10
2012 May - June
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Montgomery County Market Report By Fred Flick, Ph.D., Consultant/Housing Economist
Fred Flick
In the first quarter of 2012, the state of Maryland experienced a down market in both sales units and prices. Over the first three months, property sales totaled 10,554 units and were off 1.6% from the first quarter of 2011. Similarly, the average price of $261,448 was down 0.6% from the 2011 annual figure. Moreover, the first quarter median price of $219,722 slipped 2.7% from a year before.
On a monthly basis, March prices performed better than sales. Maryland’s total sales in March (4,225) were down 2% compared to a year ago, but both price measures rose. Statewide, the average home price rose to $267,196, slightly above that of a year before. Nevertheless, the median price of $225,601 was up almost 6% from March 2011. Now on to Montgomery County:
Unfortunately, through the first quarter prices were still trending down. For the first three months of this year the average price was $481,885, and the median was $378,250. While these figures were higher than in February, still they were 6.5% and 6.6% below the respective prices for 2011. In 2011, the average single-family home sold for $515,161 and the median priced unit cost $405,000. While 2011 saw a rise in single-family prices from 2010; so far in 2012 prices remain soft. Foreclosures and short sales are probably affecting the market, as they seem to be increasing after the end of the moratorium on foreclosures by the banks.
Single-Family Market Single-family contracts and settlements performance was mixed in the first quarter. March year-to-date contracts (2,193) were up by 5% from a year ago. However, new contracts for the month (967) were only two sales higher compared to last March. But, single-family settlements for the first three months (1,318) were off by almost 4% from a year before. Similarly, the monthly settlements tally (522) was down by 4%. MARCH Condominiums and Cooperatives Over the first quarter of 2012, the condo/coop market also experienced mixed performance. Year-to-date sales contracts were up, but settlements were down compared to the first quarter of 2011. Year-to-date there have been 710 contracts, rising almost 6%, but new contracts for the month (266) slipped almost 7% from last March. As far as settlements have been going, year-to-date figures totaled 466 -- down about 6% -- with 189 monthly settlements down exactly 6% from March 2011.
The quarterly listings volume was significantly lower compared to a year ago as well. Total single-family active listings of 2,069 properties were down almost 13% from the first three months of 2011. Nevertheless, March monthly new listings of 1,362 units inched up 1.8% from a year before. Computing the absorption rate, at the March contracts pace there was a 2.1 months supply. Hopefully, this will be good news for prices this season.
So far this year, condo/coop inventory has been significantly below the 2011 level. Total actives through March (551) fell 32% from last year. But, as we would expect by early spring, new listings were up over 6% compared to March 2011. Looking at absorption, at the March contracts pace, there was about a 2.1-months supply of properties -exactly the same ratio as for the single-family market. This relatively low level of available properties should help keep upward pressure on prices.