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Frederick County Real Estate Market Update
Provided by Chris Highland ~ January 2019
Real Estate Market Trends in Frederick Md
December was sluggish for real estate sales, which are reflected in January’s sales numbers, but we still are seeing appreciation. It seems like we saw some deals in the market, but demand picked up quite a little bit. Here is a snapshot of Frederick County real estate market trends for January 2019, and a projection of what we can look forward in the year.
Average Home Sales Price: $313,059, down 5% from last January.
- Average Single-Family Sales Price: $364,100, down 6% from last year at this time.
- Average Attached Home Sales Price: $242,600, down 7.5% from last year.
- 107 single-family homes sold, down 20% from last year’s January number.
- 76 townhouses and condos sold, down 26% from last year’s number.
- A total of 183 homes sold, down 23% from last year.
Demand was a little slower, but inventory is also still low, just about the same as last year. (837 homes on the market)
Median Home Sales Price: $295,000, down 3% from last year.
Average Days on Market (DOM) the time it takes to get a home under contract: 77 days, up 8% from last year (71 days). This is a sign that demand was cooling just a bit in our market, but still ahead of the 5 year January average of 97 days.
Number of Homes Under Contract: There were 326 new pending contracts (homes that went under contract) up 5% from last January. There are 555 homes pending total. Up 3% from last year’s 435.
If we drill down further, we find that 226 homes went under contract, which is 30% more than last year, while only 100 homes went under contract with contingencies, down 28%. So, more homes are being sold non-contingent.
Total Listings in Frederick Md: 837. 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 resale homes. Although the market has been slowing down a bit, normal for the season, the best homes are selling in days right now.
Anecdotally, a downtown rowhouse three doors down went under contract in 2 days. It was a renovation, beautifully appointed.
It’s too early to really say what the spring market will look like, but if we could guess by the last month’s activity, it promises to be pretty busy.
Frederick Real Estate Trends for January 2019 [Video]:
If demand is steady and inventory is steady, Winter is a good time to sell. There are serious buyers in the fall and winter months.
Sellers got 95% of original list price on average, same as 97% at this time last year, a sign of the cooling demand in December. Appraisers are saying we saw 4% – 6% increases in 2018, depending on price range. Lower price ranges (below $400,000) are appreciating more than the upper price ranges. We also can count on a healthy price appreciation in 2019.
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 seller’s market, (in any market) buyers must be prepared before they find a home. You must be pre-approved by a reputable local lender. Some sellers will not entertain offers from a buyer who has not been pre-approved.
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:
- The majority of homes sold were in the $200,000 to $299,000 range. (high competition) The largest number of listings are in the $300,000 to 399,000 price range.
- Even though interest rates crossed over the 5% line, the Fed is not being decisive about more interest rate hikes for the near future. These rates are still historically low! See today’s rates.
- Luxury Homes in Frederick County: The highest priced homes on the market is between 2.5 and 5 million (2 homes). The highest priced homes that sold this month were in the $1 mil to $2.5 mil price range. (1 home sold). There are 19 homes currently listed between 1 and 5 million.
What’s Notable for Frederick Sellers:
- All indications are that the market is healthy and serious buyers are continually entering the market, even though the market was slow in December. If you’ve been waiting for the right market to sell, this could be it. You may want to reconsider waiting until Spring. If that was on your mind, and if your home is ready, why not? There are always people who enjoy the less “frenzied” pace of the winter. Even though we’re seeing a lot of activity, as I mentioned above.
- We are seeing more 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 throughout 2019.
- 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, as buyers count on financing to purchase.
- 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 important marketing time and losing more money than if it had been priced correctly at the start.
- 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 have been selling again…in some areas. 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.
January 2019 Market Statistics provided by Bright MRIS (Mid-Atlantic Regional Information System – A Bright MLS)
These statistics are not guaranteed but are considered accurate.
Contact Chris Highland to see homes for sale in Frederick Md.