June Housing Market Report for Frederick County

The market has definitely made a turn. This is the fourth month in a row that the sales were above last year sales for the same time. Again, prices have not completely stop from declining, however the price ranges have moved into the higher price bracket. What I mean by that is that more homes are selling at a higher price range now. For the longest time homes under $250,000 was the magic number. First time home buyers were eating them up (with a few real estate investors.) Investors are having a tough time at purchasing Condos for investments.  Banks have raised fees and implemented strict application guidelines. Which is fine for the First Time Home Buyers so they can buy affordable homes before the $8000 tax credit runs out (12/1/09.)

The majority used to be in the red and yellow areas, but has definitely grown to the green (and just a little bit in the light blue. This tells me that finally that the “move up” home owners are finally making their move. I am sure they are not make money hands over fist, but what is really happening (and if you think about it in any market) they are just getting a much better deal on the new house.

Seriously, think about it. No matter what “market” you are in the home you are selling is the same predicament as the one you are going to buy. Yes, if you are going to make tons of money by selling your house in a “sellers” market, you are going to pay a lot more for your replacement home. Obviously, it is quite the opposite in the “buyers” market. If you are going to lose on your house, you just negotiate to pay less in the next house at a bigger discount that what you are losing now. Capiche?

The changes in the market is not fully wide spread across the county, but in pockets. Urbana is still on fire. A few weeks ago I reported that there were 19 under contract and only a few resales left on the market. Well, now there are 25 under contract and 10 available townhomes for sale. The average days on the market for the sold townhomes are 29 days. So, if you want to purchase in the Villages of Urbana, you need to act quick. Brand new town homes are on fire as well. Advantage Homes sold out of the first phase of their inventory within the first couple weeks of opening. (They have more, but weren’t planning on them moving that quick.) They have outstanding features for their standard homes (granite and stainless steel appliances.) All of the builders have great products out there. (NV homes and Main Street Homes as well.) Also, if you didn’t know it, you should take your REALTOR with you to visit new home sales. As I was told by one of my clients that ventured in alone said, “Boy, does their demeanor change when your around.” Nothing against the hard working salesman at the sales office, but I believe there is a sense of “I am the only expert in the housing market here” and they feel this gives them the upper hand when they are discussing things with you. It doesn’t cost you anything to have a REALTOR® with you and no they are not going to get you a better deal because you don’t have one with you.

While the prices are still declining the increase in activity will help them recover soon. I don’t expect them to bounce back quickly as the economy is still in turmoil, but I suspect the bleeding will come to a slow halt soon. You can see the whole report on our association website at FCAR.org. You can just click here for the June Housing report.

Have a great day. Don’t forget where you found this information and please feel free to share it. If you need help finding a house or selling your current one, give me a call.

Bob is a licensed Real Estate agent in Maryland and Pennsylvania. You can contact him via email at bob@gotbob4homes.com or call him on his cell phone at 240-285-4918.  Bob left the Frederick area to manage a resort office near Deep Creek Lake in Western Maryland. He still stays in touch with the area that he has grown to love.