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Category Archives: Frederick Real Estate Market Statistics

Monthly real estate statistics for the Frederick County Market. A long-term look at what the numbers are doing will help buyers and sellers have a better strategy in purchasing or selling their home.

Frederick Real Estate Market Trends

Frederick Real Estate Market Trends

Frederick County Real Estate Market Update

Provided by The Highland Group  ~ February 2017

Real Estate activity in Frederick County is picking up and the spring market is here. Here is a snapshot of Frederick County real estate statistics in February:

Real Estate Trends in Frederick Md

Average Home Sales Price:  $286,295 , very close to last year by -1%.

  • Average Single-Family Sales Price:  $353,484, up 4% from last year at this time.
  • Average Attached Home Sales Price:  $214,349, up 2% from last year.
  • 121 single-family homes sold,  14% less
  • 113 townhomes and condos sold, 23% More! 
  • A total of 234 homes sold in February, almost the same as last year, at 233.

Median Home Sales Price:   $251,250 compared to $265,000 last year: down 5%. More homes sold in the lower price ranges, as evidenced by the number of attached homes compared to the number of single-family homes.

Average Days on Market (DOM) the time it takes to get a contract: 77 days, down 21% from last year (97). This is a direct reflection of Demand in our market.

Number of Homes Sold:  There were 383 new pendings (homes that went under contract) 9% more than last February. The demand is picking up as we head into the spring market.

Total Listings in Frederick Md: 785, down 23% from 1,021 last year. The inventory is a very low number for Frederick County. We’re in a seller’s market until the inventory increases, with a 2 month absorption rate.

** If demand is still strong for the season and inventory is decreasing, this is a good time to sell!

Sellers got 96% of list price on average, compared to 95% at this time last year. The fact that this number is higher than last year shows that the demand is strong, even though its winter, when the market usually slows down.

Keep in mind: In some price ranges, in some areas of the county, there is naturally a higher demand and the market is more competitive for buyers. Some neighborhoods, like Urbana, Middletown and several in the city of Frederick, are in high demand, and have lower absorption rates.  Some smaller communities on the outskirts of Frederick County, Myersville, Thurmont, Woodsboro, are typically less in demand and homes take a little longer to sell…but not much longer.

When we drill down to the neighborhood level, there are differences in demand as well. All reasons to consult an to find out supply and demand in your area.


See Homes for Sale in Frederick Maryland


What’s Notable:

  • The spring market is here. Mortgage applications are up, signifying larger numbers of buyers entering the market soon. If you’ve been waiting for the right market to sell, this could be it. High demand and low inventory.
  • With less than 800 homes listed on the market, and note that 222 are new construction, that really means that there are about 550 resale homes.

What’s My Frederick Home Worth?


  • Interest rates have been hovering just above 4% recently, but that’s still incredibly low! See today’s rates.
  • We will expect multiple offers on the homes that are in great condition and priced at market… and this will continue to put upward pressure on home prices. Homes that are priced well and in the best condition, and in areas of demand, are sold in weeks or even days.
  • Cash deals were 13% of sales. As appreciation is expected, we’re still seeing Investors and flippers in the Frederick market. 38% of loans were with Conventional financing, outpacing FHA loans, which were 30%. 8% were VA.
  • **The majority of home sales took place in the $200,000 to $300,000 price range. 33%. Interesting note: The majority of listings are in the $300,000 to $400,000 price range, 26% where 19% of homes sold.

February 2017 Market Statistics provided by MRIS (Mid-Atlantic Regional Information System)

*MRIS – Metropolitan Regional Information System – These statistics are not guaranteed but are considered accurate. Frederick County Real Estate Market Trends for February 2017.

Contact Chris Highland to see homes for sale in Frederick Md.


301-401-5119

 

 

Homeownership, Buying and Selling Frederick MD: What to Expect in 2017

Homeownership, Buying and Selling Frederick MD: What to Expect in 2017

Central Maryland Real Estate Predictions for 2017

It’s that time of year again…and the Highland’s are getting out the crystal ball. I’ll be honest, when the market is in positive territory, we love to share our opinions, without feeling like they’re wild guesses. When there’s a lot of negative news, we’re pretty quiet. In matters of real estate, what can we expect in 2017?

Takeaways:

  • Homeowners can expect more modest gains in home values.
  • We expect demand to continue throughout the winter and into spring in 2017.
  • Interest rates are predicted to climb into mid- and upper-4’s. But…we’ll see…
  • We expect overall increases in sales, but in certain demographics and neighborhoods, there will be a robust real estate market.
  • New home building is back.

Increase in Home Values

In Central Maryland, we’ve seen a healthy recovery over the last 4 years. Most of the gains were seen in 2013, with an increase in the average home price of about 11% throughout the year. In 2014, average sales price increased roughly 1%, and in 2015 it was just over 1%. In 2016 we saw a brisk pace of sales with a less than ideal inventory, so we saw a 2% increase in average sales price over the year. See the chart for comparison:

 

Median sales price, which is often a better signal of what the market is doing, rose 2.5% from $265,700 in 2015, to $272,300 in 2016.

 

In 2016, average sales prices for single-family homes increased a 2%, from $341,300 to $349,300

while townhouse sales price increased 3% on average, from $222,300 to 228,500.

 

In 2016 we saw the demand increase 11%, from 3701 units in 2015 to 4093 units in 2016. At the same time, the average monthly inventory decreased by about 9%, shifting the market closer to a seller’s market, but still very balanced with a 4-month inventory throughout most of the year.

 

With a continued demand and an increase in inventory, we see no reason why home values won’t increase in 2017. The reason why we haven’t seen values skyrocket is two-fold:

  • The time on market increased in 2015 to 72 days (from listing to contract). In 2016 it was a very similar 73 days. Demand increased, listings decreased, but buyers still took their time.

The Highland’s take on this: The urgency is gone. 

  • We’ve been hearing that the interest rates are going up for two years now, but it hasn’t happened (significantly). We got a recent bump in rates, but then they just came back down. Buyers are aware of that. The frenzy to take advantage of low rates has dissipated. (The Fed raised rates at the end of 2016.)
  • Due to these factors, average home prices are increasing very modestly. Again, no urgency to take advantage of low prices and rates. Yet.

Real Estate Demand in 2016

As the economy strengthens, more jobs, 2.2 million in 2016, according to Bureau of Labor and Statistics, increasing consumer confidence, especially in the Washington D.C. Metro area, demand should continue at the pace we’ve been seeing for a few years.

Additional Reading:  These 5 Trends Will Shape the Housing Market in 2017

New households are forming, rents are rising (as much as 8% in 2016!), mortgage rates are low, and conditions are good for first-time buyers. In 2016, the majority of homes sold in Central Maryland were in the $200,000 to $300,000 range…many were first-time buyers.


 

Find out: What’s My Home Worth?  Get an online valuation. We’re also happy to do a custom Comparative Market Analysis.


 

Real Estate Inventory in 2016

As more homeowners gain appreciation, we’ll see more homes on the market. There is a large number of homeowners waiting for the return of equity so they can move on with their lives….those we’re calling “right-sizers“. This includes move-up buyers, downsizers, retirees, and those who desire to move to another location. As finances get healthier, we even expect more homeowners able to purchase second homes than we’ve seen in years.

According to Core Logic, Negative equity in U.S. homes (the share of mortgaged homeowners that are underwater, owing more on their home than it is worth) has steadily declined since a high of 31.4% in the beginning of 2012, to the most recent statistic of 6.3%, in the third quarter of 2016. Down from 13% one year ago.

New Home Sales

Frederick Real EstateBuilders have stopped avoiding the lower priced entry-level homes. The median new home price has come down over the last year, which shows that builders are responding with more affordable priced homes.  New homes jumped 16% year-over-year in 2016 nationwide.

In Frederick Md, we have many new construction projects underway.

 

Interest Rate Prognostications

It used to be easier for the economic experts to forecast what interest rates will be. With the increasing global economy, it’s gotten much more complicated to predict what will affect interest rates and what the Fed will do, and how banks and lenders will respond. Most predictions I’ve read are calling for 5% by the end of 2017. We’ll see.

Who’s Buying and Selling?

Millennials are expected to make up a larger portion of homebuyers this year. In 2016 they started to step into the housing market, and are expected to continue in the same pace throughout 2017.

Boomerang Buyers are back. During the housing crisis, more than 7 million homeowners suffered a foreclosure or endured a short sale. Many have healed financially and are ready to enter the homebuying market again. We’ve helped a few get back into homeownership this year. Typically, it takes an average 7 years to recover financially and credit-wise. Since the problems began in 2007, boomerang buyers are in recovery.

Right-Sizers, …basically, anyone who has been waiting for enough equity to move on, whether it be up, down or away. With negative equity down to 6%, we think many homeowners will be able to sell.

What Are they Buying and Selling?

We’ve seen a bifurcated market in Frederick Maryland for several years. Homes priced under $350,000 are appreciating, particularly townhouses. Homes priced over $500,000 are not appreciating much, and in most neighborhoods are taking longer to sell. Luxury homes, above $750,000 are beginning to sell again. But price appreciation is something we’re not seeing yet.Villages of Urbana Neighborhood

We expect a little more trickle up in the real estate market this year, as we will inevitably see more move-up buyers. The exception to most of these market trends is Urbana. The Urbana real estate market is and has been much more robust than most of Frederick County. The time on market is measured in days, while it’s measured in months in many outlying communities, like Myersville, Thurmont and Walkersville.


 

Find out: What’s My Home Worth?  Get an online valuation. We’re also happy to do a custom Comparative Market Analysis.


 

2016 Real Estate Market Trends

One of the national trends that we are seeing here in Maryland is the move to the city. Downtown Frederick is once again seeing increased building and an influx of home buyers.

  • Maxwell Square is complete, with the last row to be built. After 10 years of a stall, and a new builder taking over, the luxury townhouse-condominiums on 5th Street sold between $375,000 and $450,000.
  • Several infill homes have been built in 2015, from the Hemby homes on 5th Street, to several one-off’s here and there. We will more than likely see more in the coming year, as well as more renovations on older downtown Frederick homes.
  • North Pointe is in the final stages, with six homesites left. (as I type this…)
  • Just 4 blocks from downtown Frederick, the Eastchurch development on East Church Street is well underway. KB Home, Richmond American Homes and Wormald Homes are building condos, towns and single-family homes.

Another trend is the Demand for Amenity-rich suburbs. As some buyers get priced out of city centers, they’re looking at suburban housing but in a different light than in the past. The neighborhood “town center” has become a big demand. We see that in the newer developments in Frederick: Tuscarora Creek, Eastchurch, and Market Square. The Worman’s Mill town center is next on the agenda, finally coming to fruition after about 20 years.

Also called “Surban” communities—suburban neighborhoods offering the most desired features of urban and suburban living—will attract the most households in the United States over the next ten years, according to a demographic study by the Urban Land Institute.

Real Estate Trends that Never Go Out

No matter whether we find ourselves in a buyer’s or seller’s market, or no matter what demographic we are reaching, some things remain constant:

Sellers – If you want top dollar for your home, it must be in the best condition for the comparable homes in your market, and it must be priced right. These things never change.

Right-Sizers – Regardless of the market, deciding whether it’s the right time for you is a life-style choice. The right time to sell and down-size, up-size or move away, is when it makes sense to you…and when you have enough equity to do so.

First-Time Buyers – Interest rates are the number one item that affects affordability, over price of home. See this article on the affect of interest rates. Even so, with all the changes in market dynamics, there are basic questions you need to ask yourself to determine if this is the right time for you: Job Security, good credit, a plan to stay 5-7 years, a bit of money for a down payment, and the ability and desire to own your own home. Read more: Six Considerations Before you Buy Your First Home

 

Homeownership, Buying and Selling: What to Expect in 2017

Sellers, if you’ve been waiting for home prices to recover, 2017 may be a good year for you to be able to sell. The demand will be there, and even though the competition will also be present, if your home is in good condition and priced at market, you should have success. It promises to be a good year for sellers.

Buyers, if you’ve been on the fence, 2017 should prove to be a good year to buy. There will be many homes to choose from, interest rates will more than likely remain in the low-to mid- 4% range, still historically low, and home prices have been appreciating slowly, off to a modest increase. It promises to be a good year for buyers.

Here’s to a prosperous and happy 2017 to our readers and friends! Contact Chris Highland if you are considering a sale or purchase in 2017.


 

Find out: What’s My Home Worth?  Get an online valuation. We’re also happy to do a custom Comparative Market Analysis.

Frederick County Real Estate Market Update October 2016

Frederick County Real Estate Market Update October 2016

Real Estate Market Activity for Frederick County –October 2016

provided by the Highland Group

Real Estate activity in Frederick County has increased over last fall. Here is a snapshot of Frederick County real estate statistics:

Real Estate Statistics in Frederick Md

Average Home Sales Price:  301,362 , up from last year by 14%, and up 2% from last month’s average of $294,596.

  • Average Single-Family Sales Price:  $345,763, up 6% from last year at this time.
  • Average Attached Home Sales Price:  $241,756, up 8% from last year.
  • 196 single-family homes sold, compared to 189, 4% More
  • 146 townhomes and condos sold, compared to 130, 12% More 
  • A total of 342 homes sold in October, 7% more than last year’s number of 319.

Median Home Sales Price:   $270,000 compared to $265,000 last October: up2%

Average Days on Market (DOM) the time it takes to get a contract: 70 days, up slightly from last year (68). This is a direct reflection of Demand in our market.

Number of Homes Sold:  There were 354 new pendings (homes that went under contract) 4% more than last October. The demand is certainly staying steady heading into Fall, pent-up demand.

Total Listings in Frederick Md: 1,147, down 17% from 1,386 last year. The inventory is decreasing, but still close to what is usually considered a normal number for Frederick County. We’re seeing a balanced market, for the most part, with a 3 month absorption rate.

** If demand is still strong for the season and inventory is decreasing, this is a good time to sell!

Keep in mind: In some price ranges, in some areas of the county, there is naturally a higher demand and the market is more competitive for buyers. some neighborhoods, like Urbana, Middletown and several in the city of Frederick, are in high demand, and have lower absorption rates. The communities on the outskirts of Frederick County, Myersville, Thurmont, Woodsboro, are less in demand and homes take a little longer to sell.

Sellers got 97% of list price on average, compared to 94% at this time last year. The fact that this number is higher than last year shows that the demand is still strong, even though it is fall, when the market usually slows down.


See Homes for Sale in Frederick Maryland


What’s Notable:

  • This Fall is turning out to be a good market to sell. If you’ve been waiting for values to rise, this year has been a good, steady year of rising values. If you’re waiting for a market with less competition, this is it. The inventory is pretty low, while the demand is still high.

What’s My Frederick Home Worth?


  • Interest rates have risen just slightly to about 3.7% recently, incredibly low! See today’s rates.
  • The number of sales have continued to be healthy as we enter the Fall months, with a higher demand than last year, we had a higher number of homes go under contract than last year, sometimes “Pending” is a term you may see. The total waiting to close is 671, compared to 629 at this time last year, an increase of 7%.
  • The inventory has decreased going into the Fall, which is usual for the season, and is lower than last year, but with steady demand, we might see more of a seller’s market. Up until now, we’ve seen a balanced market in most communities in the county. We will expect multiple offers on the homes that are in great condition and priced at market… and this will continue to put upward pressure on home prices. Homes that are priced well and in the best condition, and in areas of demand, are sold in weeks or even days.
  • Cash deals were 14% of sales. As appreciation is expected, we’re still seeing Investors and flippers in the Frederick market. 37% of loans were with Conventional financing, out pacing FHA loans, which were 27%. 11% were VA. Interestingly, 11% were “other” financed.
  • **The majority of home sales took place in the $200,000 to $300,000 price range. 34%

National Real Estate Statistics

  • Year-to-date, new home sales are running 13.4% ahead of the number in 2015*
  • The annual survey of recent homebuyers shows that 88% financed their purchase, according to the National Association of Realtors®, up from 86% last year. First–time homebuyers financed 96% of the home price, on average, while repeat buyers typically financed 84%. *
  • The average rate on 30–year fixed–rate mortgages in Freddie Mac’s survey climbed 7 basis points to 3.54% during the week ending November 3.

*NAR Statistics

October 2016 Market Statistics provided by MRIS (Mid-Atlantic Regional Information System)

*MRIS – Metropolitan Regional Information System – These statistics are not guaranteed but are considered accurate. Frederick County Real Estate Market Update for October 2016.

Contact Chris Highland to see homes for sale in Frederick Md.


301-401-5119

Frederick County Real Estate Market Update September 2016

Frederick County Real Estate Market Update September 2016

Real Estate Market Activity for Frederick County –September 2016

provided by the Highland Group

Real Estate activity in Frederick County is not slowing down for the Fall. Here is a snapshot of Frederick County real estate statistics:

Real Estate Statistics in Frederick Md

Average Home Sales Price:  294,596 , slightly down from last year by 5%, and down 5% from last month’s average of $313,500.

  • Average Single-Family Sales Price:  $336,134, down 3 1/2% from last year at this time…$348,677.
  • Average Attached Home Sales Price:  $224,861, down 6 1/2% from last year’s $240,546.
  • 230 single-family homes sold, compared to 219, 5% More
  • 137 townhomes and condos sold, compared to 112, 22% More 
  • A total of 367 homes sold in September, 11% more than last year’s number of 331.

Median Home Sales Price:   $270,000 compared to $279,900last September: down 3 1/2%

Average Days on Market (DOM) the time it takes to get a contract: 58 days, down from last year (68). It’s taking a shorter time to sell than previously. This is a direct reflection of Demand in our market.

Number of Homes Sold:  There were 366 new pendings (homes that went under contract) 2% more than last September. The demand is certainly staying steady heading into Fall, pent-up demand is the term we’re seeing a lot.

Total Listings in Frederick Md: 1,172, down 16% from 1,398 last year. The inventory is decreasing, but still close to what is usually considered a normal number for Frederick County. We’re seeing a balanced market, for the most part, with a 3-4 month absorption rate.

** If demand is still strong for the season and inventory is decreasing, this is a good time to sell!

Keep in mind: In some price ranges, in some areas of the county, there is naturally a higher demand and the market is more competitive for buyers. some neighborhoods, like Urbana, Middletown and several in the city of Frederick, are in high demand, and have lower absorption rates. The communities on the outskirts of Frederick County, Myersville, Thurmont, Woodsboro, are less in demand and homes take a little longer to sell.

Sellers got 98% of list price on average, compared to 96% at this time last year. This number has been steadily higher over the last year, illustrating the rise in home values.


See Homes for Sale in Frederick Maryland


What’s Notable:

  • Interest rates have risen just slightly to about 3.7% recently, incredibly low! See today’s rates.
  • The number of sales have continued to be healthy as we enter the Fall months, with a higher demand than last year, we had a higher number of homes go under contract than last year, sometimes “Pending” is a term you may see. The total waiting to close is 726, compared to 647 at this time last year, an increase of 12%.
  • The inventory has decreased going into the Fall, which is usual for the season, and is lower than last year, but with steady demand, we might see more of a seller’s market. Up until now, we’ve seen a balanced market in most communities in the county. We will expect multiple offers on the homes that are in great condition and priced at market… and this will continue to put upward pressure on home prices. Homes that are priced well and in the best condition, and in areas of demand, are sold within a week, or even in days.
  • Cash deals were 14% of sales. As appreciation is expected, we’re still seeing Investors and flippers in the Frederick market. 43% of loans were with Conventional financing, out pacing FHA loans, which were 25%. 10% were VA. Interestingly, 10% were “other” financed.
  • **The majority of home sales took place in the $200,000 to $300,000 price range. 29%

September 2016 Market Statistics provided by MRIS (Mid-Atlantic Regional Information System)

*MRIS – Metropolitan Regional Information System – These statistics are not guaranteed but are considered accurate. Frederick County Real Estate Market Update for August 2016.

Contact Chris Highland to see homes for sale in Frederick Md.


301-401-5119

Frederick County Real Estate Market Update August 2016

Frederick County Real Estate Market Update August 2016

Real Estate Market Activity for Frederick County –August 2016

provided by the Highland Group

It’s been a good year for Real Estate activity in Frederick County. It looks like the increased activity will continue into the Fall. Here is a snapshot of Frederick County real estate statistics:

Real Estate Statistics in Frederick Md

Average Home Sales Price:  $313,500, which is up 7% over last year’s August average of $293,500.

  • Average Single-Family Sales Price:  $354,900, up 6% from last year at this time…$334,600.
  • Average Attached Home Sales Price:  $233,900, up 5% from last year’s $223,200.
  • 266 single-family homes sold, compared to 199, 34% More
  • 138 townhomes and condos sold, compared to 116, 19% More
  • A total of 404 homes sold in August, (significant!) 28% more than last year’s number of 315.

Median Home Sales Price:   $286,000 compared to $265,000 last August: up 8%  (This means 1/2 of the homes sold were above $286,000 and half were below that price)

Average Days on Market (DOM) the time it takes to get a contract: 64 days, down from last year (70). It’s taking a shorter time to sell than previously.

Number of Homes Sold:  There were 417 new pendings (homes that went under contract) 2% more than last August. The demand is certainly staying steady heading into Fall, pent-up demand is the term we’re seeing a lot. It’s a good time to sell, because the demand is still strong.

Total Listings in Frederick Md: 1163, down 15% from 1370 last year. The inventory is decreasing, but still close to what is usually considered a normal number for Frederick County. We’re seeing a balanced market, for the most part, with a 3-4 month absorption rate.

Keep in mind: In some price ranges, in some areas of the county, there is naturally a higher demand and the market is more competitive for buyers. some neighborhoods, like Urbana, Middletown and several in the city of Frederick, are in high demand, and have lower absorption rates. The communities on the outskirts of Frederick County, Myersville, Thurmont, Woodsboro, are less in demand and homes take a little longer to sell.

Sellers got 97% of list price on average, compared to 97% at this time last year. This number has been steadily higher over the last year, illustrating the rise in home values.


See Homes for Sale in Frederick Maryland


What’s Notable:

  • Interest rates have been hovering around 3 1/2% recently, incredibly low! See today’s rates.
  • Sales have continued this summer with a higher demand than last year, we had a higher number of homes go under contract than last year, sometimes “Pending” is a term you may see. The total waiting to close is 777, compared to 666 at this time last year.
  • The inventory has decreased at the end of the summer, which is usual for the season, and is lower than last year, but with steady demand, we might see more of a seller’s market. Up until now, we’ve seen a balanced market in most communities in the county. We will expect multiple offers on the homes that are in great condition and priced at market… and this will continue to put upward pressure on home prices. Homes that are priced well and in the best condition, and in areas of demand, are sold within a week, or even in days.
  • Cash deals were 11% of sales. As appreciation is expected, we’re still seeing Investors and flippers in the Frederick market. 42% of loans were with Conventional financing, 25% were FHA. 10% were VA.
  • **The majority of home sales took place in the $200,000 to $300,000 price range. 34% more than 1/3 of sales.

August 2016 Market Statistics provided by MRIS (Mid-Atlantic Regional Information System)

*MRIS – Metropolitan Regional Information System – These statistics are not guaranteed but are considered accurate. Frederick County Real Estate Market Update for August 2016.

Contact Chris Highland to see homes for sale in Frederick Md.


301-401-5119

Frederick County Real Estate Market – Summer 2016

Frederick County Real Estate Market – Summer 2016

Frederick Md Real Estate Trends July 2016

provided by the Highland Group

July 2016 Snapshot:

Home Sales:

The number of homes that sold in July was slightly higher this time last year: 394 homes sold, 1% higher.

The number of homes that went under contract was significantly up, 24% over last July.The Summer market in 2016 is continuing in a healthy number of sales. 

Here’s a breakdown of sales by home type:

Of the 394 homes that sold in Jule, single-family home sales were up ↑ 6%, townhouse and condominium homes were down ↓ 7% across Frederick County. Sellers on average, got 97% of listing price across the board, compared to 96% at this time last year. This has been a consistent number for the last year.

Inventory:

The inventory of homes for sale in Frederick County has been that of a normal, balanced market. There are 1200 homes on the market this July, compared to 1399 last year. Down 14%, in a market where there is even more demand than last year.

Time to Sell is Decreasing

The average time it took to sell home in Frederick County was 56 days in July, down from 66 this time last year. This 15% decrease is a sign that demand is still up throughout the summer.

Summer Supply and Demand

FREDERICK COUNTY REAL ESTATE MARKET 2016 COMPARED TO 2015

The real estate market in Frederick County, like the summer weather, is hot. Home sales increased significantly at the beginning of the spring market, starting in March, just like the two prior years, but unlike the two previous summers, sales didn’t ease up. Real estate sales have remained robust all through the summer months. As of mid-summer, we’ve already seen a 14% increase in home sales in 2016.

While demand is high, the supply is good as well, causing a balanced market. As the median home sale price has risen just over 3% overall this year, we can expect that home values are on a healthy increase as well.

That comes with a caveat, though: “For homes valued under $400,000, we’re seeing a 4% increase in values,” says Wayne Six, with Six & Associates, appraisers in Frederick County. “As for homes above $500,000, although we can’t safely say there is appreciation, we can say they are starting to move again. The engine’s running, and that’s good.”


Find Out What Your Frederick Home is Worth


Interest Rates At Historic LOWS

We have seen mortgage interest rates reach new historic LOWS this summer. Thanks in part to Brexit, rates have bounced around in the mid-3% ranges, unheard of since rates have been tracked. And how does that affect the market?

Due to historically low rates, we’re seeing a continual stream of buyers enter the market. “We’re doing our best to educate buyers, especially Millennial home buyers, on how low these rates really are,” says Robert Drake, Branch Manager of Integrity Home Mortgage in Frederick. “We haven’t seen rates this low in 60 years…and then, our grandparents were paying 4%, which is still higher than today’s 3.4% rates. People need to understand that their buying power is the highest it will probably ever be.”

What About the Future of Interest Rates?

We’ve been hearing for months that the Fed is going to raise the benchmark interest rates, that we should be ready for higher mortgage rates. But it hasn’t happened. What can we expect for the near future? Most experts agree that there are two reasons why rates are not and probably won’t be going up for the remainder of 2016:

Brexit and the Presidential election.

Typically, an election year adds an element of unpredictability to markets, which tends to keep rates from changing. Many mortgage experts are predicting that even if the Fed raises rates, that most likely won’t raise mortgage rates. Rates will remain low until the international market becomes stable.

What Can Frederick County Buyers and Sellers Expect in the Near Future?

Without that crystal ball to guide us, most real estate professionals are still very positive about the real estate market throughout the rest of this year. Buyers should be confident that they will find a home to fit their wishes.

Sellers should know that this is a good time to sell, especially if they have been waiting several years for their home values to return. It is, however, a balanced market, so they should not expect to see values rise more than a healthy 3% to 4%. It’s always advisable consult a REALTOR® to determine a market value range before you decide if the time is right for you to sell.

Contact Chris Highland for information on the real estate market in your Frederick neighborhood. 301-401-5119  or  

Frederick Md Real Estate Trends June 2016

Frederick Md Real Estate Trends June 2016

Real estate statistics in Frederick County Maryland for June 2016:

provided by the Highland Group

June 2016 Snapshot:

Home Sales:

The number of homes that sold in June was a large number compared to other times of the year, yet just slightly below this time last year: 462 homes sold, just -4% overall from last year but still higher compared to last month’s 455 homes.

The number of homes that went under contract was also up, up 18% over last June. The Summer market in 2016 is continuing to be marked by high demand.

Here’s a breakdown of sales by home type:

Of the 362 homes that sold in June, single-family home sales were up ↑ 5%, townhouse and condominium homes were down ↓ 8% across Frederick County.

Sellers on average, got 97% of listing price across the board, compared to 96% at this time last year. This has been a consistent number for the last year.

Inventory:

The inventory of homes for sale in Frederick County has been on the low end. There are 1219 homes on the market this June, compared to 1338 last year. Down 9%, in a market where there is even more demand than last year.

Supply and Demand

This spring, there has been a 2 month supply of homes in most neighborhoods in Frederick County. (This means that if no new listings were added to the inventory, it would take this many months for the existing inventory to sell.) As demand is increasing, shown by the large number of sold homes and the large number that went under contract, and the increase in the selling price compared to list price; this is leaning towards a high-demand market, favoring sellers.

If you’ve been waiting to put your home on the market, this spring is a good opportunity. The homes that sell quickly and for top dollar: homes that are in the best condition compared to similar homes, and homes that are priced at market…and are in a price range that is in demand. 

Average Sold Prices

Average sold price across Frederick County was up 6%. That breaks down to these differences: Average prices on single-family homes were up 5%, while average prices on attached homes were up 1%.  Average prices are increasing in a healthy and steady line.


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Median Sold Prices:

The median sold price is up from last June: $295,000, up 7%. (This means that half the homes sold were above and half were below $295,000)

We’ve seeing a split market again in Frederick:

  • Homes under $300,000 are in high demand and are seeing modest appreciation.
  • Homes between $400,000 and $500,000 are taking longer to sell and have hit a plateau in price appreciation.
  • Homes priced over $600,000 are struggling. Prices are not appreciating, and time on the market is around 180 days. That price range is not in demand.

However, June marked a change in this trend…we saw 51 homes sold in price ranges above $500,000. This was compared to 33 homes sold in that price range in May, and increase of 55%. We’re seeing more move-up buyers active again.

Days on Market:

In June 2016 it took a little less time to sell homes overall, 60 days on average, compared to 62 last month. These numbers are variable depending on neighborhoods and the different demand in locations.

 

Synopsis

In Frederick County…some neighborhoods are in demand, some not; some price ranges in demand, some not, but even then, depending on the neighborhood. It’s still a bifurcated market due to low demand in the higher price ranges. Overall demand is increasing, and we are waiting to see if prices are also increasing…we’ll have a better idea at the end of the summer.

There are pockets of high sales and appreciation, and pockets of low demand and depreciation. All reasons to reach out to a local real estate expert.

Contact Chris Highland for information on the real estate market in your Frederick neighborhood. 301-401-5119  or  

Frederick Real Estate Market Statistics May 2016

Frederick Real Estate Market Statistics May 2016

Real estate statistics in Frederick County Maryland for May 2016:

provided by the Highland Group

May 2016 Snapshot:

Home Sales:

The number of homes that sold in May was up quite a large number: 21% overall, 423 homes sold. The number of homes under contract was also up, up 20% over last MAY. The Spring market in 2016 is marked by high demand.

Here’s a breakdown of sales by home type:

Of the 355 homes that sold in May, single-family home sales were up 20%, townhouse and condominium homes were up 24% across Frederick County.

Sellers on average, got 97% of listing price across the board, similar to last May. This has been a consistent number for the last year.

Inventory:

The inventory of homes for sale in Frederick County has been on the low end. There are 1141 homes on the market this May, compared to 1296 last year. Down 12%, in a market where there is even more demand than last year.

Supply and Demand

This spring, there has been a 2 to 3 month supply of homes in most neighborhoods in Frederick County. (This means that if no new listings were added to the inventory, it would take this many months for the existing inventory to sell.) As demand is increasing, shown by the large number of sold homes and the large number that went under contract, this is leaning towards a high-demand market, favoring sellers.

If you’ve been waiting to put your home on the market, this spring is a good opportunity. The homes that sell quickly and for top dollar: homes that are in the best condition compared to similar homes, and homes that are priced at market…and are in a price range that is in demand. 

Average Sold Prices

Average sold price across Frederick County was only down 3%. That breaks down to these differences: Average prices on single-family homes were down 6%, while average prices on attached homes were up 5%.


Find Out What Your Frederick Home is Worth


Median Sold Prices:

The median sold price is down from last May: 270,000, down 4%, but up from last month. We’re seeing a split market again in Frederick:

  • Homes under $300,000 are in high demand and are seeing modest appreciation.
  • Homes between $400,000 and $500,000 are taking longer to sell and have hit a plateau in price appreciation.
  • Homes priced over $600,000 are struggling. Prices are not appreciating, and time on the market is around 180 days. That price range is not in demand. When a few large employers left Frederick County, there were several higher paying jobs that left and weren’t replaced. The demand for homes in the higher price ranges has diminished, while many of those homes are still on the market.

Days on Market:

In May 2016 it took a little less time to sell homes overall, 67 days on average, which is above the 5-year May average of 70 days.

Frederick md real estate

Synopsis

It’s a strange market in Frederick County…some neighborhoods in demand, some not; some price ranges in demand, some not, but even then, depending on the neighborhood. It’s still a bifurcated market due to low demand in the higher price ranges. Overall demand is increasing, but prices are not really increasing commensurately.

There are pockets of high sales and appreciation, and pockets of low demand and depreciation. All reasons to reach out to a local real estate expert.

Contact Chris Highland for information on the real estate market in your Frederick neighborhood. 301-401-5119  or  

Frederick Real Estate Market Trends April 2016

Frederick Real Estate Market Trends April 2016

Real estate statistics in Frederick County Maryland for April 2016:

provided by the Highland Group

April 2016 Snapshot:

Home Sales:

The number of homes that sold in April was up quite a large number: 23% overall, 355 homes sold. The number of homes under contract was also up, a huge 35% over last April. The Spring market in 2016 is marked by high demand.

Here’s a breakdown of sales by home type:

Of the 355 homes that sold in April, single-family home sales were up 29%, townhouse and condominium homes were up 15% across Frederick County.

Sellers on average, got 96% of listing price across the board, the same is last April. This has been a consistent number for the last year.

Inventory:

The inventory of homes for sale in Frederick County has been on the low end. There are 1137 homes on the market this April, compared to 1161 last April. Down 2%, in a market where there is even more demand than last year.

Supply and Demand

Leading up to spring, there has been a 3 to 4 month supply of homes in most neighborhoods in Frederick County. (This means that if no new listings were added to the inventory, it would take this many months for the existing inventory to sell.) As demand is increasing, shown by the large number of sold homes and the large number that went under contract, this is leaning towards a high-demand market, favoring sellers.

If you’ve been waiting to put your home on the market, this spring may be a good opportunity. The homes that sell quickly and for top dollar: homes that are in the best condition compared to similar homes, and homes that are priced at market…and are in a price range that is in demand. (see chart below)

Average Sold Prices

Average sold price across Frederick County was only up less than 1%. Even with increased demand, prices are not improving as one would expect. Average prices on single-family homes were up 4%. Average prices on attached homes were down 2%.


Find Out What Your Frederick Home is Worth


Median Sold Prices:

The median sold price is up from last April: 265,000, up 7%. We’re seeing a split market again in Frederick: Homes under $300,000 are in high demand and are seeing modest appreciation. Homes between $400,000 and $500,000 are taking longer to sell and have hit a plateau in price appreciation.

Homes priced over $600,000 are struggling. Prices are not appreciating, and time on the market is around 180 days. That price range is not in demand. When a few large employers left Frederick County, there were several higher paying jobs that left and weren’t replaced. The demand for homes in the higher price ranges has diminished, while many of those homes are still on the market. Here is a picture of sales per price range:

frederick real estate

Days on Market:

In April 2016 it took longer to sell homes overall, 82 days on average, which is above the 5-year April average of 77 days.

Synopsis

It’s a strange market in Frederick County…some neighborhoods in demand, some not; some price ranges in demand, some not, but even then, depending on the neighborhood. It’s still a bifurcated market due to low demand in the higher price ranges. Demand is increasing, but prices are not really increasing commensurately.

There are pockets of high sales and appreciation, and pockets of low demand and depreciation. All reasons to reach out to a local real estate expert.

Contact Chris Highland for information on the real estate market in your Frederick neighborhood. 301-401-5119  or