Frederick Real Estate Market Report - What's Happening in Real Estate Sales?

Dated: September 18 2023

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Real Estate Market Trends in January in Frederick Md


Real Estate Market Trends in January in Frederick Md

The Median Home Sales Price: is $492,000, up 15% from last year.

Average sold price:

  • Average Single-Family Sales Price: $555,000, up 10% from last year at this time.
  • 84 single-family homes sold, up 2% from last year's number.
  • Average Attached Home Sales Price: $428,200, up 16% from last year.
  • 75 townhouses and condos sold, down 26% from last year's number.
  • Altogether 159 homes sold, down 14% from last year. 30 of these were new construction homes...down from 40 last month.

Although demand has been slowing since last year, the demand that we are seeing is closer to a NORMAL market, the inventory, however, is about 25% of a normal market.

The Inventory of homes for sale in January was down 12% over this time last an average of 291 listings.

Keep in mind that a "normal" inventory is between 1000 and 1200 homes on the market. This abnormally low inventory has created a strong seller's market for several years. The low inventory still creates competition for those buyers who are in the market.

**As of today, February 17th, there are currently 343 homes listed for sale or coming soon in Frederick County. The breakdown is 218 existing homes and 125 new construction homes. Inventory is ticking up.

Detailed Market Statistics for Frederick County

Average Days on Market (DOM) the time it takes to get a home under contract is 26 DAYS, down from 32 days last year, down from the the 5-year average of 28 days.

New Listings in January: There were 267 new listings during the month, down 14% from last year.

Number of Homes Under Contract: 252 homes went under contract during the month, 11% less than last year. There were 346 homes total under contract, making their way to closing, 22% less than last year. 

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What Are Contingencies?

Why is DOM (Days on the Market) an important statistic? 

Find Out What Your Home May Be Worth

Real Estate Market Trends Across Frederick County

Sellers got 99.3% of the original list price on average, last year was 98.1%.

Possibilities this Winter: Home values are still increasing, just at a more moderate rate...what we like to call NORMAL. Or, if interest rates fall, (which some optimists expect) more buyers will enter the real estate market and competition will heat up. Prices may rise at higher rates.

It varies neighborhood by neighborhood. Real estate is local, hyperlocal. As of now, appraisers are telling us to see a more healthy value increase...5-6% increases.

Keep in mind: 

  • In some price ranges, in some areas of Frederick County, there is naturally a higher demand and the market is more competitive for buyers. Some neighborhoods, like Urbana, Middletown, New Market, Mt. Airy, and a few neighborhoods in the city of Frederick, are in high demand and sell much quicker. We are seeing multiple offers on homes that are in great condition and priced to sell.

What are the best neighborhoods in Frederick County?

Luxury Homes in Frederick County:

    • There is a slightly longer absorption rate for homes in the upper price ranges.
    • 14 homes sold, 7 new construction homes, and 7 existing homes.
    • The average time on the market before sale was 60 days for all luxury homes. The one new custom home sold in 532 days. *Read on to see how new homes skew the data.
    • Existing homes sold in an average of 28 days.
    • Homes selling over $800,000 got on average 103% of the original listing price. Existing homes got 99.5% over the list price and new homes got 108% over the list.
    • The number of luxury buyers in Frederick County is quite lower than other price ranges. But, they are there, albeit in fewer numbers, looking for their dream home. As values continue to soar, we have chosen to consider $800,000 as the threshold for "luxury". That is our subjective number.
    • There were 58 homes listed above $800,000.
    • 9 homes sold between $800,000 and 1 million.
    • 5 homes sold between 1 and 2.5 million.
    • 0 homes sold between 2.5 and 5 million. There is currently one home on the market in this price range.

*New homes skew the statistics. Separating the new homes in the luxury market helps us see deeper into the trends.

    • The New homes sold for 108% of the list price.
    • Normally, the skewed statistics illustrate how new homes are sold, with the list price as the base price, and the options added to the base price.
    • The days on the market are also skewed by the way new homes are listed. They are often listed the day they go under contract.

What’s Notable for Buyers:

In any market, but especially  seller’s market, buyers must be prepared before they find a home. You must be pre-approved by a reputable local lender. Most sellers will not entertain offers from a buyer who has not been pre-approved.

If you have a house to sell, you need to get it on the market first, before you make an offer. Better yet, have your home under contract if you want to win in a multiple offer situation. Some people even find that having their home sold and having a temporary living set up gives them the greatest advantage if they are buying in a highly competitive price range.

  • The majority of homes sold were in the $400,000 to $499,000 range. (higher competition for buyers) The largest number of listings are in the $400,000 to 499,000 price range (higher competition for sellers)
  • Although rates are starting to rise, as predicted, to help slowdown inflation, these rates are sitting at the historical average, which is 7%.

Notable for First-Time Buyers:

As we see home values continue to rise 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.

Our Advice: Marry the House, Date the Rate…

and divorce your landlord.

All things are cyclical, especially the real estate market. What goes up (interest rates) will come down…at some time. If you can get into home ownership, our advice is to do it.

When mortgage rates come down, and they will, then refinance into a lower rate. You will reap the rewards of equity. If you sit on the sidelines and wait for the rates to come down, you will lose those years of building equity.

The other aspect to consider is that rents are increasing. Inflation has it’s effects on landlords too. As rents continue to increase, you will be paying more. Why pay your landlord’s mortgage at increasing rates, when you could be paying your own?

And of course, make sure you use a buyer’s agent to help you through the process. We never waiver on this advice. Make sure your agent comes referred and is a trustworthy real estate agent.

What’s Notable for Frederick Sellers:

  • All indications are that buyers have been coming back into the market, albeit not in the numbers we saw a year ago.
  • With an inventory that is very low, prices are still on the rise. When demand is normal and inventory is low…it’s a good time to sell.
  • Homes in great condition and priced well for the market are going under contract in days, and fetching top dollar.
  • Just remember, top dollar is not what it was during the last year. Seller’s cannot expect to get 20% above similar homes that sold last month. Expectations should change with the market.
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Christopher Highland

I'm an Associate Broker/Branch Manager with eXp Realty in Maryland, Licence #34920My Resume:Licensed Associate Broker with 30+ years of experience. Has a thorough knowledge of real estate laws and all....

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