- Your Frederick Real Estate
- Market Report
- What are the numbers to look for when determining the Frederick Real Estate Market?
- What does New Listings vs Pendings tell you about the Frederick Real Estate Market?
- Total New Listing to Total Pending in the Frederick Real Estate Market
- Another number that we like to look at is the total number of new listings to the total number of pendings. Why? Because it shows us approximately how many months of inventory we have left. In addition to showing you how many months of inventory are left, it is an indicator of a buyers or sellers market. Now let’s take a look at the Frederick graph below and see what we can figure out.
- So how does days on market affect me as a buyer or seller in the Frederick Real Estate Market?
- What is happening with property prices in Frederick Real Estate Market?
- Will your house sell for what you list it at in the Frederick Real Estate Market?
Your Frederick Real Estate
Characterized by a chic vibe downtown that is surrounded by rolling farmland, Frederick is consistently ranked one of the top spots to live in Maryland. We are in the middle of the year and school is about to start. Normally, people think of this as a time when the real estate market starts to slow, but we are still seeing that properties don’t stay on the market very long. We are still in a seller’s market and prices continue to rise. Let’s take a look at some of the stats for Frederick Real Estate market and see why this might be.
What are the numbers to look for when determining the Frederick Real Estate Market?
When it comes to measuring the real estate market and seeing where it is headed, we think there are five crucial numbers to consider, and they are
- New Listings vs Pendings
- Total Listings vs Pendings
- Days on Market
- Median List Price
- Median List Price vs Median Sold Price
Don’t worry if you dislike numbers, graphs and charts. We are going to dive into each of these numbers individually and see what they mean.
What does New Listings vs Pendings tell you about the Frederick Real Estate Market?
New versus pending contracts shows one major thing, how hot the market is. It shows what portion of homes are selling that are coming on the market the same month.
A couple things can be learned by looking at this chart. Inventory levels and pending contracts went down in the winter, which is typical. What is not typical is for the new inventory to be at or below the pending contracts during the winter. What this did to our market is create an even lower level of available homes for sale, which created a shortage into the spring as well.
Total New Listing to Total Pending in the Frederick Real Estate Market
May provided a little more stability in the market. The inventory level did increase a little, but still well below the year over year number. The pending contracts number dropped a bit in May, probably a lagging indicator from the lack of inventory in April.
By using supply and demand you can determine that we have a large shortage of homes for sale. Which will mean higher prices for the homes that are available. It could also mean that homes that are not picture perfect may still sell and even fetch an increasing price.
What this means for sellers? If you have been thinking of selling in the next couple years, there may not be a better time than now.
And for Buyers? Don’t be discouraged. Get yourself pre-approved with a reputable lender. Clear any outstanding obstacles you may have in the way of buying, and be prepared to put your best foot forward. You aren’t going to be buying the steal of the century in this market.
So how does days on market affect me as a buyer or seller in the Frederick Real Estate Market?
Luckily for us, this number is pretty easy to explain and understand. If you are a seller, days on market can give you a good estimate of how quickly your home will sell if it priced correctly. Similarly, if you are a buyer, days on market can tell you how quickly you will have to make a decision because the home you want may not last very long.
The results are clear, homes are selling very quickly! In fact the number dropped from 25 days on market in March to nearing 12 days in April and then raised a whopping 1 day to 13 days in May. We also never reached a point over the winter of 45-60 days for the average days on market, which is a typical sign of a balanced market(5-6 Months of Home Inventory).
For sellers, this means a faster sale, if you price it right. It means more showings in a very short period of time. It could even mean multiple offers. Let’s get together and talk strategy. It may be a great market to take a weekend trip. We could have your house sold by the time you get back, and with little to no inconvenience.
What is happening with property prices in Frederick Real Estate Market?
Woohoo! Another easy, but crucial question to ask and answer. Because the price of a property affects just about everything, it is an important number to consider. It affects how quickly a house will sell, if the house will sell for what you are asking for and if the house will sell at all! Let’s take a look at the chart below and see how it could affect you.
This is the year over year increase in property values for homes that sold. Meaning if you are looking at May 2017 at beginning of the chart, you will see that home prices were up over 10% over May 2016! In April of 2018, we were up about 7%, which is still twice what the experts consider to be the natural growth rate of real estate. In May it flattened out to a more normal 1.9% increase for Year over year growth.
For anyone, you can see that the returns on owning a home are 7+ times what you would get on a bank account earning 1% interest. It has the added value of putting a roof over your head. Not a bad deal, huh?
For sellers this means you may not need to have owned your home for 20 years to see good returns in value.
For buyers this is the time to consider buying your next home. Between pricing and interest rates, you may end up waiting too long and pricing yourself right out of the market.
Will your house sell for what you list it at in the Frederick Real Estate Market?
So you are thinking of selling your home. You have a list of updates you want to do. Let’s look at what you can expect to get based on your list price. Yes, thats right, homes don’t always sell for what you are asking for.
In this chart we are looking at the percentage of the Original sale price to the sold price. Meaning if a home was price at $300,000 when it first hit the market, what was the price that it eventually sold for? To put this in comparison, in 2014 the average sale price was near 93%.
This is an average for every home on the market and with an average agent representing you. Results can very greatly. For instance, on average, we get our sellers near 99.7% of their starting sale price. While the average for that fancy app brokerage is closer to 92%. What this means is your agent really matters.
So what does this mean? In the Frederick real estate, It is an absolute wonderful time to sell your home. You should see a short time on market, if you do everything you should to get your home ready for the buyers. Talk to your agent(I know a good one, if you need one) and put a plan in place. Even if you are just thinking about it now, it makes sense to figure out if now is the right time.
Buyers should be ready. Don’t wait for the weekend to see homes. If you see the home of your dreams hit the market go today or tomorrow. Go in expecting to pay what the home is worth. Work with an agent that puts your needs first. One who knows how to position you best in a possible competitive offer situation. And be ready to move fast. Quick closings can be the norm in a market like this.
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