According to the Maryland Association of Realtors, in 1999 the average sales price in Maryland was $162,018. In 2009 the average sales price was $301,270.

Want to know what your home is worth? Request a no-obligation market analysis. Interested in seeing market statistics in your neighborhood? Sign up for our Market Updates and receive local sales information around your home.

Through determination and hard work, the Creig Northrop Team of Long & Foster achieved incredible results in 2009. The Northrop Team took home top honors ranking # 2 in Sales Volume by a Team. The Northrop Team retained their spot for the fourth year in a row, only $6 million off the # 1 spot held by John McMonigle of Coldwell Banker Residential Brokerage based in Newport Beach, CA

Creig Northrop, President of The Northrop Team says, “I am amazed and impressed for what we all achieved in what I believe was the toughest year in real estate. Teamwork makes the dream work, and this is exemplified by these results.  I could not be more proud of everyone on this team and give a heartfelt thank you for all their loyalty and dedication.”

The Wall Street Journal/LORE Top 400 is based on a survey of over 7,000 brokerage firms, associations of Realtors® and hundreds of other sources to determine the top real estate professionals in the United States. Now in its 4th year, this ranking is the only independent study of its kind where all of the results from individual submissions are independently verified through third party sources. The definition of what constitutes an individual sales professional and a team has been developed from input from dozens of industry professionals.

The 400 is actually four separate rankings:

Top Individual Sales Professional ranked by closed transaction sides
Top Individual Sales Professional ranked by closed sales volume
Top Team ranked by closed transaction sides
Top Team ranked by closed sales volume

A special thank you to all of our past clients who have put their trust in our team for all of their real estate needs.

All results from the study are based on calendar year 2009.

Here is what CNN Money had to say about the 2010 Best Cities:

• Columbia/Ellicott City, MD

Top 100 rank: 2
Population: 155,000
Unemployment: 5.2%

Ellicott City boasts grand homes, a lovely 18th-century downtown, and lots of restaurants. Columbia offers a wide range of housing, tons of parkland, and a major music venue. But those varied amenities are far from the only reasons this duo has risen to No. 2 from No. 8 in 2008. It’s also an economic powerhouse with a jobless rate just as enviable as Eden Prairie’s.
The nearby National Security Agency and the Fort Meade Army base together account for more than 8,000 jobs, and the government plans to move thousands more positions there by next year. Baltimore and D.C. are within commuting distance (30 and 60 minutes, respectively).

As for housing, the foreclosure rate is one of the lowest in Maryland, yet homes are affordable — by Northeast standards, anyway. Factor in excellent schools and a diverse population (17% of residents are black, 14% Asian), and you can see why this place has become a magnet for families. –Donna Rosato

Search for homes in Columbia.

Search for homes in Ellicott City.

• Gaithersburg, MD

Top 100 rank: 25
Population: 59,000

Gaithersburg’s ability to attract start-up companies has allowed it to rebound from the recession better than many other places. The town offers plenty of incubator-styled office space. Large employers nearby include Northrop Grumman and Lockheed  Martin. Gaithersburg is just an hour’s train ride to D.C. and hour car ride to downtown Baltimore, so residents can work in either town – and soak up the culture of both. –Najib Aminy

Search for homes in Gaithersburg.

• Rockville, MD

Top 100 rank: 31
Population: 61,000

With a recently rebuilt downtown, Rockville boasts a prime location, great schools, and economic stability. Some of the best primary schools in the country are here.

Just shy of an hour’s commute to both Washington, D.C., and Baltimore, this city is close to the offices of the Federal Drug Administration, the National Institute of Health, and the National Institute of Standards and Technology. So there are plenty of good, stable jobs to be had. –N.A.

Search for homes in Rockville.

In 2008 Columbia and Ellicott City were ranked #8, Gaithersburg was #29 and Rockville was #66.

CNN Money bases their “Best Places to Live” on local unemployment rates and jobs, school ratings, populations of 50,000-300000, crime rates and more. Read the FAQs on the selection process.

The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is September 30, 2010.

There will be no gap between June 30 and the date the President signs the bill into law. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

The extension was necessary to help an estimated 200,000 home purchasers qualify for the government tax credits because many are involved with transactions that are lasting over 60 days. These transactions include short sale and bank-owned (REO) properties.

Source: Realtor.org (6/30/2010)

Two Brand New Communities Coming to Clarksville, Howard County this Summer/Fall 2010.

Maple Woods – 3 acre home sites
Starting in the $700′s

&

Walnut Grove – 1 acre home sites
Starting in the $800′s

Click for more information!

The condition of the home is certainly dictating how quickly it’s selling. That’s why we focus so much on staging your home properly. We are proud to announce we have two new Home Marketing Consultants on our team, Debra White and Dervon Hampton. They bring an incredible amount of experience and savvy design know-how to the table, and are already receiving rave reviews from our sellers. According to stagedhomes.com, 94.6% of staged homes sell on average in 33 days or less!

We are all pleased to see signs of recovery in this region and we are hopeful this trend continues during the summer selling season.

Interested in a no-obligation market analysis?

HB 590/SB 657 – Taxation of Forgiven Debt in Short Sales
STATUS: PASSED – Effective May 20^th, 2010.
Clarifies that recordation and transfer taxes may not be imposed on the forgiven debt in short sale transactions. Three counties (Anne Arundel, Prince George’s and Montgomery) began levying recordation taxes on the forgiven debt in short sale transactions at the end of 2009. MAR initially sought an opinion from the Attorney General regarding this practice. Maryland Attorney General Doug Gansler released that opinion at MAR’s Legislative Day confirming that recordation taxes cannot be levied on the forgiven debt. HB 590/SB 657 strengthen his opinion and make clear that transfer taxes may not be imposed either.

HB 484/SB 1083 – Semiannual Payment Schedule – Small Business Property
STATUS: PASSED – Effective October 1, 2010 for tax years beginning after June 30, 2011.
Requires local governments to provide a semiannual payment schedule for small business property. Currently, local governments only provide the semiannual payment schedule for residential property. A small business property is defined as a property assigned a commercial use code by the State Department of Assessments and Taxation and for which the annual property taxes do not exceed $50,000.

HB 199/SB 520 – Homestead Property Tax Credit – Federal Government Employees
STATUS: PASSED – Effective June 1, 2010 for tax years beginning after June 30, 2010
Extends the Homestead Property Tax Credit to federal employees stationed outside Maryland for a period not exceeding 6 consecutive years. Once the homeowner moves back to Maryland, the homeowner may reclaim the credit which will be calculated as if the credit had not been lost during the homeowner’s out-of-state residency.

HB 472 – Foreclosure Mediation

STATUS: PASSED – Effective July 1, 2010
Establishes a mediation process for homeowners facing foreclosure. Requires lenders to provide information detailing the lender’s efforts to avoid foreclosure with the homeowner. If the lender has not completed its consideration of foreclosure alternatives, the legislation provides a process for that to occur even after a foreclosure has been filed with the court. Allows a homeowner to opt for foreclosure mediation if the homeowner does not believe he/she was fairly considered for foreclosure alternatives. Provides additional funding for housing counselors to assist homeowners.

HB 711/SB 654 – Tenants in Foreclosure
STATUS: PASSED – Effective June 1, 2010
Largely conforms tenant disclosure legislation passed last year to the new federal Helping Families Save Their Homes Act (Public Law No: 111-22). While Maryland law only required lenders and foreclosure purchasers to give notice to tenants living in foreclosed property, the federal law actually extends tenant leases for at least 90 days after a foreclosure sale. HB 711/SB 654 gives tenants the same rights under Maryland law which exist in the federal law.  However, unlike the federal law which terminates at the end of 2012,  the state law has no automatic termination date.

HB 1399 – Required Notice of Housing Counseling Programs and Services
STATUS: PASSED – Effective January 1, 2011 contingent upon the adoption of regulations
Requires a lender to provide a borrower written notice recommending that the borrower complete homebuyer education or housing counseling and information about such programs. Lenders who must already refer borrowers to housing counseling are exempt. The law is effective January 1, 2011 contingent upon regulations being adopted before October 1, 2010 by the Department of Housing and Community Development (DHCD). If the regulation is not passed by October 1, 2010, the law does not take effect until 60 days after DHCD certifies adoption of the regulations to the Department of Legislative Services.

HB 475 – Sustainable Communities Act
STATUS: PASSED – Effective June 1, 2010
Extends for three years the Maryland Heritage Structure Rehabilitation Tax Credit and renames it as the Sustainable Communities Tax Credit. The bills would permit certain non-historic structures (such as transit oriented development, BRAC enterprise zones) to claim a reduced credit (10 percent of rehabilitation costs). Historic structures can still claim a credit for 20 percent of certified costs, and a 25 percent credit could be claimed for historic renovations which comply with LEED certification. Funding for the credits is capped, so not every eligible property will receive the credit.

Source: Maryland Association of Realtors

Beginning in 2013, the health bill imposes a new 3.8% Medicare tax on “net investment income” earned by taxpayers with Adjusted Gross Income of more than $200,000 for individuals or more than $250,000 for married couples. Since capital gains are included in the definition of net investment income, a tax obligation might result from the sale of real property. In the case of the sale of a principal residence, the existing $250,000/$500,000 exclusion from capital gains on the sale of a principal residence remains unchanged. Therefore, even when the AGI limits are met, the new tax would apply only to the gain realized on a home sale in excess of the $250K/$500K existing primary home exclusion that pushes the filer’s AGI over the $200K/$250K adjusted gross income limit.

Here is the language from the bill:

“(a) IN GENERAL. – Except as provided in subsection (e) –

(1) APPLICATION TO INDIVIDUALS. In the case of an individual, there is hereby imposed (in addition to any other tax imposed by this subtitle) for each taxable year a tax equal to 3.8 percent of the lesser of –

(A) net investment income for such taxable year, or
(B) the excess (if any) of –

(i) the modified adjusted gross income for such taxable year, over
(ii) the threshold amount.”

The threshold amount in Sec. 1411(a)(1)(B)(ii) is $200,000 single, $250,000 married (1.5% of U.S. households).

The net investment income in Sec. 1411(a)(1)(A) includes interest, dividends, annuities, royalties, rents, and capital gains. Distributions from qualified plans or IRAs are not included. It does not make any distinction between qualified and ordinary dividends or between short-term and long-term capital gains. All dividends and capital gains are subject to the new Medicare tax equally.

So only those sales of real property that actually result is capital gains (which are rare) to the specified earners will be subject to the tax.

For example, on earned income of $50k, unearned of $210k – The extra 3.8% Medicare tax applies to the excess of MAGI over $250k, which is $50k + $210k – $250k = $10k, because it’s less than the $210k unearned income. Extra tax = $10,000 x 3.8% = $380. Again, this is only on income otherwise taxable as a capital gain, which most sales of real property are not.

Source (Maryland Association of Realtors)

You are Invited to Celebrate a night of The Finer Things
A benefit for Cystic Fibrosis

At the home of Tim Evankovich and Jamie Coles
Saturday, May 22, 2010 6 – 11 PM
13037 Hall Shop Road
Highland, MD 20777

GRAND SHOWCASE OF LIFE’S FINER THINGS BY OUR SPONSORS:

Wine Tasting by Salvestrin Wines
Art Exhibit by World Renowned Artist, Thomas Arvid
Private Dinner featuring Culinary Delights by Chef’s Expressions
Silent Auction featuring the finest selection of exquisite jewelry by J. Brown Jewelers and Rolex
Sunset Cruise on “Suzie’s Choice” by Stuart & Suzanne Amos and Aris Melissaratos
Dinner for Two by bistro blanc
Introduction to The Ritz Carlton Residences at the Inner Harbor Baltimore
Explore the new Mercedes-Benz MAYBACH
Enjoy Premium Chocolates by GODIVA Chocolatier
Live Music & other delights!

Tickets are $100 each – proceeds benefit The Cystic Fibrosis Foundation

($50 per ticket is tax deductible)

Purchase Your Ticket Now!

Reservations are limited. Cocktail Attire.

Housing Affordability – Whichever Index You Look at, The Value Story is Great for Buyers

• First, there are actually several indexes out there from various sources. For example, the NAHB (National Association of Home Builders) has one they call the Housing Opportunity Index or HOI and the NAR (National Association of Realtors) publishes the Housing Affordability Index or HAI.
• While both indicate we are at or near record levels, I want to focus on the NAR index as the topic of today’s note.

The NAR Housing Affordability Index – What is It?

• Essentially, the index is a measure of the financial ability of U.S. families to buy a house.
• In the simplest terms, an index value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.
• An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.

The NAR Housing Affordability Index – Trending Higher

• The current index at the end of 2009 stood at 171.6 – 56 points above where it was at the end of 2007!
• What this shows is that the relationship between home prices, mortgage interest rates and family income is very favorable right now.
• The NAR has said that it is the most favorable since tracking began in 1970!