Sales of existing homes fell sharply in November, but prices rose and a change in federal closing rules may be to blame for the drop-off.
The rate of existing-home sales fell to its lowest pace in 19 months, according to the National Association of Realtors. Sales fell 10.5% on a seasonally adjusted basis to an annualized rate of 4.76 million, compared to 5.32 million in October.
But the median sale price for single-family homes, townhouses, condominiums and co-ops rose 6.3% to $220,300, compared to the same period a year earlier.
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The increased cost of construction is attributable in MD to the 1. new Sprinkler Law ($8000 for an average 1500 sq.ft. rancher, but if you need a second 4" well and bladder tank for water pressure add another $5500), 2. the new MD Energy Code ($4000 increased cost of insulation, walls, windows, doors and a new blower door test for the same 1500 sq.ft. rancher, Note: all this stuff is good but it's mandatory not voluntary, this law kicks in for a 400 sq.ft. addition), 3. the new state wide mandatory nitrogen removal septic tank rules (The cheapest new BAT system-septic tank is $11,000-some are as high as $17,000-All of this was based on O'Mally's representation that 7% of the Bay nitrogen comes from septic systems for which there is no evidence to back up-Environmentalists will point out that the Health Dept. has Flush Tax free money for these systems, at least until it runs out) 4. and the new FEMA mandated Flood Maps and construction elevation requirements-($2000 to $4000 in foundation and fill dirt costs depending on location for the 2,3,4,5 or 6 feet higher than earlier requirements) 5. and finally if you are fortunate enough to live around/on the water, you might as well hand over your check book-any construction that disturbs over 5000 sq.ft. has Stormwater Management Requirements-if you live on the water there will be extremely expensive planting requirements within the first 100-200 foot Critical Area Buffer-likely you won't be permitted to cover more than 15% of the lot with impervious surface area or build in the Buffer-and you thought that you owned the land, the State is just allowing you to use it. Remember it is all about getting control of the land.
ReplyDelete455-This was "existing" home sales data. Not new home sales.
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