Home Sold Decreased in Suburban Maryland in February

March 25, 2019

Market Minute Logo 2019 smallThe number of homes sold decreased in the suburban Maryland region last month, according to the latest Long & Foster Real Estate Market Minute report. Frederick County presented the biggest drop with a 20 percent decrease, followed by Prince George’s County with a 10 percent decrease. Inventory also fell in much of the region, with the exception of Frederick County which had a 2 percent increase. Median sale prices increased in some areas, aside from Charles County which saw no change and Frederick County which had a 2 percent fall.  

The Long & Foster Real Estate Market Minute report for the suburban Maryland region includes CharlesFrederickMontgomery and Prince George’s counties. 

Suburban Maryland Market Minute Chart February 2019

 

“The market is actually pretty strong in the Maryland suburbs right now. It’s really hyperlocal, but February’s numbers are not surprising,” says Larry “Boomer” Foster, president of Long & Foster Real Estate. 

Foster addressed concerns that the market is moving towards a housing bubble, pointing out that the situation in 2005 was drastically different from the current market. “Home affordability is around 150 on the index, meaning that the median household income has 50 percent more money than is needed to afford the median home price, he said.  

“When you look at the things that had happened back in 2005 to create the housing bubble, there were a couple of factors,” Foster.One was the regulatory environment around mortgages, the other was double-digit appreciation with no way to keep up with it and the home affordability index.” In today’s market Foster feels comfortable concluding that we are not in a housing bubble due to those factors being more stable. 

For current homebuyers, Foster claims many people are not always aware of the myriad of options available for financing. He says that the “biggest deterrent is most people don’t think they have enough money to put down, believing they need a down payment of 20 percent of a home’s price.”  

Foster believes that there will still be some frustrations from the buy-side since. “Amost price points you’re going to be in a competitive bid situation, he said. 

He recommends that consumers have correct expectations from the beginning. “You need to come in not expecting to take the list price and negotiate a huge amount off of it, but come in with a really competitive offer backed by a strong reputable lender, he said. Put yourself in a position to actually do that otherwise you’ll be putting offers on a number of different homes before you ultimately find one that you want to live in. 

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.