The changes in the numbers during the month of August in the Aberdeen, MD real estate market really weren’t indicative of the fact that things really haven’t improved much. There were 184 active listings during this time last year, compared to 166 this year. 17 homes changed hands in Aberdeen last year during August, and this year there were 22 settlements in August. Of the homes that sold, 18 of them used financing, so it is likely that many of them are owner-occupants.
Showing posts with label Aberdeen MD Homes. Show all posts
Showing posts with label Aberdeen MD Homes. Show all posts
Tuesday, October 25, 2011
Sunday, August 14, 2011
Aberdeen MD Real Estate July 2011
The real estate sales in Aberdeen, MD in July of 2011 mirrored that of July of 2010, with an unremarkable 15 sales having closed during the period. As a Realtor®, I was actually looking to see a much stronger number, especially since the middle of the year was so flat. Last year, with the First Home Buyer’s Tax Credit ending on June 30th, buyers were hurrying to get a house settled before the deadline. This caused the numbers to spike slightly last year, and as a result, make the numbers for this year seem weaker.
But some people assert that the tax credit essentially just brought forward the sales that would have taken place anyway. In other words, the people that bought last year and the year before in order to get that credit would have been the people buying this year and next year regardless.
So that kind of covers the circumstances surrounding the local buyers and sellers, but what about BRAC? Weren’t we supposed to be overwhelmed with demand from the imports from New Jersey? This is the final year for the Base Realignment, and Fort Monmouth is scheduled to close permanently in September, but the impact on the real estate market in the Aberdeen MD area has been modest at best, although it could be argued that the volume that has resulted from the Government effort has actually prevented us from experiencing catastrophic conditions that have been felt elsewhere.
There is really no way to twist it; the real estate home sales in Aberdeen MD were weak in July, despite it being peak summer shopping season, and with BRAC winding down. On top of the pathetic numbers, interest rates are still at historic lows, and home prices are dropping like Enron stock! The difference here is that Aberdeen MD real estate market is expected to rebound, but we just have to look underneath the obvious barometers for answers to our questions.
One positive indicator pointing to the rebound of the Aberdeen MD real estate market is the fact that the homes took less time to sell; Days on Market (DOM) decreased from 125 days down to 101, which represents a 25% drop. Also, the number of active listings dropped from 185 down to 173. Still, this number represents over 11 months of inventory, which is almost 3 times as much as what we would find in a healthy market.
Overall, we are facing the effects of a double-edged sword. Home prices in Aberdeen MD have decreased significantly since last year, but sales have remained flat. On the surface, it would appear that we are in trouble, but we have to take a closer look under the hood at we economists call “price elasticity,” which measures the reaction of demand in response to price reductions (just think about how much you drive when gasoline prices jump to more than $4.00 a gallon). Although prices have dropped and sales have only held steady, pending contracts have spiked upward, and if these contracts make it to settlement, we will be seeing stronger sales numbers in the coming months.
Also, search exclusive real estate listings at www.scottmillerrealestate.com!
Saturday, July 16, 2011
Aberdeen MD Real Estate June 2011
The market for Aberdeen, MD real estate seemed to show some signs of recovery when compared to the numbers that we saw in May, but overall, the figures seemed to mirror what is going on in the rest of the county.
The average sold price took a 12% dip to $179,090, and the median sold price made a similar drop, ending up at $197,500. The days on market increased to 87 days from 71.
Based on the fact that there are 171 active listings on the market, there is approximately 8 ½ months of inventory of real estate in Aberdeen, MD.
It is clear that the pending contracts are also increasing, so the trend looks to be moving upward. Much of the activity from BRAC seems to be waning, but it is still likely that many of these people who rented initially will be buying over the next couple of years. Also, the employment picture has been showing some strength in our region, while rates and prices continue to stay low.
Listings can be searched at www.scottmillerrealestate.com.
Additional information can be found at http://www.scottmillerrealestate.com/aberdeenmdrealestate.html.
Tuesday, April 12, 2011
Aberdeen MD Real Estate: March '11
The market started to heat up in Aberdeen, MD during March, 2011- the most recent month for which complete data is available. 23 Homes sold in the town during that time, which was actually an increase of 15% over the same time during March a year ago. The average home price was $145,000, and the average amount of time that it took to sell the homes was 147 days.
The investors were definitely out in droves, taking advantage of the low prices that are still prevalent in the market. 10 of the 23 homes that sold in March were cash deals, 6 were conventional, 5 of the buyers used FHA financing, and 2 benefited from a VA-insured loan. This shows that much of the buying is opportunistic, but that we should expect the rate of owner-occupant purchasing to increase as the economy improves.
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