Frederick County Real Estate Market Update
Provided by Chris Highland ~ March 2018
Real Estate Market Trends in Frederick Md
Average Home Sales Price: $330,250: up 10.1% from last year at this time.
- Average Single-Family Sales Price: $394,242: up 14% from last year at this time.
- Average Attached Home Sales Price: $264,014, up 14% from last year.
- 177 single-family homes sold, down 10% from last year’s number.
- 171 townhouses and condos sold, up 30.5% as last year’s number of 131.
- A total of 348 homes sold, up 6.4% from last March.
Demand is up, but a very low inventory of about 860 homes – compared to 950 this time last year, down 9%. If you’re considering selling your home this year, it’s a good time.
Median Home Sales Price: $310,000, up 14.4% from last year.
Average Days on Market (DOM) the time it takes to get a home under contract: 69 days, down 15% from last year (81 days). This is a significant direct reflection of supply and demand in our market…low supply/healthy demand, homes are selling quicker in this market.
Number of Homes Under Contract: There were 484 new pending contracts (homes that went under contract) the same as last March.
Total Listings in Frederick Md: 863. 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 600 resale homes. We’re in a serious seller’s market until the inventory increases, with a 2 month absorption rate. The best homes are selling in days.
For a Visual:
Frederick Real Estate Trends for March 2018 [Video]:
If demand is still strong for the season and inventory is just barely keeping up with demand, this is a good time to sell! You just need to move quickly when you find the house you want. Find Out What Your Home is Worth.
Sellers got 98% of original list price on average, compared to 97% at this time last year. We also can count on a healthy price appreciation in 2018. Appraisers are projecting 3% – 6% increases, 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 hot seller’s market, buyers must be prepared before they find a home. You must be pre-approved by a reputable local lender. 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… 35% of homes sold in 10 days or less! 53% of the homes sold in less than 30 days, also,
- 17 homes sold in zero days, their first day on the market.
- The majority of homes sold were in the $200,000 to $300,000 range. (high competition) The majority of listings are in the $300,000 to 399,000 price range. (28% of total listings)
- Even though interest rates seem to bobble up and down in the low 4’s, they are still incredibly low! See today’s rates.
- Only 2 houses sold for over $1 million. There are 15 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 entering the market, bringing on an early spring. If you’ve been waiting for the right market to sell, this could be it. High demand and low inventory = seller’s market.
- 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. 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 more than if it had been priced correctly at the start.
- Appraisers have been showing a 5% to 7% 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 at the end of the year. Less appreciation, if any, for homes in the higher price ranges. But the good news is that homes above $600,000 are selling again. 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 11% of sales. As appreciation is expected to continue in 2018, we’re still seeing investors and flippers in the Frederick market.
- The majority of loans were with Conventional financing.
February 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 March 2018.
Contact Chris Highland to see homes for sale in Frederick Md.