Archive for the 'Market Updates' Category
June 15th, 2014 Categories: Market Updates
Real Estate Update for Crofton, Maryland – May 2014
Good news for Crofton home buyers! May was a busy month for listings in Crofton, with 72 properties added to the inventory of available homes for sale. Today, June 15, there are 99 listings on the market for sale in the 21114 zip code, ranging from $109,000 (2-BR condo in The Tiers at Walden) to $800,000 (detached home on nearly 2 acres). This is the largest inventory of homes for sale in Crofton since November 2011.
By contrast, only 20 homes went under contract in the entire zip code during May. Even if you count the 24 contingent contracts (I’ll buy your house if and after my house sells), that’s only 44 offers accepted – definitely NOT in the same ballpark as 72 new listings, but it is an increase over May 2013.
What does this mean to you? When new contracts don’t keep pace with new listings, market conditions favor buyers over sellers. This usually translates into more days on market and more competitive pricing, as well. Disappointing to current Crofton home owners, but a great opportunity for home buyers.
Mixed news in “sold” statistics: Closings in May (37) were the highest we’ve seen in 2014, and an increase of nearly 6% over May 2013. The average days on market for the homes closed last month was 47, however, a 161% increase over the 18 days on market in May 2013. Average sold price to original list price was down approximately 2% from last year, but it was still a respectable 96.4%. The breakdown of attached vs. detached homes closed in May 2014 was nearly even at 18/19, compared to last year when it was 23/12.
This increase in sales of detached homes contributed to the nearly 4% increase in average sold price overall, but the average sold price of detached homes in Crofton dropped 5.6% from last year to $453,958 and the average sold price of attached homes dropped 7.05% to $251,564 from 2013.
Real estate statistics are only a small part of the story for Crofton home buyers and sellers, but they do help provide some perspective. Crofton homes are selling, but sellers and real estate agents should not be surprised if their property is on the market longer than it might have been at this time last year. Home buyers, this is an opportunity for you to take advantage of the relatively large inventory of homes on the market in Crofton while rates are hovering around 4%… chances are good that your monthly payment to own will be lower than rent on a comparable property.
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May 19th, 2014 Categories: Market Updates
Real Estate Market Update for Crofton, MD – April 2014
Crofton home owners will be happy to learn that sales were up more than 34% last month over last month (March 2014) and last year (April 2013), with 31 closed sales.
There were 57 new listings last month but, fortunately, the new pending sales exceeded that number with 64 new pending contracts, up 45% over last year. About half of these were contingent contracts, so let’s hope the market continues with its annual Spring rebound to convert those contingent contracts to firm “under contract” status.
It’s interesting to note that the majority of buyers who closed in April used Conventional financing (15), in spite of the tighter restrictions in place for Conventional loans. Thirteen buyers used VA or FHA, two paid cash (probably investors), and one used “other” – perhaps an assumption or owner financing.
Average and median home prices for the properties that closed last month were down, but I wouldn’t lose sleep over that. It doesn’t mean that any one property dropped in value, just that more lower priced homes sold last month than a year ago. This is reflected in the ratio of attached/detached homes, which was 22/9 this year compared to 15/8 in 2013.
Overall, I think Crofton residents can feel good about the real estate market in Spring 2014. If you’re a prospective buyer, however, it’s time to get off the fence. When the market is good for sellers, it’s less favorable for home buyers.
This home is currently for sale in Crofton. Please contact me at 410-451-6245 for more information.
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March 17th, 2014 Categories: Market Updates
Davidsonville Real Estate Market Update – February 2014
Based on sales figures from MRIS and RBIntel, released March 10, 2014, for Davidsonville, Maryland (21035)
There are more than 2500 residential dwellings in Davidsonville, but there is very little turnover. Only one hundred eighty five homes sold in the 21035 zip code during 2013, the highest number of annual sales since I started tracking real estate statistics in my market during 2006. That’s fewer than 1% of the existing homes.
With so few home sales, it’s not really possible to draw any meaningful conclusions. One very high or very low-end property can skew the numbers significantly.
That’s why I would have to look beyond this data to consider similar homes in other zip codes, if you were to contact me today about selling your Davidsonville home. There really is no substitute for “experience” in situations like this!
Here is the information released by MRIS and RBIntel last week for Davidsonville, Maryland:
What you don’t see here:
- More homes sold last month (February 2014) than any February since 2008.
- Days on market are lower than any February since 2008, other than last year, when only one home sold. In 2012, no homes sold in February.
- The “Sold vs List Price” ratio is lower than last year, but higher than every other February since 2007.
- Median and average sold prices were higher in 2013, but lower in every other February since 2008.
The time is always right for buying in Davidsonville because there are more sellers than buyers, and that tends to put buyers in the driver’s seat at the negotiating table. That being said, homes are selling at about 95% of full price, so don’t expect to get a “steal” in Davidsonville.
There’s some pent-up demand out there, so take advantage of this and put your home on the market sooner rather than later! You’ll have a lot of competition, so work with an agent who has a relationship with a good stager. It could mean the difference between selling or multiple price reductions… or worse, no sale.
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March 10th, 2014 Categories: Market Updates
Crofton Real Estate Market Update
This report is based on closed sales in the 21114 zip code during February 21114, which were released by RBIntel and MRIS on 3/10/14.
Here’s a look at some key statistics in Crofton during February 2014, along with comparisons to the previous year (YoY) and month (MoM).
Sales Volume: Sales picked up last month, whether we compare February closings with January 2014 or with February 2013. Good news, with more good new yet to come.
Sold Price: Both the median and average sold prices increased in February – only slightly from February 2013 but a LOT better than last month (January 2014).
Sold vs. List Price: The ratio of sold price to list price down less than one percent from last year and up less than one percent from last month. I’d say that’s pretty consistent! Homes are selling about 96% of full price, and not too many home sellers will complain about that.
Days on Market: The days on market were up in February – more than double last year BUT the lower than any previous February since 2006.
Following is a chart of February real estate statistics for Crofton (click on the image to enlarge it):
What you don’t see here: The number of homes for sale in Crofton during February was 72, a significant increase over February in 2012 and 2013, but not yet back to 2011 levels. This is likely due, in part, to bad weather keeping prospective buyers indoors during February and also to 42 new listings going on the market during the month compared to 25 in February 2013, a 68% increase.
Home Buyers – Rates aren’t as low as they once were, but they’re still below 5% for most loans. There’s no telling what they’ll be in six months or a year, so I wouldn’t wait for falling interest rates to buy a home… you can always refinance if rates drop in the future.
Home Sellers – You have good reason to be optimistic, with median and average home prices increasing and a high sold vs. list price ratio. But the competition is stiff, and you can’t afford to stick a sign in the ground and wait for a buyer. Smart sellers are removing excess belongings from their property, bringing in a professional stager, and investing both time and money in home sale preparation. While price trumps everything, to coin a phrase from HGTV, property condition is more important than ever to selling your Crofton home.
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February 24th, 2014 Categories: Market Updates
This report is based on closed sales in the 20715 zip code during January 21114.
Here’s a look at some key real estate statistics in the 20715 Bowie zip code during January 2014, along with comparisons to the previous year (YoY) and month (MoM). These numbers do not necessarily reflect the statistics of other zip codes in Bowie.
Sales Volume: January sales in this area of Bowie were higher than any January since 2008, before the crash of the real estate bubble, and higher than the two previous months. This is in stark contract to nearby Crofton, where sales experienced the typical seasonal low during January.
Sold vs. List Price: The ratio of sold price to list price was down, however, from last year and last month. Fortunately, it’s still higher than four of the past six years.
Sold Price: The median sold price during January is higher than any January since 2010, but still more than $100,000 below the median price during the “bubble” years of 2006-2009. Anyone who bought during that timeframe will likely be facing a short sale, unless they’ve already negotiated something with their lender.
Keep in mind that this does NOT mean that YOUR home value has risen or fallen; this statistic is based on the prices of homes that sold.
If you compare Bowie real estate statistics for last months with those of Crofton (posted last week), it’s hard to fathom how different they are for two neighboring zip codes. The same can be said for other zip codes in the city of Bowie, which don’t necessarily mirror 20715. For information about those areas or anywhere in the greater Crofton area, please contact me at (410) 451-6245.
This is the time to sell your home, while inventory is low and demand is high, so don’t procrastinate on getting listed.
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