May Housing Market Update

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The monthly housing report is finally out for May. I am glad to see the inventory lower than last year.  This is one item that has to be inline for the market to return to normal.  Hopefully we will continue to see this trend in the market.  Looking at the prices, we are below 2005 prices.  This is very unfortunate for everyone that has bought at the top of the market in 2005-2006.

Now, for those homeowners that have purchased prior to 2004; Don’t cry too much… you are still seeing approximately 14% appreciation.  Fourteen percent!!! That falls inline with normal appreciation or 4-6% a year.  Unfortunately, some homeowners took advantage of the steep appreciation and cashed out on Home Equity line of credit.  So in this case, you over spent your appreciation.

Just remember, in a normal market, homes will appreciate at very similar rate as your income.  When they don’t parallel each other…you’re gonna have problems.

Have a great day…things are really picking up around here.

June 16, 2008 · Filed Under Frederick Market Conditions, Market Condition

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Galyn Manor Brunswick MD Housing Report

When it comes to real estate in Frederick County, one of the most popular commuter locations has been Brunswick MD. The prices in this area have been relatively lower than the rest of the county. It’s very convenient to the MARC train. And with the price of gas today, you need to have options available.

One of the newer communities in Brunswick is the Galyn Manor development. It has almost 300 homes and was built back in the 2003. You will find homes built by Pulte, NV homes and Ryan Homes. Here’s a look at what is happening in that development.

Galyn Manor Brunswick MD 6/9/2008

  Active Under Contract Sold in last 90 days Ave. Days on Market
Condos O O O NA
Town Homes 1 1 O 56
Single Family 12 2 3 136
Total 13 3 3 128

All though the average time on market is almost five months; the SOLDS were only 77 days. This tells me two things; they were priced appropriately and in great condition (or price adjusted to make the condition a non-issue.)

I have always liked the Brunswick area. I believe it will become a major landing spot for the whole DC Metro area. It is already close to some major towns like Leesburg, VA and Frederick, MD. It’s a quick drive into Rockville, MD too and did I mention the Potomac River? This area of Brunswick really needs to be the focus. It worked (or at least is beginning to work for the Carroll Creek Area) You have the C&O Canal National Park run through here too.

Here’s a little Virtual Tour of Brunswick MD


Have a great day…and don’t forget to give me a call if you have any questions.

June 9, 2008 · Filed Under Frederick MD Real Estate, Frederick Market Conditions, Market Condition

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The latest Absorption Rates in Frederick County

the ground can\'t absorb any more water nor for sale homes.

A few months ago, I introduced you to the term - Absorption Rate. Basically, if we stop putting new homes on the market, how long would it take to sell all the homes. It’s like an old retail term “Inventory Turns” Very similarly, you have holding cost and depreciation that affects the housing inventory. The only problem with housing inventory, you can’t remove old stock…some homes stay much longer than the rest of the homes. This is usually the case for over priced homes, undesirable locations, or deplorable conditions. (All of which can be overseen with the right price.)

The activity across the state seems to have increased, as expected with the “Spring Market.” The increase in inventory had a negative impact on all the Absorption rates. The rate of sales was not directly proportionate to the increase of number homes. The Middletown and Walkersville area had the largest increase of 4 more months. The question is, will these homes clear out through attrition or sales by the end of summer? Historically the inventory peaks around July then lies flat for a few months, and then decreases into the winter. So, it will be easy to predict the inventory will go down, but we need the number of sales to remain the same or even increase. (I know, duh!)

The news media is starting to see an indicator of an end to the housing crisis and there are signs that some buyers are finally realizing the prices are just right for them. Let’s hope that the lending industry helps QUALIFIED buyers get into loans. It is truly not over until the last foreclosure hits the market from all the ARM resets from all the over extended buyers. Buyers of today have been one of the most qualified set of buyers that most have seen in a long time. (lenders running scared)

Anyways…here’s the chart of local and adjoining activity.

Absorptions in and around Frederick County 5/27/08

Area Active Contract Sold in last 90 Days Absorption Rate
Adamstown & Point of Rocks 35 15 7 9 Months
Brunswick & Knoxville 76 15 18 12 Months
Frederick 1234 237 303 12 Months
Ijamsville 50 4 11 18 Months
Middletown & Myersville 157 22 30 17 Months
New Market 147 25 35 14 Months
Thurmont & Emmitsburg 118 21 31 14 Months
Walkersville & Woodsboro 84 16 18 15 Months
         
Frederick County 2143 380 495 14 Months
Montgomery County 6122 1754 1919 11 Months
Washington County 1413 167 253 17 Months
Howard County 1976 491 625 10 Months
Carroll County 1229 219 305 13 Months
Maryland 46458 8412 10884 14 Months

Have a great day. If you are in the market to buy a home, call me…let’s talk.

May 27, 2008 · Filed Under Frederick MD Real Estate, Frederick Market Conditions, Market Condition

3 Comments 

Monday Market update

Supply exceeds demand period

(Still recovering from Relay for Life…)

However we still have more homes than buyers.  Next week I will break down the County Absorption Rate again to see if there are any improvements.

May 19, 2008 · Filed Under Frederick Market Conditions, Market Condition

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