Frederick County Real Estate Market Update
Provided by Chris Highland ~ May 2018
Real Estate Market Trends in Frederick Md
Average Home Sales Price: $337,384: year at this time. (up 4% from last month)
- Average Single-Family Sales Price: $383,798: up 1.4% from last year at this time.
- Average Attached Home Sales Price: $268,019, up 12.5% from last year.
- 272 single-family homes sold, down 6.5% from last year’s number.
- 182 townhouses and condos sold, up 22% over last year’s number of 149.
- A total of 454 homes sold, up 3.2% from last May.
Demand is up, and inventory crept up by 105 homes, an increase of 12% over April, but still a low inventory of about 973 homes – compared to 1056 this time last year, down 8%.
If you’re considering selling your home this year, it’s a good time. Buyers are out there looking at a slim inventory. Townhouses are in demand over single-family homes this spring.
Median Home Sales Price: $310,000, up 3.33% from last year.
Average Days on Market (DOM) the time it takes to get a home under contract: 46 days, down 6% from last year (49 days). This is a significant reflection of supply and demand in our market…low supply/healthy demand, homes are selling quicker this spring.
We just had one of our listings get a contract within 24 hours. 🔥 The price was $250,000.
Number of Homes Under Contract: There were 461 new pending contracts (homes that went under contract) down 9% from last May.
Total Listings in Frederick Md: 973. The inventory is a low number for Frederick County, especially when you consider that roughly 250 – 300 of these listings are new homes and to-be-built homes. That really means that there are less than 600 to 650 resale homes. We’re in a seller’s market until the inventory increases, with a 2 month absorption rate. The best homes are selling in days.
For a Visual:
Frederick Real Estate Trends for May 2018 [Video]:
If demand is strong and inventory is not keeping up with demand, this is a good time to sell! You just need to move quickly when you find the house you want. Find Out What Your Home is Worth.
Sellers got 98% of original list price on average, compared to 99% at this time last year. We also can count on a healthy price appreciation in 2018. Appraisers are projecting 5% – 6% increases, depending on price range. Lower price ranges (below $400,000) are appreciating more than the upper price ranges.
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 a few in the city of Frederick, are in high demand and sell much quicker. We are seeing 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. Some people find that having their home sold and having temporary living set up gives them the greatest advantage.
What’s Notable for Buyers:
- If you are a buyer, get prepared before you enter the market. Get ready to make quick decisions… 47% of homes sold in 10 days or less! 67% of the homes sold in less than 30 days, also,
- 17 homes sold in zero days, their first day on the market.
- The majority of homes sold were in the $200,000 to $300,000 range. (high competition) The majority of listings are in the $400,000 to 499,000 price range.
- Even though interest rates seem to bobble up and down in the low 4’s, they are still incredibly low! See today’s rates.
- The highest price home was between $800,000 and 1 million (3 homes sold). There are 22 homes currently listed in this price range.
- There are 23 homes currently listed between 1 and 5 million.
What’s Notable for Sellers:
- All indications are that the market is healthy and serious buyers are continually entering the market. 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 to sell…which means 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, often losing more than if it had been priced correctly at the start.
- Appraisers have been showing a 5% to 7% increase in home values for the average home in Frederick County over last year, depending on price range.
- Homes in the $300,000 range, are in demand and have seen a 7% increase over of the year. Less appreciation, if any, for homes in the highest price ranges. But the good news is that homes above $600,000 are selling again. There is a 12 month absorption rate for homes in the upper price ranges, compared to a 2 month absorption rate for homes in the lower price ranges.
- Cash deals were 10% of sales. As appreciation is expected to continue in 2018, we’re still seeing investors and flippers in the Frederick market.
- The majority of loans were with Conventional financing.
MAY 2018 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 mAY 2018.
Contact Chris Highland to see homes for sale in Frederick Md.