Home Values Climb In Competitive Maryland Market July brought a new record high in home prices to my career as a real estate agent. Prices have continued to climb intermittently over the last decade. There have been dips and plateaus throughout, but for the most part the growth has been steady. However, as predicted (see video: Jimmy Rupert's Spring Market Outlook), this spring brought a huge jump in home values.
The market supply being at an all time low in Maryland - three months when historically it's been six months - has really driven up real estate prices. When there are less homes for sale at a time with just as many buyers it equates to elevated competition. Excess demand always drives up prices, especially when it happens to occur during prime home buying season. I view this as a great thing for sellers and buyers alike.
For sellers, the reason is obvious. If you bought a house post bubble - economic downturn of '07 - '08 - you have reached a point where you can sell high and get a great return on your investment. If you bought while the market was overly inflated in 2006, you have reached a point where you can sell at an equivalent price point or even higher.
The reason higher real estate prices are also good for buyers isn't quite as obvious. Buyers do have to buy at the highest cost in a decade. Taken at face value that doesn't seem like a great thing. However, it does go to show that an investment in Maryland real estate is a good one.
Much like the stock market, if you don't panic, a Maryland home will always, always increase in value. If you have the fortitude to be patient through an economic downturn it tends to pay great dividends. Your property will inevitably return to and exceed it's initial value.
Also, as I stated in today's The Daily Record blog post by Adam Bednar: July home prices in Maryland highest this decade, lenders are saying interest rates, which are hovering around 4.65% currently, could also jump. Acting quick to purchase at the current rate could save buyers a ton of money in monthly mortgage costs.
The growth is great for Maryland, especially Anne Arundel County, which according to the article, "had the biggest surge in closed sales with a 13.4 percent surge compared to last year". The only jurisdiction that didn't grow was that of Howard County. Howard County, however, with a median home price of $420,000 remained the highest in the Baltimore metro area.
Being a Maryland homeowner at this time is increasingly a great thing. Residents are riding a positive wave of growth that seems to be reflective of the market. It's not an unnatural inflation we're unwittingly riding until it pops. A real estate investment in this state seems to be very sound. That's a huge difference from what we experienced a decade ago and makes for an exciting time to be in real estate.
If you or anyone you know has a question about real estate in the Maryland area, contact me today!
The market supply being at an all time low in Maryland - three months when historically it's been six months - has really driven up real estate prices. When there are less homes for sale at a time with just as many buyers it equates to elevated competition. Excess demand always drives up prices, especially when it happens to occur during prime home buying season. I view this as a great thing for sellers and buyers alike.
For sellers, the reason is obvious. If you bought a house post bubble - economic downturn of '07 - '08 - you have reached a point where you can sell high and get a great return on your investment. If you bought while the market was overly inflated in 2006, you have reached a point where you can sell at an equivalent price point or even higher.
The reason higher real estate prices are also good for buyers isn't quite as obvious. Buyers do have to buy at the highest cost in a decade. Taken at face value that doesn't seem like a great thing. However, it does go to show that an investment in Maryland real estate is a good one.
Much like the stock market, if you don't panic, a Maryland home will always, always increase in value. If you have the fortitude to be patient through an economic downturn it tends to pay great dividends. Your property will inevitably return to and exceed it's initial value.
Also, as I stated in today's The Daily Record blog post by Adam Bednar: July home prices in Maryland highest this decade, lenders are saying interest rates, which are hovering around 4.65% currently, could also jump. Acting quick to purchase at the current rate could save buyers a ton of money in monthly mortgage costs.
The growth is great for Maryland, especially Anne Arundel County, which according to the article, "had the biggest surge in closed sales with a 13.4 percent surge compared to last year". The only jurisdiction that didn't grow was that of Howard County. Howard County, however, with a median home price of $420,000 remained the highest in the Baltimore metro area.
Being a Maryland homeowner at this time is increasingly a great thing. Residents are riding a positive wave of growth that seems to be reflective of the market. It's not an unnatural inflation we're unwittingly riding until it pops. A real estate investment in this state seems to be very sound. That's a huge difference from what we experienced a decade ago and makes for an exciting time to be in real estate.
If you or anyone you know has a question about real estate in the Maryland area, contact me today!
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