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

Rockville, Maryland Market Report – 7/9/10

While the statistics show increasing strength in the market, which is correct, the rapid gain in price may be more a function of the “trade up market” than the numbers reveal. What is the Trade Up Market? This is when an existing homeowner sells their house and buys a more expensive property. The result is that there are more sales in the higher price ranges which has the effect of pulling up the averages. While this is good and is a sign of strength, when it first starts, as is now happening, it creates a statistical surge.

Market Statistics for Rockville, Maryland

• # of Homes for Sale: 525 (down from 599 in May, 537 in April and down from 586 at the same time  last year)
• # of Homes Sold: 151  (up from 128 in May, 96 in April, and up from 111 at same time last  year)
• Average Home Price:  $407,377 (up from $375,747 in May, $336,663 in April and up from $389,344 one  year ago)
• Average days on the market: 53 (up from 40 in May, but down from 62 in April, down  from 92 one year ago). Continued reduction in time on market shows  increasing demand.

The home buyer tax credits probably had the effect of shifting some demand forward, similar to what the “Cash for Clunkers” did to car sales. So I am expecting a bit of a reduced volume of transactions until September when we get back to “normal.”

A little about Rockville: Richard Montgomery High School is a premier magnet county high school which draws students from all over the county.  Montgomery College, Johns Hopkins University and the University of Maryland at Shady Grove all have campuses in Rockville.

Data, commentary and analysis provided by David Hess, Executive Vice President, Avery-Hess, Realtors

Find Your Home. Plan Your Life. www.averyhess.com

Gaithersburg, MD Market Report 6/15/10

For the month of May, the average sales price in Gaithersburg got back onto its slow steady rise in average sale prices. Thus the average rose from $330,231 to $345,753. For the first time in a long time, prices in Gaithersburg are beating their one year ago comparisons.  Below you’ll find statistics as well as a full report for Gaithersburg, Maryland.

• Homes for sale: 867 (down from 902 last month and down from 945 one year ago)
• Homes Sold: 214 (very close to last month’s 211 and up from 156 one year ago)
• Average sold price: $345,753 (up from $330,231 last month and up from $336,760 one year ago)
• Average days on market: 43 (down from 48 last month and 115 days from one year ago)

What has made the big statistical change is the re-emergence of a trade up market. Existing property owners with equity are selling and buying more expensive houses. This has brought life to the market above $500,000 and the increase in sales at the higher price range is pulling up the average and median prices.

The drop in days on market says that the demand is real as buyers choose faster and faster.

Gaithersburg is a very diverse area with the charm of Old Town mixing with the newest type of planned community found in the development known as Kentlands with its condos, rental apartments, townhomes and large single family houses.  Walk among the streets of Kentlands and you will see the residents and visitors enjoying the restaurants, small shops, and movie theaters as well as the larger stores such as Kmart and Lowe’s.

Data, analysis, and commentary provided by David Hess, Executive Vice President.

Find your in Gaithersburg and all of Montgomery County: www.averyhess.com

Rockville, Maryland Market Report – 6/1/10

The sales action is still predominantly in the lower price ranges in Rockville. This is holding back the average and median prices. Other parts of Montgomery County, MD’s stats are showing increases due to the rise of a trade up market. The Rockville stats are not yet reflecting that.

Market Statistics for Rockville, Maryland

• # of homes for sale: 599 (up from 537 last month, and stable with 603 for sale at the same time last year)
• # of homes sold: 128 (up from 96 last month, and up from 110 at same time last year)
• Median Home Price: $354,113 (up from $336,663 last month but down from $378,881 one year ago)
• Average days on the market: 40 (down from 62 last month, down from 83 one year ago). Continued reduction in time on market shows increasing demand.

Rockville is the second largest city in Maryland and the county seat of Montgomery County.  The agencies of the Department of Health and Human Services as well as numerous software and biotech companies make their home in Rockville.

The revitalization of the Rockville Town Center has brought new life to a once tired and run-down area of the city and the apartments, condos, restaurants and shops as well as the square with its fountains and entertainment are a gathering place for all.

Data, commentary and analysis provided by David Hess, Executive Vice President, Avery-Hess, Realtors

Find Your Home. Plan Your Life. www.averyhess.com

Silver Spring, MD Market Report – 5/25/10

Driving north on Georgia Avenue you arrive in Silver Spring as you cross the dividing line with the District of Columbia.  Silver Spring is a suburb of Washington, D.C. in Montgomery County with both urban and suburban areas.  Silver Spring is located on the Red Line of the Metro system and the Silver Spring stop is the most used station in Maryland.

Real Estate Prices in Silver Spring are starting to reflect the trade-up market. Trade up is the term when existing homeowners sell and buy a bigger house. As this occurs, it pushes demand “Up the Food Chain” resulting in higher prices. This has been going on for about four months

Here are the market statistics for Silver Spring, Maryland:

• Homes for sale: 1,415 (up from 1,293 last month, but down a bit from 1,551 one year ago)
• Homes Sold: 222 (up from 188 last month, and up from 178 a year ago)
• Average sold price: $340,068 (down from $325,417 last month, and down from $35,551 one year ago)
• Average days on market: 78 (virtually unchanged from last month and down from 105 days one year ago)

The Silver Spring shopping district which centers around Georgia Avenue and Colesville Road has gone from a major shopping area to almost a ghost town and now with the newly revitalized City Place back to a vibrant area with restaurants, shops, theaters, etc.  The world headquarters of Discovery Communications has brought many jobs to the Silver Spring area.  The renovation of City Place has brought new life to downtown Silver Spring with the opening of fine shops, restaurants an outdoor shopping plaza where musical and ethnic festivals are held.

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

Search for homes in Silver Spring, 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