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December 2015 Archives

Home prices rising at fast pace

There are some positive signs for Maryland real estate investors, as home prices are continuing to rise. On Dec. 29, an announcement was made that the S&P/Case-Shiller index of property values rose by 5.5 percent for 20 U.S. cities from October 2014 to October 2015. Previously, data for the same cities showed that home prices had risen by 5.4 percent for the year ended September 2015. Home prices rose by 5.2 percent nationally.

Banking regulators tell banks to tighten loan standards

Federal regulators have warned banks in Maryland and across the country about the consequences of loose lending practices. In a joint statement issued on Dec. 18, the Federal Reserve's Board of Governors, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation said that they were particularly concerned with commercial real estate loans.

The impact of an interest rate increase on real estate

Stories about falling unemployment rates and a rebounding economy have led many in Maryland to believe that the worst of the 2008 financial crisis is now behind them, but fears that interest rates may soon be on the rise once again have led to nervousness among some real estate investors. One of the most relied upon ways to determine real estate market value is looking at the spread between Treasury yields and capitalization rates. According to experts, this spread is usually about 270 basis points, but low rates and a strong real estate market have seen this spread grow to about 300 basis points.

Using a checklist for selecting a business location

Opening a business in Maryland can be an exciting prospect, but it is important to make certain that the chosen location will work for the new venture's purpose. There are many different things business owners should consider when trying to decide if a particular property will be a good fit.

The importance of location in determining real estate values

Real estate brokers in Maryland and around the country are often quick to point out that location is the most important factor in determining residential property values. However, the full impact that location can have on the price of a home may be surprising. A house that would sell for $100,000 or less in some parts of the country could command a million dollar price tag in an exclusive oceanfront community, and even renovated properties with high curb appeal may languish unsold in some neighborhoods.