And remember RATES - with an FHA loan - a 5/1 ARM was 2.75% this past Friday. 2.75% - WOW !

Who would ever want an ARM?

Ironhide - there is a cap on what they can adjust to

All good news for those moving into our area. Relocation to a new state can be stressful, however purchasing in Maryland now is a fantastic investment opportunity!

Didn't he also say it was a good time to buy in 2004? I'm curious ... when was the last time he said it wasn't a good time to buy? I'd wager it was before he was a real estate agent.

With close to 10% of mortgages 90 days or more past due during the first quarter, we could have more foreclosures in the future than we have bust-to-date.

Imagine what THAT will due to property values.

C'mon. Asking these questions to a realtor? I believe this is what's called talking his book. He even contradicts himself twice in his last comment. Some people complain they aren't getting their selling price and he tells them don't worry, they'll save on the lower buying price on the other side. Sounds like we still have trouble there.

Mike, I always find it enlightening to see what people in the biz will say to questions like, "Where do you see the market going and why?" If you look at some of the previous Q&As, you'll find answers all over the board.

I just re-read the Pat Hiban Q&A and found that his answers were much more truthful. It'd be great if you could get a follow-up Q&A done with him since it has almost been two years. He's more likely to tell you like it is and not just what you want to hear.

This interview is further proof there is very little value added by real estate agents in today's technological age. With the ability to research for sale properties on your home pc, agents do little more than open the door and turn on the lights for those who closely follow the market, yet they continue to rob consumers with their exhorbinantly high commissions. In his interview, Mr. Northrop said reduced supply would increase demand, a statement that is factually incorrect and displays the ineptness of most agents. As someone who holds a degree in economics, I can tell you that demand is an independent variable, in no way impacted by supply. While prices will increase to reflect the supply decrease, this is not a function of demand picking up. As other commenters have said, Creig's response is not all that surprising. Most real estate agents are shameless self promoters, always suggesting "now" is the time to buy. Unlike in the financial services world, there is no fiduciary standard mandated by a regulatory body, so agents are not forced to align their feelings regarding the direction of the market with those of their clients. As stated above, I'm sure an agent interviewed by a major media outlet in 2008 would have said it was a good time to buy as well, ahead of a 20% correction in the market.

I wonder if there is ever an occassion when a realtor is not advertising. I thought this blog is more neutral and scientific than the others. Maybe we could get an interview with a more original one. How about: it's not a great time to buy.

this guy is just flat out dishonest -- have dealt with him before, so many good agents out there. avoid him.

Amused, the opinions in Q&A answers are the interviewee's, not the interviewer's. Check out the link to other Q&As and you'll see a wide range of opinions about the market.

I'm telling you, you should buy up to September 2011, because at that point, I predict the market will change in the favor of appreciation.

As others have articulated, just more con from a con-man. Why do people, in particular Realtors, place such emphasis on home appreciation. What good does it do you? You can’t spend it without selling. And if you sell you will need it to buy in the same market. It’s a sum zero equation. They only way it benefits you is if you sell and don’t buy in the same area. That means that you are either renting or relocating to a less desirable area(with less income potential).

Last year, we averaged 97 percent of list price...with an 8k present attached courtesy of American tax payer and artificially low interest rates.

Until Realtors start advocating good/bad opinions of the market on an equal basis, they will never be taken seriously.

Last add, do you think he is PAYING 97% of asking on the property that he is supposedly buying?

Jaime- how about seeing if Mr. Northrop would be interested in fielding some questions from your loyal bloggers?

Realtors are severely overpaid on an hourly basis - especially for the (non)level of education required to get licensed. These jobs need to go the way of travel agents - unnecessary in the internet age.

Craig is a straight shooter. He sold my Howard County house within several days of getting the listing at a reasonable price.
Would certainly recommend his firm.

Ironside, I have had the same ARM for almost 22 years. The key to a good ARM is the index and a cap on the yearly rate increase (or decrease). My index is one year treasury bonds and the rate can not increase (or decrease)by more than 2%. The variance between my interest rate and the prevailing rate was never enough to justify the closing costs to refinance.

He reminds me of Buzz Lightyear.

Lots of high comedy from Craig. It is always funny when a realtor tries to talk economics or anything other than "It is a great time to buy". The BRAC argument always makes me laugh....BRAC are government jobs correct? How much money does Craig think government employees make? If his "average" selling price really is $400,000 - how many government employees can buy at those prices? Not many.

A good question to ask Craig would be does he feel responsible at all for former clients who have lost their home to foreclosure? Does he still keep his inflated commission if a house he sells gets foreclosed on in a couple of years. Sadly - he does and sadly this guy has the nerve to peddle his toxic products (houses) on the very day O'Malley is begging banks to halt foreclosures. We honestly need some straight shooters to tell the American public what is really going on in the housing market. These guys like Craig continue to try to prey on the financial illerateracy of Americans. It is pathetic.

@Peter Fraisley- Realtors were using BRAC as a selling point for overpaying during the run-up years. So, it's already priced in if it ever really existed. Seems like Creig is double dipping on this con.

There were a lot of educated, market savvy people that bought and sold real estate during the bubble. No one had a crystal ball then and no has a crystal ball now. You should buy because it is where you want to live for many years and you can afford it. If you meet that criteria then its a good time to buy!

Creig
Will you please sell the house across the street. I've been looking at your smiling face on your sign for more than a year.

Give the dude credit. He persists year end and year out when most agents come ago and are never to be heard from again. matt - your post is funny - must be a pricey one !

I think it is funny when people get on here and blame the agents for foreclosure. O'malley is just using the "halt the forelcosure" horn to try and save votes. Craig, nor any other Realtor knew the crisis was coming and godd for him for putting a positive spin on what is going on in the economy. He is correct, if you are planning to buy now, IT IS a great time. Actually, you buyers should probably buy a bank owned property - you may just get a great deal !

this guy sounds like a politician......
he says anything you want to hear

NOW is the BEST TIME to BUY your HOME!!!....the lowest mortgage rate in history.

If not NOW, when?

Fear is what holds people down. Listen and look around you, the market is at it's lowest point! Rock bottom! What happens when we are at the rock bottom? It goes back-up!

My agent, Maria, is with the Northrop team.
She sold my house in 5-days, worked diligently all the way through the transaction, and made the whole process painless for me and my family.
i highly recommend this team!

It's a GREAT time to buy and sell right now! We don't have too many times where it really is both a buyers and sellers market at the same time! Get out there and take advantage of these rock bottom interest rates before they go back up!

Jamie,

You should compile a historical timeline with dates of the numerous bears vs bulls prognostication battles that have been waged on your blog. It would be interesting to compare the timeline with the Case Shiller greater Bmore index. Thus far the bears are up.

The real estate industry in general is a case of anti-competitive occupational barriers to entry working in conjunction with monopoly power over access to the market, in this case the MLS, working together to better the insider professionals at the expense of everyone else. Try selling your home without using the MLS. Try listing your home on the MLS without paying a licensed broker, and even if you resort to paying $600 for a flat fee DIY type of listing agreement, try selling it without writing in "3% to buyer's agent" or equivalent language into your listing. Due to principal-agent problems (another type of market failure) agents may actually be counter productive to buyers and sellers (provide negative utility) and exist only because of their lock on the gate to the MLS.

of course he says it's a good time to buy, he's an agent and needs to have houses up for sale to make money!

Yeah! my agent is with his group and she worked so hard all the way through settlement. It's the best investment I had in my life. I used my tax refund for my wedding!

*cracks whip*

back agents! back!

And, in related news: Auto dealers think NOW is the best time to buy a car!

Wow, RE insights from a man who wants you to help him buy a second vacation home and send his kids to private school.

Mr. Northrop's comments continue to perpetuate the opinion that Realtors are nothing but used car salesmen.

It is not a great time to sell unless you are in an area that has held value better than most, and if you avoided the temptation to either buy at the top of the market in the 2003-2006 time frame, or refinance during that time when you home's value was artificially inflated. Because unless you have equity in the property to withstand the lower than expected selling price, you're not going to sell the place. Anyone who says otherwise is just selling snake oil.

It's a buyer's market. Find a house you like, offer 20% below list, and repeat until you find the deal. That's what I tell my buyers.

Low interest rates now won't do a darn thing for you when interest rates go up and the value of your home (and any equity you are brainwashed into thinking you have goes away). Personally - I would rather interest rates go up to 18%. How do you think all of your parents houses are now "worth" triple and quadruple the price they paid? Because interest rates were high in the 70's and prices were low. If interest rates go up (which they won't anytime soon) and you buy...just re-finance when they inevitably go back down)

DONT RENT FROM THE BANK! RENT FROM A LANDLORD/PERSON/INDIVIDUAL HOMEOWNER. STOP GIVING BANKS YOUR HARD EARNED MONEY!!!!

PS - CRAIG N has done well in the housing pyramid scheme. My advice for him is to get out. Buy low, sell high.

@ Tony Ocampo-
I used my tax refund for my wedding!

We are all very comforted by the fact that we the tax payer, paid for your wedding.

We have somebody claiming this to be sellers and buyers market at the same time. So we are all winners. Real estate people never hesitate to challenge laws of physics. If necessary.

I'm a barber and now is a good time to get a cut. What do you expect him to say ! Wonder if he made an extra million last year? These small businesses can't survive without Bush and the boys looking out for them .

Not to pile on but, I have another bone to pick. Mr. Northrop claims to have gotten 97% of asking last year with the implication that this would be an appealing reason to use his services. BUT, as a Realtor, wouldn’t you presumably be representing the BUYER at least half the time? How is it in the buyers best interest to be paying almost full price, every time? Also, is this 97% of original asking price before or after all the price reductions? Multiple independent sources show that his statements are in direct contrast to, you know, actual *facts* which have been articulated by Jaime on her blog….

http://weblogs.baltimoresun.com/business/realestate/blog/2010/07/lots_of_asking_price_reductions_for_baltimore_homes.html

As for the Maria and Steph- come on. How stupid do you think people are? Is it a good time to buy and sell gold right now? How about commodities? Stocks? You do like to trumpet real estate as investment, right? Do you see how silly it sounds when applied to other *actual* investments?

Let's not lose sight of the fact that where we live often has to do with a desired lifestyle and not how much we expect to be paid or make to live that lifestyle. There are still reasons to move such as schools, number and size of rooms and commute that have value. We are getting back to 2005 levels of non-owner occupied grantees in Baltimore City and that stat is growing in the surrounding counties. Therefore, rent or buy and don't believe that three generations in the same dwelling is the only way out. You can make decisions based on today's economy and your circumstances, not someone's 2005 decision and their present day remorse.

I actually know Creig ( yes Creig - for those of you who cannot read - not Craig ) and his kids go to PUBLIC SCHOOL ! and he gives and gives back to local groups and charities very generously !

Hey Mic -

I can read. Too bad you are not real good at writing. Most "rich" people do give to charities - it is called a "writeoff".

Since you are his good friend - Does Craig ever confide in you that he thinks real estate agents should get a flat fee commission? Does he ever say that since most buyers/sellers have access to the internet and public records that real estate agents are a dying occupation? Does he ever tell you most of the forms you sign are all standard and you can print them off the internet yourself? Does he ever tell you what value all his "experience" is really bringing to the table? Has he ever really explained to you what went wrong with the industry in the past 10 years or so? and what answers like the one above are still trying to continue that wrong?

I would buy tomorrow from Mr. Creig - at any price he asks - should he guarantee with his own property that his predicitions regarding sold property's value will come true. If so, please post at this forum, so we can get in touch.

Jamie, I've been reading your blog for quite some time, but now I came to say good bye. We moved to North Carolina and now we can finally afford a home that doesn't look like a glorified chicken coup. It's not a good time to buy in Maryland now and it will not be for quite some time. The real estate prices were not the only factor why we moved, but at least 80% of it.

Keep up the good work and best wishes.

Jelena, I've followed your search with interest and I'm so glad you found something that works for you. I'm sorry nothing in Maryland fit the bill, though! I know prices have been a real sticking point for you.

Hope all goes well in your new community. Thanks for stopping in to say so long.

@Jelena,

You'll be back to MD when you can't find a job in NC.

For those with all of the negative comments and "kind" words - I hope you don't have a house to sell anytime soon. If so, you better hope that the potential Buyers of your house don't read all your negativity on this blog.

Let's get REAL about the statement: Now is a good time to buy. You all are bashing this statement with all of the wrong information and under the wrong pretense. Creig Northrop was not saying it is a good time to buy if you don't have a job, plan on moving in a year, or have no savings. It is a good time to buy for those who want and are able to buy. Those who have considered buying for several years but weren't sure if it was a "good" time because of all that has happened and because of all the NATIONAL negative media attention (though real estate is actually localized).

In regards to selling, if you have equity in your home there ARE buyers out there who want houses! Jeez people....not EVERYONE bought in 2004-2007. Not EVERYONE took money out of their house. OH WOW! That wasn't in the news was it??!

I have only been to two settlements in the past couple of years where the Sellers actually had to bring money to the table. I know, I know you all are going to write well you probably don't sell any homes. To date I've actually settled about 50 homes in the past two years. Out of those homes only a handful were bank owned and/or short sales.

If you are considering buying and are planning on living somewhere for a substantial period of time, at least 5 years, then I believe now IS a good time to buy. If you are looking to move up and/or down, have equity in your home or if you simply need to get a second property off of your hands now IS a good time to sell.

FoodBooty, it is completely legitimate what you are saying, even if it is apparent from which side your check comes. I believe that many negative comments on this post came as a reaction to real estate salesperson's attitude.

Food Booty- you stepped right in to the dragons lair.
- I hope you don't have a house to sell anytime soon. If so, you better hope that the potential Buyers of your house don't read all your negativity on this blog.

I do and welcome home values dropping. If/when home prices drop 20%, a conservative estimate, then elweedx 250k home will only sell for 200k. BUT, elweedz next home will drop from 500k to 400k. I am trading 50k for 100k . So I as well as everyone else benefits even as a current homeowner.

Let's get REAL about the statement: Now is a good time to buy. You all are bashing this statement with all of the wrong information and under the wrong pretense. Creig Northrop was not saying it is a good time to buy if you don't have a job, plan on moving in a year, or have no savings. It is a good time to buy for those who want and are able to buy. Those who have considered buying for several years but weren't sure if it was a "good" time because of all that has happened and because of all the NATIONAL negative media attention (though real estate is actually localized).
Trying to contain my laughter here. So, your point is that if i my job situation is stable and savings are substantial, then i can AFFORD to take it on the chin. Also, if all real estate is local, can you please explain why housing went up for no damn reason to create national if not worldwide housing bubble?

In regards to selling, if you have equity in your home there ARE buyers out there who want houses! Jeez people....not EVERYONE bought in 2004-2007. Not EVERYONE took money out of their house. OH WOW! That wasn't in the news was it??!

So do you tell your sellers that when you are trying to get a listing? That the only way they can sell is if they have a lot equity in their home? Which is effectively saying, you aint gonna get what you think you gonna get so i hope you dont owe near what you think you gonna get. Isn’t that a round-a-bout way of acknowledging that prices are still falling?

If you are considering buying and are planning on living somewhere for a substantial period of time, at least 5 years, then I believe now IS a good time to buy. If you are looking to move up and/or down, have equity in your home or if you simply need to get a second property off of your hands now IS a good time to sell.

I'll agree with you on the first statement, but you forgot the rest of the sentence. "then i believe now is a good time to buy IF YOU CAN GET 25% BELOW MARKET." BTW- exactly what qualifications do you have other than a 2 week Realtor course to advise people regarding market direction and their biggest purchase of their life? What information can you provide that would substantiate your opinion of now being a good time to buy?

It is not very flattering to your profession when everyone that comes from it uses the same canned lines that Yun and Leirah before him use. Please re-read my earlier post. I don’t believe housing is an investment, neither does Buffet. But since you do, what other investment is both good to sell and buy at the same time?

Thanks for playing.

I agree with Elweedz - even though the value of my home is declining I do hope to be be able to "move up" in a few years. I dont mind losing 20% on my current home as long as my future "upgrade" home also loses 20%.

People make more money when the market is down than up. "When there is blood in the streets buy real estate." Howard county hasn't experienced record high rates of foreclosures as oppose to its surrounding counties. Real estate is the BEST investment you can make. What other investment instrument can be purchased, that's an absolute necessity, that you can use to build wealth with by making a mortgage payment.... nothing? You control your own destiny on whether you win or lose, timing is everything. I advise my clients to buy what you can afford, live within their means on 1 income if possible and don't use their homes as ATM machines to buy depreciating items. Realtors provide a service to the consumer, a service that's necessary. Consumers have no idea what we go through to protect our clients to get them what they want. Its not an easy profession at all. It takes great patience, skill and intellect. The statistic is that Realtors nationwide only sell 4 homes per year. If a consumer chooses to deal with an agent whom isn't educated, don't complain; interview, do your homework and choose the agent who you trust to give you sound professional expertise. We all aren't created equally; which is why most of us do have multiple degrees and obtain multiple designations to stay on target with the industry to operate in areas of specialty. It's a great time to buy and like Creig I did buy, a foreclosure that sold originally for $750k, that we purchased for $420K. You control your own destiny, take control of your own choices. We facilitate transactions that you seek us out to handle, we don't sell anything. We provide services that we receive compensation for. People make commission on everything in America. Nobody complains when buying shoes, expensive purses, electronics, computers, pharmeceuticals, SPORTS TICKETS. Wake up America, we live in an incentivised capitalistic society who is compensated by commission. The rate happens to be paid based on the commodity and real estate is expensive! Think about it!

"Real estate is the BEST investment you can make."

Homes are depreciating assets! They require upkeep!

What other investment instrument can be purchased, that's an absolute necessity, that you can use to build wealth with by making a mortgage payment.... nothing?

WOW- you got us there since no other "investment" REQUIRES making a mortgage payment. How come no one calls a house an investment other than REALTORS?
I have a late model classic sports car with very you miles on it and its paid off. How come Realtors dont talk about "equity" in my car or refers to it as investment?

What other investment requires insurance, has registration(taxes), you have to maintain, repair and clean contantly? Sound familiar?

Consumers have no idea what we go through to protect our clients to get them what they want.
Pls elaborate, we would love to know.
It takes great patience, skillto unlock doors, schedule appointments and control a monopoly on the MLS? and intellect. a two week realtor course? Are you serious?

We all aren't created equally; which is why most of us do have multiple degrees and obtain multiple designations to stay on target with the industry to operate in areas of specialty.
There is no way this was written by someone with multiple degrees.

The rate happens to be paid based on the commodity and real estate is expensive!
Yeah that is the point. It doesnt need to be. If you remove the Realtor cheerleading for higher prices, their built in enormous commission and monopoly on MLS, then homes become more affordable.