Frederick County Real Estate Market Update
Provided by The Highland Group ~ July 2017
Real Estate Market Trends in Frederick Md
Average Home Sales Price: $335,592: up 5% from last year at this time.
- Average Single-Family Sales Price: 381,376: up 5% from last year at this time, up nearly 1% from last month.
- Average Attached Home Sales Price: $263,475, up 9% from last year.
- 241 single-family homes sold, similar to last year.
- 153 townhomes and condos sold, up 6%.
- A total of 394 homes sold exactly the same number as last July.
All signs of a healthy market at the end of the summer!
Median Home Sales Price: $316,250, up 5% from last year, and up 2% from $310,000 last month.
Average Days on Market (DOM) the time it takes to get a home under contract: 47 days, down 16% from last year. This is a direct reflection of supply and demand in our market…low supply/higher demand.
Number of Homes Under Contract: There were 422 new pendings (homes that went under contract) 3% lower than last July.
Total Listings in Frederick Md: 1099, down 8% from last year. The inventory is a low number for Frederick County, especially when you consider that roughly 250 of these listings are new homes and to-be-built. We’re in a seller’s market until the inventory increases, with a 2 to 3 month absorption rate.
If demand is still strong for the season and inventory is just barely keeping up with demand, this is a good time to sell! Find Out What Your Home is Worth.
Sellers got 98% of original list price on average, compared to 97% at this time last year. The fact that this number is higher than last year shows that the demand is strong. We also can count on a healthy price appreciation.
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 sell much quicker. We are seeing lots of multiple offers on homes that are in great condition and priced to sell.
In a hot seller’s market, buyers must be prepared before they find a home. You must be pre-approved by a reputable local lender. If you have a house to sell, you need to get it on the market first, before you make an offer. Better yet, have your home under contract if you want to win in a multiple offer situation.
What’s Notable for Buyers:
- If you are a buyer, get prepared before you enter the market. Get ready to make quick decisions. More than half of the homes sold went under contract in less than 2 weeks.
- The majority of homes sold were in the $200,000 to $400,000 range. The competition is stiffest in the $200,000 to 299,000 price range.
- With about 1099 homes listed on the market, and note that 250 are new construction, that really means that there are about 800 resale homes.
- Interest rates are still incredibly low! See today’s rates.
What’s Notable for Sellers:
- The summer market is always a toss-up…people go on vacation, school is out, and July and August can be fast-moving, or slow, we never know. All indications are that the market is healthy and serious buyers are still entering the market, even if in smaller numbers than in the spring. If you’ve been waiting for the right market to sell, this could be it. High demand and low inventory = seller’s market.
- 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. This doesn’t mean that seller’s can expect huge increases…they need to remember that the home must still appraise about 90% of the time. Pricing your home too aggressively will cause it to sit on the market longer, and you’ll need to do a price adjustment eventually.
- Appraisers are projecting a 4% increase in home values for the average home in Frederick County…homes in the $300,000 range, maybe as much as 6% by the end of the year. Less appreciation, if any, for homes in the higher price ranges. But the good news is that homes above $600,000 are selling again. There is an 18 month absorption rate for homes in the upper price ranges.
- Cash deals were 9% of sales. As appreciation is expected, we’re still seeing Investors and flippers in the Frederick market. The majority of loans were with Conventional financing.
- **The majority of home sales took place in the $200,000 to $400,000 price range. 61%. (31% in the $200k to $300K range, and 28% in the $300K to $400K range) The majority of listings (29%) are in the $300,000 to $400,000 price range, where 28% of homes sold. These two price rangesare in high demand and are seeing the most appreciation.
July 2017 Market Statistics provided by MRIS (Mid-Atlantic Regional Information System – A Bright MLS)
*MRIS – Metropolitan Regional Information System – These statistics are not guaranteed but are considered accurate. Frederick County Real Estate Market Trends for July 2017.
Contact Chris Highland to see homes for sale in Frederick Md.