Considering the Market: Harford County, MD Real Estate

The start of a new year is a time of change for many, seeing some resolve to lose weight, kick bad habits, or pursue a dream or interest. For others, it may be a time to consider moving. What might home sellers or home buyers expect to see in 2012? I’m predicting a mixed bag, with the potential for enormous opportunity.

Sellers must be consulted as to the latest market conditions so they may have reasonable expectations regarding their home’s eventual sales price and days on the market. Real estate is a commodity, with unemployment, interest rates, demand, and other factors determining the outcome. The median sales price in Harford County fluctuated greatly throughout 2011 – from a low of $210,000 in March to a high of $239,000 in September. What does that say about values? Not much. It may simply indicate that different buyers were in the market, encouraged by incentives, government programs, or rates. By the end of November, there were 23.8% fewer active listings in Harford County (1,344) than we saw in the same month in 2010 (1,765). Should sellers celebrate? I’d say be cautiously optimistic. There may be less inventory but price and condition still make the difference in selling your home – in any market.

The great news for buyers and sellers alike is the historically low interest rates that have created tremendous buying power. These amazing rates have allowed people to purchase for the first time (paying less per month than if they rented) or move-up and get more. Do you know how a 1% increase in the mortgage interest rate would increase your monthly principal and interest payment? This could take some buyers right out of the market and reduce the opportunity for sellers. Seize the day - these rates will not last!

While it is imperative that you have a clear and comprehensive understanding of the current economic indicators and environment, I know what matters most to you is the value of your home and what's going on in your market. Happy New Year!