All Things Frederick - A Real Estate Blog

The Frederick County Real Estate Market Statistics are out for the month of September.  Many areas of Frederick have had an end-of-summer boost in sales, including parts of Frederick City.  Living inside the city limits has its advantages, including convenience.  With increased gas prices, the trend this year has been for people to move closer in to cities than to the suburbs. 

Frederick, Area Code 21701 Information:

                                              (since Sept. 2007)                                      
Total Volume of sales:                         -36%
Avg sold Price:                                    -28%  
Total Units sold:               13               -12%
Days on Market:              136               133
Sold for % of List price:     90% compared to 90% in ‘07

Frederick, Area Code 21702 Information:    *see note

Total Volume of sales:                         +14%
Avg. sold price:                                   -20%
Total Units sold:                41              +40%                              
Days on Market:                94              126
Sold for % of List price:      91%  compared to 90% in ‘07

Frederick, Area Code 21703 Information:    *see note                                                                                                                   

Total Volume of sales:                          +37%
Avg. sold price:                                    -9%
Total Units sold:                36               +50%
Days on Market                 96                101
Sold for % of List price:       93% compared to 93% in ‘07

* This increase in sales is partly the end of summer bump that we often see as families want to get settled before the school year.  I believe it is also the result of a rush to take advantage of the seller contribution assistance programs, like Nehimiah, which ended on Oct. 1, due to Congress outlawing these programs. 

The third reason for this increase in sales is the possibility that prices have reached the place of affordability.  After years of rapid price acceleration, First-time homebuyers were priced out of the market.  After the bubble popped, we’ve seen prices come down in the last 2 years to a place of affordability. 

The largest number of units sold was in the $200K - $249K price range, with 22% of the sales.  The second was the $250K - $299K range, with 19% of sales.  The third largest price range was the $150K - $199K range, with 18% of sales.  All of these ranges are the first-time buyer range. 

The market statistics for September show that 41% of sales last month used conventional financing, and 36% used FHA.  FHA is becoming more relavant again.  And something interesting, 10% of the sales were cash deals. Cash deals usually make up around 5 to 7% of sales.  Maybe more investors are buying?

Absorption Rate:  The absorption rate has decreased from 10 months to 9 months. The closer we get to 6 months, the better.  A 6-month inventory represents a balanced market.  Anything below a 6-month inventory represents a seller’s market, and reversely, above 6 months is a buyer’s market.

See Homes in the Historic District for Sale                             

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