Local housing and real estate markets thriving

Local housing market thriving

Area counties see increase in unit sales

Maria Smith
Cumberland Times-News

CUMBERLAND — By no means is the sky falling when it comes to the real estate market locally, Melanie Pratt Dimaio said.

As president of the Historic Highlands Association of REALTORS Inc., she and Linda Pluta, the association’s chief executive officer, said they want to dispel the picture of a dying real estate market the media has portrayed over the last year.

“Real estate is localized,” Dimaio said. “What they’re saying in the news is not true for every state, every county, every market.”

Allegany and Garrett counties are holding strong and have been noted as a stable market in Maryland REALTOR magazine.

Dimaio points out that while the state is off 33 percent in unit sales, Allegany is “one of the lucky ones” with an increase of 8.9 percent from October 2006 to October 2007. It is one of eight areas in the state to experience an increase in average sales price with a boost of 8.7 percent.

Garrett fared better, with units sold at an increase of 23.7 percent, but had a 13.6 percent decrease in average sales price.

Each of the two counties is considered one of 12 outperforming counties in the state.

Tim Brinkman, a real estate agent and the association’s publicity chairman, told Dimaio the residential business market remains solid in Mineral County, W.Va. What’s taken a hit is the second-home resort market and raw land.

Part of the reason the market has remained stable locally is that a large increase in home prices hasn’t been seen. The average cost of a home in Allegany, according to Maryland REALTOR, is $125,586, the lowest in the state. The same house would cost $372,746 in Garrett and in Talbot County, which has the highest average price, $562,277.

“I think we’re one of the best-kept secrets in the state,” Dimaio, who has worked as a real estate agent for 15 years and currently is with Long & Foster, said.

She said a seller shouldn’t expect to get rich buying a home in Cumberland and selling it two years later, but on the flip side, one won’t “get burned” either.

Even though starter homes at less than $100,000 are available, Dimaio admits it is harder for a young, recently married couple to purchase a home here than it was two years ago. But it’s far worse in Hagerstown and Winchester, Va.

Pluta’s advice is those starting out should buy a small home, renovate it, hold onto it for about five years and then graduate to the next level.

She also has statistics dating back to 1986 regarding the housing market in Allegany County.

From May through December of that year, 173 homes were sold for an average cost of $45,062. The average price has increased steadily, with 2007 seeing an average of $114,809. The market peaked in 2005, with the number of sales reaching 834, but while those have since decreased to 601, the value of homes has increased.

Nationwide, it was a good year last year despite what’s been portrayed about the market, especially in light of the subprime loan crisis, Pluta, who has been the association’s CEO for 20 years, said. In fact, 2007 is the fifth highest on record for home sales with 5,652,000 existing-home sales, according to the National Association of REALTORS.

She also doesn’t expect to see such problems trickle down to the local market, in part, because over-inflated prices haven’t been prevalent.

“We’ve just been steady,” she said. “And we’ve gone through our ups and downs.”

Allegany County is being recognized nationally for its real estate market with the national association starting to profile it along with Hagerstown and Baltimore.

“Our real estate market is very strong when compared to the truly bleak performances of other real estate markets across the country,” Dimaio said. “Real estate has historically and will, in my opinion, continue to remain a sound overall long-term investment.

“People will always need a roof over their heads,” she continued. “They are not making anymore land. So, if you need a home, don’t be afraid to buy one.”

For more information about the Garrett County & Deep Creek Lake real estate market, log on to www.ilovedeepcreek.com.