Here’s the scoop on home prices nationally versus locally in Maryland
The National Association of Realtors recently released an updated Existing Home Sales Report. In that report they use median sale prices which can be deceiving to the true market trends and here's why.
The median sales price is based on the middle point of all sales, regardless of the type of home sold, i.e. single family, townhouse, or condo. So if, for example, you’re in a neighborhood where single family homes, townhomes and condos are all purchase options, like Anne Arundel County’s Piney Orchard neighborhood, and the majority of sales for the period being measured were condos (typically the least expensive housing type) with a few townhomes and single families mixed in, that is going to make it look like neighborhood prices are falling when in actuality, it’s just a reflection of the majority type of home that sold. Your single family or townhome did not lose value.
What we really need to look at, and what most reporting agencies use is the repeat sales prices which, in the Maryland real estate market, are showing a clear upward trend on home values.
It’s also important to note that NAR stats are not local. They are just an indicator of trends nationwide. You really need to focus on your neighborhood home values and we can help you do that with a complete homeowner dashboard where you can not only get a real-time value for your home, but track your equity, view neighborhood trends, and more.
And while the national reports show a decrease of 1.7% in home values overall, in the Maryland suburbs we’re showing a 1.7% increase in the average sales price, and in Anne Arundel county MD we’ve got a 2.69% increase in home prices so far this year.
It’s all local, which is why it’s important you choose an agent that really understands the Maryland market to represent you on your home sale or purchase. Let's connect!
