Odenton real estate the 2008 season in review

In July, the peak selling month for the year we were down about 22% in the number of homes sold as compared to July 2007 with an average sales price of $340,000.  By October, the figures were a little more grim with a 32% decrease in the number of home sales and an average price of just $317,000.  As all areas of Anne Arundel county are experiencing, the increase in the number of foreclosures and short sales was partly to blame.  But the biggest factor for the decrease in home sales has been the uncertain economy and the watchful eye of buyers who do not want to purchase a home only to find out they it has decreased in value substantially in just a few months of ownership.

Home buyers who are in it for the long haul are still purchasing with the understanding that real estate is a long term investment and that the tax benefits of home ownership outweigh the risks involved.  And the values are the best they have been in 4 years. 

One of the things that has kept the market a float is the number of home buyers who invested in Odenton real estate prior to 2005.  Those fortunate buyers are likely to have enough equity in their homes to sell it on the open market at a fair price.  Those home owners who purchased after 2005 have seen significant decreases in their homes value and must stay in or rent their homes to make a move.  This hurts our "move up" market in that the families that might be ready to expand and purchase a larger home are just not able to do so at this time.  That's left the luxury home market of $500,000+ with the biggest price decreases as there just aren't enough home buyers to deplete the inventory and home owners are left with price decreases as their only incentive to stand out from the crowd.

Particularly hard hit are the military members stationed at Fort Meade who purchased in Odenton as their normal schedule is a three year tour in the area.  So those military families who purchased a home in 2005 are now ready to sell and move on and are left carrying two mortgages for a home here and at the new duty station or worse, forced to foreclose or attempt a short sale because of an inability to sell or rent the home.

If you are thinking of purchasing a home or selling a home be sure to choose an agent that is experienced in your area and can give you up to the minute market data so you can make good decisions about pricing your home or purchasing a home and obtaining reasonable market concessions.  The Roskelly Team specializes in Odenton and Piney Orchard real estate and we've helped over 500 local families buy, sell and rent homes.  Don't hesitate to contact us with any questions you may have.  We're just a phone call or e-mail away to assist you!

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