Active inventory continues to increase, while new listings continue to decrease and pending sales also decline. The trend established more than two years ago continues. Pending sales declined 22.6% from this time last year. While new listings declined 23.8% from last year and active listings were up 4.3% over May 2007. In May 2008, the ratio of active listings to pending sales was 11.0%, only a slight change from April when the ratio was 11.1%. The ratio was 14.8% in May 2007, 20.7% in May 2006, and 67.3% in May 2005. The declining ratio indicates that buyers perceive the real estate market as over priced. Resistant sellers are failing to get their homes sold. Those sellers that price below market are generating traffic and multiple offers while overpriced listings sit without offers.
In Anne Arundel County the total sold volume was down 19.7% from this time last year. The average sold price was down a modest 3.3% from May 2007. The number of homes sold was down 29.3% and the average days on market was up 42.4% from last year.
There were 407 units sold in Anne Arundel County in May 2008, down slightly from 420 units sold in April. The number of active listings was 4,629 in May, up from 4,563 in April. The number of new listings taken in May was 1,080, down from 1,236 taken in April. The number of listings with pending contracts in May was 509, about the same as 505 last month. The average sold price was $399,726 in May, up slightly from $398,231 in April. The average number of days on market was 144 in May, up from 137 in April. The average list price to sold price ratio was 91.34% in May, up from 89.79% in April. Total sales volume for May was $162.7 million, down from $167.3 million in April.
In Annapolis the total sold volume was down 21.4% from this time last year. The average sold price was down only 1.1% from this time last year. And, the number of homes sold was down 43.9% and the average days on market was up 62.8% from May of last year.
There were 64 units sold in Annapolis in May, up from 55 units sold in April. The number of active listings was 966 in May, up from 946 in April. The number of new listings taken in May was 218, down from 274 in April. The number of listings with pending contracts in May was 144, up slightly from 132 last month. The average sold price was $531,736 in May, up from $505,551 in April. The average number of days on market was 189 in May, up from 161 in April. The average list price to sold price ratio was 95.2% in May, up from 91.6% in April. Total sales volume in May was $34.0 million, up from $27.8 million in April.
According to www.BankRate.com, the average national rate for 30-year fixed rate mortgages is at 6.29%, up from 5.8% this time last month. The National Average Composite Mortgage Rate is 6.1% for May.
According to www.RealtyTrac.com, the number of pre-foreclosures in Anne Arundel County was 481 in May, up from in April. The number of auction properties in the county was 189 in May, down from 289 in March. And, the number of bank owned properties was 294 in May, up from 277 in April.
So what can we expect for the start of the third quarter 2008? Inventory will continue to increase. New listings will decline. Pending sales will decline. While the ratio of pending sales to active listings will continue to decline and prices will decline further. There's no tipping point on the horizon when sales might improve. What has to happen to increased sales? While the number of buyers in the market remains relatively constant, buyers believe that homes are overpriced. Sellers must make dramatic adjustments in asking price and do so before their competition. Sellers should take all competition seriously and must price below properties under contract and look only at property sold within the last 90 days when making pricing decisions. When the buyers' perception is homes are overpriced, sellers must price their home to look like a bargain. The lowest price and most favorable terms will result in the fastest sale!
While no one can predict the future with any certainty, one thing is certain; it remains a buyer's market. Buyers have large numbers of desirable properties from which to choose and sellers have lots of competition. A firm understanding of the market trends and forces is necessary for making the best real estate decisions.
So, if you are serious about buying or selling a home in today's real estate market, contact Stephen Howell, Associate Broker, REALTOR®, Coldwell Banker Residential Brokerage, at 410-923-3217, www.LiveInAnnapolis.com.
If you are interested in renting or buying a home in Annapolis, Maryland or the surrounding area and want to tour any property currently on the market, or if you have a home to rent or sell in Annapolis, Maryland and want a professional consultation on current market conditions, please contact me at 410-923-3217 or e-mail me at showell@cbmove.com or visit my website at LiveInAnnapolis.com.
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Stephen Howell came to Annapolis to sail the Bay in 1994. What he discovered was a whole new lifestyle. Ever since Stephen Howell has been successfully helping others make the most of Annapolis. You'll find that with the right professional by your side, you can Live the Lifestyle and Live in Annapolis.
Stephen Howell and Rocky (his lab-mix from the SPCA of Anne Arundel County in Annapolis) now live in Winter's Chase at Riva Trace in Annapolis, Maryland. He works in the Annapolis real estate market. His website lets people search the Washington and Baltimore metropolitan area MLS. Buyers can also search for waterfront homes along the Chesapeake Bay. His website has current real estate data on Annapolis, Anne Arundel County, and Maryland.
