One of the most important driving forces for a real estate market is employment or a lack thereof. The chart below reflects the unemployment insurance claims filed for Harford and Cecil Counties over the past several weeks. I am providing a link to the MD Dept of Labor for state statistics which indicate nearly 300,000 unemployment insurance claims filed within the past month. It is all too new to feel the full effect of this trend, but we will undoubtedly feel it in the weeks, months and possibly years to come.
https://www.dllr.state.md.us/employment/uicounty.shtml
Lenders now have the green light to use exterior-only inspections for appraisals. It's always better to inspect the interior, but under these unprecedented times, this is a good work-around for everyone. I could sense during inspections last week that homeowners were a little tentative about me coming into their home. Frankly, I wasn't too thrilled about being there either. I was able to convince a few of my local lending clients last week to use exterior-only appraisals. It helps keep the appraiser and the homeowner safe and healthy. Hopefully, the major lending institutions will follow suit, at least in the short term.
FORBES.COM
Fannie Mae And Freddie Mac Adopt “Alternative” Home Appraisals Due To Coronavirus
Today I submitted written testimony to the Ways and Means Committee in Annapolis on behalf of the Maryland Association of Appraisers to stop HB 1628 which would create a new sales tax on services. Thanks to Councilman Chad Shrodes and hundreds of others who let the powers that be know where we stand. I've never used this forum for political purposes before, but this bill does not just affect a small group of people in a particular industry; it affects every citizen. Once the camel gets its nose under this tent, it's game over. You definitely need to contact your state delegate or senator immediately.
You have probably heard about the service tax proposed by Maryland General Assembly. I have provided a link for your convenience. I never get political in this forum so I won't. You probably already know what I think. I think you should read the tax proposal so you can see what these masterminds have in store for all of us.
MGALEG.MARYLAND.GOV
mgaleg.maryland.gov
Tax assessment figures were recently released by the Maryland Department of Assessment and Taxation indicating a healthy increase in assessed values. This may lead some to wonder if their assessments are too high. Although each case is different, it is safe to say the SDAT assessed values are typically under real market value. A recent search of single unit dwellings sold in Bel Air within the past 30 days found 43 sales. Of those sales, only 5 sold for less than their assessed values. Of those 5, 2 were bank-owned properties and 1 was an estate sale. Only two of 43 sales (4.3 percent) were less than the assessed value.
A similar search was done for the northern Harford County area which found 12 sales with 3 with assessments greater than their sale price. Of those three, 1 was a bank-owned property and the other 2 were estate sales.
So the take away here is that assessments, on average, increased during the past year, but they likely remain below actual market value. I would caution that this is simply a general survey of the data and that each case is different. Over 30 plus years of appraising, I have only performed a handful of appraisals for clients appealing their taxes whose assessments were egregiously too high.
If you believe you are being over-assessed and would like to appeal, this link from Maryland SDAT is a good guide. It has been my experience that if you can provide good comparable sales data to support your opinion, the assessment could be reduced.
https://dat.maryland.gov/realproperty/Pages/Assessment-Appeal-Process.aspx
DAT.MARYLAND.GOV
Assessment Appeal Process
This is an interesting Wall Street Journal article about the future of our business. Independent of interest rates, economic trends, and government policies, we can't avoid the inevitable fact that boomers will be moving into assisted living facilities or dying in the next ten years and their houses will have to be sold.
https://www.foxnews.com/lifestyle/baby-boomers-may-put-21m-homes-on-market-but-who-will-buy-them
FOXNEWS.COM
Baby boomers may put 'tidal wave' of 21M homes on market -- but who will buy them?
