“How is the real estate market in Frederick Md this summer?”
The question is often asked because there are always many headlines about the real estate market, and they are often misleading or over-generalized. Often the news is not applicable to any particular local market… all real estate is local.
The Frederick Md Real Estate Market Summer 2013 – Bifurcated
Yes, the real estate market in Frederick has been different in various price ranges. In the lower price ranges we’ve seen a lot of demand and homes are selling quickly. The highest number of homes sold have been in the $200k to $300k range, then in the $300k to $400k range. In these price ranges we’re seeing some multiple offers and some appreciation.
The number of sales drop by 2/3 in the $400k to $600k range, and number of sales drop to single digits in the price ranges above that. Homes in the higher price ranges sell much more slowly, and they are not having appreciation, for the most part.
Detached Vs. Townhouse
This value disparity is shown in the type of home sold: The average sold price for single-family homes is up 4% over this time last year, whereas the average sold price for townhouses is up 24% over last summer. *Remember, though, that this is an average sold price; it doesn’t mean that values are up this percentage over last year.
Why is this important?
It’s important to realize that the local real estate market is driven by supply and demand. Many experts are reporting a pent-up demand for first-time home buyers as they are starting to see the economy pick up. They are starting new households, making decisions to purchase a home, and finding their employment situations better, if not steady.
All of these issues are causing people to venture back into the real estate market after having put these decisions on hold because of the lack of confidence in the economy. We can see the demand in the lower price ranges.
More Move-Up Buyers
We are seeing more people able to make move-up purchases as they 1. Have enough equity to sell their home, and 2. Are able to afford a move-up purchase with the low rates and availability of homes. Increasing values are putting more and more homeowners in the place to be able to sell. Think of it as a trickle UP.
Higher Price Ranges – Less Demand
Homeowners in the higher price ranges will need to be more patient… there is less demand, so these homes will take longer to sell and they won’t see the appreciation that the homeowners in the lower price ranges are seeing. Buyers have more time and can be choosy.
So, the outcome is, we have a seller’s market in the lower price ranges and a buyer’s market in the higher price ranges. This bifurcated market even has nuances depending on which neighborhood we’re talking about.
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Understanding the nuances of the local market is a good value add that comes from working with a local Frederick real estate professional. Contact Chris Highland of the Highland Group to list or buy your home in Frederick Md. Experience and expertise to help you navigate the real estate waters in 2013.
by Karen Highland