This is what a cooling housing market looks like

Well into the summer, home sales are off from last year’s statistics that were celebrated as being proof of a recovering housing market.  June’s home sales figures from Montgomery County MD are a clear indication of a cooling housing market.

While new listings continue to grow (up about 10% from last year), the total housing inventory for the County is at its highest in several years (increased about 14% year over year).  While sales volume is almost equal to last year, decreased about 1% year over year; and average home sale prices decreased almost 3% year over year.  And although indicating an active market, the June 2014 absorption rate (the number of homes sold compared to new listings) was the lowest in a number of years.

The good news is that, in the absence of any economic recession, recent trends indicate that the cooling market is a means to balance out an overheated market, and activity could pick up in 2015.

Montgomery County MD - Housing Inventory
Montgomery County MD – Total Inventory
Montgomery County MD - Home Sales
Montgomery County MD – Home Sales
Montgomery County MD - Home Sale Absorption Rate
Montgomery County MD – Home Sale Absorption Rate
Montgomery County MD - Average Home Sale Price
Montgomery County MD – Average Home Sale Price

© Dan Krell
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Sales data is inclusive of homes listed in MRIS. Home sales data compiled from local MLS, MRIS.com, and rbintel.com; Property information posted on this site is believed to be accurate, but should not be relied upon without verification.

Winter home sale blues during February

What will most likely be chalked up to weather related declines, Montgomery County MD experienced month-over-month decreases in new listings, new pendings, and sales during February.  Even though home sale volume declined, home prices kicked it up a notch.  Home sale absorption rate declines as total home inventory increases.

What may seem to be mixed data, may after all may be due to the winter weather.  However, many suggest that the the diminished volume is most likely due to home sales having plateaued during 2013.  Even if the 2014 spring market is hot, there is no expectation that 2014 home sales will significantly exceed those of 2013 – but it is too early to tell.

Montgomery County Home Sales
Montgomery County Home Sales
Montgomery County Average Home Sale Price
Montgomery County Average Home Sale Price
Montgomery County Home Sale Absorption Rate
Montgomery County Home Sale Absorption Rate
Montgomery County Total Monthly Listings
Montgomery County Total Monthly Listings

by Dan Krell © 2013
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Sales data is inclusive of homes listed in MRIS. Home sales data compiled from local MLS, MRIS.com, and rbintel.com; Property information posted on this site is believed to be accurate, but should not be relied upon without verification.

Home buyers active during January

Montgomery County MD home sales maintain solid figures during January; Home buyer activity strong compared to past years.  January homes sale absorption rates increased to match those of 2011.  Year over year average home sale prices increased across the board.  Distressed home sale (foreclosures and short sales) prices also increased about 3%.  The two year comparison chart (below) reveals the impact of pent up demand, as a result of having the lowest housing inventory in recent years.  Continued low inventory may maintain or apply upward pressure on home sale prices.

Montgomery  County MD Home Sales
Montgomery County MD Home Sales
Closed Sales - Montgomery County, MD - 2 Year Comparison
Closed Sales – Montgomery County, MD – 2 Year Comparison
Montgomery  County MD Home Sale Absorption Rate
Montgomery County MD Home Sale Absorption Rate
Montgomery  County MD Average Home Sale Price
Montgomery County MD Average Home Sale Price

by Dan Krell © 2013
Subscribe to Dan Krell Real Estate by Email
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Sales data is inclusive of homes listed in MRIS. Home sales data compiled from local MLS, MRIS.com, and rbintel.com; Property information posted on this site is believed to be accurate, but should not be relied upon without verification.

Just how good was the Montgomery County 2013 real estate market

How did Montgomery County housing do in 2013?

The one year market activity chart below looks typical for recent years.  However, comparing 2-years of market activity, there appears to a strong 2013 summer market and a surge of activity during the fall (see 2-year chart below).  Many suggest that 2013 was the beginning of a recovered housing market; while some suggest the market was driven by pent up demand of home buyers who were tired of little inventory and were willing to compete for homes.  Home prices (below) showed improvement; some say the higher average home sape price was due because of increased competition and better sales comps for appraisals.

Home Sales - Montgomery County MD
Home Sales – Montgomery County MD
2- year Home Sale Comparison
2- year Home Sale Comparison

The average home sale price slightly increased, and is most likely due to the increased activity. The average list to sold price ratio also fared better through most of the year, until winter.

Average Home Sale Price - Montgomery County MD
Average Home Sale Price – Montgomery County MD – 2 year comparison
List to Sold Ratio - Montgomery County MD
List to Sold Ratio – Montgomery County MD

by Dan Krell © 2013
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Sales data is inclusive of homes listed in MRIS. Home sales data compiled from local MLS, MRIS.com, and rbintel.com; Property information posted on this site is believed to be accurate, but should not be relied upon without verification.