Page 12 - April 2021 Issue.indd

Supply will also be somewhat impacted
by houses that transfer to new owners
without ever being made available to
the public. Many landlords are taking

advantage of inflated prices by selling
Because you deserve qqualified, llocal representation homes to credit worthy tenants. A
good deal for both, seller can get
when managing life’s important issues. cash to do other things and in some
cases tenants end up with a mortgage
? ESTATE PLANNING payment comparable or less than what
? RESIDENTIAL & COMMERCIAL 300 Market Street they would pay in rent and they already
Suite 104
REAL ESTATE AND SETTLEMENTS Denton, Maryland know a lot about the house. Th ey have
lived in it.
? LLC FORMATION & BUSINESS LAW 21629
? MUNICIPAL & ENVIRONMENTAL LAW A lack of new subdivisions in our
? GENERAL LEGAL COUNSEL 410.310.1774 area has made it diffi cult for builders
to create new housing stock. And for
Our attorney, Patrick Thomas, and our Settlement shayman@mlg-lawyers.com those considering buying a lot and
Agent, Sandy Hayman, are available to travel to your www.mlg-lawyers.com building, lumber prices are 3-4 times
preferred location. higher than a couple years ago. Th is has
pushed the cost of new construction
matter of days and not weeks. Demand In 2020 we saw the highest level of in the stratosphere, making the cost
for housing far exceeds supply, and unemployment in the history of our of building a home tens of thousands
this imbalance will continue well into country while at the same time we saw more expensive than what the end value
the latter months of 2021. Buyers will the real estate market take off. Th is was will be.

continue to look forward to purchasing an anomaly. Higher unemployment
Some worry that paying today’s higher

a house to make their home. First time normally will have the affect of slowing
prices for real estate will not be a
buyers will be motivated by low rates down a real estate market. No one buys
good investment. Values will level off
that allow for mortgage payments houses when they fear for their job,
or maybe go down and houses will
comparable to what they would spend except in 2020.
be worth less than what they paid. If
in rent; if they can even find a decent

Interest rates will go up this year. Th is you are one of those potential buyers,

and affordable place to rent.
I believe is a given. But when making I ask you, “why do you want to buy the

Move up buyers are finding our Eastern this statement you have to consider home?”
Shore lifestyle less stressful, safer, and from what point they are going up.
If you are concerned about losing
more affordable. Comfort, livability, Rates went up in early March from the
money in the future, then you are letting
and outdoor spaces have become absolute lowest point they have ever
your speculative thoughts control the
major motivations for those who have been, in the low to mid 2% range for
decision. If you are motivated to buy a

found remote work more desirable. 15-to-30-year fixed rates to the high 2%
home to live in comfortably, that you
Commuting back and forth across to 3.25% range. Still incredibly low rates.
and your family can grow old in and
the Bay Bridge is not a requirement
So, I will restate that I think rates will enjoy, then you are investing in you
for many jobs anymore. Buyers are
trend upward this year but not exceed and your family’s future. So, who cares
purchasing “homes” not houses. and a
the 3.5% to 4% range. So there! I said it… how much, or even if the value of your
“home” is much more than a “house”.
Rates are going up. But not signifi cantly home goes up? It is only when you sell
Those who have lived in one and raised enough to dampen demand. that how much equity you have is an

a family know what I mean. Aft er all, issue. You can control how much equity
Supply will continue to be limited. Sellers
isn’t that the fundamental motivation of you have by paying off your mortgage
will be reluctant to sell their home and

purchasing your first “house”, to make it sooner with a shorter-term loan.
move on to another home. Th e windfall
your “home”?
of realizing a high selling is offset by Mr. Rowe is Vice President/Lending for
Demand for housing will remain strong the reality that you will pay an infl ated Bay Capital Mortgage Corp. with offi ces
in 2021. All the factors that normally price for another home. You cannot sell in Easton and Annapolis. He has lived in
slow down the real estate market at a retail price (high) and expect to Caroline for his entire life and supports
such as higher unemployment, higher buy at a wholesale price (low) in todays the county by volunteering in a variety of

interest rates and over supply of product market. This will continue in 2021 and ways. He currently lives near Greensboro
(houses) will not happen this year. is evident by how busy contractors are with his wife Jeanne and daughter Kelsey.
with renovations and additions despite
the high cost of building materials.
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