Annapolis Maryland Luxury Real Estate

Are we already in a recession? The news commentators, politicians, and economic pundits won't say so until after the fact. News about the upcoming 2008 election continues to eclipse most news including economic news. A recession, no matter how weak or strong, is not likely to be openly discussed until the Democratic and Republican candidates are chosen. Home prices may trend downward. Homes will still sell but prices will be softer. Sellers that can price competitively and below direct and indirect competition should get their homes sold first and the quickest. January, February and March are often slow months and sales can be slow. Recent warm weather may encourage buyers to continue looking rather than hibernate. In commodity driven real estate markets, pricing is everything. Supply and demand economic principles rule. However, buying a home is a complex process and emotional investment and can never be effectively commoditized. We should remain optimistic about the overall real estate market and expect improving conditions throughout the year.

Inventory levels fell again last month for the third month in a row to 3,876 active listings in Anne Arundel County at the end of December 2007 - down from the peak in September when there were 4,646 active units on the market. The average sold price slipped 4.7% in December and was down 3.9% from this time last year. Total volume was up 10.4% from November and off 18.6% from last year. The average list price to sold price ratio was 91.6% last month.

There were 401 units sold in Anne Arundel County in December 2007, up from the 346 units sold in November. The number of active listings was 3,876 in December, down from 4,243 in November. The number of new listings taken in December was 454, down from 730 in November. The average sold price was $395,990 in December, down from $415,771 in November. The average list price was $432,411 in December, down from $461,138 in November. The average number of days on market was 122 in December, up from 120 in November. The average list price to sold price ratio was 91.6% in December, down from 97.6% in November. Total volume for December was $158,792,028, up from $143,856,708 in November.

There were 57 units sold in Annapolis in December 2007, down from 61 units sold November. The number of active listings was was 735 in December, down from 883 in November. The number of new listings taken in December was 64, down from 143 in November. The average sold price was $591,643 in December, up from $561,546 in November. The average list price was $615,140 in December, up from $606,151 in November. The average number of days on market was 151 in December, about the same as 150 in November. The average list price to sold price ratio was 96.2% in December, up from 94.9% in November. Total volume in December was $33,723,666 in December, down slightly from $34,254,306 in November.

According to Bankrate.com, the average national rate for 30-year fixed rate mortgages is at 5.5%, down from 5.8% reported this time last month. The National Average Composite Mortgage Rate is 6.6% for December, up from 6.4% as reported for November.

According to RealtyTrac.com, the number of pre-foreclosures in Anne Arundel County was 116 in December, down from 172 in November. The number of auction properties in the county was 312 in December, down from 393 in November. And, the number of bank owned properties was 154 in December, down from 167 in November.

So what can we expect for first quarter 2008? Sales are likely to remain slow as our attention is on the 2008 election. Inventory levels may decline while sellers wait until March or April to come to market. Prices are likely to trend down if sellers become impatient and make deals to get their homes sold before spring. Sellers should expect to be on the market for six to eight months. Buyers have many choices in all price ranges. Sellers should take competition seriously and should price below any direct competition. Where there are only a few buyers, sellers who want their homes sold now must get the serious buyers to look at their home FIRST! Lowest price, best condition, favorable terms will result in a faster 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.