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.

Aberdeen MD Real Estate September 2011

The total number of listings fell during the month in Aberdeen during September from 174 to 160 when compared to last year. What also fell was the number of properties that sold, which went from 19 to 15 in a year’s time. The average list price for those same properties that sold went from $219,789 to $195,789. With that, the time on market fell as well; this suggests that the homes must have been priced much better than in recent months. Overall, the numbers were kind of flat, and they probably won’t make any notable improvements in the near future.

Aberdeen MD Real Estate August 2011

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.

www.scottmillerrealestate.com

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 30^th, 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!

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.