Recent news strongly suggests that things have not yet reached the bottom. Thomas Ruark has abandoned his plan to do a major development (Nutters Crossing II) that proposed about 650 dwelling units, including 270 single family homes, on the east side of Snow Hill Road just outside the Salisbury City limit. The 268 acre site is now on the market, after several years of review by Wicomico County boards and agencies.
Other significant residential or commercial projects that have become dormant: the old Salisbury mall site, the Hearne property on S. Division Street, “Waller Landing” in Hebron, and the proposed subdivision at Whiton, and there are others. What the economy hasn’t stopped from happening, environmental activists and other NIMBY’s have. And projects that have begun are slow or dead in the water – the Aydellotte PUD on the new collector road, Schumaker Landing, etc. Then there’s that monstrosity would-be condo on Fitzwater Street, a monument to folly.
Even with a mini-boom in the local market during the first six months of 2010 – 394 units sold, up from 271 in the same period of 2009 -- prices have continued to fall. In 2009, the average price during that period was $191,000; in 2010 it was $162,000. And foreclosures have increased: 274 in Jan-June 2010 compared to 148 in the same period last year.
Data for Worcester County is not as bad, but in Somerset County it is much worse – the average sale price has dropped by 25% and in June, compared to that month last year, foreclosures were up by 250%.
That light you think you see at the end of the tunnel may just be the headlight of a locomotive and train heading toward us. It’s called the “Obama-O’Malley Express.”
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
51 comments:
Probably no worse than the rest of the country
Homes are still overpriced on the Shore(along with a lot of places in the US). With no good jobs, no industry(unless you count pharmacies & chickens), artificially depressed wages(Thank the Good ol' boys)...should I continue? The way to prosperity isn't through more retail/hospitality jobs. There is no real incentive for local kids to stay around, we want to get ahead in this world. The Shore's my home, but I'm not going to sacrifice a brighter future just to stay home.
On the lack of "new" real estate, to be honest at this point and time, there is a glut of housing on the market. Homebuilders nationwide are severely cutting back on new projects. No reason to build em if they're not going to sell quickly. With as it looks now a third straight year of record #'s of foreclosures, people are holding off buying. Why buy today, when more then likely you'll find a better deal tomorrow? It's a great time to buy, with the lowest interest rates since the 1950's, but 10% unemployment(even though we know the real number is higher), in an uncertain economy...most people are still very reluctant to jump into the biggest investment of their lives.
Yes, because Obama caused the housing crisis. Don't you do do's see that unless we take a hard look and address the real problems objectively, we are bound to stay mired in the same interparty squabbles that drug us down this road?
The rest of the story is that Salisbury/Wicomico has been overbuilt. This is partly thanks to the grow or die - annexation and maga-developer mentality. If the area had concentrated on good development accomplished primarily by local builders we could have been adding homes, and well-built ones at that, at a practical pace. According the the state, the area only needs an additional 900 units over the next 10 years. This has as much to do with poor planning and a shortage of visionary leaders as it does the economy.
The American dream is dead.
Well I have heard that Ayedollette's builder is going under so it won't get finished...Another dead property in Salisbury, nothing like having yet another abandoned property in Wicomico County.
Funny how this all started under 8 years no rules, crazy spending, with tax cuts. But it is Obama's fault....not.
You can keep beating that drum but people are not that stupid.
You can blame the banks for giving loans to those Eastfields developers. They live like the rich and the Wicomico County Taxpayers will end up paying the price. Hey anybody know who's funding these guys? So we can take our business elsewhere
What about that senior housing project on Route 50 next to the nursing home -- "something or other Pointe" -- and that mid-rise condo on Riverside Drive that's still mostly unsold.
I heard that another local builder just declared in bankruptcy but done know who it is.
as much as i respect my elders creating attractive retiree homes hurts the locals
these people have raised their kids elsewhere invested in communities were it paid off when they sold their homes and now come here on fixed incomes and don't wanna be taxed for schools or infrastructure yet reap the rewards that generations of locals have toiled to make a community
what was once quaint and down home living has all the beauty and charm of just another sprawling maryland suberb Glen Burnie comes to mind
You people can blame Bush all you want but I know I was working and making a good living under Bush. With Obamma I'm sitting home on my a$$ wondering how I'm gonna make it some change that is!!!
The new rules about septic systems aren't helping either.
What about having a County Exec who wants to raise taxes (after ditching the revenue cap). Pollitt sure makes Worcester and Sussex County look good
The collapse of our economy and the obvious manipulation of the stock market are the planned agenda of the elite international bankers.
It has nothing whatsoever to do with the puppet who occupies the White House.
Unless Americans learn the truth about how our government and economy are absolutely controlled by international bankers, we will collapse totally as a society in the very near future. It may already be too late to stop the collapse.
Save FOOD, water, clothing, bullets and batteries. It is going to get ugly
Agree with 10:23 and 10:33.
How is what is happening here any different than anywhere else in the country? Or any different from the crazed condo building in Ocean City decades ago?
We don't need that more housing. The whole country is suffering. We're better off in many ways. Why make these projects sound like something special when they weren't smart moves to begin with?
Not only is this report of the real estate market conditions accurate, a continuing decline in values and increased foreclosures will result due to the policies passed and proposed by the Obama adiministration. The worst is yet to come.
i hear that local builder that declared bankrupcy is the builder at the old aydellote farm. nobody has done any to it. whover owns that shoppin center may as well forget iti have to live in subsidized housing becaue i lost my job.
10:24 and 11:52 I am so sick of every one blaming Obama, when it has been in the making for years under BUSH! This didn't happen in the last year! You don't need to build new houses, just repair the old ones! Keep a little land and stop over building.
10:33: I Agree---Poor Vision & Very poor planning from our County!
10:58: Yes, this Countrys crisis most certainly started Before Obama took office! I personally don't care for him But--
he was left in "One Big Mess!" I doubt seriously anyone can "Fix It!"
I drive by thgere evry day going to north salis and i see a lotta workers building buildings. So is it finished or what??
Joe, this is a very good but sobering post. One of the hardest things to be as a real estate agent is a realist. After working short sales and foreclosures for most of my career, I am most certainly a realist. The one question I am asked the most is "when will the market recover?" I tell most people the same scenario. Say you have 10 listings in a neighborhood and one of them is a short sale or foreclosure, if your the buyer, which one do you look at first? In my opinion, we will not see the market recover until the short sales and foreclosures stop bleeding. Buyers will always compare even fair market sales to these discounted properties and markets have to adjust down to them. I think we need to let these foreclosures and short sales proceed and releive the deppressed market. That is when we can expect things to rebound. You cant expect things to change when almost 80% of our local market is short sales and foreclosures!
Regards,
Joel Maher
Short Sale & Foreclosure Certified
Get it together. One type of firearm won't be sufficient. A long range rifle, a combat pistol with 4 mags, a shotgun, and an assault rifle with at least six mags. At LEAST a thousand rounds for each weapon. Secure these weapons in a safe place that is within easy reach. Stockpile canned goods and other non perishables. Plenty of clothing and extra pairs of boots. Candles, rechargeable batteries, and solar panels to recharge the batteries. Water purification systems. they can be had for less than 50 bucks and can filter thirty gallons of safe drinking water a day. prepare. it's coming.
1:17 Obama and his socialist administration is destroying America.
It is most likely things will get ugly, just what Obama wants
1:42 Alot of brokin dreams there.
ha ha, we see who has had their daily dose of Rush today.
1:42, thanks for some objective "nonpolitical wahoo" insight.
Sorry to see people lose their homes, but for young couples looking to buy such as myself and fiance, it's a bonanza right now.
When someone like Ruark who owns tons of property is hurting,youknow things are bad.
I've done ok under both Presidential administrations. I bought a home in 2004 at a low fixed rate. Sure my home's value is slightly less now, but my mortgage payment is still the best deal in town. I'm glad I didn't live outside my means. I usually wonder who in this area can afford homes in the 250,000 range & up and now there's a glut of them.
A socialist AND a communist AND a Muslim? Wow! Pretty impressive, especially since each of those categories excludes the other. Grab yer guns, Martha! The sky is falling!!!
I'm of the opinion that the democrates are absolutley nuts. They support this idiot of a president that has brought this country to its knees. Now the mexicans are pulling the race card with the people of color (brown that is ). I guess if it worked for the negros(blacks) , it will work for the mexicans.
That is the answer to our economic crisis , we are supporting 30 million mexicans and negros. Social security , welfare , food stamps , free housing on and on. and on.
It's getting much worse , a bad situation. My brothe is a builder and hasn't built a house in 2 years.
That Obama express can be stopped with the right tools. Think hard I'm sure if all the Pelosi , obama , Biden went away , the cancer would be cured. Lets try to vote in nov. , it may help if they haven't ruined our country by then.
All of the approved subdivisions that have not been built out will have to be completely redesigned if they haven't built their infrastructure due to the new storm water management regulations so don't be fooled by all of the numbers that are out there. It is like we hit a reset button.
I believe it is getting worse and we haven't seen rock bottom, yet. I, along with my husband, purchased a house 2 years ago and then we thought we got a 'deal'. We purchased the home $35k less than what it was listed for. We put about 15k at least of work into it (new top of the line HVAC, carpet, pergo type flooring, light fixtures, painted the entire house, etc) and today because we've gone through a divorce, the house is listed for less than what we paid, we've gotten no offers, and we're probably going to have to pursue a short sale or deed in leiu of foreclosure. The fair market value of our house is less then what we paid although we got a 'deal' and brought the house from shabby to updated. It blows my mind. The real estate market is horrible and I have to agree with 142 that until the short sales/foreclosures aren't saturating the market, we're in for a difficult time. I wish I could afford to keep my house but not on only one income and children to feed. I guess my house will join the short sale/foreclosure club before long
The polices of the Clinton and Bush adminstrations (and you can go back further if you want) are responsible for the housing and economic mess we are in. Obama is just cleaning up the mess. Anyone blaming Obama for the current economic dysfunctions has a serious screw loose.
The problem was that the people were foolish enough to think they were actually getting "good deals" during the bubble. It was like buying Walmart stock now as opposed to 20 years ago and think you have a big winner.
I just heard of a builder that is going to file for bankrupcy to escape the banks and his debt collectors. He owes money to many local banks, is going to screw some other people in the process as well. I think he had his hand in the Aydlette Farm project (Beaglin Park ext) with the likes of the other bankrupt developers and people that should be thrown in the slamer with the likes of the Enron guys.
He even made a deal with a bank to make interest only payments on his own home so that he can afford to not default on it. He has financial assets and is hiding them places so the banks can't find things to sell to payoff his collectors.
I guess this will leave a lot of people suffering because of his finanical wrong doings. I hope they throw him in the slammer and throw away the key.
All I have to say is what comes around goes around.
There was a belief that real estate prices could not fall all across the country at once. In fact, the belief held that prices would generally rise forever.
This belief was held by the people, the government, and the banks. Here and abroad.
This belief fueled government action,home buyer action and investor action.
The belief was wrong.
Prices are now resetting at a much lower level.
3:39 If you want to talk about your options before even going through a short sale, to see if there are options,please call me.
Joel Maher
410-603-0726
You can lose everything but if you lose hope, well your in a world of hurt there. Commision free?
10:58 It started with your boy CLINTON
3:48...no I won't blame obama for the housing market (although he did get $$$ from fannie/freddie during the boom) but I will blame him for the lousy unemployment numbers.
You stupid Obama defenders have NO CLUE ! It started under Clinton when he forced banks to lower their standards and give loans to people who couldn't afford them . While Barney Frank and Chris Dodd who were supposed to be overseeing Fanny Mae And Freddie mack looked the other way !Democrats caused this and cannot hide from it !
The Community Reinvestment Act was adopted under Carter. It encouraged FDIC insured banks to loan money in zip codes from which they received deposits. If they did not, the govt. might not allow them to open a new branch or acquire another bank. It also only applied to conforming loans (20% down). This was done to stop redlining, refusing a loan because of race.
75% of subprime mortgages were originated by non FDIC insured mortgage companies that did not fall under this program.
So 5:18 iswrong.
somehow I don't think the revolution is going to be fought with canned food and carbides and wing nuts that have time on their hands to espouse conspiracy theories on internet blogs all day
well, with no job and no money and can't afford cable anymore our family is playing cards and board games. we now eat that canned meat treat and store brand macaroni. we are shopping at yard sales and we don't miss the mall at all. restaurant food is to high in fat and sodium and we are actually looking for recipes in our recipe books. those developers live in their own head and don't come down off there pedestal to live like the little people. they could have left the ROAD TO KNOWWHERE NECR alone. And that commercial property they are trying to build can forget it.unless we can buy our canned meat there, the world can live without another stupid strip mall. what a waste of money. who in there right mind cares about a short cut to the mall. ryan homes is a nationwide builder. i have been in those developments, the houses look like they are thrown up, siding blowing off the house, in my opinion they are JUNK. giving money to people to build who can't live within their means and blame everyone else for their problems need to leave the area. you are a blight on our tax base. i know this builder who is going under and i say anybody that loaned you money needs to go down with you. thats what a capitalistic country is about. when i can afford to buy a house again it won't be ON THE ROAD TO NOWHERE. KK YOU ARE GOING DOWN AND NOT A MINUTE TO SOON.TAKE RESPONSIBILITY FOR YOURSELF AND STOP BLAMING EVERYONE BUT YOURSELF JUST FILE ALREADY SO WE DON'T HAVE TO HEAR ABOUT YOU ANYMORE
Grande Point on Healthway Dr., has gone under. Look at the way the developer, Rubino Inc., has left that property, big holes in the ground and weeds up to your chest. Was suppose to be senior condo's, for 55 and older. With six buildings, three stories high. What an eye sore, with one building with one floor framed in, last August. Sitting there rotting.
This is all a real safety hazard for the neighborhood. What happens when a child gets hurt there. Who is responsible. The city and county doesn't seem to want to make the developer do anything about it.
How about how all that growth that was to pay for itself. Every little town here on the shore wanted all that developement. It was to increase the tax base.
Well, yes it increased the tax base, but it also burdened the system because for every $1 increase in tax revenue it was costing them $1.50+ in expenditures. None of the shore towns have people in place that are qualified to do budgets and actual financial planning; thus every municipality and county is broke.
People usually get on a town council because they have a personal grudge to play out. That does not qualify them to run government.
Here is the the one quality everyone in office should have: They must have signed a payroll check; not just received one. This would correct a lot.
I just returned from a trip to my midwestern hometown. There is so much growth and construction that my wife joked about how the economy isnt affected by the recession there. It makes this area seem even more pathetic since my hometown is in Illinois and its one of the worse states for government BS. The shore is what happens when unqualified ppl are in charge of local govt and spending. The good ol boys here are looking for nothing more than to deepen there pockets. Coupled with a general public that doesnt care about much, you then have the perfect storm for the low standard.
"gwoth will pay for gwoth" - that's what he was told to say down at the freemason hall
So Joe you cant post anything negative about these developers. DO some research see which ones bought off for perk testing. Which ones went out put sand in areas of the property so they would show perk to fool the inspection tests. Which ones have been ripping off the public for years and now want to complain because they are hurting and cant afford their big houses and boats.
Yeah I feel sorry for them. I dont think much of the huge builders, the rip off artist used car salesman acting as Realtors. They worked hard to bend any rule to make more, and more money. You know who they are and I do not feel a bit sorry for them.
With 51 comments, Joe, this one is a hot issue here on the Shore.
Please give this topic more coverage as it appears to be on everyone's mind.
Thanks
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