By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 16th, 2010 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, News

It is no secret that the local real estate market experienced a challenging year in 2009, but as we move closer to the 2010 summer selling season there are signs of increasing momentum and improvement. If the current trends continue, we can hopefully look back and note that 2009 was the bottom. Some trends we are seeing include:

• Buyer interest and activity is well ahead of last year’s pace. Lakefront residential transactions are up 70% from the same period last year.
• There have been five (5) $1 million dollar plus sales this year compared to only three (3) last year at this time.
• A lakefront property in The Reserve at Holy Cross just sold for a record $3.5 million. Railey Realty was the listing broker for this sale. This is the first reported $3 million plus lakefront residential sale.
• The number of pending contracts is greater now than it was last year at this time.
• New residential construction and housing starts have stabilized. Through May, total building permits issued for new single family home starts in Garrett County is nearly at the same level experienced for all of 2009.
• Distress sales, short sales, foreclosures, and bank owned properties in Garrett County and the Deep Creek Lake area are still few and far between in this market.

The area continues to add amenities such as the under construction Community Athletic Recreation Center, just opened Lodestone and Thousand Acres golf courses, and a new Zip Line Canopy Tour Ride at Wisp Ski Resort. The Deep Creek area offers an abundance of activities and attractions families can enjoy year round.

If you are a prospective buyer, now may be the perfect time to purchase.  Interest rates remain low, and there is a great selection of properties to choose from.   Right now is a great time to take advantage of these benefits and capitalize on the historical strength found in this four season resort market.

If you are in the selling process it is very important to not over-price your property.  “Testing the market” in this environment is not the best path to take.  Today’s buyer is well informed and will not make offers on obviously overpriced properties.  As a result, the over-priced properties do not sell, and as other owners market their property, inventory increases.  This ultimately drives prices down.  Our advice is to offer your property for sale when the time is right for you and price your property competitively. One simple fact has remained true - properly priced homes in good condition are selling in this market.

If you are considering selling and would like to know the value of your property, Railey Realty will provide you with a free, no obligation, competitive market evaluation.  Please contact your agent or call us at 301-387-2000 for details.  As Deep Creek’s leading brokerage we look forward to helping you with all your real estate needs.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 11th, 2010 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, News

Railey Realty is proud to announce its participation as the listing broker in the highest lakefront residential sale recorded at Deep Creek Lake. The upscale, nearly 14,000 square foot home when finished, was recently sold for $3.5 million. The home was built in 2007 and is located in the Reserve at Holy Cross which is a private lakefront/lake access community. The property features stunning, unobstructed views of Deep Creek Lake from most rooms, 4 bedrooms, 3 full baths, nearly every upgrade you could imagine in a high-end home, and a boat dock permitted for 3 power boats. The couple who purchased this home is from the Pittsburgh area and plan on using it as a vacation home.

This is the first sale over $3 million at Deep Creek Lake and is the highest sold price for a residential property since 2007, when another lakefront house in The Reserve at Holy Cross sold for $2.8 million.

If you are thinking about buying or selling lakefront property on Deep Creek Lake, give us a call or send us an e-mail. As Deep Creek’s leading real estate brokerage, we can assist you with all your real estate needs.

By: Jay Ferguson jferguson@railey.com 301-501-0420 March 23rd, 2010 Category: Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate

Residential Market Stats that Matter - Railey Realty Still #1

In a sales meeting this morning, our manager Nancy Trotta went over the latest residential market statistics for the Garrett County area. The numbers are amazing, and I wanted to share some of the highlights:

There are currently 33 properties currently under contract between $55,900-$1,989,000. Of those contracts, Railey Realty has 18 of those homes under contract - 55% of the market!

Our next 3 closest competitors have 8 contracts COMBINED. Their individual market share ranges from 6%-9%, respectively. I believe that this demonstrates why I chose to make the move to Railey Realty last month - more market share and the ability to still sell homes even in the current market conditions. Our results speak for themselves!

And it’s not just contracts - our listing inventory is nearly double that of the next closest competing broker. We have 239 homes currently listed and more on the way! For the best selection of real estate listings, again, we are #1 in Garrett County & Deep Creek Lake!

Deep Creek Lake & Garrett County Real Estate Sales

By: Mike Kennedy mkennedy@railey.com 301-616-6106 March 6th, 2010 Category: Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County News, News

Yesterday the historic Alpine Village Inn, on the shores of Deep Creek Lake, went to auction. The bidding started at $550,000 and quickly escalated up to $900,000. The winning bid ended up being $900,000 and it appears a non-local developer was the winning bidder. The previous owners had paid $750,000 for the motel back in 2003. It is not immediately known what plans the new owner has for the once thriving 29 room hotel/motel.  The State of Maryland Highway Administration does have plans at some point in the future to widen the intersection of Rt. 219 (Garrett Highway) and Glendale Road which could potentially increase the value of all commercial real estate at Deep Creek Lake in that area. The interesting point here is that the Alpine Village sold for more than what it did just 7 years earlier - once again demonstrating the underlying strength and stability of real estate values here at Deep Creek Lake - values that are holding fairly steady even during one of the worst real estate slowdowns and economic downturns in our country’s history.

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!

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 24th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Wisp Real Estate

As we pass the mid point of 2009, the Deep Creek Lake and Garrett County real estate market continues to feel the impact of the national economy and global recession. Not because we have an abundance of short sales and foreclosures - because we really don’t - the biggest impact right now is the national media and the negative perception of real estate in general.

This perception continues to widen the gap between what buyers are willing to pay and what sellers are willing to accept for their properties in our market. This fact along with tightening credit standards has resulted in less sales - a trend that started about mid-way thru 2006 in our market.

Almost every buyer today wants a “good deal” or is waiting for the bottom - and who can blame them after listening to the national media? However, most of the current real estate listings in Garrett County could be characterized as being “non-distressed” - i.e. the owners would like to sell but they aren’t willing to dramatically take less than what they are asking for in price.  There are some desperate sellers out there right now that need to sell - and they very well may have a property match for what you’re looking for. However, in general,  this is not a market like Las Vegas, or in other parts of the country like Florida, where 50-75% of all current sales are distress sales.

Real Estate Market Snapshot - Deep Creek Lake

June 30 ,2008                   June 30,2009

#               $ Vol                     #         $ Vol

Res              72         $44.4M                   54         $27.4M

Lots             33          $6.3M                    25          $5.7M

Comml          1           $0.5M                      2          $0.7M

Clearly, the number of sales and transactions continues to decline. The only bright spot continues to be the average sold price. According our MLS, the average sold price for a residential property thru the first 6 months of 2009 in the Deep Creek area was $507,942. The average sold price at the end of 2008 was  $583,230 - or a correction of about 13% - not bad considering most other areas of the country - primary home and resort areas - have seen corrections between 25-50% and have seen property values revert back to pre-boom days! In fact this is the first time the average residential sold price in the Deep Creek Lake area has recently declined - even in our softer real estate markets of 2007 and 2008.

However, please take these numbers with a grain of salt - this number includes a wide variety of different types of residential homes sold - from million dollar lakefront homes with a private boat docks - to less expensive lake access condos and town homes - to a modest cabin in the woods with no lake access. If more less expensive property types sell the average sold price will decline. This does not mean the value of a newer lakefront home with Type A dock went down 13%. It just means on average, the different properties that did sell, sold for 13% less than at the end of 2008.

What’s a Seller To Do?

Right now the best thing you can do is realistically price your property to sell based on the last comparable sold and make sure the condition of the property is in tip-top shape. Realistically priced properties in good condition are currently selling - unrealistically priced properties are not! By pricing your property correctly up front you can avoid all the small price reductions later which help keep the buyers on the sidelines waiting for the next price drop.

As a seller the value of your home is NOT based on what you paid for the house, NOT based on how much you have it insured for, NOT based on how much your neighbor’s house is currently sitting on the market for, and NOT based on how much you mortgage balance is - pure and simple your current value is based on what a ready, willing, and able buyer is willing to pay for it - and most buyers right now aren’t going to pay more than what the last comparable sold for.

What’s a Buyer to Do?

Quite simply now is a great time to buy!! A few communities and subdivisions in the lake area have seen values come down making some properties now within reach. Plus interest rates on second homes and investment properties are still low and their is an abundance of properties on the market right now. Now is a great time to negotiate an excellent deal. This situation along with low interest rates won’t last forever.

Overall the Deep Creek Lake real estate market has generally been a safe harbor to weather economic pressures like these throughout the years. Why? Owning property here is more than just a financial investment - it’s an investment in lifestyle as well. We have four seasons of recreation and activities - including Deep Creek Lake and the Wisp Ski Resort - we  have a comfortable year round climate suitable for numerous outdoor activities - including boating, hiking, snow skiing, biking, fishing, golf, and the Garrett Lakes Arts Festival - just to name a few. Along with our close proximity to Pittsburgh, Baltimore, and Washinton D.C. - Garrett County is a great area to reconnect with friends, family, and loved ones.  All markets go up and down - this opportunity may not last very long - give us a call or shoot us an e-mail - we’ll help you seize the opportunity and buy a property today!

By: Mike Kennedy mkennedy@railey.com 301-616-6106 July 2nd, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Uncategorized, Wisp Real Estate

If you are thinking about buying or selling a house at Deep Creek Lake or in Garrett County Maryland - one real estate statistic you may want to pay attention to now is known as the Absorption Rate - a market indicator that hasn’t been used much locally but should get some consideration to get a better feel for current conditions.

Absorption Rates at Deep Creek Lake and Wisp

What is the Absorption Rate? Basically, it’s the amount of time it will take the current inventory of homes on the market to sell based on the most recent pace of sales. For example, if 5 lakefront homes sold on average per month for the past year - and the current inventory of lake front homes for sale is 100 - then the current absorption rate would be 100/5 - or 20 months. In other words it would take about 20 months to deplete the current inventory based on the recent sales pace. Since we have many specialized segments of real estate in the Deep Creek market - here are the current absorption rates for the most popular segments;

Lakefront homes with private Type A boat docks - 89 currently on the market divided 2.5 average sold per month (30 sold in the past 12 months) = 35.6 months of inventory…or in other words there is around 3 years of inventory on the market at this current pace.

Lakefront homes with single slips -  38 currently on the market divided by .4 average sold per month (5 sold in the past 12 months) = 95 months of inventory.

Lake Access homes with single boat slips - 72 currently on the market divided by 1.33 average sold per month (16 sold in the past 12 months) = 54 months of inventory.

Lake Access homes without boat slips - 39 currently on the market divided by .58 average sold per month (7 sold in the past 12 months) = about 78 month of inventory.

Wisp Real Estate (residential atop Wisp Mountain) - 37 currently on the market divided by 1.25 average sold per month (15 sold in the past 12 months) = 30 months of inventory. Includes Villages of Wisp town homes.

Lake Area homes (meaning not “water oriented” - just homes in the general Deep Creek Lake area) - 71 homes currently on the market divided by 1.66 average sold per month (20 sold in the past 12 months) = 42 months of inventory.

Please keep in mind the absorption rate statistic is somewhat flawed by it’s own nature - it only takes into consideration recent past performance - it only looks backwards. It tends to underestimate the market going forward and the quickness of how fast things can turn around. Use this statistic carefully when evaluating your real estate opportunities.

However, this number does have some significant meaning for both potential buyers and sellers.

For buyers - a higher number means inventory is up and serious sellers will be competing for your business - thus your chances of getting a “better deal” increases.

For sellers - a higher number usually means more competition and you better make sure both the price and condition of your house compare favorably to your competition! - especially if you want to sell your house to sell in a normal marketing time frame.

Selling a house is both science and art. It’s part science because numbers and statistics are used to come up with a value based on recent selling prices of comparable homes, days on market, absorption rates, number of homes currently on the market, etc. It’s partly an art  because in a specialized resort market like Deep Creek each vacation property is unique in it’s own way - whether it’s the topography (steep vs. flat), orientation (northwest for late afternoon sun or east for morning sun), views (filtered lake views or wide open expansive lake views), boat dock (private Type A vs. single slip), condition of the house (newer vs older), etc…the list can go on and on. It’s extremely hard in this market to find two properties that are nearly identical so rarely can your compare apples to apples - except for town homes and condos.

Whether you are buying or selling Garrett County or Deep Creek Lake real estate - give us a call or drop us an e-mail - we are the experts on the local resort and vacation home market - we can guide you thru the entire process. Nobody has helped more buyers and sellers than us over the past 30 years!

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 24th, 2009 Category: Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News, Wisp Real Estate, Wisp Ski Resort

Yesterday we had a meeting with Karen Myers, one of the owners and developers of the Wisp Ski Resort. She gave us an update on the Wisp Ski Resort, the new Hale Irwin Lodestone Golf Course, and other real estate developments atop Wisp mountain. Here are the highlights of the meeting;

Contrary to any rumors the Wisp Ski Resort is NOT in any type of financial trouble! And they don’t intend to get in any financial trouble in the future by utilizing a plan to be fiscally responsible going forward. This plan includes delaying some of the proposed projects until economic conditions improve and expansion is feasible. The Wisp finished this past ski season (2008-2009) with about 185,000 skier visits - which was slightly ahead of the previous winter season - even with a slumping economy and an unusually warm March which forced them to close earlier than normal for the season. Some in the ski industry have heard reports that most of the other mid-Atlantic ski areas were down significantly in skier visits - if that is true this once again shows the overall strength of the Deep Creek Lake area as four season resort area that can still draw people and tourists even in tough economic times!

Hale Irwin Lodestone Golf Course

First and foremost the Wisp plans on finishing the Hale Irwin Lodestone Golf Club. The first 10 holes have already been “plated” and their is some additional rock blasting to be done on the final 8 holes. Hale Irwin toured the site last week and the course is on target to be done and playable by September 2009. The Wisp is currently pre-selling memberships - full memberships are $40,000 for non-lot owners and $20,000 for a sport membership for those who plan on playing less golf. This golf course will be a private, membership only course and won’t be open to public play.

Wisp Lakeside Club

Second on the priority list is to complete and open the Lakeside Club on Deep Creek Drive with a temporary building. The permanent $7 million building has been put on hold until the economy improves. The location is 1077 Deep Creek Drive which is the site of the old S&H Marina on Deep Creek Lake. The temporary location will have a bar, lounge, pool, TV’s locker rooms, and game rooms.  This club is targeted for property owners in some of the neighborhoods atop Wisp Ski Resort - such as Kendall Camp, North Camp, or Highline - that don’t have access to Deep Creek Lake. The target date for opening the Lakeside Club is July of 2009.

North Camp Ski Slope Expansion

Eventually, as economic conditions improve, the Wisp plans on constructing another Chair Lift and increasing the number of ski trails and ski-able terrain in the North Camp area of the ski slopes. The new Chair will be #8 and will meet at the top of North Camp near Chair #7.

Wisp Mountaintop Village

Lastly, the proposed Mountain Top Village near the ASCI White Water course will be developed. Proposed is a 100 unit residential building that will be ski-in/ski-out along with various retail and food shops. The mountaintop village already has ASCI (Adventure Sports Center International), The Pumphouse Cafe, and the Wisp Outdoors Center.

If you are interested in any real estate opportunities at Wisp Ski Resort or in the Deep Creek Lake area please give us a call or drop us an e-mail. We’ll be more than happy to show you any building lots, residential homes, or townhomes atop Wisp mountain and provide more details about all the happenings at Wisp.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 19th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Uncategorized, Wisp Real Estate

Just recently, our local MLS (multiple list service) that serves the Deep Creek Lake and Garrett County Maryland area added the ability to search for foreclosures, potential short sales, and bank owned (REO) properties. These types of properties are often referred to as “distressed properties”.  Most real estate buyers and investors looking for bargains often target these distressed properties first.

As I have wrote about in previous posts - our local real estate market here at Deep Creek Lake doesn’t have a significant amount of these distress sale opportunities - and this is still the case. This is unlike what is happening in other resort markets and is testament to the overall strength of our market!!

As of today here is a summary of the total number of distress sales in Garrett County;

Deep Creek Lake and Garrett County Short Sales

Potential Short Sales - 10 active residential properties. Only 1 of the 10 is currently under contract or sale pending - an Overlook Villas townhome atop Wisp Mountain listed at $649,000. Of these 10 - 5 are located in the general Deep Creek Lake/Wisp Ski Resort area;

• - Red Run lakefront townhome listed for sale at $299,950.
• - Lakeland Estates lake view townhome (across from The Creamery) listed for sale at $220,000.
• - Lake access home on Brenneman Lane in the Summit subdivision listed for $649,000.
• - Lake access home on Glen Cove Road in Swanton listed for $549,000. No boat slip with this one.
• - The Overlook Villas townhome currently under contract.

The other 5 properties are located in the outlying areas of Garrett County - most in the Oakland, Mt. Lake Park and southern Garrett County area.

A short sale is basically a situation where the current homeowner owes more to the bank or lending institution than what the property is currently worth.

Deep Creek Lake and Garrett County Foreclosures

Foreclosures - 12 active residential properties currently for sale in Garrett County. Nearly all have already gone thru the foreclosure process and were bought back by the bank at the public auction. The various banks are now offering these REO (real estate owned) classified assets for sale thru local real estate brokers. Of the 12 foreclosures, 6 are currently under contract. Only 2 of the 12 are located in the Deep Creek Lake area - a split lakefront home on State Park Road with a Type A dock listed for $428,601 and a house located on Route 219 near the Deep Creek Bridge.

As a member of MRIS (the name of our local mls), we at Railey Realty can provide you a complete list of these distressed properties along with additional details and photos - and we can even set you up to receive automatic e-mails when any new distressed properties hit the market. If you are looking for a bargain or a great deal - give us a call or shoot us an e-mail - we’ll be more than happy to help you search for these types of properties or any others that may interest you.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 June 18th, 2009 Category: 1031 Tax Deferred Exchanges, Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Vacation Rentals

Railey Mountain Lake Vacations, Deep Creek’s largest vacation rental company, is reporting that the vacation rental market at Deep Creek Lake is faring much better than other resort areas around the country.  With the slumping economy, vacation rental bookings are down nationwide about 18% from last year. In the Deep Creek Lake area rental bookings are only down about 10% from last year.

Other current happenings in the local vacation rental market include;

• - A positive sign is that 40% of all Railey Mountain Lake homeowners are ahead o f last year’s numbers. Not everyone is feeling the pain of this current slowdown. The other 60% are at the same level or down slightly.
• - On average each rental home is down about a week and a half of bookings this summer season.
• - The larger homes - the 9 bedroom and 8 bedroom homes - are still going strong. The 5 bedroom and 6 bedroom homes are currently lagging.
• - Renters are booking later and willing to sacrifice amenities for a lower price. Price is trumping everything right now to get bookings. If a property is priced properly compared to its competitors it will rent!
• - Some homeowners are being more flexible on restrictions to attract renters as well - such as allowing pets.
• - One of Railey Mountain Lake’s 9 bedroom pool houses set a record and went over $200,000 in gross rental bookings for the year.

In other positive news, future bookings for the 2009 fall season are already up 15% over last year. This may be due to the lower rates in the fall season and the fact the weather at Deep Creek in September and October is still very pleasant although certainly not hot by any means.

If you are thinking about renting your house or purchasing a vacation rental as an investment in the Garrett County area - give us a call at (800) 544-2425 or drop us an e-mail - there are some well performing rental houses currently for sale in the Deep Creek Lake area - as well as some houses that could be excellent rentals with some slight modifications. We’ve helped many clients over the years buy rental homes - we’ll be more than happy to get the buying process started for you as well. For those of you considering or in the middle of a 1031 tax deferred exchange this is one of the better performing resort markets in the country. Now is a great time to consider investing in real estate at Deep Creek Lake - inventory is up, interest rates are down, and there are some deals to be had.