Focusing today on three Maryland counties, we can see a snapshot of the recent fate of the Washington-area housing market. As you look at the charts, it is easy to see that prices have fallen since 2005.
Yet, some encouraging signs are cropping up this year, with an increase in sales, a decrease in inventory, and homes spending less time on the market.
Frederick, Charles and Anne Arundel counties are all close enough to be part of the Washington region, yet they all lie outside the Beltway. Buyers who shop in jurisdictions like these (and Prince William, Loudoun and Stafford counties in Virginia) are often willing to endure a longer commute to pay less for a home.
Charting the Market: July Summary
However, because home prices have dropped so much in recent years, bargains can be found inside the Beltway. Counties such as Fairfax and Montgomery have attracted a lot of buyers this year.
Those markets have become quite competitive, with sales chances up to 27 percent in Montgomery County and 31 percent in Fairfax County in July. That means buyers have to compete with each other to get a home - something we haven’t seen since 2005.
Buyers aren’t yet competing in Frederick, Charles and Anne Arundel counties. Sales chances in these counties remain lower than many other jurisdictions, although they have risen since last year.
Dividing sales figures for the month by the inventory on the last day of the month results in a percentage, which I call “sales chances.” A figure below 20 percent indicates a buyer’s market. Higher figures mean we’re in a balanced market or a seller’s market.
Charles County was the easiest place to buy a home in the Washington region in July. With 1,290 homes to choose from and only 169 sales all month, buyers could go home shopping without fear of another buyer snatching up their favorite property.
Frederick County was a little harder on buyers in July, with sales chances up to 18 percent. However, buyers will like how affordable homes are there. The median sales price in Frederick was just $234,000 in July - 21 percent lower than a year ago.
Contact Chris Sicks by e-mail (csicks@gmail.com).
The metropolitan area includes the Maryland counties of Montgomery, Prince George’s, Anne Arundel, Howard, Charles and Frederick; the Virginia counties of Arlington, Fairfax, Loudoun, Prince William, Spotsylvania and Stafford; the city of Alexandria; and the District.
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