2007 Market Report for Howard County

For 2007, Howard County saw the number of homes sold decrease from 4057 to 3467 (a 14.54% decrease), with a .58% increase in average price, from $453,751 to $456,372. The Average Days on Market increased from 55 to 86. 

The absorption rate is the number of homes absorbed (sold) in the market over a period of time. This is a useful measure when examining the market. Last year the market absorbed an average of 288 homes per month. There are currently 1611 homes for sale in Howard County. With an absorption rate of 288 per month, it should take 5.5 months to sell the current inventory.

Surprise! According to the National Association of Realtors, when the inventory stands around 6 months, that is historically a normal market. While it may not feel normal to those of you who are new to this type of market, those of us who have been working in real estate and studying this for a while know that the recent past was in fact an aberration, and we are now trending toward a more normal market. In fact, when I became an agent in 1998, conditions were very much the way they are now.

So, last year prices stayed about the same, we have under six months of inventory, and we are in what is usually described as a normal market. Yes mortgage rates are fluctuating (at really low levels) and yes there are foreclosures on the horizon. However, our area has one of the lowest unemployment rates in the Country, a great location, the impending BRAC relocation, schools recognized for excellence, and a crime rate that others envy.
     
Given all of that, perhaps it is time for everyone to take a deep breath, look at the facts as opposed to the "news," and get back to buying houses to live in, steady appreciation, and long term investing. In ten years, we will all be looking back wishing we bought more real estate! [I]

All statistics courtesy of MRIS.