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Frederick County Real Estate Market Update
Provided by Chris Highland ~ September 2018
Real Estate Market Trends in Frederick Md
Average Home Sales Price: $339,160, up 8.2% from last year.
- Average Single-Family Sales Price: $390,526, up 9% from last year at this time.
- Average Attached Home Sales Price: $254,000, up 4% from last year.
- 114 single-family homes sold, down 18% from last year’s September number.
- 189 townhouses and condos sold, down 14% from last year’s number.
- A total of 303 homes sold, down 16% from last September.
Demand was a little slower, but inventory is also still low, 5% less than last September.
Median Home Sales Price: $319,000, up 8% from last year.
Average Days on Market (DOM) the time it takes to get a home under contract: 47 days, up 14% from last year (41 days). This is a sign that demand is cooling just a bit in our market, but still a low number of days, lower to the 5 year September average of 54 days.
Number of Homes Under Contract: There were 328 new pending contracts (homes that went under contract) down less than 1% from last September. There are 598 homes pending total. Very close to last year’s 606. It is still a steady Fall market.
Total Listings in Frederick Md: 1138. 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 800 to 850 resale homes. We’re in a seller’s market until the inventory increases, with a 2 or 3 month absorption rate. The best homes are selling in days and weeks.
For a Visual:
Frederick Real Estate Trends for September 2018 [Video]:
If demand is steady and inventory is steady, Fall is a good time to buy. You just need to move quickly when you find the house you want.
Sellers got 97.6% of original list price on average, same as 97.0% at this time last year. We also can count on a healthy price appreciation in 2018. Appraisers are projecting 4% – 6% increases in 2018, depending on price range. Lower price ranges (below $400,000) are appreciating more than the upper price ranges.
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, 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:
- If you are a buyer, get prepared before you enter the market. Get ready to make quick decisions… 34% of homes sold in 10 days or less! 60% of the homes sold in less than 30 days, also,
- 7 homes sold in zero days, or their first day on the market.
- The majority of homes sold were in the $200,000 to $400,000 range. (high competition) The largest number of listings are in the $300,000 to 399,000 price range.
- Even though interest rates seem to bobble up and down in the mid 4’s, they are still low! See today’s rates.
- The highest priced home on the market is between 2.5 and 5 million. The highest priced homes that sold this month were in the $1 mil to $2.5 mil price range. (1 home sold).
- There are 20 homes currently listed between 1 and 5 million.
What’s Notable for Sellers:
- All indications are that the market is healthy and serious buyers are continually entering the market, even though the market is slowing a bit in Fall. If you’ve been waiting for the right market to sell, this could be it. There are always people who enjoy the less “frenzied” pace of the fall.
- We will expect 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. 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.
- Appraisers have been showing a 5% to 6% increase in home values for the average home in Frederick County over last year, depending on price range.
- 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.
- Cash deals were 12% of sales. As appreciation is expected to continue in 2018, we’re still seeing a few investors and flippers in the Frederick market.
- The majority of loans were with Conventional financing.
September 2018 Market Statistics provided by MRIS (Mid-Atlantic Regional Information System – A Bright MLS)
*MRIS – Metropolitan Regional Information System – These statistics are not guaranteed but are considered accurate. Frederick County Real Estate Market Trends for September 2018.
Contact Chris Highland to see homes for sale in Frederick Md.