Severn real estate the 2008 sales season in review

The times they are a changing for Severn real estate.  And while it's not quite as bad as the media would have you believe, we are seeing a substantial decrease in sales prices and an increase in days on market.  If you are a  Severn home owner or are thinking of purchasing a home in Severn, the information below will give you a clear and accurate picture of the real estate market.   Sometimes a picture (or chart) IS worth a 1,000 words and the data below really illustrates what we in the real estate profession were seeing and feeling on the streets.  We had a pretty normal early market in March through May and then the media focus and shakey economy created a real fear in home buyers that purchasing now would result in immediate loss in value and buyers would be left upside down on pricing.  Further fueling this fear was the potential home buyers who had friends or family that had purchased post 2005 and had seen their home prices plummet.

On the charts you'll see that the number of homes being sold while the average price was over $300,000 was between 30 - 65% lower than in 2007.  However, when the average home price fell below or near $300,000 we started leveling back out with 2007 numbers.  The sad truth is that the frenzy of the real estate market that we saw between 2003 and 2005 was NOT the norm and it created inflated values that ruled out home ownership for many families as the average mortgage payments creeped well up into the $3,000 per month range. 
 

In summary, it's going to be a long hard road to recovery and prices will continue to fall because of our back log of foreclosures.  But there is an end in sight for the Severn real estate market.  The government is making it easier to buy and there are even rumors that the bail out package funds will be favored on the banks that provide the most competitive rates for home buyers.  We've been hearing that 4% interest rates are on the horizon and we hope that's true.
 

In the interim, foreclosures and short sales are plentiful and there are some real bargains to be had.  If you are thinking about buying a home in Severn or anywhere near Fort Meade you are going to have some protection thanks to the upcoming BRAC moves that will give us a few more buyers in the market and hopefully level out values.  But the key to taking advantage of the market now is shopping carefully and negotiating hard on the home that you want.  If your dream house comes with a seller or real estate agent who is unrealistic about market conditions then you MUST move on and find dream house #2 or #3 or #4 and do not purchase until you get a deal that will insulate you from any further declines in value.  And make sure you choose a real estate agent that you can trust.  It's OK to interview several.  You want a local market professional who can give you the best advise on market conditions, pricing and what concessions (like closing help) are normal for the area where you are purchasing.

October 2008
Severn Real Estate Sales statistic
	2008	2007	% Change	Total NEW listings:	49
Total Sold Dollar Volume:	$6,761,700	$8,262,100	-18.16%	Total Properties Marked Contract:	21
Average Sold Price:	$270,468	$317,773	-14.89%
Median Sold Price:	$280,000	$330,000	-15.15%
Total Units Sold:	25	26	-3.85%
Average Days on Market:	138	106	30.19%
Average List Price for Solds:	$292,712	$334,542	-12.50%
Avg Sale Price as as a a % of list price	92.40%	94.99%

September 2008
Severn Real Estate Sales statistic
	2008	2007	% Change	Total NEW listings:	41
Total Sold Dollar Volume:	$9,480,740	$9,377,492	1.10%	Total Properties Marked Contract:	34
Average Sold Price:	$351,139	$390,729	-10.13%
Median Sold Price:	$337,000	$390,780	-13.76%
Total Units Sold:	27	24	12.50%
Average Days on Market:	108	79	36.71%
Average List Price for Solds:	$388,868	$403,319	-3.58%
Avg Sale Price as as a a % of list price	90.30%	96.88%

• Severn Real Estate and homes for sale
• Fort Meade real estate