Frederick, MD Real Estate
Located in northwest Maryland, Frederick County is the largest county by area in the state – stretching from Virginia to Pennsylvania. The county is home to over 240,000 residents, U.S. Army’s Fort Detrick, and the Presidential Retreat, Camp David. The city has also been home to several historical figures, including Francis Scott Key – the man who penned the Star-Spangled Banner. Frederick County’s affordable real estate and low taxes make it easy for both corporations and local businesses to flourish. Read more about Frederick County.
Frederick County Real Estate Market Update
As the winter real estate market in Frederick is upon us, we are still seeing robust sales. We are also seeing a welcome increase in inventory in October and November…although still less than the number of homes that were on the market in 2020 during the fall.
We are thinking that the market might be cooling off a little…but in a way that it needs to…buyers are fatigued by multiple offers and high competition. Read: Post Pandemic Real Estate Trends
That’s just a glimpse of what is happening in the real estate market. Let’s look at the details…
Total volume in sales in October was up 16% over last October. Compare that to 35% in September…this is a sign of a little cooling off…but still higher than last year at this time.
Being affiliated with a brokerage with agents all over the state, we’re hearing similar stories. The overall number of homes on the market has been very low throughout this year, but thankfully, we’re starting to see that change. *See Maryland market statistics below.
Here is a snapshot of Frederick County’s real estate market trends for October 2021, and a projection of what we might look forward to the rest of the year.
Real Estate Market Trends in October in Frederick Md
Up, Up and … everything’s still up…except the time it takes to sell a home!
The Median Home Sales Price: $410,000, up 15% from last October. We’ve seen an increase in both townhouse sales and single-family sales prices.
- Average Single-Family Sales Price: $530,500, up 15% from last year at this time.
- 294 single-family homes sold, up 4% from last year’s number.
- Average Attached Home Sales Price: $340,300, up 13% from last year.
- 236 townhouses and condos sold, up 2% from last year’s number.
- Altogether 530 homes sold, up 3% from last year. 82 of these were new construction homes.
A high demand combined with a very low inventory…slightly more than 408 homes were on the market on an average day in October, 10% less than last October.
Keep in mind that a “normal” inventory is between 1300 and 1400 homes on the market. This low inventory has created a seller’s market for a couple years.
Detailed Market Statistics for Frederick County
Average Days on Market (DOM) the time it takes to get a home under contract is: 14 DAYS , 22% shorter than last year at this time , but this crept up from 12 days in September.. much less than the 5 year ay average of 32 days.
Tight inventory, homes selling fast!
Title companies and lenders have been doing a stellar job of moving quickly and providing safe alternatives to the usual lending and settlement procedures.
New Listings in October: There were 596 new listings last month, 8%decrease from 2020, STILL not enough to meet the demand…considering 62% of listings went under contract in less than 10 days!
There are 867 homes under contract, making their way to closing, less than last year…17% less. This is showing the slowdown in demand that we’ve been seeing.
hopefully this slight slowdown in sales will give the inventory a chance to catch up, which may lead to a more balanced market.
Add to that:
Number of Homes Under Contract: There were 527 new contracts (homes that went under contract) 12% less than last October. This will reflect in the number of closings next month. It also reflects a bit of a slow-down in contracts, compared to the last few months.
even though we’re seeing a slowing in demand…we still can refer to a homeowner’s favorite formula:
Higher demand and a low inventory = price acceleration…albeit a slightly slower acceleration.
What’s Notable for Buyers:
- The majority of homes sold were in the $300,000 to $399,000 range. (higher competition for buyers) The largest number of listings are in the $400,000 to 499,000 price range (higher competition for sellers)
- Mortgage rates have been at record lows, prompting the demand among buyers. Lately they have bumped up slightly, but still incredibly low.
- We keep saying that these are historical lows. That’s because mortgage rates fell to record lows 16 times in 2020. Although, rates are starting to rise, as predicted, to help slowdown inflation.
As we see home values continue to rise at a fast pace this year, first time buyers would do well to get in as soon as they can…to take advantage of the increased equity they will receive, although it is a difficult market for first time buyers, given the increased competition and lower inventory. But we are starting to see changes.
What’s Notable for Sellers:
- All indications are that buyers are slowing down (slightly) as the weather turns colder…with an inventory that is very low, although growing, prices are still on the rise. When demand is high and inventory is low…it’s a great time to sell, especially if sellers have been unsuccessful in the past.
- Less competition is the hallmark of a seller’s market. Add to that the typical slowdown of listings as we approach the holidays. The fewer houses that are on the market, the fewer choices for buyers.
- Homes in great condition and priced well for the market are going under contract in days, and fetching top dollar.