The first-time home buyer tax credit is probably responsible for the decline in average and median home prices in Crofton Maryland since August, because first time homebuyers generally purchase at the low end of the market. Overall for the year, however, the trend in prices has been upward with the average sold price at $268,400 in January and $319,137 in October, and the median sold price increasing from $250,000 in January to $308,000 in October.
At the same time, that tax credit may be the reason more homes sold in September and October of this year than in 2008 - the only two months of this year when closings exceeded the same month last year.
My crystal ball is still fuzzy about the future of Crofton real estate because statistics are providing mixed signals. One thing is in clear focus, however: The number of new listings went down this year, and the number of non-contingent contracts went up. In fact, these two numbers are closer than they've been (for October) since 2006 - and that's something I'd like to see continue.
If we could have a few more months with the number of new contracts and new listings, I'd say we have a positive trend going and the future is bright for real estate in Crofton.
It will be interesting to see how the Crofton real estate market changes with the new expanded tax credit, which makes current home owners eligible for $6500 if they've owned and occupied a home for 5 of the past eight years. Hopefully that will give a boost to home sales in a different price range.
P.S. Be sure to click through and read Has Crofton Real Estate Bottomed Out Yet?