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Archive for the ‘News’ Category

Monday, January 23rd, 2012

2012 – - Year of the House?

Today is the Chinese New Year, and we are now entering the Year of the Dragon.  But could it also be the Year of the House?  A Money Watch article recently posed the same question and, according to the article, the answer is probably yes!

We can hopefully look forward to seeing housing starts and sales rise over the next year, as we work our way up from rock bottom as the year goes on.  The article also recommends not waiting for “rock bottom”, as it seems that day has already come.  The longer that you wait, the greater the chance that you’ll miss out on the excellent deals that are currently available.

I hope that everyone enjoys ushering in the Year of the Dragon and, hopefully, the Year of the House!

Friday, January 20th, 2012

Home Inventory at Record Lows

Earlier this week, we talked about how it looks like we will be experiencing a housing recovery in 2012.  We have found another sign indicating that this is true — home inventory in Prince George’s County is at the lowest it has been since June 2006!

As you can see in the graph, inventory typically follows a pattern of ups and downs.  However, in Prince George’s County there has been a downward incline for almost a year.  Inventories have been decreasing since February 2011.  Prince George’s inventory is also nearly 4,000 units lower then at its peak in August 2008.

The low inventory of homes in the area is an excellent indicator that the market is recovering and setting a foundation for future sales growth.  As inventories lower, home prices will start to rise.  The strategic buyer will look at this data and respond by purchasing their new home today so that they can lock in low prices and mortgage rates.

Tuesday, January 17th, 2012

Experts Predict a Housing Recovery in 2012!

The beginning of the year is always an exciting time.  It is a time to look forward to what the next year is going to bring.  This year looks like we have many reasons for optimism.  In a recent blog post on WashingtonPost.com, Ezra Klein talks about how he thinks that we may see an upturn in 2012 for the economy.  There are promising early signs that bode well for the year to come.

Klein quotes a Wall Street Journal article that lists a couple reasons why we can look forward to a positive 2012.  Lower unemployment, consumer spending, and the housing market are just a few of the reasons for his optimism.  Lower unemployment rates not only raise the incomes that people have to spend, it also increases confidence, which causes spending to rise.  This is an excellent sign for the economy.  Another positive sign is that mortgage rates, which are at historical lows, and rising consumer income will cause an uptick in housing prices.  Also, many investors are starting to acquire distressed housing units and predict that the housing market is going to be on the rise in the next year.

A Forbes article also predicts a housing recovery.  According to the article, several research firms are predicting that if the housing market has not already hit bottom, then it will very soon.  The Zillow Real Estate Market Report indicates that home sales in 2012 will be more consistent and frequent.  Clear Capital, a real estate research firm, predicts that home prices in the Washington, D.C. area will not only stabilize, but RISE over the next year.  They think that the area will experience a 9.3% price hike!

All of this, especially the predictions for the housing sector, is great to hear, and I hope it all comes true.  Smart buyers are the ones who will take this information and use it to their advantage by purchasing a new home.

Wednesday, December 21st, 2011

The Employees of Mid-Atlantic Builders Give Back

Last week Mid-Atlantic Builders participated in the annual Holiday Toy Drive of the Home Builders Care Foundation, a non-profit community outreach & charitable construction program affiliated with the Maryland National-Capital Building Industry Association (MNCBIA).  Builders who are part of this Association participate in the Toy Drive to benefit children in the area who are in need of toys, games, and clothing.  This year’s annual drive benefited the youth at St. Ann’s Infant and Maternity Home in Hyattsville, Maryland, and within days, Mid-Atlantic’s collection box overflowed with items.

On December 15th the gifts were taken to the Home Builders Care Foundation at MNCBIA’s Annual President’s Luncheon.  Many other local builders delivered similar boxes full of items on St. Ann’s “Wish List”.  We are proud to be part of this worthy drive and that the Mid-Atlantic family was able to donate so many gifts for children in the area who otherwise might not have had them.  We hope we have helped make their holiday special.

Friday, December 9th, 2011

Are You A Strategic Buyer?

According to a recent article in the Washington Post, it was reported that the Washington, D.C. metropolitan area will be adding over a million additional jobs by 2030.  This will bring an influx of hundreds of thousands of people to the area needing somewhere to live and cause a real housing shortage, as stated in a recent study published by George Mason University.

At the planned rate for new housing, there will not be enough housing units to meet future demand.  Presently, the master plans for various local jurisdictions allow economists to forecast how much land will be developed for residential use for the next 15 to 20 years.  Based on how much undeveloped land is zoned as residential they can then estimate how much housing will be built.  There is not nearly enough residential land to meet the demand of the increased population that will be coming to our area.  In some jurisdictions, only 9% of the land remains for residential development.  Applying the principle of supply and demand, housing prices will rise due to the limited supply.

Single-family detached homes will be at an even higher premium because fewer of those can be built.  The master plan and zoning maps favor multi-family housing, where higher densities can be achieved.  Land set aside for single-family homes is very, very limited.  Because of this, prices will continue to appreciate in the coming years, making single-family homes less and less affordable.

The George Mason University study clearly illustrates why now is the time to buy a home and how purchasing a single-family home would be a great investment.  As is shown in the Post article, the D.C. area’s current home prices, as well as low interest rates, are not going to last.  With the limited opportunities to build a detached single-family home in the D.C. area, now is the time to buy your house before the demand exceeds the supply and prices substantially rise.

Thursday, November 3rd, 2011

The Wall Street Journal Says Now is the Time to Buy a Home

According to a recent Wall Street Journal article, “It’s Time to Buy That House”.  There are two main reasons that the author Jack Hough cites for why this is the case.  The first reason is that the nation’s ratio of house prices to yearly rents is very close to its pre-bubble average.  The fact that there is a lower ratio basically means that if everything is equal between a sale and a rental, financially the sale will be a better value.

The second reason he gave, and the one that he cites as the most important, is the fact that mortgage rates are at an all time low.  This makes house payments more affordable than they have been in years.  The National Association of Realtors House Affordability Index has hit a near record high.  This means that if you could afford a medium size house a few years ago, today, with the same qualifications, you can afford a much bigger one.  There is the myth that is being perpetuated by the media that it is getting difficult to qualify for a mortgage.  While it is true that it is harder now than with the lenient rules of the past, it is by no means impossible.  Most people who have average credit and a steady job will be able to qualify, even with the more stringent standards.

The affordability of a house is one of the many reasons that now is a good time to buy a home.  Especially with today’s mortgage rates, there has never been a better opportunity to get the home of your dreams and settle down for the long term.  Mid-Atlantic Builders would love to help you achieve that dream.

Tuesday, October 11th, 2011

Energy Star 3.0

Mid-Atlantic Builders is proud to announce that we have committed to the new Energy Star program.  Starting in January 2012, EnergyStar will be going to Version 3.0.  This is a higher level of green energy efficient living for any new home that we build.

Although the new standards are more rigorous, we are having no problems meeting them since our Energy$mart standards were already well above and beyond the previous Energy Star standards. From the beginning, we have felt that our customers deserve the highest energy efficiency that is available to them, and now our homes will get that higher certification as well.  We already exceed the standards of most other builders and we expect to continue to widen the gap.

Having saved our customers nearly $22,000 on their utility bills, we look forward to saving them even more under the new Energy Star guidelines.  With Mid-Atlantic Builders you always get the utmost in comfort and quality, and we are proud to offer one more benefit to purchasing our homes.

Tuesday, September 13th, 2011

The Impact of a Housing Moratorium in Brandywine, Md.

There was an interesting nugget of news that caught my eye recently which I’ve been wondering about ever since. In mid-July, the Washington Post reported on the Prince George’s County Council’s approval of a resolution to place a moratorium on building homes in the Brandywine area. The measure passed (in an 8-1 vote) and will have an immediate effect, perhaps unintended, by the resolution.

For those living there and moreover, for those hoping to live there, this is bigger news than you might think. Councilmember Mel Franklin claims the move is to “prevent further overburdening of the roads in the Brandywine area.” I suspect otherwise.

This looks like an effort to increase property values.

It’s very simple. Cut off supply and demand will rise. As demand increases, so too do housing prices. This is good news for current homeowners in the Brandywine area. For those trying to move in, well, they’re on the other side of the coin.

Brandywine may not be ‘overburdened’ with more drivers, but the interest to live just outside the Capital Beltway is unavoidable. The greater the demand to live in the area, the more expensive it will be to buy a home, any home, period.

For interested homebuyers there is a silver lining to this news. One of the few communities grandfathered with this moratorium is The Villages of Savannah. This means if you want to buy a home in the Brandywine area, you’ll have a chance to buy a Mid-Atlantic Builders home.

Come in to our model at The Villages of Savannah in Brandywine to see why now is the best time to buy your new Mid-Atlantic Builders home.

Friday, August 19th, 2011

CNBC Reports Housing News Live From Woodmore North

Not all news is good news. That was the message earlier this week when I appeared on CNBC with Diana Olick. As I explained on Tuesday, news of escalating gas prices, economic turmoil internationally, and concerns over the debt ceiling is returning consumer confidence to a more fragile state.

With all that bad news floating about, we are still witnessing a strong interest in people wanting to purchase a new home. Prices are right, interest rates are at historical lows, and if a sandstorm of bad news hadn’t blown nationwide, I don’t believe we would be having this discussion.

Olick also shared what I’ve noted as a shift in home buying patterns. At Mid-Atlantic, we are building more multi-generational homes that include either a guest or in-law suite. This additional family member offers extra help around the house and is often a source of supplemental income to help cover the cost of buying a new home.

Friday, July 29th, 2011

Savvy D.C. Home Buyers Defy the National Trend

Once again, embedded in glossed over negative national housing news, Standard & Poors/Case-Shiller’s most recent housing index showed home prices climbed 1.4 percent this June from the previous year. The Commerce Department concurrently reported the value of new home sales rose nationally, up to 1.6 percent, as compared with the corresponding period a year ago. Furthermore, over the past year, new home prices have climbed 7 percent.

The Washington D.C. housing market continues to lead the country in sales and price appreciation so worrisome headlines needn’t apply here for some time. With that in mind, the Washington Post’s headline Housing market remains weak, data show might be enough to make you blink twice. Look no further than Bloomberg’s report for a more balanced story: Washington Homes Buck National Housing Price Decline.

The bottom line is, and this should come as no surprise to frequent readers of my blog, housing in Washington is bouncing back with relative quickness and strength, something not seen in most places across the country.

At Mid-Atlantic Builders we are experiencing increased traffic, higher demand and an uptick in sales, which means getting into one of our premier communities is growing tougher. If you’re looking to buy, wait no longer.