DISCLAIMER: mentally insert (IMO, ‘in my opinion’) at the end of each paragraph because these are MY interpretations of the data. My experience is going to vary from other agents because other agents are not working the same day-to-day that I am, not seeing the same houses or helping the same buyer/seller pool. Grain of salt! If something needs elaboration, reach out to me directly, I’d love to open up a dialogue.
The burning question: what in the world is going on with Maryland Real Estate right now?
The numbers you are going to see below may alarm you. On purpose, I left the Q1 stats in the images for reference. Keep in mind, these numbers are in the rearview. Things have progressed since we began Quarter 3. Quarter 2 was a market for backlogged buyers to finally get the keys to their home. Buyers of mine that were searching for nearly a year got to close this chapter and start anew in their homes. So many happy settlements the last three months.
‘Residual crazy’. That is how I would describe my business experience in April – June. I dare say -knock on wood- that we peaked and the worst of it is over. Remember, this is in an inventory issue. The plateau is starting in the more populated areas and working it’s way at snails pace to the suburban counties.
What the heck does that mean Nina?
Howard County, Annapolis, Severna Park, Montgomery County homes are still aggressive from a buyer’s perspective; but, they always have been. Remeber, this market happened because of an invetory issue so it is only natural that things slow down first in the more populated areas…there are more homes in the inventory. We are far from normal. The Summer market coming to an end, the last rush before the school year always brings a lower inventory for the Fall. I am right here with you and my popcorn to see what happens in quarter 4.
But let’s be very clear about something. This is not a market bubble that is going to pop. Get out of here with that language! That is not the case. I am thrilled for my buyers that were able to secure their forever home, at top dollar sure, but with a dangerously lower mortgage payment than they ever would have had otherwise.
Oh you’re new here and didn’t read my Q1 round up with more information than you’ll ever need? HERE IT IS
BOY HOWDY, that was really satisfying to get out. Let’s go to work!
I pulled each number directly from the MLS closed sales between 01/01/2021-06/30/2021. I filtered the search to include only standard sales and divided them into single family homes and town homes + condos as those are two drastically different markets.
Guess what? My closed listings here averaged a 5.3% above list price close price. I had a Piney Orchard town house listed at $385k (already the historically high list price for that layout) and it closed with CASH at $405,500 and buyers paid my sellers closing costs. Hot dog!
Highest Sale Price vs Original List Price: Brooklyn (103.1%) and Jessup (103.5%)
Keep your eyes peeled on: Odenton. Value increase was +23.1% year to date from 2020
Nothing new or exciting in Howard, same old, same old. There is a premium to live here. It does make sense when you think about it though. There is a perfect blend of lush greenery + parks, community events, good schools and convenience to everything and for a large majority of people, those things are paramount.
Highest Sale Price vs Original List Price: Mount Airy (104%) and West Friendship (105%)
Keep your eyes peeled on: Mount Airy. When I work with buyers leaving urban areas, they want land, they want it at a tolerable price with good schools. Mount Airy strikes that balance.
It was a breath of fresh air working here. Buyers that I worked with here appreciate local businesses, enjoy going out to eat and are grateful for creaky floors and charming historic details. The market here was much more stable in other places, heck, I got a roof replaced and seller concessions in a few cases.
Highest Sale Price vs Original List Price: Gywnn Oak (103%) and Brooklyn (103%)
Keep your eyes peeled on: The City itself, not the outlier communities. Overall, the values are up roughly 17% YTD from last year. So entertain that row home you’ve always dreamt of in Mount Vernon.
Ok, Baltimore City taxes are the worst….That, for my buyers, has become an increasingly bigger deal. For example, a $400k single family home has a payment of about $2600, if you go one block over into Baltimore County, the payment drops to $2100/month. I would buy one block over, would you?
Highest Sale Price vs Original List Price: The county average 102%, Glen Arm (104%) and Gywnn Oak (104%)
Keep your eyes peeled on: Parkville! I love seeing people move here. There are a variety of communities within and it is still accessible to Towson convenience and Downtown. The average sales price to list price ratio was up 4.4% just ahead of the county average of 4.3%, so it isn’t a place where you are drastically overpaying.
So you scrolled to the bottom for a synopsis…
- the long awaited plateaus are on the horizon, it is not pure chaos anymore, values are still high, but not high and moving fast
- inventory is truly picking up, it has doubled in some areas
- if you’re buying a home this year, you’re going to be OK I promise, there is still plenty of time and plenty of fun to be had along the way
- buyers prepare your 3.5% cash towards closing costs, sellers are not providing concessions (with the exception for home that are on market more than two weeks)
- inspections are essentially for informational purposes only at this time
- rates are INSANELY low, so you as a buyer get that longterm benefit- I’m talking thousands and thousands of dollars over the course of your mortgage if you buy now
It’s a good time to call me if you…
- you want to sell your home for a historically high price
- heard rumors about how crazy real estate is and want the facts
- want to move before the end of 2021
- know someone starting the process who wants house hunting to be a fun experience
- have been following the interest rate vs inventory shortage over the last months and don’t know if it is the best time for YOU to buy/sell