Maryland Real Estate Agents Remain Optimistic
The average price of a home sold in Frederick County in the first quarter of 2007 fell by $5,800 and spent more time on the market, but Maryland real estate agents remain optimistic about an upturn.
The latest report from the Metropolitan Regional Information Systems (MRIS) shows the average price of a home sold in the quarter in the county was $348,400, down from $354,200 a year earlier.
The organization said 678 new and existing homes were sold in the county in the quarter, compared to 761 in the same quarter of 2006.
In April, 196 homes were sold in Frederick County, dropping nearly 27 percent from 268 in April 2006, according to the Greater Capital Area Association of Realtors. The highest number of homes sold last month were in the $200,000 to $299,000 range, a total of 67, compared to 90 a year ago.
Longer on the market
MRIS reported that 105 of the homes sold in April were on the market an average of 131 days, more than double their market time in April 2006. This is a result of Maryland mortgage borrowers being in no rush to buy until prices come down even further.
In its report, the MRIS said that while there were some job losses, “the job situation remains strong in Frederick County. Combined with historically low mortgage rates, home sales should continue at a steady pace.”That optimism was echoed by Terry Fox, president of the Frederick County Association of Realtors.
“We had slightly higher activities in April than in March,” Fox said Friday, “so we are optimistic that our market will continue to show improvement as we go into the spring and summer months. The inventory of homes is plentiful and mortgage rates are still reasonable.”
However, inventory is too large, said Stephen Mackintosh of Mackintosh Inc. Realtors.
A healthy Maryland housing market stock is about 1,000 homes. The county has 2,000 on the market, Mackintosh said.
New home construction has stalled in the county, at 78 in the quarter compared to 164 in the same period last year. But that could be good for real estate agents and mortgage brokers, Mackintosh said.
“A lot of people who need homes, such as those being relocated here, will look at resale homes instead,” he said. “And as the inventory declines, the market will change.”
Remember: Now is a buyer’s market, Mackintosh said. A potential purchaser can find lower prices and relatively good home mortgage rates.
SOURCE: The Frederick News-Post