Category Archives: Real Estate Market Conditions

Months of Inventory


Months of Inventory

 One of the critical numbers that REALTORS® keep a close eye on is the ‘months of inventory.’ Basically months of inventory indicates the number of months it would take to sell all of the inventory currently on the market.

Generally speaking, if there are six or more months of inventory, it is considered a buyers’ market; three to six months of inventory is a neutral market; and three months or less is considered a sellers’ market.

As of the end of March, 2018, the United States had 2.1 months of inventory which indicates it is a sellers’ market.

Maryland is also a sellers’ market with 2.9 months of inventory.

This information is critically important for both buyers and sellers for opposite reasons, but once again affirms the importance of having a REALTOR® who understands the market and how best to promote your best interests.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

 

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Home Buying Season is Upon Us!


Home Buying Season is Upon Us!
As a professional REALTOR® I see my job as not only to find you the right house or the right buyer, but to keep you appraised of the market conditions that may impact you now or in the foreseeable future. That is why I want to share with you what market conditions are expected to do in 2018.
For the last several years real estate has been struggling to rebound from the 2008 housing crash.  The rebound has been slow, but steady.  Experts are now predicting, and all evidence suggests, that the housing market is about to take off.
Housing prices are not expected to go out of control as they did prior to the housing bubble, but the steady rise in housing prices will be coupled with a rise in mortgage interest rates which will result in substantial increases in the cost of buying a home.
Home prices are expected to increase between 2%-6% during 2018.  Low inventories will continue to help drive the prices up.  Mortgage interest rates are projected to increase from 3.95% to 4.90% by December 2018.
For example: A $500,000 home that you purchased in December, 2017 with the going interest rate of 3.95% would have a P&I (principle and interest) amount of $2,373 a month.
That same home purchased in December, 2018 with only a 2% price increase is projected to have a price of $510,000 (and possibly a price of $530,000 at 6.0% increase) and a mortgage interest rate of 4.90% will result in a P&I amount of $2,707.  A monthly increase of $334. That increase over the length of the standard loan would cost you an additional $120,240!
For comparison purposes these figures only compare price and mortgage interest rates and does not include property taxes, home owners insurance, PMI insurance, etc.  These figures will vary widely by area.
If you think 2018 may be your time to buy or sell a home, please give me a call today so we can discuss your particular situation and how I may be able to help.
Roland
REALTOR®

What the Tax Bill May Mean for Home Owners / Buyers


What the Tax Bill May Mean for Home Owners / Buyers

 In a highly unusual move, the National Association of REALTORS® has come out with a position on the tax bills currently in Congress.  The NAR, normally a non-political association, has come out strongly opposed to the bills in both the House and the Senate, and here are the reasons why.

  • According to the NAR’s research estimates, home values will drop 10% on average during the first few years. If this bill becomes law, the decline in home values, especially for recent home buyers, may find themselves underwater with their mortgage.
  • The one trillion dollar increase in the national debt that stems from the tax cuts could cause interest rates to increase, “exacerbating the negative aspects of the tax bill for current and prospective homeowners.”
  • As of the date of the National Association of REALTORS® report, the house version of the bill will eliminate the deduction for home equity loans, but will retain deductions for the primary residence. The Senate bill will eliminate the mortgage interest rates completely. The deductions will be allowed for investment properties for both the mortgage and any home equity loans.
  • Deductions for property taxes will be limited; however, the deductions for investment properties will not be limited.

The real estate market has made significate gains in the last few years as it recovers from the 2008 collapse of the economy and more precisely the real estate market.  Nevertheless, the real estate market still has a way to go for substantial growth.  The National Association of REALTORS® and this writter does not believe the bill before the House or the Senate will do nothing but harm the economy and the real estate market.

Roland

What Every REALTOR® Wants You to Know About Real Estate – December, 2016 VS. YTD


What Every REALTOR® Wants You to Know About Real Estate – December 2016 vs YTD

 The real estate market in Maryland, particularly Frederick County, Maryland has continued its upward climb throughout 2016 ending the year with some pretty solid increases.

Real Estate Market Trend is Strong
Real Estate Market Trend is Strong

Sales of homes in Frederick County Maryland increased by 10.6% in 2016.  This represents an increase of 392 more homes sold this year.  In addition, the average price of homes in Frederick County increased by 1.4% with the median price increasing 2.5%.

One of the numbers that REALTORS® watch closely is the Months of Inventory.  The Months of Inventory is how long it would take to sell all the current homes on the market at the current rate of sales.  If there are six months or more of inventory it is considered a buyers’ market; three to six months is considered a neutral market; and less than three months is considered a sellers’ market.

Frederick County ended 2016 with 2.8 months of inventory indicating that the year ended in a sellers’ market.  This was basically caused by 263 fewer homes on the market than last year.

If you are thinking of buying or selling in 2017, I encourage you to talk to a real estate professional – talk to a REALTOR® – who can give you the information you need to make informed decisions.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

What Every REALTOR® Wants You To Know About – Months of Inventory


What Every REALTOR® Wants You To Know About

Months of Inventory

 One of the most important numbers in real estate is “Months of Inventory.”  The months of inventory is determined by calculating how many months it would take at the current rate of sales to sell all of the homes currently on the market in a given area.

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For example:  If there are 200 homes for sale in a given area and on average there are 50 homes that sell each month, the months of inventory would be 4 months.

Determining the months of inventory helps determine whether it is a sellers’ market, a buyers’ market or a neutral market.  Determining the market is critical in negotiating for both buyers’ and sellers’.

The rule of thumb for determining the market is if there are 6 months or more of inventory on the market it is considered a buyers’ market; 4-5 months of inventory is considered neutral; and 3 months or less is considered a sellers’ market.

As you can see from the chart, it has been a long time since the State of Maryland has been in a sellers’ market.  Maryland dipped into a buyers’ market in June, 2016 for one month and then trended back to neutral territory.

Frederick County has a more robust market and transitioned into a sellers’ market in May, 2016 and stayed there until September of this year when the county crept into a neutral market. This information is critical in determining what is right for you.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® – who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.

Roland

The Ups and Downs of Real Estate


The Ups and Downs of Real Estate

There is no question that the “trend” in real estate is improving.  There are more homes being sold, prices are trending upward and mortgage interest rates are holding steady.  All of these factors are good news for the real estate market.

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Nevertheless, there are bumps in the road that may cause concern to buyers’ and sellers’, but it is important to keep your focus on the trends in the real estate market and not the bumps that happen.  For example:  The Centralized Showing Service provides REALTORS® with data that provides data of  how many showings have taken place in a zip code during a specified time period.  The report reveals that showings of homes dropped to virtually nil for a two-week period.  It would possibly indicate to people that the market was slowing down: However, during that same period a heat wave hit the east coast that had the heat index in the triple digits for several days in a row – 118 degree heat index a couple of days.

A review of larger statistics continues to indicate that the market in Maryland and the United States is continuing its’ improvement at a steady pace.  Bumps will always be there, but the trend is continuing to show a slow, but steady improvement in the market.

If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® – who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808.

Roland

Maryland Continues It’s Trek Toward A Seller’s Market


Maryland Continues It’s Trek Toward A Seller’s Market

Maryland has continued it’s trend towards a seller’s market again in June, 2016. Maryland had an increase of 10.8% in sales of homes with an average price increase of 4.3% at the same time.

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The state in general went from 3.4 months of inventory in May to 3.1 months of inventory in June. Below 3 months of inventory is considered a buyers’ market.

Frederick County has moved deeper into a sellers’ market, from 2.7 months of inventory in May to 2.6 months of inventory in June, 2016. At the same time, the average price of sold homes in Frederick County increased 6.2%.

If you are thinking of buying or selling, talk to a professional real estate agent – talk to a REALTOR® – who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or                    email me at RolandLow1@gmail.com.

Roland