In a sign that things aren’t getting better this story discusses the spike in foreclosures in Maryland year over year in November.
While Maryland’s home foreclosure filing rate dipped a bit last month from October, it was still almost double that of a year ago, making real estate agents nervous.
The number of foreclosure filings in the past five months in the state has risen significantly higher, year-over-year, than the national increase.
The continued high level of foreclosures “really does hurt the market,” said Steve Meszaros, office manager of the Long & Foster Real Estate office that serves the area around Fort Meade and Baltimore-Washington International Marshall Airport.
“Houses are selling for so much less than they did before,” said Meszaros, who is also board president of the Maryland Association of Realtors.
The foreclosure filing rate in Maryland jumped by 84 percent in November from a year ago, compared with the national rise of 18 percent, according to the latest figures from data company RealtyTrac of Irvine, Calif. That followed a 124 percent leap in Maryland in October and an 86 percent rise in the third quarter from the same periods in 2008. The national increases were only 18 percent in October and 23 percent in the third quarter.
In November, Maryland had the ninth highest rate among all states, with one per 364 housing units, higher than the national rate of one per 417. Nevada’s rate of one per 119 households led the nation, while Vermont posted the lowest rate with one filing per 19,465 households.
Prince George’s County again had the state’s highest rate in November, with one filing per 153 households, followed by Charles and Frederick counties. All three counties had higher rates than in both October and November 2008.
Back in June, Maryland’s rate was quite a bit lower — one per 748 households.
Meszaros said he expects foreclosures to decline on a monthly basis in the first half of next year. But he really worries about what may occur in the second half of 2010, when homeowners who purchased adjustable rate mortgages during a good economy in 2005 see the interest rates in those five-year deals increase.
“I don’t think we are out” of the down economy, Meszaros said.
The volume of existing homes sold in Maryland rose by almost 40 percent in October from October 2008, but the average sales price of about $295,000 was down by 10 percent, according to the Maryland Association of Realtors. The extended and expanded federal homebuyer tax credit is helping fuel sales in Maryland, Meszaros said.
The $8,000 credit for first-time homebuyers was extended until April 30 for signed contracts and June 30 for closings. There is also a new tax credit of up to $6,500 for certain existing homeowners who purchase a replacement principal residence.