Real Estate Market Assessment

In April 2005 in Anne Arundel County the ratio of pending sales to active listings was 65.8%. In April 2007 the ratio was 11.1%. This ratio has been on the decline for the past three years. However, it appears that the ratio has bottomed out and is now nearly level for six out of the last nine months. So, we may be at the bottom of the real estate market. What has to happen before this ratio will start to improve? Prices will have to come down to the tipping point where buyers once again see value in the real estate market.

In Anne Arundel County the total sold volume was down 30.1% from this time last year. The average sold price remains about the same, however the median sold price is down 7.3% from this time last year. The number of homes sold is down 30.0% and the average days on market is up 28.0% from last year.

There were 420 units sold in Anne Arundel County in April 2008, down slightly from 418 units sold in March. The number of active listings was 4,563 in April, up from 4,219 in March. The number of new listings taken in April was 1,236, up from 1,101 taken in March. The number of listings with pending contracts in April was 505, up slightly from 483 last month. The average sold price was $398,231 in April, down slight from $391,756 in March. The average number of days on market was 137 in April, down slightly from 139 in March. The average list price to sold price ratio was 89.79% in April, down from 94.85% in March. Total sales volume for March was $167.3 million, up from $163.8 million in March.

In Annapolis the total sold volume was down 20.6% from this time last year. The average sold price is up 14.1% from this time last year. The number of homes sold is down 48.6% and the average days on market is up 54.3% from last year.

There were 55 units sold in Annapolis in April, down slightly from 57 units sold in March. The number of active listings was 946 in April, up from 852 in March. The number of new listings taken in April was 274, up from 222 in March. The number of listings with pending contracts in April was 132, up from 105 last month. The average sold price was $505,551 in April, up from $461,244 in March. The average number of days on market was was 161 in April, up from 148 in March. The average list price to sold price ratio was 91.6% in April, down from 95.5% in March. Total sales volume in March was $27.8, up from $26.3 million in April.

According to Bankrate.com, the average national rate for 30-year fixed rate mortgages is at 5.8%, up slightly from this time last month. The National Average Composite Mortgage Rate is 6.2% for April.

According to RealtyTrac.com, the number of pre-foreclosures in Anne Arundel County was 324 in April, about the same as 323 in March. The number of auction properties in the county was 289 in March, down from 342 in March. And, the number of bank owned properties was 277 in April, up from 246 in March.

So what can we expect for the end of the second quarter 2008? Sales will remain sluggish as more homes come to market than are sold. Although the number of buyers in the market remains relatively constant, buyers still believe that homes are overpriced. So, home prices will continue to decline as more homes come to market than go under contract. Sellers who adjust price downward could simply chase the market down or could make a dramatic adjustment and get there before their competition. Sellers must take all competition seriously and should price significantly below market comps and always below competition if they want to get their homes sold. When the buyers' perception is homes are overpriced, sellers must price their home to look like a bargain in today's real estate market. The lowest price and most favorable terms will result in the fastest sale at the best price!

While no one can predict the future with any certainty, one thing is certain - it remains a buyer's market. Buyers have large numbers of desirable properties from which to choose and sellers have lots of competition. A firm understanding of the market trends and forces is necessary for making the best real estate decisions.
So, if you are serious about buying or selling a home in today's real estate market, contact Stephen Howell, Associate Broker, REALTOR®, Coldwell Banker Residential Brokerage, at 410-923-3217, www.LiveInAnnapolis.com.