Table of Contents
- Frederick County Real Estate Market Update
- Real Estate Market Trends in December 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 ~ December 2019
We’ve had a busy fall for real estate sales here in Frederick, compared to last year. Sales were brisk for a holiday season, time on market was down, and prices continued to rise at a healthy pace.
As the year closes, 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 December 2019, and a projection of what we can look forward in the next year.
Real Estate Market Trends in December in Frederick Md
Up, Up and Away!
The Median Home Sales Price: $318,000, up 1% from last December. We’ve seen a larger increase in single-family sales as compared to townhouse sales in December, but both were up significantly.
- Average Single-Family Sales Price: $418,474, up 8%from last year at this time.
- 186 single-family homes sold, up 29% from last year’s number!!
- Average Attached Home Sales Price: $261,832, down 7% from last year.
- 147 townhouses and condos sold, up 20% from last year’s number.
- A total of 335 homes sold, up 26% from last year! December was a busy month!
Demand has been steadily up throughout the year, and the inventory has been relatively the same as last year, some months a bit lower, especially the fall months.
Increased demand and a low inventory = price acceleration.
(793 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 very much a seller’s market. While new listings have slowed quite a bit in December, the inventory is 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: 42 days, down 11% from last year at this time (47 days). .. less than the 5 years November average of 54 days (also the lowest in 5 years) This also is a demonstration of demand.
New Listings in December: There were 281 new listings last month, a 1% increase over December 2018. But demand has continued to be steady: There are 589 homes currently under contract total, up 16%… 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 293 new contracts (homes that went under contract) up 11% from last December. January will be a busier than usual settlement month!
Total Listings in Frederick Md: 793. The inventory is the lowest number for Frederick County we’ve had in 5 years… especially when you consider that roughly 300 of the listings are new homes or to-be-built. That really means that there are less than 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 97.6% of the original list price on average, compared to 97.4% at this time last year. ( the highest for December 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 ($600,000+).
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 a temporary living set up gives them the greatest advantage if they are buying in a highly competitive price range.
What’s Notable for Buyers:
- The majority of homes sold were in the $200,000 to $299,000 range. (higher competition for buyers) The largest number of listings are in the $300,000 to 399,000 price range (higher 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 another formula for you:
Historically low rates = It’s a good time to buy, and it’s a good time to sell and move up!
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 94 homes listed above $600,000, with 24 that sold in December in that price range. (18% of the luxury inventory sold last month, while 34% of the overall inventory sold last month)
- 12 homes listed between $800,000 and 1 million. (3 sold in November)
- 14 homes between 1 and 2.5 million. (2 homes sold)
- There are 2 homes on the market between 2.5 and 5 million. (no homes sold)
- The average time on the market for the luxury homes was 77 days, The average sold price to original list price was 95.6%.
- Two homes over $1 million sold for 95.6% of original list price on average, with a total of 132 days on the market.
What’s Notable for Frederick Sellers:
- All indications are that the market is healthy and serious buyers are continually entering the market this winter, a time when the market typically slows down a bit. We believe we’re seeing an early spring market here in Frederick County. This means it is a good time to sell. If you’re ready, you may not want to wait until the spring market.
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
Across Maryland, everything is up, up, up, except for the time on market.
December 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.