Even though prices appear to be rising slightly in the Deep Creek Lake area residential real estate market we are now experiencing a slowdown in the number of sales thus far in 2007. Buyers are acting more cautiously now as they evaluate their choices.

 

So far thru the first 6 months of 2007, 103 residential sales have closed in the Deep Creek Lake area compared with 165 residential sales thru the first 6 months of 2006 - a 37% decrease. To keep this in perspective though, the number of sales thus far in 2007 is comparable to the levels we experienced in some of the years earlier this decade. The good news is that the average sale prices of the residential properties that have sold so far this year are up approximately 10% over 2006. Why are the number sales down so far? We believe two main factors have contributed to this. First, similar to what is happening in the national real estate market some potential purchasers and investors have decided to put their money back in the stock and equity markets. And secondly, prices have continued to climb which in turn may have priced some potential buyers out of this market. Overall though, the Deep Creek Lake market continues to outperform many of the national real estate market averages.

 

Because of these factors we have also seen properties continue to stay on the market for longer periods of time. In 2006 the average length of time for a home to sell was 184 days - in 2007 that number has decreased slightly to 176 days but is still relatively high. Therefore home sellers who want to sell their property quicker will now need consider pricing their properties within a fair market range.

 

What does the rest of 2007 hold in store? We think prices will probably continue to improve but at more modest levels than what we've seen in the recent past. Also, the time it takes to sell a property will likely stay higher unless it's priced within a fair market range. Finally, the total number of sales at the end of 2007 will probably fall a little short of the total in 2006. In recent weeks we have seen an increase in the number of properties going under contract. As with any market, these types of adjustments are normal and should be expected.