is being offered by Jerry Merrick of BB&T Bank. This program is for anyone looking to purchase a primary residence in Garrett County that is NOT located in the Deep Creek Lake area.  So anyone seeking to buy a home in the areas of Oakland, Mt. Lake Park, Loch Lynn, Grantsville, Accident, or Friendsville should take note of this great new program. The program is called the Community Homeownership Incentive Program (CHIP) and is maintained and serviced by BB&T Bank. The program is for principal residences only and you can not own any other real estate at the time of closing.

This loan program offers tremendous benefits to buyers who don’t have the typical down payment needed for most conventional loan programs. Some of the benefits include 100% financing (no money down!) with a credit score of 660, no PMI, and all the closing costs can be in the form of a gift of paid by the seller. If your credit score is below 660 you may still qualify for the CHIP loan but your down payment requirement will be increased to 3%. The maximum loan amount is $417,000 and there are no income limit restrictions. Geographically most of Garrett County qualifies with the exception of the Deep Creek Lake area. For more info call Jerry Merrick at (301) 387-3219 or e-mail him at jmerrick@BBandT.com.

Hopefully these new programs are a sign of things to come. Loan programs like these that require less money down will certainly help spur on new real estate sales in the area.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 September 17th, 2009 Category: Deep Creek Lake Activities, Deep Creek Lake Area Things To Do, Deep Creek Lake Events, Garrett County News, News

Come join us this Sunday, September 20, 2009 between 10 am and 2:30 pm at the “Killer Miller” Hill Aid Station on the bike route of the upcoming SavageMan Triathlon.

Railey Realty - Deep Creek Lake and Garrett County’s leading real estate brokerage,  is the official sponsor of the SavageMan bike course and our sales agents will be running the aid station for the cyclists at the top of Miller Hill in northern Garrett County.

If you have friends or family who are racing in the SavageMan this is a great location to take pictures and cheer on the racers! There will also be music with a DJ and free bottled water - basically a good time for all!

Here is a Google Map with directions and location of the Railey Realty Killer Miller Aid Station. Please park above the Aid Station!

If you are traveling from the Deep Creek Lake State Park here are directions;

We hope to see you there!

By: Mike Kennedy mkennedy@railey.com 301-616-6106 September 8th, 2009 Category: Garrett County News, News

First Step in Public Swimming Pool For Garrett County Achieved

In a vote this morning - 2 in-favor and 1 abstention - the Garrett County Commissioners approved to support the initiation of bids and construction for the Community Athletic & Recreation Center (CARC) on the campus of Garrett College in the Deep Creek Lake area.

The revised proposal that was approved represented a 40% reduction in the initial design estimate to build the facility along with Garrett College agreeing to cover all the operating costs.  A few months ago, it appeared this project was going to be voted down. However, a strong public push by the citizens of Garrett County with the help of online petitions and the change in design helped win  approval.

The swimming pool portion of the project is expected to be operational by the fall of 2011. The center will include a 32,000 square foot aquatics and fitness facility, plus a 27,500 sq ft. gymnasium and field house. The aquatics center will consist of a 6 lane competition pool, a physical therapy pool, and a fitness center. The gymnasium will include 3 basketball courts with seating for 2,000 spectators.

By: DebraSavage dsavage@railey.com 301-616-4085 September 3rd, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate

Well to give an answer this question it takes further explanation of two trends we have seen - 1.  the number of units sold has dramatically fallen - but  2. Deep Creek lakefront properties have still continued to hold their value. Let’s walk-thru this in greater detail;

Deep Creek Lakefront Residential Homes Sold

Year # of Homes Sold # of Homes over $1,000,000

2000          97                                     4

2001          79                                     6

2002         115                                     5

2003          70                                      7

2004          82                                     13

2005          94                                     21

2006          79                                     26

2007          61                                     21

2008          54                                     20

2009 YTD    19                                      5

These numbers are based upon information obtained from MRIS, our local MLS System, showing homes listed as fee simple lakefront residential homes at Deep Creek Lake.

As you can see the number of transactions has fallen starting in 2006 - but please note that until this year (2009) the number of lakefront homes sold with a list price over $1 Million has been a strong and upcoming market.

Deep Creek Lakefront Values have Remained Steady

I took a completely random sampling of properties, both single family and condominium lakefront properties, which are currently listed for sale to establish value.  I reviewed the sales history of these properties from the time we started to track sold prices in our public records and here are the results:

Area of the Lake - Southern

Sold Price                   Transfer Date

$350,000                      April 04

$435,000                       Dec 04

$630,000                       June 05

Current List Price         $ 1,199,000

Thayerville Area of Lake (near Uno’s)

Sold Price                   Transfer Date

$217,000                         Dec 81

$421,250                         Sept 02

Current List Price         $699,000

McHenry Condominium

$125,100                         May 88

$145,500                         April 97

Current List Price      $409,999

Southern Lake  Condominium

$164,750                          Jan 90

Current List Price      $ 375,000

McHenry Condominium

$117,000                          May 92

$160,000                          May 04

$210,000                          Sept 05

Current List Price      $ 217,000

So what does all this say?

The number of homes sold has decreased this year, but we are holding value.  Now I know we are all talking about and hearing about all these price adjustments and decreases.  Yes, we are seeing sellers drop prices, BUT, we are holding value. Home owners are not making as much on the re-sale of their property but they still have not dipped below the value they paid originally.

Remember buyers turn into owners and potentially one day they turn into a seller. That is when everyone wants to know that they made a purchase that has held value.   Deep Creek Lake has historically proven over and over again that it’s a great value purchase.  Considering the conditions the real estate market has seen nationally isn’t it great to know that there is somewhere in this great country that when you buy property, even in huge downturn markets, that you can and will hold value!

So, whether you buy now or buy later (as many happy home owners at Deep Creek Lake have done over the years) our history is strong on value oriented lakefront property.

Now there is a reason to purchase lakefront at Deep Creek Lake.  I think we all wish our 401K and IRA stock accounts had held value like Deep Creek Lake!!! Give us a call or drop us an e-mail - we’ll show you how to buy a vacation property in a market that has proven itself over time!