The 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 had the largest decrease at 26%. Inventory also fell with the exception of Frederick County, which exhibited a 2% increase. Median sale prices rose in much of the region with Prince George’s County having the biggest increase of 9%, while Montgomery County had no change year-over-year.
“The market isn’t really surprising in suburban Maryland right now,” said Larry “Boomer” Foster, president of Long & Foster Real Estate, “there are plenty of people buying right now and there’s plenty of demand, we’re just lacking quality inventory.”
With all the news of limited supply, it’s a great time to list your home. For those that are worried about timing of the market or their sale lining up with their ability to move elsewhere, Foster advised that “from an inventory perspective, many sellers can dictate to buyers the terms of closing.” For sellers who are in geographic and pricing sweet spot, buyers will be willing to work with the seller.
Foster addressed the low interest rate environment, saying that he’s surprised since most people “thought going through this year that we would see it grind higher slowly throughout the year.” However, once you take into account the volatility of the world economy, it’s not that surprising, he said. Foster explains that “foreign investors are flocking to treasuries as a safe haven to park their money, causing the 10-year Treasury bond and the 30-year fixed rates to be held down.”
For people interested in real estate investing, now would be a good time because they have more buying power from the low interest rates. Foster talked about investing saying, “You need to be very intentional about what and where you buy.” He listed the top things people need to be mindful of including, determining what kind of investor they want to be, understanding what their buying power is and what return they’re looking for, and working with a real estate professional who understands investing and can provide a good analysis for where the investor is looking.