Table of Contents
- Frederick County Real Estate Market Update
- Real Estate Market Trends in November in Frederick Md
- Detailed Market Statistics for Frederick County
- Frederick is a Bifurcated Real Estate Market
- What’s Notable for Buyers:
- Luxury Homes in Frederick County:
- What’s Notable for Frederick Sellers:
- *Recent Maryland Real Estate Statistics
Frederick County Real Estate Market Update
Provided by Chris Highland ~ November 2019
October and November 2019 have not been like a typical fall for real estate sales here in Frederick, compared to the same time last year. Sales were brisk, time on market was down, and prices continued to rise at a healthy pace.
We’re seeing healthy buying activity, with the best homes going under contract within days of coming on the market, and we’re still seeing some multiple offers. The inventory of homes on the market is still too low for the demand.
And as a brokerage with agents all over the state, we’re seeing increased activity in many places throughout Maryland, with a tight inventory. The overall number of homes on the market has remained low in the fall.
Here is a snapshot of Frederick County’s real estate market trends for November 2019, and a projection of what we can look forward in the next year.
Real Estate Market Trends in November in Frederick Md
Up, Up and Away!
The Median Home Sales Price: $332,0165, up 10% from last November. We’ve seen a larger increase in single-family sales as compared to townhouse sales in November, which was the opposite of the last several months.
- Average Single-Family Sales Price: $423,040, up 9%from last year at this time.
- 179 single-family homes sold, up 8% from last year’s number.
- Average Attached Home Sales Price: $278,091, up 17% from last year.
- 137 townhouses and condos sold, up 21% from last year’s number.
- A total of 315 homes sold, up 13% from last year.
Demand has been steadily up throughout 2019, and the inventory has been relatively the same as last year, some months a bit lower, like November.
Increased demand and a low inventory = price acceleration.
(985 homes on the market – the lowest for November in 5 years) Keep in mind that a “normal” inventory is between 1300 and 1400 homes on the market. It is still a seller’s market. While new listings are coming on the market every week, the inventory is still not keeping up with the demand.
Detailed Market Statistics for Frederick County
Average Days on Market (DOM) the time it takes to get a home under contract: 48 days, down 8% from last year at this time (52 days). .. less than the 5 years November average of 51 days. This also is a demonstration of demand.
New Listings in November: There were 478 new listings last month, a 12% increase over November 2018. Good news! But still not enough to keep up with the demand: There are 688 homes currently under contract total (compared to 587 last year, up 17%)… again, a sign of increased demand this year. When more homes are selling than are coming on the market, this is a sign of higher demand.
Which brings us back to a homeowner’s favorite formula:
Increased demand and a low inventory = price acceleration.
Number of Homes Under Contract: There were 395 new contracts (homes that went under contract) up 30% from last November. December and January will be super busy with settlements!
Due to the slowdowns of three major holidays (Thanksgiving, Christmas and New Year’s) we often advise buyers and sellers to add extra time into their contract timeframes. We expect many of these homes that were contracted to settle in January.
Total Listings in Frederick Md: 985. The inventory is a low number for Frederick County, the lowest we’ve had in November in 5 years… especially when you consider that roughly 40% of the listings are new homes or to-be-built. That really means that there are around 600 resale homes. The best homes (in great condition and priced correctly for the market) are selling in days right now.
Frederick is a Bifurcated Real Estate Market
Sellers got 97% of the original list price on average, compared to 96% at this time last year. ( the highest for October in 5 years ) Appraisers are saying we’re seeing 3-5% increases in values, depending on price range. Lower price ranges (average $300,000) are appreciating more than the upper price ranges.
Keep in mind:
- In some price ranges, in some areas of Frederick County, there is naturally a higher demand and the market is more competitive for buyers. Some neighborhoods, like Urbana, Middletown, New Market, Mt. Airy, and a few neighborhoods 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.
- Homes in the $300,000 range, are in demand and have seen a 4% – 6% increase in value over the year. Less appreciation, 2% on average, 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 1- to 2-month absorption rate for homes in the lower price ranges.
In any market, but especially in a seller’s market, buyers must be prepared before they find a home. You must be pre-approved by a reputable local lender. Most 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 even 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 for buyers) The largest number of listings are in the $400,000 to 499,000 price range (high competition for sellers)
- Interest rates are at historic lows, fueling the fall market. Although we don’t know the future of interest rates, many lenders look for rates to stay low for the near future. See today’s rates.
Here’s a another formula for you:
Historically low rates = It’s a good time to sell, and it’s a good time to buy!
Luxury Homes in Frederick County:
Believe it or not, where the bargains are…
- The number of luxury buyers in Frederick County is like a sliver, compared to other price ranges. But, they are there, albeit in fewer numbers, looking for their dream home.
- There are 123 homes listed above $600,000, with 20 that sold in November in that price range. (16% of the luxury inventory, as compared to 32% of the overall inventory)
- 21 homes listed between $800,000 and 1 million. (2 sold in November)
- 17 homes between 1 and 2.5 million. (1 home sold)
- There are 3 homes on the market between 2.5 and 5 million. (no homes sold)
- The average time on the market for the luxury homes was 145 days, The average sold price to list price was 96.9%.
What’s Notable for Frederick Sellers:
- All indications are that the market is healthy and serious buyers are continually entering the market throughout the fall and winter, a time when the market typically slows down a bit. If you’ve been waiting for the right market to sell, this could be it. The low inventory means less competition for you as a seller. Read: Why Sell in Winter?
- We are seeing more multiple offers on the homes that are in great condition and priced to sell…and this will continue to put upward pressure on home prices into the first half of next year.
- 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 sellers 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.
*Recent Maryland Real Estate Statistics
November 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.