Montgomery County Finishes 2013 Strong
Montgomery County, Maryland had a strong year in home sales in 2013, with the median home price rising to $386,000 in December, up 7.2% over last year. Sales volume was much improved, too, up 10.5% over last December, with the average home on the market only 53 days prior to going under contract.
On average, sellers are getting 3.5% less than their asking price, also an improvement over last year, but less than November’s average.
December 2013 Market Statistics – Montgomery County, Maryland
During the past year, interest rates rose around ¾ of a point, with today’s rate for a 30-year fixed rate mortgage to well-qualified borrows (paying zero points) hovering in the 4.25-4.50% range, compared to last year’s average rate of 3.5-3.75%.
We experienced a strong market for home sales, even moving into the headwind of increasing interest rates, due to pent-up demand and an artificially low number of foreclosures coming on the market. What will happen when mortgage rates continue to rise, and more foreclosure inventory comes on the market? We believe that, if handled properly, the market will be able to absorb the inventory, especially if the lenders relax their currently super-strict requirements for mortgage applicants.
We’re predicting 2014 to be similar to last year in terms of home prices, with the market slowing a tad in volume, along with a slight increase in days on market. Interest rates are what we’re keeping close watch on, along with foreclosure filings, for those two items could be a potential 1-2 punch to knock the wind out of the recovery we enjoyed last year.
Exciting times in the world of real estate! Stay tuned!
Laura Kittleman is the owner of The Kittleman Group of Keller Williams Capital Properties, and her team works primarily in Montgomery County and Howard County, Maryland. She can be reached at 301-785-5889 or [email protected].
Data Source: RealEstate Business Intelligence, LLC, an MRIS company.