By: BrianHomberg bhomberg@railey.com 301-501-0131 October 4th, 2011 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Interest Rates and Loans

There has been some recent good news in the Deep Creek Lake and Garrett County real estate market. In August 2011 there were 44 new pending sales which represented a 15% increase compared to the previous 5 year average. In fact, pending sales in August were at their second highest level since the height of the market in 2006. Other highlights of the local real estate market include;

In August 2011, 14 residential Deep Creek Lake water oriented (lake front, lake view, or lake access) properties sold with an average sales price of $426,711 and spent 277 days on the market. There are currently 36 Deep Creek Lake water oriented pending sales (35 residential sales and 1 lot/land).

36 lakefront homes have sold thus far in 2011, already equaling the total number of lakefront homes sold in all of 2010. There are currently 11 lakefront homes under contract. Those 36 lakefronts homes sold had an average sales price of approximately $819,000 and spent 228 days on the market. The average list price to sales price ratio of those homes sold was 81%.

Away from the lake in other areas of Garrett County, 16 residential homes sold in August 2011 with an average sale price of $170,341 and spent 142 days on the market.  There are currently 47 non-lake area pending sales (40 residential sales and 7 lot/land).

Buyers take note that summer followed by fall is typically the strongest selling season in Garrett County.  Sellers are generally more motivated this time of year with the prospect of having to carry their property through winter.  There are some very good values out there right now with a good selection of inventory to choose from. Also helping are low interest rates which incredibly ended last week under 4%.

Garrett County is a very unique market.  It is a beautiful, centrally located four season resort area.  Six of the wealthiest counties in the country are located within less than a gas tank away.

Railey Realty continues to the leader in the Deep Creek Lake and Garrett County real estate market with 57% of total dollar market share in Garrett County and 64% of the Deep Creek Lake market.

As a full time salesperson at Railey Realty I can send you new listings as they hit the market that will show status changes from active listings to pending and closed sales in real time via email market updates.  This is a state-of-the industry computer technology that I offer free of charge to you to follow and immediately see buying opportunities as they hit our resort market. I will be happy to let you know about “must see” properties and “great values.”  Please contact me for all of your real estate needs as I promise to guide you through a smooth real estate transaction.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 February 18th, 2011 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, Interest Rates and Loans

For the first time in several years the total number of real estate sales in the Deep Creek Lake and Garrett County market increased from the previous year. The current year is also getting off to a better start than the last few as the total number of residential sales thus far in 2011 is slightly higher.

Overall, there were 381 total real estate sales in 2010 with $118,847,832 in total dollar volume sold (according to our MLS). Total sales include all residential, building lots/land, commercial and multi-family properties. Total real estate sales in Garrett County improved about 10% in 2010 and total dollar volume sold increased 14% from the previous year.

In the Deep Creek Lake market, there were 154 residential sales in 2010 compared to 143 the previous year. Total dollar volume sold increased 19% as well in the lake area. A significant part of this increase in the lake market was due to additional higher end lakefront residential sales in 2010. Lower interest rates and price reductions also boosted the entire market.

Real Estate Market Snapshot - Deep Creek Lake

Dec 31, 2009                   Dec 31, 2010

#               $ Vol                     #         $ Vol

Res              143         $72.9M                 154         $86.0M

Lots              46          $9.3M                    25          $8.3M

Comml          3           $1.1M                      2          $0.4M

As a buyer, there are many options and properties to choose from in this market. Inventory continues to be higher than normal in most of our market segments. Plus, interest rates on second homes and investment properties are still low but have risen slightly in the past few months. A strategy of waiting for price corrections can sometimes result in more overall costs if rates continue to rise. A good portion of our sales normally occur later in the year so purchasing now before demand increases usually results in more favorable conditions for a buyer.

Correctly pricing your property within the market continues to be critical if you are selling your lake house or lot. An over-priced listing will sit on the market and not get much activity, showings, or even get any web inquiries. As a seller it is imperative to base your price on recent comparable sales! Buyers are able to review recent sale prices and most will then determine how much they are willing to pay from that information. Property condition features, and amenities also play an important part of a successful real estate sale. If you are thinking about selling please contact us for a free competitive market analysis that will help determine the value of your property.

Whether you are buying are selling, working with an experienced Realtor is critical. We continue to be Garrett County and Deep Creek Lake’s leading real estate company in properties sold and have the biggest selection of homes for sale. Contact us if you would like to schedule a showing for any property listed for sale in the Garrett County or the Deep Creek Lake area. As a cooperating broker we can assist and show you properties listed for sale with other real estate companies as well.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 January 14th, 2011 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate, News, Wisp Real Estate

The Wall Street Journal recently reported that vacation home markets are on the rise. While the article does not mention the Deep Creek Lake real estate market, it does mention other resort markets and reports some similar things that have recently happened in our market.

• Sales are up slightly
• A few record sales - Deep Creek experienced a record lakefront house sale at Holy Cross for $3.5 in 2010.
• Cash buyers who are getting good deals
• More accurate pricing by sellers

Now is still a great time to purchase a second or vacation home in the Deep Creek Lake area. Interest rates are still low, good deals can be had with plenty of properties to choose from, and unlike other resorts we do have year round activities with the lake and Wisp Ski area.  Contact us for a complete list of all available properties - or a list of the current “best buys” in our market.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 October 21st, 2010 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Market Update, Deep Creek Lake Real Estate, Garrett County Real Estate

Leading indicators and trends in the Deep Creek Lake and Garrett County real estate markets continue to strengthen. Thru the first nine months of 2010;

• Lakefront residential sales are up 31% - 47 total sales thus far in 2010 with an average sold price of $822,179 - versus 36 sales in 2009 with an average sold price of $711,315.
• Total number of sales in Garrett County is up 10%.
• Total dollar volume sold in Garrett County is up 22%.
• Total residential dollar volume sold in the Deep Creek Lake area is up 26%.
• The average residential sold price in Garrett County is up 9%.

(All data collected from Metropolitan Residential Information Systems (MRIS). All data is believed to be accurate but not guaranteed.)

A few key factors have contributed to the strengthening of our market. First, there have been a greater number of higher end lakefront residential sales in 2010 which has boosted the entire market. Second, historically low interest rates have created more buying opportunities. Lastly, some price reductions and corrections in certain segments of our market have enticed buyers to purchase their next home, vacation home, or rental property.

Higher inventory levels and inflated list prices continue to be a problem. Over priced listings are being ignored as buyers have a healthy selection of properly priced homes, condominiums, townhomes, and vacant land to choose from. If you are selling it is more critical now than ever before to competitively price your property in the market. If you are unsure of the value of your property please contact us for a free, no obligation, competitive market evaluation.

If you are actively buying, it’s still a great time to evaluate your purchasing options. The Deep Creek Lake area is a true four season resort that offers historical stability and more importantly activities and attractions the whole family can enjoy. Those factors plus low interest rates and a large selection of properties to choose from right now provides buyers an ideal environment to purchase a vacation or second home.

As Deep Creek’s leading brokerage we look forward to helping you with all your real estate needs.

By: Kathy Gibson kgibson@railey.com 301-501-2626 September 22nd, 2010 Category: Community Profiles, Garrett County Real Estate

The Whispering Woods Subdivision is the first of its kind in Maryland! Located in the beautiful western part of the state in Garrett County, Maryland and only a short drive from Deep Creek Lake, this private mountaintop community has lots for sale that are “Net Zero” capable.

To clarify this further, “Net Zero” construction sites require the ability to create the energy on site that will be used by the dwelling-that is designed and erected-with solar and wind energy.

The first home in this community is currently just completed and is the gateway to the community and available for tours. This home was constructed to maximize the true net zero envelope featuring 6000 sq. ft. of highly appointed hand crafted timber beam construction and natural stones from around the world. The home will be supported by a 10 kw Aerostar Wind Turbine specified and to be installed to provide its power source. There are presently 4 lots remaining of the 6 that were originally listed for sale. The lots are perced and ready to build.  This gated community has paved roads and utilities already installed to the sites. The views from these lots are incredible spanning several mountain ridges! Lot sizes available are from 3.58 acres to 8.29 acres. If your desire is to  build “green” and as energy efficient as possible-take a look at Whispering Woods!

Click here for Green, Energy Efficient Building Lots for Sale in Whispering Woods Garrett County

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 May 26th, 2010 Category: Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News

Yesterday morning, the County Commissioners approved the proposed revisions to the three main county land use and development ordinances - the Deep Creek Lake watershed zoning ordinance, the county subdivision ordinance, and the county sensitive areas ordinance. This completes a process that began in May 2009.

The Planning Commission proposed the final revisions following a public hearing in March. The Garrett County Commissioners accepted the proposal without any changes and approved it as drafted by the Planning Commission.

The changes become effective June 1, 2010. They will soon be available on the county web site at http://www.garrettcounty.org/PlanningLand/Main.aspx?tabid=1

The major changes from the original proposals include;

• A major reduction in the size of the Scenic Protection Overlay districts along with new construction in these districts are now NOT required to retain or plant tress in front of the house - new construction must now have trees planted or retained on the sides and rear of the house. The original proposal would have blocked and obstructed views of the lake from these houses.
• Mandatory clustering is NOT required in lands classified either AR (Agricultural Resource) and RR (Rural Resource). The original proposal called for mandatory clustering and the creation of a resource parcel. Mandatory clustering could have restricted or limited a property owner’s ability to subdivide in the future.

The County Commissioners and Planning Commission should be commended for listening to public comment and taking into consideration the many concerns from owners of real estate throughout Garrett County and the Deep Creek Lake area.

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 February 12th, 2010 Category: Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News

Due to last weekend’s winter storm, the Garrett County Planning Commission has rescheduled their public hearing concerning revisions to three principal land development ordinances. The new date and time of the hearing is Saturday, March 6, 2010, at 10 am to be held in the auditorium of Garrett College. If inclement weather forces the cancellation of this hearing the make-up date will be March 11, 2010.

The proposed revisions would affect the following ordinances;

• Deep Creek Watershed Zoning Ordinance
• Garrett County Subdivision Ordinance
• Garrett County Sensitive Areas Ordinance

An in-depth look at these revisions and how they may affect Deep Creek Lake and Garrett County real estate can be found in this previous post. As always, we strongly urge you to become familiar with these changes, ask questions, and register your comments.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 February 9th, 2010 Category: Deep Creek Lake Buyer Info, Garrett County Real Estate, Obtaining a Mortgage

Jerry Merrick, of BB&T Mortgage, has provided these guidelines about the current requirements of mortgage loans in the Deep Creek Lake and Garrett County Maryland areas.

Second & Vacation Home Loans

A second home by definition is located in a resort area and farther than 60 miles from the borrower’s primary residence. There are some exceptions but this is done on a case by case basis.

Conforming mortgage loan limits for second homes at Deep Creek Lake and in Garrett County are $417,000 and below - which is the same as primary residences. Typically borrowers will pay 0 points on a conforming loan with acceptable credit scores. Any loan over $417,000 is considered to be a jumbo loan.

Interest Rates for second homes under $417,000 are the same as those for a primary residence, there are no differences. These rates are currently in the high 4% to low 5% range which are historical lows! Rates for second home loans over $417,000 are typically 1% higher.

The down payment requirement for second homes with loan amounts under $650,000 are currently at 20%. The down payment and credit score requirements change as the loan amount increases over $650,000. For any loan amount between $650,000 - $1,000,000 the down payment increases to 25% and the minimum credit score required is 740. Any loan amounts between $1,000,000 - $2,000,000 the down payment requirement increases to 35% and the minimum credit score required remains at 740. There are no private mortgage insurance companies approving second homes at this time. This is why the down payment requirement for a second home is currently at 20% and more. This is expected to change as time progresses and guidelines loosen up a bit. At some point in the future lenders will return to a 10% down payment option for second homes.

Investment Properties

Most of the full time vacation rental homes at Deep Creek Lake are considered to be investment properties. Depending on how many days you personally use the property and how you treat it on your tax return will also determine whether the property is to be treated as a second home or investment property.

The same loan limits apply to investment properties as the primary and second homes - $417,000 and below are conforming and loan amounts above $417,000 are considered to be a jumbo loan.

Interest rates for investment property loans at Deep Creek Lake less than $417,000 are the same as primary residences and second homes and typically 1% higher for loans greater than $417,000. The crucial difference is that the point structure is exponentially higher. The minimum point structure for both conforming and jumbo investment property loans is 1.75 points regardless of credit score and down payment.

The down payment requirement for a conforming investment property loan is 25% and the minimum credit score is 720. If the borrower’s down payment is more than 25% then the minimum credit score requirement is reduced to 620. The down payment requirement increases to 35% with a 740 minimum credit score for investment property loan greater than $417,000. The maximum financing for a jumbo investment property is $1,000,000.

Rental income for a new purchase can not be used in qualifying for an investment loan! You must be able to qualify based on your current income and wages - not the existing income of the vacation rental. On a slightly related note - a rental property that has a two year history of rental income can be used on a refinance transaction.

Primary Residences

As with second homes and investment properties, the conforming loan limits for a primary residence in Garrett County is $417,000. Any loan for a primary residence greater than $417,000 is a jumbo loan.

Conforming fixed interest rates are usually priced 1 % less than jumbo fixed rates. These rates have recently been bouncing between the high 4% to low 5% range. This may end up being a once in a lifetime opportunity to lock in an interest rate this low! Also, borrowers  typically pay 0 points based on credit scores.

Down payments for a primary residence vary based on the borrower’s qualifications such as credit score and debt to income ratio. A borrower with a 680 credit score and a debt to income ratio of less than 41% can borrower 95% of the purchase price with private mortgage insurance. For loans greater than $417,000 the minimum down payment on a primary residence purchase is 20% because there are no private mortgage insurance companies available to insure these loans. The minimum credit score required increases to 700 on these jumbo loan but the borrowers still typically pay 0 points depending upon credit score.

Right now the CHIPS loan is by far the best available program for principal residence home buyers in Garrett County or people looking to relocate to this area. The CHIPS loan will allow 100% financing with a maximum borrower investment of $500 plus 2 months reserves of principal, interest, taxes and insurance. The borrower can not own any other real estate at the time of application. The minimum credit score for 100% financing is 660 with a maximum debt to income ratio of 41%. CHIPS will work for any property not located in census tract 5 (Deep Creek Residential). There are no income limits, so if a high net worth person is purchasing a primary residence and is looking for 100% financing this program could work. Sellers can pay all closing costs and all funds with the exception of $500.00 which can be a gift from a family member.

As you can see there are many products and options available to consumers today. Now more than ever it is important to choose a lender who is experienced and knowledgeable to help you with an advice. For more information about these loan guidelines or to get pre-qualified call Jerry at (301)387-3219 or email him at JMerrick@BBandT.com.