Frederick County Real Estate Market Update
Provided by Chris Highland ~ January 2018
Real Estate Market Trends in Frederick Md
Average Home Sales Price: $331,044: up 5.3% from last year at this time.
- Average Single-Family Sales Price: $386,200: up 3% from last year at this time.
- Average Attached Home Sales Price: $262,200, up 20% from last year. Townhouses are in demand!
- 134 single-family homes sold, down 18% from last year’s number of 163.
- 103 townhouses and condos sold, nearly the same as last January’s number of 104.
- A total of 238 homes sold, down 11% from last January’s 267.
We’re still seeing a healthy demand for the season, but a very low inventory of about 800 homes. If you’re considering selling your home this winter, it’s still a good time.
Median Home Sales Price: $304,188, up 1.4% from last year.
Average Days on Market (DOM) the time it takes to get a home under contract: 55 days, down 26% from last year (74 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 312 new pending contracts (homes that went under contract) down 5% from last January. Still a healthy demand for the cold winter months.
Total Listings in Frederick Md: 834, almost the same as last year’s 819. 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. 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.
Frederick Real Estate Trends for January 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! Find Out What Your Home is Worth.
Sellers got 97% of original list price on average, compared to 95% at this time last year. We also can count on a healthy price appreciation in 2018.
Appraisers are projecting 3% – 5% increases, depending on price range.
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 several 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.
What’s Notable for Buyers:
- If you are a buyer, get prepared before you enter the market. Get ready to make quick decisions… 28% of homes sold in 10 days or less! 45% of the homes sold in less than 30 days, also,
- 21 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. The competition is stiffest in the $300,000 to 399,000 price range.
- Even though interest rates rose slightly, they are still incredibly low! See today’s rates.
- 2 houses sold for over $1 million. There are 10 homes currently listed in this price range.
What’s Notable for Sellers:
- All indications are that the market is healthy and serious buyers are still entering the market, even if in smaller numbers than in the spring and summer. 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 are showing a 5% to 7% increase in home values for the average home in Frederick County, 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 an 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 14% 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.
January 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 January 2018.
Contact Chris Highland to see homes for sale in Frederick Md.