While the real estate market in 2018 certainly came in like a lion it seems to be following the old proverb and going out like a lamb! The spring market this year was the most buoyant that I have seen since the peak in 2005 with limited stock, multiple offers on many properties and homes selling above asking price. Surprisingly, this continued well into July and even early August, when suddenly the market hit the proverbial brick wall.
According to the Bright MLS statistics, Frederick county is seeing an increase in properties coming onto the market accompanied by a noticeable decrease in those going under contract and selling. Homes which are priced correctly and in great condition are still getting attention and offers, but the frenzy of buyers rushing to make that quick decision has most definitely died down to a much slower pace.
Although it is not altogether unexpected for this time of the year, many people also attribute it to buyers adjusting to the higher interest rates. According to ‘National Mortgage News’ the FED is expected to raise rates in December and then several times again in 2019. It is however important to remember that even with these raises, rates will still be very favorable when compared to historic trends and the market will undoubtedly settle and adapt.
While the current developments may be concerning for anyone needing to sell quickly, Freddie Mac painted a positive outlook for next year when they recently reported; ‘A combination of moderate rises in mortgage rates and dipping growth in home prices are projected to boost existing and new housing sales through 2020’.
At the beginning of this year Lake Linganore and other local areas were most definitely experiencing a seller’s market but without the assistance of a crystal ball we have to rely on market statistics when predicting the future. These currently indicate that we have now moved towards a more balanced market, neither weighing heavily towards buyers on one side or sellers on the other. As the spring market for the new year begins to emerge, this may change, but for now a more steady 2019 is the early prediction.