Regional Area Real Estate Market Report
Nicholas Johnson Sr.
Long and Foster Realtors, Frederick,
has officially arrived and gave way to some
fabulous fall days during the Catoctin
Colorfest hosted by the Town of Thurmont. My
wife and I choose to tour the Town Park
meeting the vendors and viewing their wares
in hopes of finding a certain framed print
of the Loy's Station Covered Bridge. Behold
the print among others were found and to
date still waiting to be hung. That
Saturday's attendance was heavy and somewhat
fast paced but we managed well on our own.
Either being a past vendor and a customer of
several prior events had made us Colorfest
veterans or the crowds were gentler than in
years gone bye.
This brings me to
the true nature of this article being the
more passive area real estate market
conditions that were experiencing today.
During the spring and summer of this year
the real estate market in most, if not all
of our unique marketing areas enjoyed robust
price growth with contract offers exceeding
the listings asking prices by thousands if
not tens of thousands of dollars.
It was truly a
sellers market by far, giving way to an
arena full of "No Contingency, No Kick Out,
Pre Approved, Conventional Lending Only"
contract offers being submitted. An agent
did not dare submit anything less, knowing
that any property priced below or at market
value was going to have several offers
placed upon it and any offer containing less
would be rejected.
On the other hand,
offers with the fore mentioned stipulations,
that included an higher than listing amount
offer in hopes of obtaining an accepted
offer did just the opposite. Such offers to
purchase were placed amongst others of same
comparison, giving way to "Your offer looks
great, but I have three others just like it!
Would you care to offer more? Great, we will
be reviewing all new bids tomorrow night!"
In other words, placed amongst other offers
in a potential bidding war through means of
a softly put, offer rejection.
At a selling
standpoint it sounded to good to be true but
it did take place, houses sold at above
market value within days, out of area buyers
submitted offers on several houses at once,
to be repeatably rejected or to late. Such
set precedence over fair market value,
driving area prices to all time highs with
the market readjusting on a daily basis.
Will the prices drop
or readjust to pre 2003 levels, as it has in
other areas of the Country that had
experienced similar market conditions? I
don't think so. The unique demographics our
region possesses are by most, different than
in other parts of the country and the
driving forces that created such in the
first place still linger and are just taking
impending local and state growth policies
with the associated fees, lack of approved
building sites, skilled labor shortages, new
housing shortages, construction costs, lack
of existing homes, unresolved federal
lending issues and possible area federal
contracts amongst other variables all add to
or effect your existing homes value.
Then add the thought
of four major federal entities viewing a
local location for secondary disaster
recovery sites, thus creating more
relocations to our area compounded with a
demand on area employment.
For now, our area is
host to a more subdued, slower paced market.
Inventory is slowly building and prices have
leveled off. Meaning, we may be experiencing
a brief buyers market, which I expect to
continue throughout the winter months mainly
in part due to the lack of seasonal buyers.
They'll be back next spring! It's the buyers
in need of housing and area relocations that
are keeping the market steady and in check.
Do expect a more normal, although temporary
5% to 7% property value increase until the
spring of 2004.
For those of you
that are following the area market, don't be
fooled by the highly, over inflated priced
properties readjusting sharply to true fair
market levels. Owners of such properties
were riding on expectations of turning
intentional huge profits, really never
intended on selling to begin with and or are
accepting the fact now and dropping listing
prices. Such are far and few in between.
Don't concern yourself with slowly rising
interest rates affecting our future market
conditions either. A recent survey, sampling
buyers in our area exposes an age-old theory
to debate. Economists forecasted impending
growth in housing on interest rates, whereas
the survey dictates that interest rates held
a second place of importance in recent area
Can you read into
what next years market trend holds in store
for our area? You do!
You now know more
about real estate than most!
Nicholas Johnson a call at the Long and
Foster Frederick, Maryland Sales Office, I'd
like to here your views on this article and
any other real estate matters you may have,
Read other reality related articles
written by Nick Johnson
Nicholas Johnson is
a Sales Consultants, licensed to practice in
Maryland. Nick, and his wife Pam are
associated with Long and Foster Realtors at
the Frederick, Maryland Sales Office.
301-644-1056 Nick is awaiting receipt of his
Pennsylvania Real Estate Sales License and
will become associated with the Long and
Foster Real Estate Incorporated Gettysburg,
Pennsylvania Sales Office. 717-338-3406