Germantown, MD Market Report – 3/27/12

The real estate market in Germantown is very diverse and dynamic.  The area of Germantown we will be discussing is zip code area 20874.

The market statistics for February 2012 are much improved over February of 2011.  And all I can say about that is “thank you”.

Average Sales Price is up 26.15% to $301,417.   196 Pending Sales last month, this is up 47.37%.

With only a 135 Active Listing, which is down -32.16%, coupled with a drop in Days on Market and low interest rates, Germantown 20874 is gaining momentum and I expect this Spring to continue with increases.

Germantown, Maryland is located approximately 25 miles outside of Washington, D.C. and is the third most populous place in Maryland (after Baltimore and Columbia).  It is divided into six town sectors or “villages.”

The center of Germantown is located at the intersection of Route 118 and Middlebrook Road.  This area is considered the center of Germantown because the Up County Government Center, the library, the Black Rock Arts Center, multiplex cinema and pedestrian shopping featuring an array of restaurants are all located there.

There are 3 exits to I-270 less than one mile away from the Germantown town center and the MARC train is walking distance.  The Germantown Transit Center is also in close proximity and provides Ride On shuttle service to the Shady Grove red line.

Market data and  commentary provided by Kathy Fleskes Managing Broker and Serena Toro.

Germantown, MD Market Report – 9/29/10

While price statistics this month look like a softening market, one month does not make a trend. We will have to see what the next few months bring after the hangover from the housing tax credit diminishes. In order for buyers to get the tax credit before it expired, some third quarter sales were “pulled” into the second quarter causing inflation in the second quarter.

• Homes for sale: 505 (down from 536 in August, up from 427 one year ago)
• Homes sold:  85 (down from 86 in August and down from 98 one year ago)
• Average sales price: $270,664 (down from $284,660 in August 2010 and down from $283,361 one year ago)
• Average days on market: 45 (down from 52 last month, and the same as 45 days one year ago)

Since we have a stabilized unemployment rate and low interest rates what I expect to happen is similar to what happened in the car business after “Cash for Clunkers” ran out; the market will return to equilibrium over a three to six month period. The market will continue to stabilize as long as we can avoid any more government stimulus.

Commentary and analysis provided by David Hess, Executive Vice President.

Germantown, MD Market Report – 8/18/10

Below are the statistics and analysis for the Germantown, MD market:

• Homes for sale: 536 (up from 517 in June. Up from 442 one year ago)
• Homes sold:  86 (down from 128 in June and down from 117 one year ago)
• Average sales price: $284,660 (up from $281,345 in June 2010 and about the same as $283,808 one year ago)
• Average days on market: 52 (up a bit from 40 last month, but still way under 102 days a year ago)

So what do the statistics tell us? Today, we have more inventory at close to the same average sales price as we did a year ago, but it is selling faster. However, due to the race to close in the second quarter, we are currently seeing fewer transactions.

While prices are stable and time on the market is still reasonable, we are without a doubt still feeling the after effects of the tax credit deadline. In order for buyers to get the tax credit before it expired, some third quarter sales were “pulled” into the second quarter.  The “Trade Up” market, where existing homeowners have equity and want to buy a more expensive house, has started and it will also pull prices up as higher priced sales occur.

Since we have a stabilized unemployment rate and low interest rates what I expect to happen is similar to what happened in the car business after “Cash for Clunkers” ran out; the market will return to equilibrium over a three to six month period.

Commentary and analysis provided by David Hess, Executive Vice President.

Germantown, MD Market Report – 7/20/10

We have just over a four month supply of houses to choose from based on the rate of sales in June. (517 divided by 128). Economists say that a six month supply is normal to have a balanced market. After the tax credit I expect sales activity will fall for a few months since the market “borrowed sales from the future.” This is similar to what happened in the car business after “cash for Clunkers.” Below are the statistics and analysis for the Germantown, MD market:

• Homes for sale: 517 (down just a smidge from 525 in May. Up from 491 one year ago)
• Homes sold: 128 (up from 113 in May and up from 110 one year ago)
• Average sales price: $281,345 (down from $291,860 in May 2010 and about the same $283,791 one year ago)
• Average days on market: 40 (up a bit from 33 last month, but still way under 93 days a year ago)

The increase in the “Trade Up” market, where existing homeowners have equity and want to buy a more expensive house is beginning and will also pull process up as more higher priced sales pulls up all of the averages.
South Germantown Recreational Park is a 736-acre park that includes hiking trails, picnic facilities, baseball and softball fields, a playground, archery range, golf driving range, two miniature golf courses, a splash playground, model boating lake, a tot lot, and an indoor aquatic center.  The Germantown Park is the newest to be added in Montgomery County, Maryland.   The Maryland SoccerPlex is used by teams throughout the area and includes 24 outdoor soccer fields.

Market data and commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Germantown, and all of the DC Metro: www.averyhess.com

Germantown, MD Market Report – 5/21/10

Germantown is located in the northern part of Montgomery County between Route 355 and I-270.  It is an affordable city which was designed around two man-made lakes and contains a wide range of housing

The following conditions reflect the market in Germantown, Maryland during April:

• Homes for sale: 527 (up from 451 last month and up from snowy February’s 410. It was 517 one year ago)
• Homes sold: 107 (up from 88 last month and up from734 one year ago)
• Average sales price: $255,635 (up from $228,124 last month and up from $246,596 one year ago)
• Average days on market: 54 (down from 63 last month and down from 70 days a year ago)

After a couple of years of First-Time Buyers and Investors being the majority of the market, we are now seeing a rapid increase in the number of existing homeowners entering the market and buying a bigger house. This is firming up the prices in the higher price range and thus pulling up the average and median prices too in Germantown

The Germantown campus of Montgomery College is in the heart of Germantown and is surrounded by shopping centers, restaurants, housing communities, parks and recreational facilities.  Although there are no shopping malls in Germantown, it does not lack for stores both large and small.

Market data and commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Germantown, and all of the DC Metro: www.averyhess.com

Germantown, MD Market Report – 4/22/10

Germantown is located in the northern part of Montgomery County and contains a wide range of housing styles and price. It is easily accessed from either Route 355 or Interstate 270. In addition to numerous roads and I-270, the MARC Train has a station in Germantown and bus service feeds into the METRO system in at Shady Grove.

The following conditions reflect the market in Germantown, Maryland during March:

• Homes for sale: 451 (up from snowy February’s 410)
• Homes sold: 88 (up from 65 last month and up from 84 one year ago)
• Average sales price: $228,124 (down from $211,975 last month and down from $248,415 one year ago)
• Average days on market: 63 (similar to the last few months, but down from 112 days a year ago)

After showing stabilization, the statistics, being heavily influenced by the large number of lower priced sales, is showing a lower average price. This is not concerning to me because the reduced number of days it takes to sell a house tells me the demand is strong. If demand is strong a balanced market is either here or nearly in hand. First-time buyers and investors still make up the majority of the buyers in the Germantown market over the past few months.

One of the great features of Germantown is South Germantown Recreational Park is a 736-acre park that includes hiking trails, picnic facilities, an indoor sports complex, 22 soccer fields with a lighted stadium, baseball and softball fields, a playground, archery range, golf driving range, two miniature golf courses, a splash playground, model boating lake, a tot lot, and an indoor aquatic center.

Market data and commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Germantown, and all of the DC Metro: www.averyhess.com