While the official numbers are not yet in for home sales for 2012, we’ve looked at the numbers in our local multiple listing system (MLS), and here’s what we’re seeing this morning.
Howard County experienced a much larger percent growth in number of homes sold than Montgomery did, with volume up 15% over last year. Montgomery’s volume increased less than half of that, just under 6%. However, the bigger story is that Howard County prices remained flat relative to 2011, while Montgomery County experienced a price gain of 3.2% compared with 2011.
While these numbers are not official, we believe they’ll be very close to numbers released later this month.
The biggest concern we have is that rising interest rates might wipe out any gains in home prices in the coming year. Even a single percentage increase in interest rates can cause property values to drop as much as 10%, given that most people qualify based on total monthly payment, not on amount borrowed. Forecasts are for a mostly steady interest rate environment for 2013.
Curious about your forecast for 2013? Drop us a line and we’ll be happy to talk with you about the trends we’re seeing locally, and how they could affect your home’s values.
From our family at The Kittleman Group to yours, we wish you all a Happy New Year filled with success!
Laura Kittleman is the owner of The Kittleman Group of Keller Williams Select Realtors, based in Ellicott City, MD. She can be reached at 301-785-5889 or [email protected]