Half of the suburban Maryland region exhibited a rise in the number of homes sold in July, according to the latest Long & Foster Real Estate Market Minute report. Montgomery County had a 6% increase, followed by Frederick County which had a 5% rise. Median sale prices also rose incrementally throughout the region, with Prince George’s County showing the highest increase with a 10% uptick. Inventory continued to fall, with Prince George’s County demonstrating the largest decline with a 32% fall.
The Long & Foster Real Estate Market Minute report for the suburban Maryland region includes Charles, Frederick, Montgomery and Prince George’s counties.
“There are several regions that show positive numbers in units sold, including the Maryland Suburbs,” said Long & Foster Real Estate President Larry “Boomer” Foster. With inventory continuing to contract, it should point towards units sold going down in some places, however it may be “a reflection of interest rates coming down so dramatically in July and into August.”
Foster pointed out that though inventory is so low, there has not been a significant rise in home prices. This is not home price appreciation as some speculate, but rather the result of the type of inventory that’s selling. “You’re seeing lower-priced, smaller attached homes, condos and vertical living selling more than bigger, higher-priced estate homes,” Foster said, which is why increases in median sale prices are in the low to middle single-digits.
The current state of the U.S. economy is on a lot of people’s minds, specifically the inverted yield curve. Foster emphasized that an inverted yield curve does not always lead to a recession, as many seem to believe, noting the dot-com boom as an example.
“We’re in an interesting time economically because most indicators in the U.S. economy say that it’s very strong,” Foster said. The reason we saw the yield curve invert was due to the large amount of money flowing into our 10-year treasuries, causing the yield on the bonds to lower and make the curve invert. Should a recession occur, it would be through much different circumstances than the one in 2008.
Consumers looking to sell their home should be aware of current market conditions. Foster recommends “finding a professional real estate agent that will aggressively find you a home whether it’s on the market or not.” Putting a contingency in the home sale contract is also an option, making the sale of the home contingent on you finding a home to buy first. This may make the contract more unattractive, however it has become a popular decision with many home sellers.
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.