DECEMBER 2012 | january 2013
VOLUME XLVII Number 1
The Maryland Association of REaltors®
www.mdrealtor.org
The Voice for Real Estate in Maryland ®
tris·kai·dek·a·pho·bi·a Triskaidekaphobia and the 2013 Legislative Preview 8 15 Consumer Website: www.marylandhomeownership.com
Economic Forecast 2013 Could Be Good, Bad, or Just Plain Ugly
REALTOR® Family Designation Programs
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MARYLAND REALTOR® December 2012 | January 2013 1
President’s Perspective C A R LT O N J . B O UJA I , J R . As REALTORS®, we are sworn to abide by the NAR Code of Ethics. Beyond ethics, however, is acting professionally with all parties through a transaction. Good business practices are not only essential to a smooth process. They build good relationships with clients and with fellow REALTORS®, which can lead to more efficient future transactions and even future referrals, as well as more public respect for our profession. In short, professional behavior enhances your personal reputation and your business.
2013—Another Challenging Legislative Session MAR lobbyists and local government affairs directors will be focused on the 2013 Maryland General Assembly. Read our cover story on page 5 for a preview of the issues critical to REALTORS® and real estate that are likely to arise during the 90 day session. And watch for our Calls to Action (CFAs) on state and federal issues, as a new Congress gets underway as well. (See the box below and QR code to engage in our CFAs.) We expect to face some of the most difficult issues for our industry in many years at both levels. We need every Maryland REALTOR® to be involved, and to let our elected representatives know our position on key issues. “It’s only two clicks. . .”
Over A Century of Pride and Professionalism It’s that time again—as part of our membership, REALTORS® are required to complete ethics training of not less than 2 hours, 30 minutes of instructional
time within a four-year cycle. The training must meet specific learning objectives and criteria established by the NATIONAL ASSOCIATION of REALTORS®. The current four-year cycle ends Dec. 31, 2012. NAR provides an excellent online course—one for new and existing members. See the Code of Ethics widget on mdrealtor.org, to take you to the appropriate online course.
Designations ‘Set You Apart’ More than ever, designations are becoming a ‘must’ in REALTOR® education. Your dedication to specialized training demonstrates your expertise to clients, and showcase your professionalism. This year, MAR will offer Graduate REALTOR® Institute (GRI) courses that once scheduled, will not be cancelled, regardless of the size of the class. See all designations on pages 14–17.
To make it even easier for you to respond and significantly increase our Calls for Action responses, simply download the NAR REALTOR® Action Center App to your smartphone. Go to www.mdrealtor.org for details, or scan the QR Code for the MAR website.
www.mdrealtor.org
December 2012 | January 2013
2
TA B L E O F CO N T E N TS Features
LEGISLATIVE PREVIEW Triskaidekaphobia and the 2013 Legislative Preview ECONOMIC FORECAST 2013 Could Be Good, Bad, or Just Plain Ugly
Realtor® Family Designation Programs
5
8 14
Departments
8
ECONOMIC FORECAST 2013 Could Be Good, Bad, or Just Plain Ugly
President’s perspective
1
2013 MAR LEADERSHIP TEAM
4
MARYLAND REAL ESTATE COMMISSION NEWS 4 Things to Remember
19
regulation news Look Before You Leap— Entering a New Market Area
21
RealtorS Property Resource®
25
27
FROM THE HOTLINE
snippets 30
5
LEGISLATIVE PREVIEW Real Estate Legislation in the Coming Year
www.mdrealtor.org
14
REALTOR® FAMILY DESIGNATION PROGRAMS
SNIPPETS
305
MRIS UPDATE Resolve to Increase Your Productivity in 2013
32
RESIDENTIAL SALES October: Another Month of Progress for Maryland’s Housing Market
34
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MARYLAND REALTOR® 4 December 2012 | January 2013
2013 Maryland Association of REALTORS® Leadership Team Maryland Association of REALTORS® 200 Harry S Truman Parkway | Suite 200 Annapolis, MD 21401-7348 800.638.6425 | www.mdrealtor.org
Executive Leadership Team Carlton J. Boujai Jr.
J. Russell Boyce
President EXIT Realty Prosperity Group 5300 Westview Drive Suite 105 Frederick, MD 21703-8339 301.698.8700 carltonboujai@mris.com
President Elect RE/MAX 100 10665 Stanhaven Place White Plains MD 20695-3062 301.843.5100 russboyce@remax.net
Carlton J. Boujai Jr. | President J. Russell Boyce | President Elect Janice R. Kirkner | Secretary Carole A. Maclure | Treasurer Patricia A. Terrill | Immediate Past President Mary C. Antoun | Chief Executive Officer
Editor Deborah L. Hager | debbie.hager@mdrealtor.org
Advisory Committee Yolanda R. Muckle | Chair Thomas P. Levin | Vice Chair
Advertising & Publication Design Ellipse Design 2818 Fallfax Drive, Falls Church, VA 22042 703.289.9100 | http://ellipse.balmar.com
Carole A. Maclure
Treasurer Greater Capital Area Assn RE/MAX Advantage Realty 17304 Evangeline Lane Olney, MD 20832-2928 240.295.6000 Email: maclure7@aol.com
Janice R. Kirkner Secretary Long & Foster Real Estate, Inc. 1208 Nottingham Drive Westminister, MD 21157-8334 410.795.9600 Janice.kirkner@longandfoster.com
Patricia A. Terrill
Mary C. Antoun
Immediate Past President Prudential PenFed Realty 7501 Coastal Highway Ocean City, MD 21842-2937 410.524.7000 Fax 410.524.5695 pat.terrill@gmail.com
Chief Executive Officer Maryland Association of REALTORS® 200 Harry S Truman Parkway Suite 200 Annapolis, MD 21401-7348 800.638.6425 mary.antoun@mdrealtor.org
www.mdrealtor.org
Mission Statement The Maryland Association of REALTORS® exists to support all segments of its membership and their specialties. The Maryland Association of REALTORS®, through collective efforts with local boards/associations and the National Association of REALTORS®: ■ Develops and delivers programs, services and related products that maintain and elevate the high standards of the real estate business and the professional conduct of its practitioners; ■ Assists members in ethically and professionally serving the public; ■ Promotes and preserves the right to own, transfer and use real property; and ■ Protects the right of members to conduct business within a framework of fair and reasonable laws and government regulations. In principle and in practice, the Maryland Association of REALTORS® values and seeks diversity and inclusive participation within the field of real estate and recognizes each member as a unique individual. Maryland REALTOR® (USPS 0016-017) is published bimonthly by the Maryland Association of REALTORS®, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Periodical postage paid at Annapolis and additional mailing offices. Postmaster send address changes to: Maryland REALTOR®, Suite 200, 200 Harry S Truman Parkway, Annapolis, MD 21401-7348. Member subscriptions of $3.81 are paid with annual dues. This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is offered with the understanding that the publisher is not engaged in rendering professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Articles that appear in Maryland REALTOR® are an informational service to members. Their contents are the opinions of the authors alone and do not necessarily represent those of the Maryland Association of REALTORS®. Permission to reprint articles appearing in Maryland REALTOR® magazine must be requested in writing. Also include purpose for request. While this magazine makes a reasonable effort to establish the integrity of its advertisers, it does not endorse advertised products or services unless specifically stated. ©2010 Maryland Association of REALTORS®, Inc.
MARYLAND REALTORÂŽ December 2012 | January 2013 5
Triskaidekaphobia and the 2013 Legislative Preview WILLIAM CASTELLI Whether you suffer from this phobia or not, 2013 will bring many important policy challenges. The federal issues in the coming year will cause fear and much concern in our industry. Congress and the President are focused on reducing the national debt and important housing benefits like the Mortgage Interest Deduction are part of that discussion. While there will be less to fear at the State level, real estate will face important challenges in the Maryland General Assembly as well. The following information highlights some of these state issues.
Budget and Transportation The Maryland General Assembly passed income tax increases last year in an effort to deal with projected budget shortfalls. As a result, MAR does not anticipate significant tax proposals this year. However, there are still a number of long-term budget issues, such as transportation funding, that will continue to occupy legislators’ time in 2013. They will focus not only on new transportation revenues, but also on protecting transportation funds from being diverted toward other priorities. Given the important role that transportation dollars play in making livable communities, MAR will advocate for stronger protections for the transportation trust fund.
www.mdrealtor.org
MARYLAND REALTOR® 6 December 2012 | January 2013
Growth and Rural Development Regulations and legislation passed in Annapolis will continue to pose challenges, particularly to rural growth in Maryland. Just in the last year, new septic system requirements, mandatory fire sprinklers, and Watershed Implementation Plan requirements will add thousands of dollars to many new homes. Additional regulations under consideration (greenhouse gas offsets and general growth offsets) could add tens of thousands of dollars in new costs. Although the Maryland Legislature has found consensus and taken action on where to limit growth, the Legislature will have a tougher job making sure designated “growth areas” meet future needs. Many designated “growth” areas look great on paper, but increasing density in existing communities is difficult and often results in community backlash. Nevertheless, pushing growth in these communities will be necessary to make sure that “smart growth” doesn’t turn into “no growth.”
Lead Paint When the Maryland Court of Appeals threw out liability protection for landlords in the Maryland Lead Poisoning Prevention law, the General Assembly worked hard to identify some alternative relief for landlords. Legislators and interest groups met over the summer to examine ways to reduce liability exposure for landlords while maintaining important protections for children. Those efforts failed to produce consensus. Consequently, there will likely be several lead paint bills this coming year. Some may propose an insurance option for landlords, while others may propose additional legal reforms. This year, MAR is MAR also expects legislation organizing a Lobby mandating homesellers to Day on January conduct a lead inspection before 17th. We will set up sale unless the buyer opts out. meetings between MAR narrowly defeated a similar REALTORS® and proposal last year.
their elected officials to explain the importance of our industry. To participate in this free event, go to MDrealtor.org and click on the Lobby Day box.
www.mdrealtor.org
Agency There is no more important law to real estate agents and brokers than that of agency. It is the basis for how agents interact with their brokers, other agents, and the public. The law of Agency is set by the individual states, and
while almost all of the laws differ in certain respects, most follow the same basic rules regarding fiduciary responsibilities and disclosure. And yes, most are complicated. In the late nineties, Maryland was one of the first states in the country to modernize its agency law. However, it has become apparent in the last decade that portions of the agency law need updating. MAR plans to propose some technical clarifications to update the law, including when an agency relationship starts and resolving conflicting terminology.
Pit Bulls The Court of Appeals, in a case involving a pit bull attack, held both the pit bull owner and the landlord of the owner “strictly liable” for the victim’s damages. “Strict liability” is the harshest standard of liability imposed, because it offers few if any legal defenses. Even a landlord who acted responsibly to safeguard tenants would be liable for damages if a dog attacked someone on the apartment grounds. Although the Legislature nearly passed legislation in August to fix the Court decision, that bill failed. The Legislature is expected to pick up where it left off during the summer and introduce legislation imposing stricter liability on owners, but removing the “strict liability” standard for landlords.
Comparative Fault vs. Contributory Negligence Although this issue produces passionate debate among attorneys, most people hear these words and tune out. That’s too bad, because this is an important issue for any profession or business subject to litigation. Many attorneys representing plaintiffs endorse a legal standard called “comparative fault.” That standard imposes liability on the different parties in the lawsuit according to their respective fault for the underlying action. Other attorneys (many representing defendants) embrace the current Maryland standard of “contributory negligence.” Under that standard, a plaintiff who is responsible for any part of the harm that caused his/her injury is barred from collecting damages. This is a high standard that often cuts down on frivolous litigation. The Maryland Court of Appeals is considering moving Maryland to a standard such as comparative fault, which would likely touch off a fierce fight in the Legislature. These issues are only a sampling of the over 200 bills that MAR reviews in a typical legislative session. William Castelli, Esquire, Vice President, Legislative Affairs , Maryland Association of REALTORS®
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MARYLAND REALTORÂŽ 8 December 2012 | January 2013
2013
Could Be Good, Bad, or Just Plain Ugly
Hard to Disappoint When Expectations are Already So Low In some ways, 2012 was a replay of 2011. As with 2011, the economy had significant momentum coming into the year due to surging financial markets and ambitious consumers. During the fourth quarter of 2011, the U.S. economy expanded 4.1 percent.
But midway through 2012, it was clear that the year would be another lackluster one from an economic perspective. The pace of gross domestic product expansion slowed to just half the rate of the fourth quarter of 2011 during the first quarter (2.0 percent) and then slipped to 1.3 percent during the second quarter of 2012. Job growth slowed from an average of 226,000 jobs per month from January through March to just 67,000 jobs from April through June. True, certain aspects of economic activity picked up during 2012’s first half, including housing starts and auto sales. New car sales have been running at better than a 14 million annualized pace for much of 2012. In all of 2011, 12.8 million new cars were sold. In 2011, the nation produced just 624,100 housing starts. More recently, the annualized pace has been in the range of 870,000.
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MARYLAND REALTOR® December 2012 | January 2013 9
In fact, the world economy has spent much of 2012 slowing. The International Monetary Fund (IMF) predicts that the U.S. economy will end up expanding 2.2 percent in 2012 in real terms. Other economists forecast a number closer to 2 percent, but in any case, the year will go down as another below average one for America in terms of economic growth. But the United States is hardly alone. The IMF recently downgraded its estimates for global economic growth in 2012 from 3.5 percent to 3.3 percent; its forecast for 2013 is down from 4.1 percent to 3.6 percent. In fact, the world economy has spent much of 2012 slowing. The Chinese economy is now expanding at a less than 8 percent pace on an annualized basis. India’s growth rate is less than 5 percent annually. Both economies grew at more than 10 percent in 2010. The Eurozone economies are collectively shrinking, with output (GDP) plummeting in both Italy and Spain, two of Europe’s larger economies.
Naturally, this serves as an economic headwind, as U.S. export growth slows even in the face of a weak US dollar. According to the Bureau of Economic Analysis and the Census Bureau, the nation’s monthly international trade deficit expanded in August 2012 to $44.2 billion from $42.5 billion in July. Exports of goods and services fell
by $1.9 billion to $181.3 billion. Among the categories to register export declines were industrial supplies and materials, food and beverages and consumer goods. However, a slowing global economy is scarcely the only economic headwind. It may not even be the most important. In 2011, the nation wrestled with
Exhibit 1. National Monthly Job Growth, January 2001 – September 2012, Seasonally Adjusted Total Nonfarm Employees, Thousands, Seasonally Adjusted, 1-Month Net Change 400 300 200 100 0 -100 -200 -300 -400 -500 -600 -700 -800 Jan 01 Jun 01 Nov 01 Apr 02 Sep 02 Feb 03 Jul 03 Dec 03 May 04 Oct 04 Mar 05 Aug 05 Jan 06 Jun 06 Nov 06 Apr 07 Sep 07 Feb 08 Jul 08 Dec 08 May 09 Oct 09 Mar 10 Aug 10 Jan 11 Jun 11 Nov 11 Apr 12 Sep 12
Another Two Percent Year
Source: U.S. Bureau of Labor Statistics
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MARYLAND REALTOR® 10 December 2012 | January 2013
Exhibit 2. Change in Real Gross Domestic Product, Q3 2005 – Q3 2012 Quarterly Annualized Percent Change 6 4
2%
2 0 -2 -4 -6
-10
2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q3 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3
-8
Source: U.S. Bureau of Economic Analysis
a host of factors that ultimately resulted in a summer soft patch, including high gasoline prices, rising food prices, the earthquake in Japan on March 11th, which had the effect of slowing the operations of the global supply chain, and the debt ceiling debates. America came within a whisker of default last year, which had a chilling effect on financiers and therefore upon construction and real estate. This year has been shockingly similar. At certain points, the nation has had to deal with rising gas and food prices along with tensions in Europe and the Middle East. But the most significant source of uncertainty has emerged from Washington, D.C.
www.mdrealtor.org
Slow Down! There’s a Cliff As of this writing, America is racing toward its fiscal cliff. The fiscal cliff has three components: automatic sequestration, federal spending cuts totaling $109.3 billion per annum beginning on January 2, 2013 and ending in 2021; the scheduled lapse of the Bush tax cuts on January 1, 2013; and the end of the payroll tax reduction, which would subtract another $114 billion in spending power next year. Add it all together and America is heading for an accidental austerity program totaling $700 billion, or approximately 4.5 percent of gross domestic product. Federal Reserve Chairman Ben Bernanke, the Congressional Budget Office, and others have
indicated that if the nation falls off of its fiscal cliff, recession in 2013 is virtually assured. That would not be good for the housing market; bankers would become more conservative, mortgage delinquencies would rise and the value of residential appraisals would be suppressed. Some of this negativity could potentially be offset by even lower mortgage rates (hard to imagine), but certainly not all. This may help explain why the Federal Reserve Chairman remains such an aggressive intruder in the nation’s economic affairs. Though his current term ends in January 2014, he has basically assured economic actors that he will strive to maintain an ultra-low interest rate environment into 2015. On top of that, Mr. Bernanke recently announced another round of quantitative easing, which will involve the purchase of $40 billion in collateralized mortgage backed securities indefinitely. While these pronouncements and policies may support economic growth, in the final analysis, they reflect the Federal Reserve Chairman’s deep concerns regarding the ongoing underperformance of the U.S. economy. Against this pessimistic backdrop came the September and October job reports, which were unexpectedly upbeat. The payroll survey indicates that the nation added 171,000 jobs in October and employment figures from the previous two months were revised upward by a total of 84,000 jobs.
MARYLAND REALTOR® December 2012 | January 2013 11
Exhibit 3. Consumer Spending, January 2008 – September 2012
Many reports have now been written indicating what most of us have known for quite some time – Maryland would be disproportionately impacted if the nation were to tumble off its fiscal cliff. Nationally, about 2 percent of the labor force works for the federal government. In Maryland, the corresponding figure is closer to 6 percent. For now, Maryland continues to participate in the nation’s economic recovery, though job growth in the Free State continues slower. Over the twelve months ending in September 2012, the state added 1.0 percent to its job totals, compared to the national increase of 1.4 percent. Though Maryland added 9,800 jobs in September according to the U.S. Bureau of Labor Statistics, its nonfarm employment is still 0.2 percent below the level in February when it reached its
$11,000 $10,500 $10,000 $9,500
Sep 12
May 12
Jan 12
Sep 11
May 11
Jan 11
Sep 10
May 10
Jan 10
Sep 09
May 09
Jan 09
$8,500
Sep 08
$9,000
May 08
In the midst of all the talk about Europe, the fiscal cliff, collapsing food output and imminent energy crises, consumers continue to spend. In September, nominal consumer spending grew by 0.8 percent, even as personal incomes rose by only 0.4 percent. The increase in spending was not motivated purely by rising confidence. Some additional spending was forced by higher gasoline prices.
Consumer Spending in Billions $11,500
Jan 08
September net job growth was revised from 114,000 to 148,000, while August figures were revised from 142,000 to 192,000. The nation’s unemployment rate recently fell below 8 percent for the first time since February 2009.
Source: U.S. Bureau of Economic Analysis
peak for the year. The state’s percentage job growth ranking fell from 19th place in May to 23rd more recently. Maryland’s unemployment rate stood at 6.9 percent in September, down from 7.1 percent in August but still above the September 2011 level. On a year-over-year basis, job growth has been concentrated in professional and business services (up 18,600, or 4.7%), education and health services (5,900 jobs, or 1.4%) and other services (including equipment and machinery repairing, personal care services, etc. up 2,500 jobs or 2.2%). But financial activities related jobs declined in Maryland (down 3,100 jobs or 2.2%) as did manufacturing (down 2,200 jobs or 1.9%), two high-wage cornerstone industries that have expanded nationally in terms of employment.
According to the Maryland Survey of Business Activity compiled by the Federal Reserve Bank in Richmond, business activity increased at a modest pace in October as the general business activity index rose four points to 14 (the index value equals the percent of firms reporting an increase minus the percent reporting a decrease; thus a higher index value means more firms report an increase relative to the previous month). The expectations index rose from 10 in September to 26 in October, indicating an emerging optimistic view among business owners regarding business conditions over the next several months despite uncertainties regarding issues in the U.S. and abroad. In other words, if the nation is able to successfully negotiate its fiscal cliff, Maryland’s economy will be positioned for growth in 2013.
www.mdrealtor.org
MARYLAND REALTOR® 12 December 2012 | January 2013
Housing Contributes to Economic Growth As support for the notion that what goes down must come up, the housing sector continues to recover and has now contributed to overall economic growth for 6 consecutive quarters. Despite a small decline in monthly home sales in September nationally, home sales have been stronger relative to year-ago levels and price gains have been robust in many communities.
According to the National Association of REALTORS®, September’s existing home sales (4.75 million) is 11.0 percent higher than a year ago, in part due to record low or near-record low mortgage rates. In recent weeks, the 30-year fixed mortgage rate has been trading below 3.5 percent and the 15-year fixed mortgage rate has been below 3 percent. These ultra-low rates allow prospective buyers to afford higher priced homes. Accordingly,
Exhibit 4. State-by-State Job Growth, 12-Month Percent Change, September 2011 vs. September 2012 Rank
State
%
Rank
State
%
Rank
State
%
1
North Dakota
5.6
16
New York
1.4
33
Kansas
0.8
2
Kentucky
2.6
19
Nebraska
1.3
33
North Carolina
0.8
3
Oklahoma
2.5
20
Louisiana
1.2
33
Tennessee
0.8
3
Texas
2.5
21
Minnesota
1.1
38
Alabama
0.7
5
Indiana
2.3
21
New Jersey
1.1
38
Pennsylvania
0.7
6
Arizona
2.2
23
Maryland
1.0
40
Oregon
0.6
7
Hawaii
2.1
23
Michigan
1.0
41
Nevada
0.5
8
Washington
2.0
23
Virginia
1.0
42
Missouri
0.4
9
California
1.9
23
Wyoming
1.0
43
New Hampshire
0.3
9
Montana
1.9
27
Arkansas
0.9
44
Connecticut
0.1
11
Idaho
1.8
27
D.C.
0.9
45
Delaware
0.0
12
Ohio
1.7
27
Florida
0.9
45
Maine
0.0
13
Colorado
1.6
27
Illinois
0.9
47
Wisconsin
-0.2
13
South Carolina
1.6
27
South Dakota
0.9
48
Rhode Island
-0.4
13
Utah
1.6
27
Vermont
0.9
49
Mississippi
-0.6
16
Georgia
1.4
33
Alaska
0.8
50
New Mexico
-1.3
16
Massachusetts
1.4
33
Iowa
0.8
50
West Virginia
-1.3
Source: U.S. Bureau of Labor Statistics
www.mdrealtor.org
the national median existing home price for all housing types was $183,900 in September, up 11.3 percent from one year ago. Maryland has been participating in the nation’s housing market recovery. According to data supplied by MRIS and the Coastal Association of REALTORS®, home sales rose 9.6 percent in August on year-over-year basis and 6.1 percent in September. In September, 16 jurisdictions experienced year-over-year increases in existing homes sales, with the largest increases occurring in Dorchester (107.7%) and Kent (100.0%) counties. What’s more, average and median prices in Maryland expanded for seven consecutive months through September. In August, average statewide sales price was up 2.7 percent on a year-over-year basis while median price rose 5.9 percent. Of Maryland’s 24 jurisdictions, 18 registered yearover-year increases in average sales price in August while 16 recorded an increase in median sales price. The largest increase in average sales price in August on a year-over-year basis was in Dorchester County, where the average price rose from $163,984 to $232,817, an increase of 42 percent. Price dynamics were even better in September. Statewide, average sales prices were up 6.1 percent while median prices rose 6.8 percent.
MARYLAND REALTOR® December 2012 | January 2013 13
Of Maryland’s 24 jurisdictions, 18 registered year-over-year increases in average sales price in August while 16 recorded an increase in median sales price. Exhibit 5. Average Home Prices, by Jurisdiction, September 2012 and 2011 Jurisdiction
2012
2011
% Chg.
Jurisdiction
2012
2011
% Chg.
1
Dorchester
$169,059
$111,363
51.8%
13
Montgomery
$460,654
$436,709
5.5%
2
Baltimore City
$155,270
$121,147
28.2%
14
Wicomico
$152,892
$150,135
1.8%
3
Allegany
$99,578
$84,352
18.1%
15
Harford
$262,608
$259,630
1.1%
4
St. Mary’s
$315,434
$274,212
15.0%
16
Howard
$409,935
$416,841
-1.7%
5
Queen Anne’s
$355,099
$309,641
14.7%
17
Baltimore County
$255,090
$265,902
-4.1%
6
Worcester
$281,442
$247,501
13.7%
18
Charles
$226,865
$236,790
-4.2%
7
Calvert
$344,878
$307,616
12.1%
19
Carroll
$256,262
$274,540
-6.7%
8
Talbot
$601,277
$545,382
10.2%
20
Washington
$142,559
$157,606
-9.5%
9
Frederick
$274,931
$253,302
8.5%
21
Caroline
$149,496
$180,118
-17.0%
10
Anne Arundel
$371,460
$344,894
7.7%
22
Garrett
$284,528
$351,468
-19.0%
11
Prince George’s
$189,907
$177,909
6.7%
23
Somerset
$95,700
$122,175
-21.7%
12
Cecil
$223,603
$211,231
5.9%
24
Kent
$235,654
$315,175
-25.2%
Source: Maryland Association of REALTORS®
Looking Ahead The U.S. economy faces some difficult months ahead as the federal government’s fiscal cliff approaches. The major focus will be on the president and Congress, who must make the issue the first priority. Even in the absence of a dive off the federal precipice, the nation will struggle to achieve
significantly more than 2 percent growth next year, though under certain scenarios 3 percent plus growth is possible, particularly during next year’s latter half. No matter what Congressional dynamics turn out to be, federal spending growth is likely to be slow and may turn sharply negative. Given Maryland’s checkered business reputation, it
is not clear that the state will be positioned to attract enough private investment to fully offset the impact of slower federal spending. Interest rates are expected to remain low, however, and the state’s housing market is positioned to progress faster than the balance of the economy. Anirban Basu, Chairman & CEO, Sage Policy Group, Inc.
www.mdrealtor.org
MARYLAND REALTOR® 14 December 2012 | January 2013
Designation Programs REALTOR® Family
Invest in Yourself The National Association of REALTORS® has affiliated Institutes, Societies, and Councils that provide a wide-ranging menu of programs and services that assist members in increasing skills, productivity and knowledge. Designations acknowledging experience and expertise in various real estate sectors are awarded by each affiliated group upon completion of required courses. In addition, NAR offers two certification programs to its members.
Build Your Skills NAR Designations allow you to add prestige to enhance your professional image • learn best practices • gain new expertise • acquire specialized knowledge • increase your value, marketability, proficiency and productivity.
www.mdrealtor.org
MARYLAND REALTOR® December 2012 | January 2013 15
NAR Designations Accredited Buyer’s Representative (REBAC) The mark of excellence in comprehensive buyer representation services and expertise. 800-648-6224 REBAC.net
Certified Real Estate Brokerage Manager (Council of Real Estate Brokerage Managers) “THE SOURCE” for real estate business management and leadership solutions. 800-621-8738 www.CRB.com
Accredited Land Consultant (REALTORS® Land Institute) Brokerage and management experts for all types of land—farms to development. 800-441-5263 www.RLILand.com
Certified Commercial Investment Member (CCIM Institute)
Certified Residential Specialist (Council of Residential Specialists) The premier designation for residential sales agents. 800-462-8841 www.CRS.com
Counselor of Real Estate (The Counselors of Real Estate)
Commercial investment real estate experts demonstrating unparalleled financial analysis skills.
The designation for only the most experienced and trusted advisors in real estate.
800-621-7027 www.CCIM.com
312-329-8427 www.CRE.org
Certified International Property Specialist
General Accredited Appraiser
Ensures REALTORS® success in servicing international clients in their local community.
Signifies advanced education and experience in commercial, industrial and residential property valuation.
800-874-6500, ext. 8369 www.REALTOR.org/global
800-874-6500, ext. 8485 www.REALTOR.org/appraisal
Certified Property Manager® (Institute of Real Estate Management) The premier real estate management credential for property and asset managers. 800-837-0706 www.IREM.org
Graduate, REALTOR® Institute (GRI) The Cornerstone of REALTOR® Education. Gain in-depth knowledge on legal and regulatory issues, technology, sales process and professional standards. 800-874-6500, ext. 8264 www.REALTOR.org/GRI
www.mdrealtor.org
MARYLAND REALTOR® 16 December 2012 | January 2013
NAR Designations CONTINUED REALTOR® Association Certified Executive
Green Designation This residential-focused program offers specific themes, ranging from sustainability, green building science and business applications.
Exclusive designation for AEs or any REALTOR® association staff with drive, experience and commitment to professional growth.
800-498-9422 www.GreenREsourceCouncil.org
800-874-6500, ext. 8545 www.REALTOR.org/RCE
Seniors Real Estate Specialist® (SRES® Council)
Performance Management Network (Women’s Council of REALTORS®) The REALTOR® designation that combines today’s real-world skills with WCR’s powerful nationwide referral network.
Educates REALTORS® to profitably and ethically serve the real estate needs of the fastest-growing market in real estate, clients age 50+.
800-245-8512 www.WCR.org
800-500-4564 www.seniorsrealestate.com
Residential Accredited Appraiser Signifies advanced education and experience in analysis and valuation of residential property. 800-874-6500, ext. 8268 www.REALTOR.org/appraisal
Society of Industrial and Office REALTORS® (SIOR) The most knowledgeable, experienced and successful industrial and office specialists. Expect more. 202-449-8200 www.SIOR.com
Workforce Housing Designation This certification program offers training to members who want to learn more about financing options for first-time homebuyers and critical workforce employees (police, firefighters, teachers, medical staff) as well as programs targeted for special populations, such as disabled persons and aging citizens. Currently, this designation is for Maryland REALTORS® only and not a NAR designation. Contact us: 800.638.6425 or at www.mdrealtor.org.
www.mdrealtor.org
MARYLAND REALTOR® December 2012 | January 2013 17
NAR Certifications At Home with Diversity®
e-PRO®
An educational experience designed to present a picture of the changing face of the real estate industry.
NAR’s certification for social media and online technology. 877-397-3132 www.ePRONAR.com
800-874-6500, ext. 8393 www.REALTOR.org/diversity
Resort & Second-Home Property Specialist NAR’s advanced education-based certification designed for resort and second-home professionals.
Broker Price Opinion Resource With the changing real estate landscape and the increased use of broker price opinions (BPOs) by market participants, the BPOR certification provides REALTORS® with knowledge and skills to reduce risk, increase opportunities and create professional BPOs.
800-874-6500, ext. 8393 www.REALTOR.org/resort
Short Sales & Foreclosure Resource
855-640-8863 www.bpor.org
NAR’s SFR® certification gives you a framework for understanding how to direct distressed sellers to finance, qualify sellers for short sales, negotiate with lenders, tap into buyer demand, safeguard your commission and more! 877-510-7855 www.realtorSFR.org
Courses leading to NAR designations and certifications available online at REALTOR® University School of Professional Development and Continuing Education. For more information visit http://www.realtor.org/designations-and-certifications.
2013
Annual Conference & Expo September 9–11, 2013 O cean C ity, M aryland Registration Opens April 2013
www.mdrealtor.org
MARYLAND REALTOR速 December 2012 | January 2013 19
Maryland Real Estate Commission News
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K at h eri n e C o n n elly
Things To Remember
In 2010, the Maryland General Assembly passed legislation proposed by the Real Estate Commission to regulate real estate brokerage services provided through teams and groups of licensees. The Teams and Groups law is now two years old, and we at the Real Estate Commission are concerned that the advertisement provisions of the law are frequently violated. While the Commission will continue its practice of informally requesting corrective action when advertisements that do not comply with the law come to our attention, a second violation of the same or similar nature will result in formal disciplinary action against the offending licensees, team leader and broker. We urge all licensees, particularly those who are members of teams or groups, to review advertisements frequently to ensure compliance with the law and regulation.
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Licensees who are team or group members are required to ensure that the name of the team or group does not lead members of the public to believe that the team is offering real estate brokerage services independent of the real estate broker with whom they are affiliated. The Team/Group name must be connected to the Brokerage name. The advertisement for a team or group must also include the name of the brokerage displayed in a meaningful and conspicuous manner, the name of at least one licensee member of the team or group, and the telephone number of the broker or a branch office manager employed by the broker. See Maryland Business Occupations and Professions Article Sec. 17-547.
www.mdrealtor.org
MARYLAND REALTOR® 20 December 2012 | January 2013
We urge all licensees, particularly those who are members of teams or groups, to review advertisements frequently to ensure compliance with the law and regulation. The Real Estate Commission and its staff are happy to assist licensees who have questions about the advertising law. We much prefer to answer your question than to take disciplinary action. In any case, we believe it is important to the health of the real estate market that we work together to reduce the number of real estate brokerage advertisements that do not comply with Maryland law.
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www.mdrealtor.org
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The Commission has a new publication that it believes will be of assistance to the licensees. “Short Sales Dos and Don’ts” is now posted on the Commission’s website at http://www.dllr.state. md.us/license/mrec/. We consulted with both the Division of Financial Regulation and the Maryland Association of REALTORS® in producing this document, and we believe it will assist consumers and licensees to better understand how a real estate agent can be of assistance in the short sale third-party approval process without stepping over the line into an area in which they are not licensed.
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Regulation 09.11.01.27 clarifies when a team leader or branch office manager must take the broker supervision continuing education course mandated under the legislation passed in 2011. Under the new regulation, effective September 26, 2012, a newly designated team leader or branch office manager must take the supervision class within 90 days of notifying the Real Estate Commission that the licensee is a designated team leader or branch office manager.
Please feel free to contact me if you have any questions regarding these or any other issues concerning the Real Estate Commission’s authority or activities. My email address is kconnelly@dllr.state.md.us. Katherine Connelly is the Executive Director of the Maryland Real Estate Commission. For more information, visit http://www.dllr.state.md.us/license/mrec
MARYLAND REALTOR® December 2012 | January 2013 21
Regulation News MARK FEINROTH, ESQUIRE U
L A T I O N
E
G R
TED! A D P U
Look Before You Leap— Entering a New Market Area
N E W
S
Republished (with an updated citation to the NAR Ethics and Arbitration Manual) by request from the December 2005/January 2006 edition of Maryland REALTOR®.
T
here’s an old joke about a vacationer who wanders into a general store next to a lake. He notices a sign offering fishing licenses, bait and lures for sale. Next to the sign is a picture of an enormous trout displayed by a fisherman obviously overjoyed with his catch. “What kind of bait did he use?” the vacationer asks the clerk, and immediately buys the successful bait. For the next several days, the vacationer fishes with his newly purchased bait, but doesn’t get a nibble. In frustration he returns to the general store. “I don’t get it,” he says. “I took your
advice and used the right bait. Why didn’t I get any fish?” “Oh,” the clerk replies. “That picture was taken in the next county. We don’t have any fish in this lake.” A strong statewide market, or a weak local one, is a temptation to expand your practice into more distant areas. But before you assist a client outside your normal marketplace, keep in mind that in addition to state laws governing real estate transactions, virtually every locality has location specific requirements that you must know and understand as well as you know what is required in your own back yard.
A strong statewide market, or a weak local one, is a temptation to expand your practice into more distant areas. www.mdrealtor.org
MARYLAND REALTOR® 22 December 2012 | January 2013
It is your affirmative responsibility to know and understand local zoning, land use ordinances, disclosure requirements and other laws unique to an area that may affect the interests of your client. There are important ethical, regulatory and legal risk reduction reasons to be cautious when venturing into an unfamiliar marketplace, in addition to issues of basic etiquette and protocol. Your real estate license entitles you to provide any kind of real estate brokerage service anywhere in Maryland. But with it comes the responsibility to be fully informed as a practitioner. It is rare for a REALTOR® to be equally knowledgeable in all types of specialties — commercial, residential, property management and investment. It would be equally unusual for most REALTORS® to be knowledgeable about local laws and restrictions in jurisdictions remote from their home base. Indeed, the Code of Ethics adopted by the Commission states: [I]n justice to those who place their interests in the licensee’s care, the licensee shall endeavor always to be informed regarding laws, proposed legislation, governmental orders, and other
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essential information and public policies which affect those interests. Code of Maryland Regulations, 09.11.02.02. As a licensee, you risk disciplinary sanctions and civil liability if you fail to take appropriate care to become fully knowledgeable about issues affecting the transaction in which you are participating or refer a client to a local REALTOR® who can provide the requisite expertise. In other words, you owe your client in a distant jurisdiction the same duty of care you provide in your local market area. The National Association of REALTORS® (NAR) Code of Ethics addresses this same issue as competence to provide specialized services concerning types of property. “Unless the facts are fully disclosed to the client,” the NAR Code of Ethics prohibits REALTORS® from providing services “outside their field of competence unless they engage the assistance of one who is competent on such types of property…” NAR Code of Ethics and Arbitration Manual, 2005, 2012, page 9. The risk of disciplinary action or litigation is both real and substantial. The MAR legal hotline and professional standards staff receive many inquiries from REALTOR® members in the difficult position of responding to questions or comments of another agent’s client. In many cases, the other agent is unaware of local requirements, unable to answer questions or even giving inaccurate or incorrect information. Although these issues arise most frequently in resort areas in the state, they occur in other areas as well. The “outside” agent often seems unaware that the same professional expertise required at home is required wherever the transaction occurs. Mark Feinroth, Esquire, Director of Legal and Regulatory Affairs Maryland Association of REALTORS®
Editors’ Note: This is the first in a series of articles. Next month we will discuss questions you should ask when representing clients in an unfamiliar area.
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We will ensure your effective use of our breakthrough marketing systems and your success as a Coldwell Banker associate by offering unparalleled marketing programs. We offer prospecting to closing marketing systems that will make you stand out from the crowd.
Coldwell Banker recognizes the need for a true Internet marketing strategy that’s going to help you sell homes with ease and efficiency. We give you the technology to find and talk to buyers online. From an easy email system to featuring you on more than 550 websites, we have you covered.
Coldwell Banker provides continuing education, giving our associates a competitive edge and helping them build, maintain and grow their business.
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MARYLAND REALTOR® December 2012 | January 2013 25
Many Maryland REALTORS® are taking advantage of Realtors Property Resource®. Are you?
M
any Maryland REALTORS® have been becoming more efficient lately and some believe RPR has been a key to that. Just ask Cathy Werner, the Immediate Past President of the Maryland Association of REALTORS®. At a recent listing appointment, Cathy learned she was in competition with other REALTORS®. A real estate veteran of over 25 years, Cathy knew she had the expertise to sell the property, but also knew she needed to convince the sellers of this. Cathy explained to the sellers that she would like to pull some additional reports for them, since she knew they were going to push the market as far as value. After returning home, she jumped onto the computer and pulled up RPR. Cathy said she had heard about RPR months before, and had been curious enough to create her account, but hadn’t used it yet with a client. Cathy stated that the process was “really quite easy.” She just new RPR would be the tool that could help her stand out from the competition.
Quickly putting in the property address, she was able to arrive at the property. From there, Cathy was able to see the RVM (Realtor Valuation Model®), and then began making adjustments by entering relevant information about the property she learned in her preview of the home into the RPR Refine Value Features — enhancing the RVM with the upgrades the Seller had completed to make the property unique. In doing so, Cathy came up with a new RVM value for the property, augmented with current property features, and her knowledge of the local market. She created a 46-page Sellers Report in RPR, which included detailed information on the market, and emailed the report directly to the Seller with a note thanking them for the opportunity to preview their home, and her desire to work with them on the listing. The entire process took her about 10 minutes. Within only an hour, the Seller had emailed back sharing that Cathy received an A+ for effort. Ultimately, her detailed work and comprehensive report would get her the listing.
www.mdrealtor.org
MARYLAND REALTOR® 26 December 2012 | January 2013
A quick 11 days later the listing sold, and had 5 offers. Cathy credits RPR with her success! Since Cathy’s success, RPR has made it even easier to work with the RVM and precisely pinpoint a price range for clients buying or selling a property. Previously, RPR’s comps functionality was tied to automated valuations. RPR heard from many REALTORS® who wanted more flexibility to use recent sales, neighborhood listings, along with their local expertise to arrive at a prospective price analysis for a property. The Comp Analysis is a step-by-step wizard that walks the REALTOR® through the process to validate basic facts about a subject property, select comps and adjust those comps to yield a customized and flexible Comp Analysis Result. REALTORS® have the flexibility to enter a Recommended Price that may be derived from, or completely independent of, any comps calculation. This new tool will be a great help in pricing discussions with clients and in
generating price ranges that are both quantitative — based on comps and market information — as well as qualitative — reflecting the user’s knowledge of the property, the neighborhood and the market. Ready to get started creating your own Comp Analysis for a client or customer? Visit www.narrpr.com to create your account and get started. Since launching to all REALTORS® across the country on November 1, 2012 as an NAR member benefit, RPR has continued to make an impact on how REALTORS® showcase their knowledge. Start showcasing yours today! See how other REALTORS® across the country are successfully using RPR with their clients and customers at www.myrpr.com. Visit RPR’s Blog at www.blog.narrpr.com for more information, or sign up for a training class.
Be the first pick.
Stand out from the crowd by earning your GRI Designation. Your clients are more sophisticated than ever, requiring you to perform at a higher level of professionalism. By earning the Graduate, REALTOR® Institute Designation (GRI), you will lead the pack with real-world knowledge about new technologies, laws and marketing techniques that positively affect your bottom line. View the schedule
Stay one step ahead of the competition. Earn your GRI.
Learn more at: www.mdrealtor.org Series 100, 200, 300, & 400— All by June 2013!
www.mdrealtor.org
MARYLAND REALTOR® December 2012 | January 2013 27
From the Hotline C HA R L E S A . K A S K Y, E S Q U I R E
Q. A.
I recently took the required Fair Housing continuing education class and am unclear about certain exceptions to the law. Please explain how the so-called “Mrs. Murphy” exception and housing for older persons operate. As you know, the Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination in any type of housing-related transaction on the basis of race, gender, religion, national origin or color and familial status (i.e. the presence of children under the age of 18 in a family) and handicap (disability). Maryland law prohibits housing discrimination based on all these bases and also includes sexual orientation. All single family homes are covered by the act when they are owned by private persons offered through a real estate broker. All single family homes owned by corporations or partnerships are covered, regardless of whether a broker is used. All Multifamily dwellings are covered by the Act, including townhouse and condominium communities. There are two exceptions to this rule. The first is the so-called “Mrs. Murphy” exemption, which provides that if the dwelling has four or
Maryland law prohibits housing discrimination based on all these bases and also includes sexual orientation. fewer units and the owner lives in one of the units, it is exempt from the Fair Housing Act. The second exception is for qualified senior housing, which is exempt only from the familial status provision of the act. A qualified senior community must meet the following standards: 100% of the community is 62 or older, or 80% of the households have at least one resident 55 or older. None of this housing is exempt from section 804(c) of the Act, which prohibits making, printing or publishing a discriminatory statement. Any exempt housing that violates 804(c) loses its exemption and can be held liable under the Act. Stated another way, under these narrow circumstances, discrimination against certain groups is allowed.
www.mdrealtor.org
28
Oil-Heated Homes? Know the answers, Sell more listings!
One may choose not to rent to a prospective tenant based on that person’s gender, sexual orientation or marital status, but may not discriminate based on membership in any of the other protected classes. The Mrs. Murphy exemption resulted from a legislative compromise that codified exclusionary policies. To pass the proposed bill, proponents agreed to allow resident owners of small, transient accommodations to discriminate against prospective patrons. The provision defines “place of public accommodation” to include any inn, hotel, motel or other establishment which provides lodging to transient guests, except for an establishment located within a building which contains not more than five rooms for rent or hire and which is actually occupied by the proprietor of such establishment as his residence.
Make sure your agents are prepared to handle the tough questions about oilheat. PRO$ Presentations are FREE and can be scaled to fit into your scheduled sales meetings. Non-profit education for Maryland REALTORS.
Book a PRO$ Expert for your next Office Sales Meeting! Facebook: (Susan Janett) Email: SJanett@oilheatpros.com Text: 551-556-0224 (cell) Online: md.oilheatpros.com
Please note that under Maryland law, the exemption applies only with respect to discrimination on the basis of sex, sexual orientation or marital status in the rental of rooms in a dwelling, or the rental of any apartment in a dwelling that contains not more than five rental units, if the owner maintains the dwelling as the owner’s principal residence. In other words, one may choose not to rent to a prospective tenant based on that person’s gender, sexual orientation or marital status, but may not discriminate based on membership in any of the other protected classes. However, the Mrs. Murphy exemption does not apply to rental advertising. That means Mrs. Murphy cannot run a discriminatory advertisement indicating, for example, that a certain religious group is not welcome to rent her apartment or room. Also, this exemption does not apply when a real estate agent is representing the property owner, as the law presumes agents are professionally trained and aware that housing discrimination is against the law. HUD takes the position that the Civil Rights Act of 1866 (yes, 1866) makes it illegal to discriminate based on race—and as such, there is no exemption from the law when dealing with race. Charles A. Kasky, Esquire , Vice President of Legal Affairs Maryland Association of REALTORS®
www.mdrealtor.org MAPDA_Oct12_3rdPgAd-12679.indd 1
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MARYLAND REALTOR® 30 December 2012 | January 2013
SNIPPETS Member’s Pick http://www.whatsapp.com/
Subject: Homestead Tax Credit deadline
WhatsApp Messenger is a cross-platform mobile messaging app which allows you to exchange messages without having to pay for SMS. WhatsApp Messenger is available for iPhone, BlackBerry, Android, Windows Phone and Nokia and yes, those phones can all message each other! Best of all it’s FREE. “It also works for international messaging. My daughter who lives in England and I can text and send pictures as often as we like without roaming charges.” Shelly Murray, Greater Capital Area Association of REALTORS®.
Homestead tax credit application due December 31, 2012
REALTOR® License Plates
The homestead tax credit protects homeowners from the impact of real estate market fluctuations in annual property taxes. When home values increase dramatically, the homestead tax credit operates as a cap on the homeowner’s property tax bill and allows for the appreciation in value to phase in over time. For complete directions and a link to request the form, visit http://dat.state.md.us/prhomestead.pdf
Show everyone that you’re a REALTOR®. This special plate will set you apart from everyone else as a Maryland REALTOR®. For information or an application, contact Halle Papai at 800-638-6425 or halle.papai@mdrealtor.org. (Vanity plates are not available with this offer.)
Just in time for holiday shopping New in 2012…Sony RX100 Digital cameras have been getting smaller and more capable every year. The Sony RX100 bridges the gap between point-and-shoots and proquality digital SLRs. This innovative design and 1 in. (2.5 cm) sensor allow the camera to take flawless photos even though it’s 20% slimmer than your average digital SLR—small enough to fit in your pocket. Retails for around $650.
www.mdrealtor.org
All homeowners must submit a one-time application to continue their homestead tax credit eligibility. Even homeowners who in the past have received the credit must file the form if they have not already done so. The credit may not be claimed for vacation homes or rental properties, and the application process is designed to ensure that taxpayers receive only one homestead tax credit.
Best App Winner Swiftkey for the Android—Unlock your typing potential. Get SwiftKey 3—the best keyboard that you can fully personalize. FREE!
ANDROID ASTRID TASK/TODO LIST Best list maker and task manager for Android phones. It has features including due dates and alarms and it syncs with Google Tasks. FREE!
MARYLAND REALTOR® December 2012 | January 2013 31
iPhone | iPad
iPhone | iPad
RECalc Free Mortgage calculator HomeSnap HomeSnap’s unique technology was built to do one thing: instantly tell you all about any home you snap. What is it worth? When did it last sell? For how much? Beds? Baths? Lot size? Which school would my child attend? HomeSnap answers all these questions with a single tap for over 90 million homes. Currently for the iPhone. Android version coming soon. FREE!
RECalc is a Real Estate Mortgage Loan Calculator that is also a traditional Mathematical Calculator. You can use RECalc to calculate the Monthly Payment, Term, Interest Rate or Loan Amount for a loan, as well as standard mathematical calculations as you would in any other calculator. This is FREE for the iPhone.
ANDROID iPhone | iPad
Haiku Deck Haiku Deck is the simple new way to create stunning presentations. Used it to create listing and business presentations for your client to review on the iPad. This app is very impressive to clients and is generating more listings for its users. FREE!
iPhone | iPad
Photosynth is a really great panorama app; it’s user-friendly and fun to use, especially when watching your panoramas take shape while you capture them. For iPhone, iPad users only. Download from iTunes. FREE!
History Eraser Pro History Eraser Pro makes it simple to delete junk off your phone. The app walks you through all sorts of data, from text messages to browser history to cached files, and then it wipes them in one shot. FREE!
If you have a ‘ridiculously useful website’ to share with fellow REALTORS®, email: debbie.hager@mdrealtor.org
The sites are presented for information only. MAR is not responsible for the content of external websites and does not endorse them or their functionality. Although we make every effort to ensure these links are accurate, up to date and relevant, MAR cannot take responsibility for pages maintained by external providers. Views expressed by individuals and organizations on their own websites are not necessarily those of the Maryland Association of REALTORS®.
www.mdrealtor.org
MARYLAND REALTOR® 32 December 2012 | January 2013
M etropolita n R egio n a l I n form atio n S y stems , I n c .
Resolve to Increase Your Productivity in 2013 13 FREE MRIS Products & Services to Kick-Start Your New Year It’s that time of year again where the gym fills up, budgets are made and we promise ourselves, this is the year that we won’t break those well-intentioned New Year’s resolutions! This year, while you are focusing on those extra pounds or that cluttered closet that’s been plaguing you for months don’t forget to stay focused on new ways to save time and money. We’ve compiled this list of 13 MRIS core products and services to help you increase your productivity in 2013. For more information on all of these products and services, visit MRIS.com.
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MRIS Homes™ Mobile App. Say so long to your desktop! Download the free mobile app to your phone or tablet. Text the word “MRIS” to 87778 for a download link or find the app in the Apple, Google or BlackBerry app stores. RBI Market Statistics (rbintel.com). Position yourself as the market expert in your area with up-to-the-minute market stats straight from the MLS. You can even embed charts and videos on your website or blog.
MRISFax. Convert hard copy documents to email attachments.
ListHub. Market your listings online with this listing syndication tool.
MRIS Document Management. Manage, organize and access documents associated with listings, online 24/7.
MRIS.com Email. Sign up for up to 3 MRIS.com email addresses which are also available on any smartphone or tablet with internet access.
RatePlug. Deliver interactive, real-time mortgage programs, payment and qualifying information to your clients right from Matrix Email+.
MRIS-U. Learn all the tips and tricks you need to better maximize your time with our free instructor-led and online-based courses.
mrisTV.com. Watch unique area homes on Distinctive Digs, learn about MRIS products or increase your Real Estate IQ with MRIS’s industry news show.
www.mdrealtor.org
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WebSettlement Xpress. Qualify buyers and prepare tailored, understandable estimated settlement sheets.
RE Technology. Access real estate technology articles, product overviews and more. MRIS Text Alerts. Text “MRIS” to 84700 to receive Matrix, Keystone and other system alerts right to your phone. “Like” MRIS on Facebook. Visit facebook.com/ MRISonFB so you can stay up-to-date with the latest happenings at MRIS as well as share your feedback with us.
And, we’re just getting started! This year we will introduce you to even more innovative core products and services including: ■ ShowingAssist: Simplify the showing request process with a single click from Keystone and Matrix! Spend less time managing showing requests and more time closing deals. ■ Imprev Marketing Center: Impress your clients with professionally designed marketing materials auto-populated with listing data right from your Keystone Homepage. Stay tuned to MRISblog.com for more information on these (and other) new products and enhancements that are coming soon. Happy New Year! Metropolitan Regional Information Systems, Inc. MRIS.com/Mobile
BIGGER AND BETTER‌ JUST THE BEGINNING Prudential Real Estate continues to enjoy the highest average sales price across the United States. Now, as part of the Brookfield family of real estate companies - an organization with real estate in its DNA - Prudential Real Estate is even stronger and better positioned for the future.
If you would like to be part of this winning team please contact us at 888-732-8233 or email us at Careerline@PenFedRealty.com or visit our website at PenFedRealty.com.
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MARYLAND REALTOR® 34 December 2012 | January 2013
Residential Sales AN I R B AN B A S U
October: Another Month of Progress for Maryland’s Housing Market Unit Sales, Prices Continue to Rise A reasonably good formula for housing market recovery is in place. Nationally we are in the fourth year of economic expansion, mortgage rates are at or near historically low levels, and nearly two million jobs have been added across the nation over the past twelve months. Not surprisingly, a growing body of data indicate that the national and regional housing markets are now firmly in recovery mode.
A
ccording to the National Association of REALTORS®, the number of existing home sales (4.75 million in September 2012) is now 11.0 percent higher than a year ago. Nationally, the median price for existing homes for all housing types was $183,900 in September, up 11.3 percent from one year ago. Importantly, housing, which disproportionately contributed to national misery before, during, and immediately after the recession, has contributed to U.S. economic growth for six consecutive quarters. Recent policy moves by the Federal Reserve intended to support ongoing housing market recovery through lower interest rates
www.mdrealtor.org
underscore the central importance of housing market progress in the current business cycle. As with the nation, job growth in Maryland has accelerated recently. Statewide, 12,400 jobs were added during the last two months: 2,600 in August; 9,800 in September. On a year-over-year basis, employment expanded by 25,500 jobs, 1.0 percent, ranking the state 23rd in the nation in terms of percentage job growth. Statewide unemployment fell to 6.9 percent in September, down from 7.1 percent in August and one percentage point below the national rate of 7.9 percent. According to the Bureau of Labor Statistics’ household survey, the number
MARYLAND REALTOR® December 2012 | January 2013 35
In general, sales prices continue to rise in Maryland, with both average and median prices up on a year-over-year basis. of unemployed residents living in Maryland has declined by nearly 3,000 compared to a year ago. Recent key housing statistics are promising as well. According to data supplied by MRIS and the Coastal Association of REALTORS®, October unit sales were up by more than 14 percent in Maryland compared to a year ago. Seventeen of Maryland’s 24 jurisdictions posted increased home sales, most in double digits. These included Carroll County (+35.0%), Calvert County (+32.1%), St. Mary’s County (+32.1%), Baltimore City (+28.3%), Anne Arundel County (+26.6%), Harford County (+25.4%), Baltimore County (+19.5%), Allegany County (+17.2%), Worcester County (+17.0%), Montgomery County (+14.5%), Frederick County (+13.7%), Washington County (+3.4%), Howard County (+1.9%), and Prince George’s County (+0.8%). There were significant increases in units sold in several Eastern Shore communities, including Cecil (+117.1%), Caroline (+50%), and Somerset (+38.5%) counties. This likely reflects improvement in the move-up market, as more Marylanders can sell their existing homes profitably and thereby shift toward a residence they find more appealing. Several rural or semi-rural jurisdictions did see year-over-year declines in sales in October. These communities included Kent County (-31.3%), Dorchester County (-28.0%), Queen Anne’s County (-25.6%), Garrett County (-22.9%), Talbot County (-13.3%), Charles County (-10.3%), and Wicomico County (-10.3%). Because of their size, these counties generally have a small number of transactions, so modest or idiosyncratic shifts in sales patterns can generate large changes in year-over-year comparisons. Moreover, of these seven counties, only two (Kent and Wicomico) sustained average sales
price declines over the past twelve months. Bottom line: the general tone of the Maryland market remains positive. In general, sales prices continue to rise in Maryland, with both average and median prices up on a yearover-year basis. Average price increased 6.9 percent statewide between October 2011 and October 2012, with all but six jurisdictions registering increases. The largest occurred in Talbot County (+56.2%), where sales price average rose from $344,953 in October 2011 to $538,935 one year later. In Queen Anne’s County, average price increased from $310,103 to $409,083, up 31.9%. The six jurisdictions with decreases in average sales prices over the past year were Kent (-31.9%), Washington (-12.8%), Cecil (-9.3%), Allegany (-7.5%), Wicomico (-3.3%), and Carroll (-1.5%) counties. Median price was up 8.2 percent statewide on a year-over-year basis in October; 18 jurisdictions posted price increases. The most significant were in Dorchester (+71.7%), Talbot (+40.5%), Queen Anne’s (+29.0%), and Cecil (+26.5%) counties. Those jurisdictions with declines in median price included Somerset (-26.0%), Washington (-17.0%), Wicomico (-15.5%), Allegany (-11.4%), Frederick (-1.0%), and St. Mary’s (-1.0%).
Looking Ahead Leading housing market indicators remain generally positive. Pending sales in Maryland were up 9.2 percent on a year-over-year basis in October, from 5,420 in October 2011 to 5,919 in October 2012. In Baltimore City, one of the markets hardest hit by the downturn, pending units totaled 488 in October 2011. Just one year later, that figure has risen to 629, a gain of 29 percent. In Anne Arundel County, pending units jumped 17 percent, from 494 to 580.
www.mdrealtor.org
MARYLAND REALTOR® 36 December 2012 | January 2013
October 2012 vs. 2011 Units
Average Price
County
2012
2011
% Change
2012
2011
Allegany
34
29
17.2%
$90,736
$98,059
-7.5%
Anne Arundel
467
369
26.6%
$361,535
$323,721
11.7%
Baltimore City
417
325
28.3%
$147,474
$126,008
17.0%
Baltimore County
558
467
19.5%
$234,335
$234,217
0.1%
Calvert
74
56
32.1%
$309,265
$291,087
6.2%
Caroline
18
12
50.0%
$185,506
$164,583
12.7%
Carroll
135
100
35.0%
$273,396
$277,441
-1.5%
Cecil
89
41
117.1%
$208,879
$230,310
-9.3%
Charles
105
117
-10.3%
$230,254
$227,129
1.4%
Dorchester
18
25
-28.0%
$157,113
$121,344
29.5%
Frederick
208
183
13.7%
$275,260
$265,684
3.6%
Garrett
27
35
-22.9%
$365,084
$281,591
29.7%
Harford
178
142
25.4%
$253,143
$250,980
0.9%
Howard
212
208
1.9%
$381,532
$369,878
3.2%
Kent
11
16
-31.3%
$301,636
$443,056
-31.9%
Montgomery
726
634
14.5%
$443,907
$411,221
7.9%
Prince George’s
631
626
0.8%
$192,689
$171,631
12.3%
Queen Anne’s
32
43
-25.6%
$409,083
$310,103
31.9%
Somerset
18
13
38.5%
$138,148
$110,161
25.4%
St. Mary’s
70
53
32.1%
$308,243
$296,681
3.9%
Talbot
26
30
-13.3%
$538,935
$344,953
56.2%
Washington
90
87
3.4%
$151,973
$174,276
-12.8%
Wicomico
52
58
-10.3%
$153,131
$158,306
-3.3%
Worcester
117
100
17.0%
$259,642
$249,043
4.3%
TOTAL 4,313
3,769
14.4%
$282,014
$263,752
6.9%
Figures reflect resales and new properties. Residential resales are reported by MRIS ® and local boards MLS systems.
www.mdrealtor.org
% Change
Leading housing market indicators remain generally positive.
In Howard County, pending sales are up from 277 to 315, an increase of 14 percent. Another key indicator, active inventory of unsold homes, also continues to fall. In October 2011, there was 9.1 months of inventory statewide. One year later, inventory had dropped to 6.0 months, which is consistent with equilibrium and stable prices. In some jurisdictions, inventories are well below 6 months of supply at current sales levels. These jurisdictions are particularly well positioned to experience gains in average and median sales prices going forward. Counties with low inventory include Montgomery (3 months), Prince George’s (3.2 months), Frederick (3.7 months), and Howard (4.5 months). However, there are still some areas, many rural, that continue to hold higher inventory levels. Kent (34.5 months), Garrett (21.9 months), and Talbot (20.7 months) counties have not yet reached the 6-month equilibrium level. That said, if the nation is able to avoid falling off of its fiscal cliff, next year is likely to represent another year of progress for Maryland’s housing market. Anirban Basu, Chairman & CEO, Sage Policy Group, Inc.
To view all monthly and annual calculations of the Maryland housing statistics visit: Mdrealtor.org and scroll down the left sidebar to Housing & Statistics.
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