As we enter the second half of 2021, many are wondering whether we will see a drop in home prices or a continued rise we have seen throughout the first half of the year. The USA is still feeling the impact of the Covid-19 pandemic and could potentially have further lockdown measures. As always, our expert Maryland mortgage lending team is here with the latest statistics and updates.
Housing Market – July 2021
Here’s what we know– for the 28th week in a row, we are seeing a continuation of strong purchase volumes that are 15% above what they were at this time in 2019, and 21% under what we saw this time last year. Mortgage rates continue to stay low along with constraints to supply, and the flexibility that working from home offers are all pushing the recent HPA acceleration, which experts are predicting will continue through the summer.
The current average home value in Gaithersburg is $454K– up 11.7% from this time last year. The average sale price is $468K, which is up a total of 16.9% from this time last year. Overall, the market remains very competitive with many homes getting multiple offers. Average homes are getting 3% over asking price, while hot homes are pulling in 7% over their asking price. Homes are spending on average 4 to 8 days on the market before being snagged by competitive buyers.
So, how does this compare to nearby cities? In Alexandria, Virginia the market is slightly less competitive. Homes can get 2% to 5% over their asking price and are spending on average 4 to 12 days on the market. Over in Washington D.C, the competitiveness drops but still rests in a seller’s market. Homes here are getting between 2% and 5% over the asking price and spend an average of 6 to 20 days on the market.
What about nearby neighborhoods in Gaithersburg? In Montgomery Village, the average home value is $323K, up 12.1% from last year. The median sales price is $341K, up 26% year-over-year. Homes here are getting 3% to 6% over their asking price and spend an average of 4 to 11 days on the market.
In Germantown, the average home value is $365K, up 11.7% from this time last year. The median sales price is $356K, however, 71.9% of the homes on the market are getting over their asking price by 4% to 7%.
From a buyer’s standpoint, purchasing a home in Gaithersburg as a short-term investment isn’t ideal unless you are looking to buy and flip a property. Experts are expecting to see a long-term rise in prices, which could mean a profit of about 9.73% over a 5-year period. If we go by figures from June, the median home value rose 3.475% to $419K between June of last year and this June.
Outlook for Montgomery County
So far, the county of Montgomery has done better in the housing market than in many parts of the country. Part of this is due to its close proximity to Washington DC. The county has about a 1-month inventory supply, and homes spend an average of 14 days on the market. The average sale to list price ratio is 103.5%.
The average sales price for detached homes is $893K, up 18.2$ from this time last year. Attached homes have an average sale price of $507K, up 19.2%, and condos are selling for an average price of $355K, up 20.2%.
Supply has dropped compared to last year. Detached homes are down 21.3% with a 1.47 month supply, attached homes are down 31.5% with only 0.75 month supply, and condos are down 42.0% with a 0.79 month supply. With this data, experts are predicting further rises in home sale prices unless more inventory becomes available on the housing market.
If you want to know more about the current low-interest rates and what mortgage options are available to you, give our expert Maryland mortgage lending team a call today!