Edgewood, MD Market Conditions, June 2011

Some of us weren’t even sure of what to expect out of the June real estate numbers in Edgewood, MD! Last month, the industry was shocked by the drop that we saw in activity, and some even started worrying that the market was experiencing a “double-dip recession’. More rational people looked at the situation a little closer, and realized that we were comparing apples to oranges- last May was the final month of the now infamous federal tax credit for first time home buyers. People were scrambling to take advantage of the incentive, thereby causing a spike in the numbers for that period. This year, with rates still hovering below 5%, and prices as low as they are, it was inevitable that we would see a stronger June.

The total inventory of homes was reduced by a whopping 27%, going from 190 last year down to 138 this year. The number of homes that sold spiked in a positive direction as well, with 25 having changed hands in June, compared to only 16 a year ago. That was an increase of 56% year over year. The median price of the homes that sold was $134,549, which was down by 21% from a year prior. The median price of the homes that are currently active in the Edgewood, MD real estate market is $134,900.

Despite the fact that the home sales were much stronger during June than they were in May, the length of time that homes spent on the market actually increased by an astonishing 73% to 123 days. This could be attributed to a simple dip in activity during the pre-spring selling season, which eventually warmed up in June. Another possible reason is the number of foreclosures and short sales on the market. Of the 25 homes that transferred in June, 10 were foreclosures and 4 were short sales, totaling a rather significant 56%. These deals can sometimes take time to complete, so they may have caused the local market some slight turbulence.

Search foreclosure listings at www.scottmillerrealestate.com by scrolling down the home page and entering the desired criteria into the foreclosure search tool.

Overall, the trend that the sales figures seem to be moving are definitely positive, and the conditions are still optimal for taking advantage of the real estate market in Edgewood, MD.