July 2012 Market Update – Harford and Baltimore Counties

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Do you know how to detect a strong and solid real estate market? Look no further than our own back yard. In fact, aside from the slow but steady status of home prices and values, things are overall improving in our marketplace. And the good news is that it is a market that works in favor of buyers, sellers and investors alike.

Increase in the Number of Sales Transactions

Across the board we have experienced an increase in transactions, making it a very ideal time for sellers to list their homes. With fewer homes on the market and buyers beginning to pick up the pace in case the market does rebound sooner than later, the result is a higher probability of success for homeowners choosing to sell.

Fewer Homes on the Market
We are currently reporting about 20% fewer available homes on the market particularly good quality homes in desirable locations that are in great condition. Buyers realize the opportunity at hand and as they see inventory continue to dwindle they are actively seeking out good homes on our MLS. Another positive outcome of the lower inventory is an improved Days On Market average. While the entire year’s average DOM is about 125, the figures from the last 30 days are showing an average DOM of about 90 days.

Multiple Offers and Higher List to Sale Ratios

Homeowners that have chosen to list their homes are enjoying a higher list to sale ratio with most receiving multiple offers on their properties. This makes it the perfect time to be either a buyer or seller – because as a seller you know you have some leverage in negotiation and buyers can still walk away with a great deal. List to sale ratios are anywhere from 91 to 95% and in some cases we are even seeing 100%.

Continued Low Interest Rates

The great deals continue for buyers and investors with interest rates hovering at their record setting historic lows, making the market a phenomenal environment to be a first time buyer, move up homeowner or investor. Recently there have been mortgages offered and accepted at 3.25% for a 30-year fixed rate FHA loan.
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If you are considering buying, now is a great time! With interest rates as low as they are – you will be getting the deal of a lifetime! Combine that with the low prices and relative ease with which you can go through a mortgage process compared to just a couple years ago, it could not be a better time to buy.

Conversely, sellers are also seeing some great results. Though some properties are more in demand than others, with the drop in inventory chances are you will generate a lot of interest and receive some good offers on your home.

To make our process even more efficient, we have developed a new program where we match buyers with properties before they even go on the market. Whether you are a buyer, seller or investor – we encourage you to contact us so we can match your needs with your goals and together achieve success! We look forward to hearing from you.