Maryland ranks second in U.S. for larger homes

31.1 percent in Anne Arundel County have at least 4 bedrooms.

Jeaneene Scott, a 44-year-old mortgage lender, moved her family from a Crofton townhome into a five-bedroom home at the Homeport community in Edgewater. Jeaneene Scott never thought she'd own a mansion. But this month, the 44-year-old mortgage lender moved her family from a Crofton townhouse into a five-bedroom home in Edgewater. "It's definitely a dream home," said Ms. Scott. "My son said it's the perfect hide-and-go-seek house."

Anne Arundel ranks eighth statewide, with 31.1 percent of occupied homes with at least four bedrooms, according to a recent U.S. Census Bureau report. And that's a safe sign the demand for McMansions here is still hot.

Calvert County took first place with 42.8 percent of homes equipped with four or more bedrooms. Howard County came in second with 41.9 percent and Charles County followed with 40 percent. Last place went to Baltimore city, which had 11.8 percent.

Anne Arundel's larger housing stock helped Maryland rank second in the nation, with 28 percent of its homes having at least four bedrooms. The state came in just behind Utah with 39.2 percent. Meanwhile, homes are steadily growing on a national basis, with 20 percent of occupied housing units having four or more bedrooms. That's an increase from 17.7 percent in 2000.

John Kortecamp, executive vice president of the Home Builders Association of Maryland, said he thought Anne Arundel County could rank higher if it weren't for zoning rules that limit home construction to "pretty much anything but age-restricted housing."

In Anne Arundel, Winchester Homes is building the larger homes that Ms. Scott and other home buyers are seeking. Winchester's 29-unit Homeport community off Solomons Island Road sells multi-bedroom homes starting around $1.2 million.

The county's affluent population has helped drive demand for the community and roughly 20 Homeport units sold since last summer, said Winchester President Larry Burrows.

"We have good job growth and household incomes, and we have a very educated, sophisticated customer base," he said.

Anirban Basu, chairman and chief executive officer of Sage Policy Group, an economic and policy consulting firm in Baltimore, said the proportion of large homes directly correlates to income levels. Anne Arundel ranks higher on the large-home list because of affluent communities like Severna Park and Annapolis, he said.

But younger buyers have flocked to less expensive areas, such as Odenton and Laurel because they may not have the wealth to purchase a four-bedroom home, or need to, he said.

Mr. Basu said that co-existence of residents with various income levels contributes to Anne Arundel's diverse and robust economy.

"Efficient economies are diverse economics," Mr. Basu said. "It doesn't just take the lawyer or the lobbyist to sit at lunch and have a power meal. Somebody actually has to serve the meal."

Mr. Basu said he expects home size to dwindle thanks to a growing number of empty nesters and baby boomers who want to downsize. The smaller-home trend already is taking place.

Buyers bought 197 county homes with four or more bedrooms last month, down from 273 in April 2005, according to the Metropolitan Regional Information Systems.

Charlie Buckley, a Realtor with Long & Foster who sells waterfront homes in Annapolis, said his clients are empty nesters and baby boomers looking to shed the "six-bedroom home."

These clients are saying "I just sold my big house in Potomac, my kids are grown now," he said.

Mr. Buckley said he's working to fill their needs with a builder who develops 3,000-square-foot waterfront homes that are "top quality" and "priced under $2 million."

"We always sell these houses right away," he said. "These houses have everything you would expect in a 6,000-square-foot house but they're 3,000 square feet." (www.hometownannapolis.com)

Maryland: Forestalling foreclosures

For homeowners floundering under burdensomely high subprime mortgage payments, help is on the way - but it's unlikely to meet the demand or head off the 2.2 million more foreclosures expected in the coming two years.

Since Congress began looking into skyrocketing foreclosures tied to the subprime lending industry, federally chartered financiers Freddie Mac and Fannie Mae have pledged to provide loans with more reasonable terms, and at least two national banks, Citigroup Inc. and Bank of America Corp., have promised $1 billion in mortgage refinancing to help borrowers in trouble. But what look to be big bailout plans may not be enough to keep houses lost in foreclosures from blighting neighborhoods. States need to step up as well, and some are.

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Maryland, with one of the lowest foreclosure rates in the country, was out in front of the problem last June when it established its Lifeline Refinance, a program that will provide $20 million in relief for borrowers falling behind on loans with adjustable rates and balloon payments. Trouble is, no one is taking advantage of it; fewer than a dozen people have applied, even though the program can serve 100. The state must get the word out and be ready to meet the need.

Ohio, which is leading the nation in home foreclosures, has put together a $100 million package to refinance loans. Massachusetts Gov. Deval Patrick was shamed into assisting homeowners who were facing foreclosure after they protested outside his office - Mr. Patrick once served as a director of one of the nation's biggest subprime lenders. He is talking about criminal prosecutions of predatory lenders and making certain misleading tactics a crime.

A faster way to forestall foreclosures is for homeowners at risk to call their lenders directly. A 2005 survey by Freddie Mac and Roper Public Affairs found then - before the subprime crisis hit - that 50 percent of homeowners in foreclosure never even bothered to contact their lender. Housing counseling groups also can intervene, but homeowners have to first make that call.

Until now, Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate banking committee, has used persuasion to get some lenders to voluntarily lower interest rates for homeowners in trouble. But others are ready to introduce legislation that would require changes in the industry to ensure that borrowers can repay their loans.

More rigorous standards should be the norm, and the mortgage industry needs to better police itself and act more responsibly - because as foreclosures rise, calls for tougher regulations are sure to follow.
(Baltimore sun)

New Initiative Helps Maryland Homebuyers Avoid Foreclosure

ANNAPOLIS, Md. -- Statistics show Baltimore city sees nearly twice as many home foreclosures than Philadelphia.

To combat that, lawmakers have created a new initiative to help potential homebuyers make good decisions when choosing a mortgage lender.

According to Rep. Elijah Cummings, D-Maryland, people need to realize the history of some of the firms that are available.
Click here to find out more!

"For example, if there's a 60 percent foreclosure rate and you know that from the beginning, then you've got to talk to somebody and say, 'Is this the right thing for me to do?'" Cummings said.

Cummings has introduced legislation in the past to strengthen regulations in the subprime lending market and to mandate preloan counseling.

(wbaltv.com)