Creative Considerations for March 2020

March 09, 2020

Creative Considerations for March 2020

Your monthly real estate market update for Anne Arundel County with special guests the Mustache Mortgage Men, recorded live at Coastline Mortgage in Pasadena. In this episode we dive into special considerations for the low interest rates and what this actually means for buyers looking to take advantage.

All right. Hey, everybody. We’re doing this live this month. This is Creative Considerations. My name is James Bowerman with the real creative group of Douglas Realty has some special guests today. The Mustache Mortgage Men, so if you see the mustache and you’re wondering what that’s about. I’m going to introduce you to those guys in a minute, but first I want to talk about the real estate market. This is your monthly update for Anna Arundel County. So behind me on the board you can see the numbers and we’re going to go through these briefly and then get into some considerations on what’s going on.

James Bowerman:
So first off, coming soon, 128 new listings coming soon at the beginning of this month. That is a big increase. It’s almost double from what we saw last month. So that’s a good sign with the low inventory that new homes are going to be coming on the market. It was pretty typical. We see that start to ramp up. It’s time of year. Temperatures are warming up, spring market is coming. So good things there.

James Bowerman:
Next, let’s look at active homes. We saw another decrease. Again, people are just buying, buying, buying, really driving down the inventory, and we can’t keep up. So seeing that go down and again directly correlated with homes under contract. So buyers are coming in and taking advantage of the, what you’ve heard a lot about, low interest rates and locking up these homes. That’s directly correlated too, with the homes sold. Again, that’s based on what’s last month we saw, 524 homes sold in Anna Arundel County. That was an increase. So even some of these homes that have been sitting a little longer, you can see days on market increased. Buyers are coming in. They want to take advantage. Maybe they’re compromising a little bit, there’s just not enough out there for them to choose from.

James Bowerman:
And then the last thing you’d see 96% list to sold ratio. So if we listed at this price, it’s going to sell it about 96%. Again, I think that’s directly correlated with the days on market and the low inventory. Homes have been sitting a little bit longer. Now they’re going to reduce the price a little bit and get them sold. So last thing I’ll touch on is three months of inventory. That’s been pretty much where we’ve been at for while. It’s a sellers market. And on that note, let’s talk about some considerations. I want to introduce some good friends of mine, the Mustache Mortgage Men.

Kyle:
Hey guys.

Armen:
How you doing? My name’s Armen.

Kyle:
Kyle.

Adam:
And I’m Adam.

Armen:
We are the Mustache Mortgage Men. For the month of March we all decided to shave off our beards and grow out our mustaches to raise awareness for childhood cancer research. If you go to our website, MustacheMortgageMen.com you can find out more information. Any dollar helps. We appreciate all donations. Each of us are given $20 from each of our closings as a donation at the end of the month of March.

James Bowerman:
Great stuff. So Kyle, let’s jump into the rates.

Kyle:
Yeah.

James Bowerman:
Let’s talk about purchasing power. Let’s talk about lifetime savings. Educate us a little bit more on what’s going on with these interest rates.

Kyle:
Yeah. So you guys probably see that rates are falling, right? What does that mean for you? It doesn’t just mean monthly savings. It also means your buying power can increase. So for everyone last year who might’ve been looking at a property, just couldn’t find anything maybe in your budget right? Now the rates are lower you can increase your budget, maybe 25 in some cases, 30, $40,000 right? That’s you now finding a house that you couldn’t find last year, and now you’re increasing your budget by lowering the interest rate, and maybe you can afford something that was going to be the same payment that you had last year in mind. Just couldn’t find anything. So it’s all about not just lowering the rate to save yourself monthly, but now you can find the home that maybe you couldn’t find last year.

James Bowerman:
Good stuff. All right. Adam, let’s talk about savings in terms of the loan.

Adam:
So furthering on Kyle’s point on the terms of refinancing, if you were to drop your rate by about 1% you could potentially be saving over $100,000 over that term of the loan. Think about that as your college education for your children, expanding into a bigger home for your family. Many, many variables that could lend to your family’s future and success.

Kyle:
Definitely.

James Bowerman:
That’s a great point. We’ve talked about buying a home last year, maybe you got it at 4.5%. Now this same home, this time of year with these rates, you can get it for 3.5%. Now savings month to month is great. But when you look at that amortization over the course of 30 years-

Kyle:
Term savings.

James Bowerman:
Yeah, it’s over $130,000. So if you’re expecting, you have a new newborn on the way, 130 grand, that’s a college degree. So directly correlated to something that can really be impactful for you and your family.

Kyle:
Definitely. I agree. And like he said, support our cause even if you don’t have a closing with us, maybe we can have one in the future, but we’re always looking for donation so and help us out.

Armen:
And if you do shave into a mustache we’re actually having a mustache contest so we’re taking any pictures we get. James decided to participate with us. So please send it on to any of us or anyone over at Douglas or Coastline and we’ll be able to enter you in the test at the end of the month, and whoever does win, we’re going to donate money in their name to the cause.

Kyle:
Yeah, we want to see those mustaches everybody.

James Bowerman:
Awesome. So guys, thank you so much for being on this episode. It’s a great cause to go fight the childhood cancer. Visit and learn more at MustacheMortgageMen.com and I’m James Bowerman with Real Creative Group. We’ve got Armen, Kyle, and Adam with Coastline Mortgage. They are the Mustache Mortgage Men. I am temporary real estate mortgage man. Thanks so much for watching and we’ll see you again soon.

Kyle:
See you guys.