Archive for the 'Market Updates' Category
November 15th, 2013 Categories: Market Updates
Crofton Maryland Real Estate – October 2013
Crofton home sales were down in October, whether you’re counting new contracts or closings on contracts written in previous months. This is not surprising, given consumer uncertainty with everything from health care to job security, because the real estate market tends to be a good barometer of consumer confidence. The real estate statistics for Crofton, the greater Crofton area, Anne Arundel County, and Maryland seem to confirm that local consumer confidence was in the tank last month. Let’s look at Crofton’s numbers:
Crofton Home Sales
- Closed Sales: Down nearly 18%. 23 closings last month compared to 23 in October 2012. While this is lower than last year, it’s not lower than the previous three years.
- New Under Contract: Down over 31%. 11 new contracts last month compared to 16 in October 2012. This is the fewest new under contract we’ve had in the past five years.
- New Pending Contracts (including contingent contracts): Down almost 40%. 20 new pending contracts compared to 33 in October 2012
- All Pending Contracts (including contingent contracts): Down almost 35%. 43 pending contracts altogether compared to 66 in October 2012.
- Days on Market: Down 12.5%. 56 days on market compared to 64 in October 2012. Remember, these closings were based on contracts written in August and September so the days on market statistic doesn’t reflect more recent consumer confidence. When we compare with last month, instead of last year, days on market were up over 16%.
The barometer I tend to use for anticipating the real estate market in coming months is “balance” in supply and demand – how many new listings vs. how many closed and pending sales. If the number of new listings is lower than the sales, the market is likely to tip in favor of home sellers because there will be greater competition for their home and buyers will have fewer options. If the number of new listings is higher than the sales, sellers will be competing to attract buyers and we can expect to see lower prices and more days on market. Given this explanation, let’s look at new listings in October:
Crofton Home Listings
- New Listings: Up over 22%. 33 new listings last month compared to 27 in October 2012. This is three times as many new listings as there were properties placed under contract last month. The highest in three years.
- All Listings: Up more than 46%. There were 79 active listings in October compared to 54 in October 2012. If properties continue to go under contract at 11 per month, and no new listings go on the market (unlikely), that’s an absorption rate of seven months for these 79 listings to sell.
Crofton Home Prices
On a much brighter note for home sellers, prices on sold homes were up last month!
- Median Sold Price: Increased approximately 11%. $334,500 was the median sold price compared to $300,000 in October 2012. Median is the mid-price of all homes sold, with an equal number of homes priced above and below this figure. Median is generally considered to be a more accurate reflection of home prices than the average. This is the highest median sold price in Crofton over the last five years!
- Average Sold Price: Increased approximately 11%. $338,067 was the average sold price compared to $304,721 in October 2012. the average is determined by adding the sold price for all closings and dividing the sum by the number of closings. In some cases, this can severely skew the numbers if there’s one property that’s significantly higher or lower than all the others. We don’t have that occur as much in Crofton as it does in some other areas, such as nearby Davidsonville. This is the highest average sold price in Crofton for the last five years!
What all this means to you
Crofton Home Buyers – It looks like you’ve caught a break. Just as interest rates and home prices started creeping up and the inventory started shrinking, the Crofton real estate market hit the brakes. You have another opportunity to step into home ownership while the tide is in your favor. Don’t blow it this time!
Crofton Home Sellers - Don’t throw in the towel just yet, because the numbers are still better than we’ve seen in recent years and there’s no guarantee of a quick turnaround. This may be the best market that home sellers will see for a while, so hang in there…. price your home conservatively, hire a professional stager to make your home appeal to likely buyers, and choose an experienced agent who knows how to overcome the challenges of any real estate market.
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October 21st, 2013 Categories: Market Updates
Odenton Real Estate Update – September 2013
The Odenton real estate market remained robust in September, in spite of rising interest rates and uncertainty about the economy. Average and median prices were up for closed sales, days on market were down, and more units sold than last year AND last month.
Odenton home owners should not take this as a license to be greedy, however, because other indicators suggest that darker days may be ahead, with more than three times as many new listings in September than there were new contracts. This “balance” is a key indicator of the real estate market in the near future – a crystal ball, of sorts, that suggests the direction of supply and demand.
There are 132 homes for sale in Odenton today, including 34 new listings and 17 closed sales so far this month. This is a 2-1 ratio, not good news for home sellers.
Home Sellers: With this imbalance in new listings and new sales, combined with the effects of the government shutdown, it’s likely that we’ll see declining home prices, more days on market, and fewer units sold in the coming weeks. Please be conservative in your pricing and choose an agent with an aggressive marketing plan, plenty of experience, and a great track record for average days on market.
Home Buyers: While it’s likely that housing inventory will grow and prices fall, given this imbalance of supply and demand in Odenton, interest rates have been on the rise for the past few months and new qualifying limitations seem to pop up weekly. For these reasons, it’s a real gamble for you to continue sitting on the sidelines and waiting for a return to the buyers’ market of 2009 and 2010. Take advantage of this situation and start home shopping now. You could be in your own home by Christmas, or even Thanksgiving.
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October 14th, 2013 Categories: Market Updates
Crofton Real Estate Sales UP (and down) in September 2013
Crofton real estate news in September was good, when compared to September 2012 – at least in some categories we track monthly. Month to month statistics were not quite so positive, however, in the face of rising interest rates in July and August when contracts were written for most of the sales that closed in September.
- Units sold: 22 – Up 22% over 18 last year, but down 50% from the 44 of August 2013.
- Days on market: 48 – Down over 27% from 66 last year, but up 60% from 30 in August 2013.
- Average % of sold vs. list price: 97.66% – Improved slightly over last year (96.2%) and last month (96.6%).
Crofton home prices reflected the declining consumer confidence in September. Fortunately, prices remained fairly stagnant and didn’t show a huge decline. In fact, the average sold price was up 8% to $351,241 over September 2012, while dropping nearly 5% from August 2013. The median sold price of $322,75o was down, but less than 2% from last year and less than 3% from August 2013.
As you can see from this chart, the market was still better last month than 3 of the past 5 years. Let’s hope for better news next month because I’d hate to see this become a trend. It was kinda fun to see things get back to “normal” for Crofton real estate.
Home Sellers: Given last month’s sales statistics, it’s a good idea for you to be conservative in pricing if you want to move and get settled into your new home before Thanksiving. If consumer confidence continues to decline and interest rates keep going up, your odds may not be favorable for getting today’s pricein another month or two.
Home Buyers: It’s your lucky day because the housing inventory is up, thanks to increasing listings and decreasing sales. Interest rates have stalled, so that’s more good news if you’ve been thinking of firing your landlord.
About Focus on Crofton:
FocusonCrofton.com is my way of attracting relocating homebuyers to the greater Crofton area while keeping current residents updated about local real estate, news, and events. Please click on Contact Margaret Woda if you would like to see information about your community organization or local event posted on FocusonCrofton.com or our Facebook page.
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September 29th, 2013 Categories: Market Updates
ODENTON REAL ESTATE UPDATE – AUGUST 2013
Sales statistics are the closest thing we have to a crystal ball in real estate because we can usually detect a trend that, should it continue, indicates what we might expect in the next month or so.
Pending home sales in Odenton were up more than 31% last month from August 2012, but don’t open the champagne just yet because sales slowed 6.67% last month from July. These mixed results were not unexpected, as mortgage interest rates crept up over the summer, putting a damper on the real estate market recovery.
Average and median home prices were down in Odenton during August, whether you compare them with the previous month or previous year. The same factors were at work here, plus we’ve seen conservative appraisals force sale prices lower than the original sale price agreed to between home buyers and sellers.
The average Days on Market in Odenton were up slightly to 95 days, in spite of some pockets that did better – 3-level garage townhomes in the 21113 zip code, for example, averaged 74 days from listing to closing in August.
There are other factors at work, of course, besides interest rates: Most notably, the housing inventory in Odenton was up nearly 10% over a year ago, which reflect a 40% increase in new listings during the month compared to new pending contracts just 5.88% higher. Overall, however, we saw a balanced market in Odenton with 116 active listings in August and 115 pending sales. When I see anything close to balance between listings and sales, it always makes me smile!
The bottom line:
ODENTON HOME SELLERS: The improving real estate market which was trending toward sellers’ favor may be in a “pause” mode, for now. I’m cautiously optiimistic that August sales statistics don’t favor buyers – it’s more of a draw. One thing is certain – it’s better to list and sell now than wait because the real estate market could go either way in the coming months.
ODENTON HOME BUYERS: It’s not a buyer’s market any more, because the huge inventory which drove down prices for about five year is no longer a factor. In fact, another factor is trending against buyers right now, and that’s the mortgage interest rates at about 1% higher than a year ago.
If you compare the monthly Principal and Interest payment on the median home price in the above chart ($283,000), that’s a difference of $163 per month in your payment. I wouldn’t postpone buying because it’s likely rates will hit 5% in the near future.
Odenton Homes for Sale
Detached homes in Odenton span a wide price range – from less than $200,000 to over $600,000 – as do townhouses – from under $200,000 to nearly $500,000. Click on Odenton Homes for Sale to view them all or click on “New Search” at the top of the page to modify the search criteria to match your own wants and needs. These listings are automatically updated so the list will be current, whether you click on it today or six months from now.
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September 23rd, 2013 Categories: Market Updates
By Jenn Morson. Posted originally at Activerain.com
August Market Study for Crofton, Maryland
Homes are on the move in Crofton, Maryland, according to RBIntel’s August data. In August 2013, 44 home sales closed successfully, which is up nearly 19% from August 2012, when 37 homes closed. Even better, the average list price has increased by over 20%. The one number that has gone down is a great one: days on market! As anyone who has sold a home can tell you, keeping it ready for interested buyers can be a bit of a pain, but Crofton sellers this past month only had to keep those rooms neat and tidy for an average of 30 days, versus last August’s 49 days. That’s about 39% less time spent waiting to sell your home! – See more at: http://activerain.com/blogs/jennmorson#sthash.bj9q6IJ4.dpuf
So why the great news? Several factors. With interest rates rising, people are moving to get those rates locked in at favorable numbers. But another major contributer to this seller’s market is the lack of inventory. From reading other market-related posts on Active Rain, I know that this is a common situation in a lot of different areas. Here in Crofton, Active Listings in August were 60, whereas last August, there were 76 active listings. Basic principles of supply and demand at work.
What does this mean for you?
Sellers: If you are a Crofton resident looking to list and sell your home, there is no time like the present. Your home is a coveted commodity in our current market. With inventory down, your home will not be competing with as many other homes as it was last year. Why not strike while the iron is hot?
Buyers: Yes, it’s true. There are less homes available, which makes for a better seller’s market. That being said, interest rates ARE climbing. If you are a first-time buyer, now is the time to get in there and find your home before inventory drops further and you are competing against more buyers.
Jenn Morson is a former client and now she is a licensed real estate agent and ASP stager with Team Woda at Long & Foster in Crofton, Maryland.
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