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Frederick County Real Estate Market Update
Provided by Chris Highland ~ July 2019
The summer real estate market has remained busy here in Frederick. We’re seeing a rush of buying activity, with homes going under contract within days of coming on the market, and we’re 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 spring and summer.
July’s sales were up from last year, both of which were healthy (454 and 427, respectively). The same is true all over the Mid-Atlantic region. But we still are seeing appreciation. Here is a snapshot of Frederick County real estate market trends for July 2019, and a projection of what we can look forward in the year.
Real Estate Market Trends in June in Frederick Md
The Median Home Sales Price: $330,000, up 6% from last July.
- Average Single-Family Sales Price: $407,463, up almost 1% from last year at this time.
- Average Attached Home Sales Price: $271,463, up 4.3% from last year.
- 282 single-family homes sold, up 14% from last year’s number.
- 172 townhouses and condos sold, down 4% from last year’s number.
- A total of 454 homes sold, up 6% from last year’s 427.
Demand has been steadily up from, and although inventory is 9.4% more than last year, the increased demand still means a low inventory. (1126 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, although momentum may be moving the other direction, if we see an increase in listings…time will tell.
Average Days on Market (DOM) the time it takes to get a home under contract: 56 days, down 2% from last year (55 days). .. much less than the 5 year July average of 72 days. This also is a demonstration of demand.
New Listings in July: There were 605 new listings last month, 10% more than July 2018. There are 751 homes currently under contract total (compared to 680 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.
Number of Homes Under Contract: There were 343 new contracts (homes that went under contract) up 33% from last July! August and September will be super busy with settlements!
Total Listings in Frederick Md: 1126. 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 98.7% of original list price on average, compared to 98.9% 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, which are appreciating about 2%. We also can count on a healthy price appreciation in 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. 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 for buyers) The largest number of listings are in the $400,000 to 499,000 price range (high competition for sellers)
- Even though interest rates have been up and down, many lenders look for rates to be relatively flat. Whatever happens, these rates are still historically low! See today’s rates.
Luxury Homes in Frederick County:
- 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 162 homes listed above $600,000, with only 17 sold in July in that price range.
- There are 3 homes on the market between 2.5 and 5 million, and 28 homes between 1 and 2.5 million. There are 33 homes listed between $800,000 and 1 million. Four (4) homes have sold in these price ranges in July. The highest priced homes that sold this month was in the $1M to $2.5M price range. (2 homes sold).
- The average time on market for the three luxury homes (800K – 1M) that sold was just 30 days, The average sold price to list price was 94%.
What’s Notable for Frederick Sellers:
- All indications are that the market is healthy and serious buyers are continually entering the market. 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.
- 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.
July 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.