I was born in 1964 which is the last year of the baby boomer generation. Are you a baby boomer contemplating a move? You're not alone. As a generation born between 1946 and 1964, you've witnessed the ebbs and flows of the housing market for decades. Perhaps you're considering downsizing after the kids have flown the nest, or maybe you're eyeing a new investment property to diversify your portfolio. Whatever the reason, the real estate landscape has changed dramatically over the years, and it's essential to stay updated to make informed decisions.

The Current Housing Climate in Maryland
As we march further into 2023, a few trends dominate the housing market in Maryland. Baby Boomers make up around 39% of homerbuyers. High interest rates continue to have a significant impact on the real estate market, affecting both buyers and sellers in various ways. As of this writing, the average interest rate in Maryland is 7.75%. Understanding these effects is crucial for making informed decisions whether you're looking to buy a home, sell one, or invest in property.

Why Now Could Be the Right Time to Buy a Home
Buying a home when interest rates are high might seem counterintuitive at first glance. After all, higher rates mean more money spent over the lifetime of a mortgage. However, there are some potential benefits and strategic advantages to making a real estate purchase under such conditions. Here are some to consider:

Reduced Competition
When interest rates are high, fewer people are looking to buy homes. This reduced competition can make it easier for you to negotiate a better price with sellers, who may be more motivated to close a deal. Less competition could also mean fewer bidding wars, which can drive up the price of a home substantially in a hot market.

Better Inventory
With fewer people in the market for a new home, you're likely to have a narrow, but better selection of properties to choose from. This can be particularly useful if you have specific needs or desires, such as a particular layout, location, or set of amenities.

Potential for Future Refinancing
Buying when rates are high offers the opportunity for significant savings down the line should rates drop. Refinancing at a lower rate in the future could reduce your monthly payments and the total interest paid over the life of the loan.

Market Timing
In some cases, high interest rates can coincide with other market factors that could make it a good time to buy, such as lower home prices or a buyer's market. If you can negotiate a good purchase price, the impact of higher interest rates may be partially or fully offset.

Investment Perspective
If you view your home as a long-term investment, buying at a time when interest rates are high, but property values are depressed might make sense. Real estate often appreciates over time, and you might find that the long-term gain outweighs the short-term cost of higher interest payments.

Tax Deductions
The interest paid on a home mortgage is generally tax-deductible in the U.S., which can offset some of the financial burden of higher interest rates. While tax laws are subject to change, this has been a staple in the American tax code for a while.

Locking in a Fixed Rate
If you're concerned that interest rates will continue to rise, purchasing a home now with a fixed-rate mortgage can provide stability. Your rate will remain constant, even if rates go up in the future.

Improved Negotiating Power
Sellers aware of the high interest rates may be more willing to make concessions, like covering closing costs or making improvements to the property, to secure a sale. This can give you more leverage during negotiations.

Why Now Could Be the Right Time to Sell
Selling a home when interest rates are high may not be the conventional wisdom, but there are specific advantages that could make this an opportune time for you, especially as a baby boomer who who might be eyeing retirement in the near future. Here are some benefits to consider:

Lower Inventory, Higher Demand
In a high-interest-rate environment, the number of people putting their homes on the market often decreases, leading to lower inventory. While there might be fewer buyers due to the higher costs of borrowing, those who are in the market are often very motivated. This can result in a more straightforward, quicker sale process, which could be a plus if you're looking to downsize or move to kickstart your retirement plans.

Strong Negotiating Position
With fewer homes on the market, sellers can often command higher prices and better terms. You might find that buyers are more willing to meet your conditions, whether that's a faster closing date, no contingency clauses, or even higher earnest money deposits.

Capitalize on Home Equity
If you've lived in your home for many years, chances are you've built up significant equity. Selling now could allow you to cash in on that equity, providing you with a substantial down payment for a smaller, more manageable home, or even to invest in income-generating opportunities. This could be particularly valuable as you approach retirement.

Opportunity to Downsize
High interest rates might make larger, more expensive homes less appealing to buyers, but smaller, more affordable properties may still be in high demand. If you're looking to downsize, you could benefit from selling your current home at a relatively high price and purchasing a smaller one where the cost impact of higher interest rates may be less significant.

Tax Benefits
As a baby boomer, you may be eligible for certain tax exemptions when selling your home, particularly if you've lived in it for a number of years. The tax-free capital gain (up to $250,000 for single filers and $500,000 for married couples filing jointly could be a significant financial boon at a time when you're looking toward retirement.

Liquidity and Financial Flexibility
By selling your home in a high-interest-rate environment, you may benefit from increased liquidity (cash on hand), allowing you more financial freedom. This can be especially useful if you're nearing retirement and want to diversify your investments or allocate funds toward travel, healthcare, or other expenses.

Timing for Your Next Phase
Now might be an appropriate time to reassess your living situation. Selling now could provide you with the resources and time to plan your next phase, be it relocation, investment in other assets, or a transition into a different lifestyle you can enjoy.
While high interest rates generally indicate a slower housing market, individual circumstances can make selling a home during such times advantageous. Nevertheless, consulting with me can help you evaluate whether selling your home in a high-interest-rate environment aligns with your short-term and long-term goals.

Over the past year, I’ve been working with a customer and showing homes all over Charles County in Southern Maryland.  Some may be familiar with Bryans Road as you proceed south on Indian Head Highway (Route 210) past Fort Washington and Accokeek.  After showing over 50 homes, my customer finally decided on a property located in Bryan’s Road, MD.  The home met all her requirements, i.e., close to Indian Head highway (Route 210) for her commute into Washington D.C. to work, a rural feel with lots of yard space so her dad could park his RV, quiet and peaceful, spacious rooms, and a master bedroom with a full bathroom.  Lastly, a sales price of no more than $380K which she was pre-qualified before we started her home-shopping journey.  She is a military veteran with a VA loan guarantee in hand.

We looked at properties only in Charles County.  She wasn’t interested in Prince Georges (PG) county.  So, we spent many evenings Mon-Fri after she got off from work and many weekends viewing homes in Waldorf, White Plains and LaPlata, MD.  She was accompanied by her 5-year-old and 11 year old daughters on occasion.  Those two girls were so excited at every showing! They walked in and immediately selected their bedrooms and asked “Mommy, when are we moving in?”.  That was quite hilarious.

Initially, we sought after townhomes.  Upon seeing the rising prices of townhomes, I suggested she start looking at single-family (detached) homes to get more “bang-for-your-buck” as the saying goes.  She was able to go back to her lender and request an increase in the amount she initially was pre-qualified for.  She had a little wiggle room, so the loan officer bumped up the amount she could afford.  That new amount opened new possibilities.

We decided to begin looking west of Route 301 from Waldorf, White Plains and La Plata, MD to areas such as Port Tobacco, Welcome, MD, Pomfret, Marbury, Nanjemoy, Indian Head, and finally deciding on Bryans Road, MD. Driving on those single-lane country roads made us feel like we were out of town - North Carolina or South Carolina where we both have family members.  That rural feel was becoming attractive.

Well, as it turns out the property she selected had been on the market only seven days with no offers.  That was a sign of the changing real estate market conditions.  The property was also completely renovated.  A new roof, windows, appliances, furnace, water heater, flooring, and freshly painted with trendy white and greys throughout.  It turns out the house is only four miles from the Potomac River and Marshall Hall.  Many of us baby-boomers from the area would go there in the 1970’s when it was an amusement park.  It brought back my own childhood memories. 

Anyway, getting back to the comparison I wanted to make between Bryan’s Road and Upper Marlboro, MD.  Bryans Road is a bit more affordable to live in.  There are some older homes with sizeable acreage.  Most residents living there must go to nearby Fort Washington to the north or Waldorf, MD to the west to shop for food, clothing, etc., but it’s only a 10–15-minute drive.  Bryans Road is lacking a bit in shopping choices.  There is a Food Lion, McDonald’s, Burger King, and KFC at the main intersection of Indian Head Highway and Route 227 which is Livingston Rd. on one side and Marshall Hall on the other side.   If you are a frugal thrift store shopper like myself, you’ll find the Go Green Thrift Store next to the Dollar General in the town’s only strip mall.

According to the Bryans Road Sub-Area Plan, a recommendation has been made to develop a Bryans Road Town Center with many amenities.  Additionally, four new residential home construction developments have been suggested.  If built, it will boost home prices in that area soon.  So now is the time to buy a home in Bryans Road, MD!

Here’s a video of my Bryan’s Road Home Tour video on YouTube.

If you are interested in buying or selling your home contact me 240-535-1855 or email [email protected].

The current average mortgage rate in Southern Maryland is 7.12% as of July 3, 2023.  Depending on your credit score and debt-to-income ratio you may qualify for a better rate in the 6% range. If you’re planning to purchase a home in the $400K price range, your monthly payment would cost roughly $3379 per month including a downpayment of $12,000 or (3%).  Keep in mind that you can always refinance the house once there is a significant drop in interest rates. There’s a lot of volatility in the mortgage market so interest rates can go up or down in a matter of months.  Don’t be afraid! If you can afford to buy a home now, do it! You’ll reap the benefits in the years to come.

Riding along the southbound side of Route 301 before Marlboro Pike you may have noticed a construction area and asked yourself “What are they building”?  Well, they are building new apartments and townhomes to help families most in need.  The new development is called Gateway at Peerless as it is located on Peerless Ave. in Upper Marlboro, MD.  It will be a mixed-income multifamily development with 62 units boasting 1, 2, and 3-bedroom apartments and townhomes.  According to the developer’s website it appears they are accepting the HUD Housing Choice Voucher Program for low income families. 

The developer (Conifer Realty) has partnered with the Episcopal Housing Corporation, a non-profit organization whose mission is to promote the creation of affordable housing to help families most in need.

Here's a link to the developer’s website for more information and to apply.
Gateway at Peerless - Conifer Realty LLC (coniferllc.com)

Below are a few pictures I snapped during construction.

Last week I sold the townhouse I had listed at 16207 Presidio Way in the Ternberry neighborhood of Bowie, MD 20716.  It sold for $395,000.  Ternberry is subdivision with a mix of Single Family (detached) homes and Townhomes. The Ternberry neighborhood was built in the 1990's. Prices average $454K for a 4 bedroom single family home and $393K for a 3 bedroom Townhouse.

Here's a video I put together to capture the essence of the neighborhood.  You will see unique contemporary style homes not found in some other neighborhoods of Prince George's County MD. 

If you are thinking of buying, selling, or may need a Comparable Market Analysis (CMA) of your home, call me at 240-535-1855. 

This 3 level townhome in Bowie, MD has two master-suite bedrooms each with their own bathrooms.  The seller is in the process of clearing out the property.  More photos will be available very soon.  I will have it listed on the market next week.  Contact me for more information at 240-535-1855.

Recent home sales in the Upper Marlboro, MD 20772 zip code show the median price for a detached, single family home is $339K.  Most homes in the $300K-$400K range are 30+ years old with at least 4 bedrooms, 2.5 bathrooms and a basement.

Additionally, most of these homes have 1-2 car garages and more than 2,000 sqft of living space.  The style of homes you'll normally find are Split Foyer, Split Level, Rambler, Cape Cod and Colonial.

Looking for a real estate agent in Upper Marlboro, MD?  I'm honest, trustworthy, and responsive! I know the Upper Marlboro area very well.  If you are a buyer, I'll help you find the right home, negotiate the terms of sale and help with price negotiations. 

If you are a seller, I'll help you market your home to potential buyers, sell within a specified period of time, and price your home competitively. 

Call me at 240-535-1855 :-) 

There are currently 700+ homes for sale in Upper Marlboro, MD.  More than 400 are available and over 300 homes have a contract written on them.  If you are thinking of buying or selling a home, or looking to rent in Upper Marlboro, contact me, Angelo Rhodes, Realtor at 240-535-1855.  I'd be happy to assist you.

USDA loans (also referred to as Rural Development loans) are backed, directly guaranteed or insured by the U.S. Department of Agriculture to support affordable housing in less developed areas.  One of these eligible areas is the Marlton neighborhood of Upper Marlboro.  

Zero percent down
The first major feature of a USDA loan is the ability for homebuyers to get into a home without a down payment. Although not limited to first-time homebuyers, this could be particularly attractive for younger buyers who have a steady job, but not much in savings.
If buyers have an existing USDA loan, they can take advantage of a rate-term refinance to get lower rates without the need for existing equity. Cash-out refinances aren’t available.

Low guarantee fees
Guarantee fees are much lower than the similar fees on loans backed by the FHA. Let’s do a quick comparison:
With a USDA loan, there’s a 1 percent upfront guarantee fee compared to a 1.75 percent upfront mortgage insurance premium (MIP) for FHA loans. In both cases, buyers can finance the upfront fee in their loan.
USDA loans carry a 0.35 percent guarantee fee on the unpaid principal balance each fiscal year. For FHA loans, buyers pay an annual 0.85 percent MIP fee if they made a minimum 3.5 percent down payment on their home purchase.

USDA loan qualification requirements
As with any loan, USDA loan borrowers must meet certain requirements to qualify. In order to take advantage of this loan option, homebuyers need to be looking to buy a single-unit primary residence in a qualifying area. These can be rural areas or even the outskirts of suburbia. The USDA has an eligibility map on its website (areas not in orange are USDA loan eligible). Working farms do not qualify.  USDA loans also come with some financial requirements.

Homebuyer household income can’t exceed more than 115 percent of the area median income. If the household includes more than four members (adults and children), it may qualify with a slightly higher income. Homebuyers can deduct childcare expenses from this income tabulation, as well as income from a portion from any adult full-time student.

The USDA doesn’t specify a minimum credit score for its loan, but lenders may have their own policies.  For the best chance at qualification, it’s a good idea for homebuyers to keep their debt-to-income (DTI) ratio – a comparison of minimum debt payments to overall income – at or below 45 percent. Lenders may have their own guidelines on this metric as well.

For more information, contact Angelo Rhodes at 240-535-1855 or email: [email protected]