Annapolis Maryland Luxury Real Estate

Real Estate Market Assessment

The seasonal slump in the real estate market may already be upon us. As it does each year, home sales slow in late November and don't pick back up until January or February. And, it is likely to be slower this winter than in years past. Why? Well, there is still a lot of negative press about the real estate market and mortgages and it's the year before the election. Why just this morning there was a segment on the morning news "Foreclosure Corner". The anchor was discussing how to avoid foreclosure with a Prince Georges County judge - the steps to take and what not - and I thought to myself "has it gotten that bad?" Well, it might be.

But, there is a silver lining. There will be a gold rush. The real estate market will go through another boom cycle. The Base Realignment and Closure (better known as BRAC) process will result in twenty thousand plus jobs coming to our area and countless more support jobs. But, the realignment process hasn't started yet and sellers are not likely to see any real benefit from an influx of buyers until 2009.

Inventory levels reached a peak in September at 4,646 active units on the market and fell slightly to 4,484 in October while up 16% from this time one year ago. Sold prices slipped 5.4% from last month but remain level from one year ago. Total volume was down 15.9% from September and off 17.4% for the same period last year. More alarming for sellers is that the average list price to sold price ratio slipped to 92.3%.

There were 401 units sold in Anne Arundel County in October, down from 453 units sold in September 2007. The number of active listings was 4,484 in October, down from 4,646 in September. The number of new listings taken in October was 927, down from 956 listings taken in September. The average sold price was $419,355 in October, down from $441,246 in September. The average list price was $454,159 in October, down from $480,279 in September. The average number of days on market was 123 in October, up from 109 in September. The average list price to sold price ratio was 92.34% in October, down from 97.56% in September. Total volume for October was $168,161,351, down 16% from $199,884,468 in September.

There were 64 units sold in October in Annapolis, down slightly from 68 units sold in September. The number of active listings was 954 in October, down slightly from 966 in September. The number of new listings taken in October was 186, down slight from the number of new listings taken in September. The average sold price was $532,689 in October, down significantly from $617,421 in September. The average list price was $555,213 in October, down significantly from $643,968 in September. The average number of days on market was 133 in October, up from 126 in September. The average list price to sold price ratio was 95.94% in October, slightly better than 95.9% in September. Total volume in October was $34,092,066, down from $41,984,611 in September.

According to Bankrate.com, the average national rate for 30-year fixed rate mortgages is at 5.94%, down from 6.13% quoted this time last month. The National Average Composite Mortgage Rate is steady at 6.5% for October, down very slightly from 6.6% in September, and the same as October 2006!

According to RealtyTrac.com, the number of pre-foreclosure properties in Anne Arundel County was 116 in October, down from 192 in September. The number of action properties in the county was 391 in October, down from 525 in September. And, the number of bank owned properties was 151 in October, down from 108 in September.

The number of building permits was reported at 128 in September, down from 164 in August.

So what can we expect for the remainder of the year? Sales are likely to slow as our attention focuses on family and holiday activities. Prices are likely to fall where sellers are ready to make deals to get their homes sold before the end of the year. More homes will go unsold since banks have yet to relax lending guidelines. Sellers should expect to be on the market between 11 and 15 months. Buyers have choices in all price ranges from which to choose. Sellers should take competition very seriously and should always price below any competition. Where there are only a few buyers, sellers who want their homes sold must get the serious buyers to look at their home FIRST! Lowest price, best condition, favorable terms, will all contribute to achieving 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, when you are ready to get serious about buying or selling a home, please contact Stephen Howell, Associate Broker, REALTOR^®, Coldwell Banker Residential Brokerage, at 410-923-3217.