Contact MargaretCrofton Real Estate Market Update - October 2007
November 16th, 2007 Categories: Market Updates
There is good news to report about the Crofton real estate market!
Statistics released by MRIS, the regional multiple listing system for this area, indicate that homes took less time to sell in October 2007 than they did in the same month last year. Days on Market were down 11.54% to 69.
Additionally, 42 homes sold in the 21114 zipcode last month – 7.69% more than October 2006.
Using information from MRIS, I made some charts that will give you a clearer picture of the Crofton real estate market than mere words and numbers, and added my own editorial comment:
All the news wasn’t good – the average sold price was down 14.48% to $327,400 from $382,846 in October of 2006. Unless you bought in the past year or two, it simply means your profit would be less to sell than if you had sold a year ago. However, if you did purchase your home in the past two or three years, it could mean that selling your home for enough to cover your mortgage will be tough.
Here are some additional Crofton real estate statistics that might interest you:
- Average Median Sold Price – $300,450, Down 12.91% from $345,000
- Average List Price for Sold Properties – $346,445, Down 14.10% from $403,326
- Average Sale Price as a Percentage of Average List Price – 94.5%, compared to 94.92% last year.
Absorption Rate may be that one “key” statistic that will help predict the market for the next few months: How many months will it take to sell the current inventory of homes (if no new ones are listed), based upon the number of homes sold this month?
The following graph shows the number of sold properties and the total inventory of homes for sale, each month. This is the information I use to estimate the absorption rate:
In October 2007, 42 listings sold out of the 173 on the market. This is a 4.12 month inventory, or a 24% absorption rate. Just for the sake of comparison, let’s look at the absorption rate in Crofton for the previous three months:
- September – 16%
- August – 23%
- July – 27%
If you’re thinking about selling your home, what does all this mean to you?
Frankly, it means you should find an agent who “gets” the importance of these statistics, since you’ll be relying upon your agent to advise you about pricing. While these charts are helpful, they are very general – based upon the entire zipcode. You will need to know this information for homes in your own Crofton neighborhood.
Bottom line: While the Crofton real estate market isn’t great, we’re doing a lot better here than most other areas of the country. During the next few days, I will complete real estate market studies for other nearby areas in Anne Arundel County including Odenton, Gambrills, Davidsonville, and Crownsville. As they are completed and posted on my other blog, I will insert links so you can see them, as well.
Copyright 2007. All rights reserved. Margaret Woda
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[…] The Focus on Crofton blog supplemented the report with some graphs of her own for the Crofton area. […]
[…] In a post titled Making Use of the Market Watch Report, MRIS singled out Focus on Crofton for use of MRIS data and the graphs I created for Crofton Real Estate Market Update – October 2007. MRIS is the regional MLS for Crofton and a 5–state area in the Middle Atlantic. […]
i read your article on Tomato. Most encourageing. Blogging is incredibly time consuming and as a new blogger its good to hear that it does get you business.
Margaret - you do an awesome job giving the people of Crofton an insightful and meaningful update on what’s going on in their market - thanks for great examples!