So how was the Annapolis waterfront market in 2011? Interesting would be a good word. Improved would be another. Making a comeback? Well lets look at the numbers.
First off, so there is no confusion, this Annapolis Waterfront Market Report is for waterfront properties in the 21401, 21403 and 21409 zip codes ONLY. It DOES NOT include any other zip codes in the Anne Arundel County area. If your home is located outside these 3 zip codes I would be happy to do a report for you on your area as well. Just let me know.
This report includes all waterfront properties whether, single family, townhouse or condo. It DOES NOT include vacant land. OK...now that we have that clearly in our minds lets get to the report.
In 2011 there were 102 waterfront properties that SOLD. That is a 21% increase over 2010 sales!! The high sales price for the year was $5,650,000. The low sales price was $200,000 and the average sales price was $1,173,487.
In 2010 there were 81 waterfront properties that SOLD. The high sales price was $3,400,000. The low sales price was $185,000 and the average sales price was $996,667.
Now lets compare 2011 to 2007 which was our last 'boom' year according to all the soothsayers.
In 2007 there were 104 waterfront properties that SOLD. The high sales price was $3,800,000, the low sales price was $189,000 and the average sales price was $1,203,488.
So lets recap:
Number of Homes Sold High Sold Price Low Sold Price Average Sales Price
2011 102 $5,650,000 $200,000 $1,173,487
2010 81 $3,400,000 $185,000 $996,667
2007 104 $3,800,000 $189,000 $1,203,488
2011 over 2010 21% increase in number of homes Sold
18% increase in high sales price
8% increase in low sales price
16% increase in average sales price
2011 over 2007 2% decrease in homes Sold
33% increase in high sales price
6% increase in low sales price
3% decrease in average sales price
What does all this mean? In my book it means that waterfront properties are holding they're own. To have only a 3% decrease in average sales price over a 5 year period is good news especially when so many markets and areas have seen double digit declines. It also shows that waterfront Sellers have a huge understanding of market conditions, of pricing their homes sensibly and recognizing that todays market requires a different thought process in order to sell.
So what are we seeing for 2012? A renewed interest in buying. Already Buyers are contacting me via the Internet, phone calls, meeting with lenders and/or gathering their cash. I am hearing this among other agents as well. Those with higher wealth indexes have already shown us that now is the right time to buy just in the fact that 102 waterfront homes sold last year. The rest of the market including those who were more cautious by nature are posing to take advantage of this market and are starting to make their move. Below is a blog sent my way by Steve Harney of KCM (Keeping Current Matters). Steve provides its members access to the latest market data that is culled nationally from every important real estate news venue.
John R. Talbott, previously a Goldman Sachs investment banker, is a bestselling author and economic consultant. When it comes to the housing market he is also a prophet. When housing prices started to skyrocket in 2003, he published The Coming Crash in the Housing Market correctly warning us that a real estate bubble was forming. Then in January 2006, he called the absolute peak of home prices in the US by releasing a new book, Sell Now! The End of the Housing Bubble.
Mr. Talbott, the person who accurately predicted the housing bubble and its bust, now has a new prediction – IT IS THE TIME TO BUY A HOME! In a recent article, Homes – Buy Now!, Talbott simply explains:
“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.”
He goes on to explain that his conclusion is based on four different metrics, all of which favor buying today:
- Home Prices Relative to Peak Prices During the Bubble
- Home Prices Relative to Construction Costs or Replacement Costs
- Home Prices Relative to Incomes and Rents
- Home Prices in Real Terms, Not US Dollar Terms
2012 is shaping up nicely as THE YEAR to do so.
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I am here to help you make a sound real estate decision on the sale or purchase of your waterfront property.