Aberdeen, MD Real Estate-Year End 2012

Overall sales decreased somewhat in the Aberdeen, MD real estate market for the year of 2012 compared to 2011, which is fairly consistent to the market in the rest of Harford County. For the year in Aberdeen, MD, 168 homes changed hands, down almost 13% from the 193 that sold a year ago. The average time it took to sell went down, though, with the average days on market dropping by 17%.

Despite the negative numbers, prospective sellers should still be smiling right now. The median sold price jumped slightly from $170,000 last year to $174,100 in 2012. With that, the year ended a little light, with 13 home sales, down from 19 in 2011. The absorption rate (the amount of inventory in the given market measured in months) has gone up slightly, probably due to the uncertainty in the market toward the end of the year relating to the fiscal cliff. Still, interest rates are still low and prices are below 2004 levels, so right now is the time to take advantage of real estate in Aberdeen, MD. To contact me for more information about selling or buying in this market, you can email me at scott@scottmillerrealestate.com or visit my website at www.scottmillerrealestate.com.

Aberdeen, MD Real Estate for June 2012

The real estate market in Aberdeen, MD showed some positivity in June, 2011, although the local economy still has some improvement to make. The number of homes that sold increased 10% from June 2011, although it took 33% more time for sellers to find their home’s buyer.

The average list price is down slightly; from last June’s $184,532 to $172,704 this year. This reduction has been a necessity, since home sale prices have taken even more of a dip recently. The median price of a sold home in Aberdeen, MD during June of 2012 is 16% lower than it was during the same month only a year ago. Of the homes that sold this June, 32% were distressed sales, with 67% of those being short sales (as opposed to foreclosures). This is almost exactly opposite to last year, with 25% of the sales being distressed, of all which at that time being foreclosures. For Aberdeen, MD, it is apparent that the obvious factors are what are continuing to facilitate the housing market. The strong presence of active and former military members shows in the housing figures for the area, with 27% of the homes sold last month being financed through the use of a VA loan.

Aberdeen, MD Real Estate for March, 2012

Initially, when I first saw the Aberdeen, MD real estate figures for this month, I did what is natural to me as an optimist- I tried to find a way to spin the numbers.

They were pretty putrid. Only 12 homes sold in the Aberdeen, MD zip, down from the 23 that changed hands last year during the same month. This drop represents a 47.83% drop. When I saw this, I thought, “there is an explanation; the amount of inventory has dropped proportionately.” I was wrong. The inventory did fall off pretty considerably- by 37.36%- but not by as much as the number of homes sold. I didn’t give up that quickly. I looked at the data a little more closely, knowing that there must be a reason for this morbidity. Then I came across the loan type information, which shows exactly that- the type of loan used by home purchaser. I noticed that seven of the 12 homes that sold in Aberdeen, MD utilized the FHA loan, the preferred type for the first time homebuyer. Then I saw that three had opted for the VA loan, and only two had gone conventional. There were no cash deals. So it would seem to me that most of the activity involved first time homebuyers, and move-up buyers still seem to be sitting on the fence. Are they going to sell their home and buy something else soon? Are home prices going to rebound so they can do so? If you are a prospective home seller, sign up here for more information about data for your neighborhood.

Aberdeen MD Real Estate February 2012

Even though total active listings dropped by 43%, sales still increased this February for real estate in Aberdeen, MD by 33%! The median sale price also jumped, going from $101,500 to a healthier $159,375. Of the homes that sold, only 2 were either foreclosures or short sales, compared to the 4 that transferred in Aberdeen last year.
To continue with the trend, new active listings dropped 44% as well, but we can expect more sellers to put their homes on the market as they see evidence that the market is improving. Call me at (443) 866-6728, email me at scott.miller@century21.com, or visit my website at www.scottmillerrealestate.com for more information about selling in this market.

Aberdeen MD Real Estate December 2011 & Year End

With the New Year upon us, it is now time to start to evaluate what we can expect out of the economy in 2012. Nationwide unemployment has slimmed down to 8.5%, and housing has started to show signs of life. Although the banks are expected to release a large number of foreclosed properties to the market, interest rates are still quite low, and because home prices have been so reasonable, affordability is at an all-time high. Home sellers can also expect to take advantage of this market, since they will make out better when they purchase a new property, in spite of the fact that they may not get as much as they’d like from the sale of their existing home. It’s a balancing act.

Speaking of balance, it is almost as if the real estate market has reached- and is passing- the bottom of the trough that we’ve been dealing with for the past four to five years. In Aberdeen, MD, sales actually improved in December over the same month a year ago. This increase- albeit modest- has occurred for two consecutive months, and there are no indications that the trend will not continue.

19 homes got new owners during the month in Aberdeen, transferring at a median sale price of $195,000, which is up over 13% from the same month in 2010. It took 24% less time to obtain a buyer, with the average time on market being reduced to 146 days. The total number of properties currently listed is lower as well, with 129 properties available for sale. Of the 19 homes that sold, nine were either short sales or foreclosures, which is one more than the eight that changed hands last year.

The fact that the economy has started to climb out of the slump is only evident in the way that the market finished out the 2011 year, since the overall total sales for the Aberdeen, MD real estate market were almost identical to what they were in 2010. At year-end, there were 196 homes that sold, up ever-so-slightly from the 195 that sold in Aberdeen, MD in 2010. The leveling of sales may indicate that we are poised for a surge that might be beginning in the Spring of 2012. Feel free to contact me at scott.miller@century21.com or by visiting www.scottmillerrealestate.com.

Aberdeen MD Real Estate November 2011

The market in Aberdeen, MD, actually improved over November of 2010, albeit, rather modestly. Home sales increased by one from 13 last year to 14 this year. The average amount of time it took to sell a home dropped drastically from 194 days to a more reasonable 108 days. This is probably due to the fact that more than 50% of the homes sold last year during this time were either foreclosures or short sales, but this year, that rate dropped to under 25%. One of the unique facts about the homes that sold in Aberdeen during this past month was that they were all detached- none of them were condos or townhomes.

Most of the homes sold were priced on the average, which was $181,000. The lowest price home sold was $36,000 (a small short sale near Hillsdale), and the highest priced home was a beautiful, brand new colonial in the newest single family community of Eagles Rest (see picture).

Of the homes sold, 5 of the buyers used conventional financing, and 5 also used VA financing. This is a change from past months where investors were the only buyers, paying cash for everything that they bought. It seems to be that lending may be loosening, because new contingent contracts were up by 225%! Although not all of these will translate into purchases, many of them will, and that should drive sales upward, at least partially.

For more information about purchasing real estate in and around Aberdeen, MD, call Scott Miller at (443) 866-6728, email him at scott@scottmillerrealestate.com, or visit his website at www.scottmillerrealestate.com.

Aberdeen MD Real Estate October 2011

I can’t really try to put a positive spin on the real estate sales numbers in Aberdeen, MD for the month of October, 2011. Since I work in the market, I knew that they wouldn’t be great, but I didn’t think they would be dismal! Only 9 homes changed hands, and this is only one month after the official end of BRAC (Base Realignment and Closure). I know some people personally who are part of BRAC that have decided to hold off on buying, mostly without giving a good reason, but I think it’s because of the market’s overall direction. You see, I have been working with some of these people for as long as six months now, and we have watched the market continue to slide downhill.

What is the cause of this nonsense? Well, the new lending standards have definitely been a part of it. Buyers are being asked to provide documentation that they didn’t know existed, and this is often late in the mortgage process, well after it should have been requested. Another reason is the inventory of distressed property. Last year, there were quite a few more foreclosures and short sales on the market, thereby a lot more deals to be had. There were 7 distressed property sales in Aberdeen, MD last October, as compared to only 3 this year.

What is another reason for the pathetic numbers? It goes right back to cold feet. I had a buyer who was in the process of purchasing his first home at a whopping 25% less than the appraised value! On top of that, it was a USDA loan, so he wasn’t required to put any money down. All he had to do was show up and sign on the dotted line. When the time finally came for settlement, his feet went from cold to frozen, and he refused to move forward. He lost his deposit and the home that he loved when he first saw it.

Is there a silver lining? Oh yes, the economy is improving- albeit slower than we would like- and mortgage interest rates are still lower than ever. Housing prices are still at 7-year lows, and the amount of inventory will probably continue to be high. Search real estate for yourself at www.scottmillerrealestate.com.