Crown Gaithersburg MD | Is the Real Estate Market Finally Getting Back to Normal?
As Gaithersburg has developed over the years, many neighborhoods are now blended with one and another without any distinction or personalities.
Not in CROW, the newest and most vibrant community in Gaithersburg MD
Located next to Rio, this new and unique neighborhood is separate in four groups
* Downtown Crown
* Crown West
* Crown Central
* Crown East
If you are looking for city-living style with a flair of urban village, The Crown community has everything to offer and more.
There is even a direct Metro Shuttle between the community and Shady Grove Metro Station to connect you directly with Washington DC and its surroundings.
Today, I would like to talk about Is the Real Estate Market Finally Getting Back to Normal?
The housing market has been anything but normal for the last eleven years. In a normal real estate market, home prices appreciate 3.7% annually. Below, however, are the price swings since 2007 according to the latest Home Price Expectation Survey:
After the bubble burst in June 2007, values depreciated 6.1% annually until February 2012. From March 2012 to today, the market has been recovering with values appreciating 6.2% annually.
These wild swings in values were caused by abnormal ratios between the available supply of inventory and buyer demand in the market. In a normal market, there would be a 6-month supply of housing inventory.
When the market hit its peak in 2007, homeowners and builders were trying to take advantage of a market that was fueled by an “irrational exuberance.”
Inventory levels grew to 7+ months. With that many homes available for sale, there weren’t enough buyers to satisfy the number of homeowners/builders trying to sell, so prices began to fall.
Then, foreclosures came to market. We eventually hit 11 months inventory which caused prices to crash until early 2012. By that time, inventory levels had fallen to 6.2 months and the market began its recovery.
Over the last five years, inventory levels have remained well below the 6-month supply needed for prices to continue to level off. As a result, home prices have increased over that time at percentages well above the appreciation levels seen in a more normal market.
That was the past. What about the future?
We currently have about 4.5-months inventory. This means prices should continue to appreciate at above-normal levels which most experts believe will happen for the next year. However, two things have just occurred that are pointing to the fact that we may be returning to a more normal market.
1. Listing Supply is Increasing
READ MORE: https://www.reallynicehomes.com/blog/crown-gaithersburg-md-real-estate-market-finally-getting-back-normal/
???Thinking of selling your home? Let Fernando take over the marketing of your property with our unique 99 STEPS system
www.99SOLD.com - Call or text 240-426-5754 for more information.