Has Our Real Estate Market Stabilized?

Has the local area real estate market stabilized? Now is not the seller's market of we had in 2004 and 2005. The local area real estate market in Anne Arundel County declined slightly in July continuing the buyer's market trend. Sale volume and sales prices were down month-over-month and year-over-year. And, since April, May and June are often the best selling months of the real estate cycle, the dog days of summer lie ahead. Economic stimulus continues to drive sales of the entry level priced homes (those between $0-500K) but hasn't had much effect other price points. Now that August is here the local real estate market may suddenly slump.

The S&P/Case-Shiller Home Price Index for the Washington DC marketplace improved 1.3% in May. The Baltimore Metro Home Price Index for the same period declined 0.2%. The Anne Arundel County Index also declined 0.3%. And, the Annapolis Index declined 4.9% in May over April.

The total sales volume for Anne Arundel County was down 11.6% in July over June. The number of units sold was down 11.8% and the number of active listings was down 10.4%. The number of pending sales was down 7.2%. The average sold price was up slightly 0.2% from $353,284 to $354,120. There were 426 units sold in July down from 483 units sold in June.

The total sales volume for Annapolis was down 9.7% in July over June. The number of units sold was down 4.9% and the number of active listings was down 2.5%. The number of pending sales was down 32.9%. The average sold price was down 5.0% from $433.409 to $411,423. There 77 units sold in July down from 81 sold in June.

Sales activity is likely to slow in August as summer wanes and buyers and sellers alike take end-of-summer vacation. Sellers may see declining prices while buyers will benefit from low prices, low interest rates and plenty of inventory.

In Conclusion

If you are thinking about making a change, let us help you take advantage of these trends. So, if you're buying or selling a home or know someone who is, for a confidential, private, professional real estate consultation without any obligation, contact Stephen Howell at 410-923-3217.