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Frederick Real Estate Inventory is Rising…We’re Seeing Normal
The inventory of homes on the market in Frederick Md has been down around 650 to 700 during it’s lowest time in many years. In 2013 that was very low, in fact, about half a normal market. Buyers were having a difficult time finding a home that they really liked, and when they did, they were often contending with multiple offers.
Yes, this was traditionally what we refer to as a “Sellers’ Market”, because the inventory and demand have created an absorption rate that is less than 4 months. (how long it would take to sell the present inventory)
This year, as inventory rises, the demand will be key in determining what happens to home values. Real Estate has always been largely affected by supply and demand, although not in the way that manufacturing is directly affected. In real estate, supply and demand is a LOCAL issue.
All Real Estate is Local
For instance, if there are new jobs, businesses and industry opening up in an area, there will be people moving in. Real Estate demand will be up. If local conditions are declining, people will not be moving up or moving out.
Even more than that, real estate is hyper-local. If the hospital has added on an entirely new wing with a new treatment center, let’s say a birthing wing, they will be hiring and people will be looking for nearby housing. These nearby neighborhoods might see prices on the upswing. On the other side of town, for instance, a neighborhood might be in decline, as too many homes go into foreclosure. This neighborhood would see price declines.
Good News for Buyers
Inventory is creeping up in the Frederick Md market in 2015. The number of homes on the market in summer of 2014 was very close to what has historically been considered a normal maket…1200 to 1300. That was after a low of 615, at the beginning of 2013.
As home values increase, more and more sellers are able to put their homes on the market. As the inventory increases, buyers will have more to choose from. Sellers will have more competition, as well.
Good News for Sellers
Many homeowners have wanted to… move-up, move-out, and move-away for a few years now, but have been under-water on their mortgages and unable to sell, except in a short sale situation, if they were experiencing a hardship. As the market picks up, more and more homeowners will be above water again, and we expect that “pent-up demand” for sellers as well as for buyers to take affect. Good news for sellers.
Average home values are increasing… buyers will be able to afford less as prices increase. Interest Rates are expected to increase as the economy picks up. Buyers will be able to afford less because their monthly mortgage payment will be higher. This is the see-saw of real estate.
For an in-depth look at Frederick real estate and surrounding areas, Read our monthly statistics posts in our Frederick Real Estate Market Statistics Category