Table of Contents
- Frederick County Real Estate Market Update
- Real Estate Market Trends in September 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 ~ September 2019
September was unusually busy with real estate sales here in Frederick, compared to the same time last year. 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 throughout the summer and into the fall.
September’s sales were up a good deal (18%) from last year, (357 compared to 303 units). The same is true all over the Maryland*. And we still are seeing appreciation. Here is a snapshot of Frederick County real estate market trends for September 2019, and a projection of what we can look forward in the year.
Real Estate Market Trends in September in Frederick Md
The Median Home Sales Price: $377,750, down slightly 2% from last September. We’ve seen a larger increase in townhouse sales as compared to single-family sales in the last two months.
- Average Single-Family Sales Price: $379,292, down 3% from last year at this time.
- 210 single-family homes sold, up 11% from last year’s number.
- Average Attached Home Sales Price: $265,935, up 5% from last year.
- 147 townhouses and condos sold, up 29% from last year’s number.
- A total of 357 homes sold, up 18% from last year.
Demand has been steadily up throughout 2019, and the inventory is relatively the same as last year. Increased demand and a low inventory = price acceleration. (1134 homes on the market) Keep in mind that a “normal” inventory is between 1300 and 1400 homes on the market. It is still a seller’s market.
Detailed Market Statistics for Frederick County
Average Days on Market (DOM) the time it takes to get a home under contract: 49 days, down 20% from last year (61 days). .. much less than the 5 year August average of 71 days. This also is a demonstration of demand.
New Listings in September: There were 537 new listings last month, a 14% increase over September 2018. Good news! But still not enough to keep up with the demand: There are 685 homes currently under contract total (compared to 589 last year)… 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 the formula:
Increased demand and a low inventory = price acceleration.
Number of Homes Under Contract: There were 279 new contracts (homes that went under contract) up 69% from last August! October and November will be super busy with settlements!
Total Listings in Frederick Md: 1134. 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 (about 40% of the listings). That really means that there are around 800 resale homes.The best homes are selling in days right now.
Frederick is a Bifurcated Real Estate Market
Sellers got 97.7% of original list price on average, compared to 97.6% at this time last year. 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. We also can count on a healthy price appreciation throughout 2019.
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 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 of 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 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 took another dive recently, fueling the fall market. Although we don’t know what the future of interest rates are, many lenders look for rates to stay low for the near future, and perhaps dip a little more. These rates are still historically low! 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 171 homes listed above $600,000, with only 9 sold in September in that price range.
- There are 3 homes on the market between 2.5 and 5 million,
- 30 homes between 1 and 2.5 million,
- 36 homes listed between $800,000 and 1 million.
- 2 homes have sold in these price ranges in August. The highest priced homes that sold this month was in the $800K to $1M price range. (1 home sold).
- The average time on market for the two luxury homes (800K – 1M) that sold was 68 days, The average sold price to list price was 92.7%.
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, 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.
- We are seeing more multiple offers on the homes that are in great condition and priced to sell…which means priced at market… and this will continue to put upward pressure on home prices throughout 2019 and probably into the 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 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.
*Recent Maryland Real Estate Statistics
September 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.