Annapolis Maryland Luxury Real Estate

While sellers wait for the housing market to thaw, buyers remain in hibernation. Will the spring market ever arrive? The housing slump isn't over yet and prices are likely to continue to tumble for the foreseeable future. However, market indicators are promising. Inquiries are up. Showings are up. Units Sold are down. Pending Sales are down. While these are only anecdotal observations, they are excellent predictors of next month's sales. While the Average Sold Price is up across Anne Arundel County and Annapolis by nearly five percent, Units Sold is off thirty-five and forty-two percent respectively from last month! Supply and demand economics continues to prevail; inventory levels remain elevated and are up nearly three percent from last month and are up nearly twenty percent from this time last year. It will take fewer homes coming to market and more buyers deciding to purchase before the downward pressure on prices is reduced.

In Anne Arundel County the total sold volume was down 41.7% from this time last year. The average sold price remains about the same, however the median sold price was down 4.4% from this time last year. The total units sold was down 41.9% and the average days on market is up 19.6% from last year.

There were 259 units sold in Anne Arundel County in January 2008, down from 401 units sold in December 2007. The number of active listings was 3,981 in January, up from 3,876 in December. The number of new listings taken in January was 972, up from 454 taken in December. The average sold price was $413,934 in January, up slightly from $395,990 in December. The average list price was $457,447 in January, up from $432,411 in December. The average number of days on market was 134 in January, up from 122 in December. The average list price to sold price ratio was 90.5% in January, down from 97.6% in December. Total sales volume for January was $107.2 million, down from $158.8 million in December.

There were 33 units sold in Annapolis in January, down from 57 units sold in December. The number of active listings was 799 in January, up from 735 in December. The number of new listings taken in January was 161, up from 64 in December. The average sold price was $617,390 in January, up from $591,643 in December. The average list price was $670,448 in January, up from $615,140 in December. The average number of days on market was 189 in January, up from 151 in December. The average list price to sold price ratio was 92.1% in January, down from 94.9% in December. Total sales volume in January was $20.4 million, down from $33.7 million in December.

According to Bankrate.com, the average national rate for 30-year fixed rate mortgages is at 5.76%, up from 5.5% reported this time last month. The National Average Composite Mortgage Rate is 6.6% in January, the same as December.

According to RealtyTrac.com, the number of pre-foreclosures in Anne Arundel County was 234 in January, up from 116 in December. The number of auction properties in the county was 344 in January, up from 312 in December. And, the number of bank owned properties was 191 in January, up from 154 in December.

So what can we expect for end of first quarter 2008? Sales are likely to remain slow until the weather starts to break. Inventory levels will start to climb as March and April approach. Prices are likely to soften as inventory levels increase. Sellers could be on the market until mid-to-late summer if they over price. Buyers should have lots of choices in all price ranges. Sellers must take any competition seriously and should price at or slightly below market and always below 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, www.LiveInAnnapolis.com.