ARE HOME PRICES RISING IN FREDERICK MD?
A frequent question: Are home prices improving in Frederick Md? Every home owner is interested in knowing, and every potential home buyer is also wondering what the real estate market is doing in 2014. Although we can’t say for sure, we can analyze the trends and make an educated guess.
We are often asked where we think home prices are headed over the next year. Recently, several national groups have published reports and given their predictions about the level of appreciation we can expect by the end of 2014.
Here is what they said:
- USA Today Economist John Burns: 6% appreciation
- Urban Land Institute: 3.7%
- Home Price Expectation Survey: 4.3%
- Clear Capital: 3-5%
- Zillow Panel of 110 Economists: 4.3%
All five groups are calling for home values to rise through the end of this year. The projections are that the increases will slow compared to last year. However, no one projected the increases that we saw in 2013.
But any news with a + sign is good news to Frederick home owners. As you know, all real estate is local. National statistics don’t always show what is happening locally.
What about the market in Frederick Real Estate?
Much of the outlook depends on the simple formula of supply and demand. The inventory of homes on the market in Frederick Md continues to be low. Right now there are about 790 homes on the market and 448 are pending, or have offers on them. A normal inventory for Frederick County is about 1200.
In 2013, we saw an increase in:
- average home price of 11% throughout the year.
- The median sale price increased 11% also.
- The Days on Market, or the time it took to sell a home decreased an average of 30%.
- The number of homes that sold was 17% higher.
What Can We Expect for 2014?
Of course, we don’t claim to be Zoltar, but we can expect more increases. We expect:
- More homeowners putting their homes on the market as they see appreciation
- Increased demand as new households are formed
- More move-up buyers
- A Healthy, steady market over-all
Real Estate Sales Are Seasonal
During the winter months, many home sellers take their homes off the market for the holidays. The homes that stay on the market through the winter months are often short sales and foreclosures, making up a larger portion of the inventory than at other times of the year.
Accordingly, we often see that the average and median prices of homes sold during the winter take a dip. Consider this chart:
We expect to see an increase in inventory and demand that is seasonal. How much? A healthy number. There is pent-up demand among buyers who have been waiting for the economy to improve. There is pent-up demand among sellers who have been underwater on their mortgages. As home prices improve gradually, more sellers will enter the market.
If you have been waiting for the improving market to sell your home, this may be the year for you. Contact us for a free market analysis of your home.