I attended a training session with Remax founder Dave Liniger. He felt the current market would last another two years. That was somewhat surprising to hear. However, my own personal feeling was not too different from Dave.
Based on what I have seen over the last 14 years as a realtor, I feel that prices still need to come down another fifteen to twenty percent. This drop in prices will allow first time home buyers to get back into the market.
To buy a $300,000 townhome at one hundred percent financing you need to make between 55K and 60K. Many people in this area can’t afford that.
As far as Maryland real estate, there is something that is speeding up the process. The state of Maryland has the CDA Program. This program was established to encourage first time home buyers to purchase a home in Maryland. The program offers first time Maryland home buyers lower interest rates, 100% finacing and interest only loans.
The above programs are available to other buyers, but the credit scores must be higher than the what the CDA program allows. I have been able to get numerous buyers in homes for a total of one thousand dollars……or less.