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Year-End 2014 – Real Estate Trends
The Frederick Md real estate market in 2014 was a different market than we saw in 2013. Home prices inched up, but not at the rate of the previous year. Here are some charts to illustrate the main trends:
Average Home Prices in Frederick County
For most of 2014, the average price of sold homes in Frederick County held steady with the prices in 2013, but did not really increase significantly. The overall yearly average this year was $292,000 compared to $293,000 last year.
Median Home Prices in Frederick County
The Median home price the number that is right in the middle of all the home prices that sold. The median price for the entire year in 2014 was $262,000, in 2013 it was $265,000. A negligible 1% difference.
Home prices are very steady throughout this year.
Frederick Real Estate Inventory
The number of homes on the market increased throughout this year. During the first quarter the number of homes increased about 25% over the same time in 2013. Throughout the summer the increase reached 44% over last summer. By the end of this year, the inventory is just under 1200, a normal market.
In July and August, the inventory reached 1300, which for the first time in several years, was above the 5-year average. An increase in inventory shows, among other things, that more homeowners are above water and able to put their homes on the market. But inventory is only half of the story, demand is the other half.
Home Sales in Frederick County
With the exception of June and July, every month in 2014 had an increase over last year in the number of homes sold. This year a total of 3111 homes sold, in 2013 the number of homes that sold was 2753. An increase of 13%.
Real Estate Trends
Throughout the year, sellers got 95% to 97% of their list price when sold. Last year, the average was about the same. This shows that prices are holding steady. This year, that number was above the 5 year average for the entire year.
Time on the market has also decreased over the year. This year was the first year that the average number of Days on Market was less than the 5 year average. It is taking less time to sell a home.
Last year we saw a turn in the market with larger increases in sales prices and other statistics, much like a market correction. Real Estate sales in 2014 continued to increase in numbers, showing the increased demand that is a good sign, but the increase in sales prices has slowed. The inventory has increased along with the demand, creating what many refer to as a “normal” market, with absorption rates about 5 or 6 months.