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Is real estate industry of Maryland recovering?

Realtors in Maryland are anticipating a strong 2017 real estate market following an excellent 2016. Per Edgewater realtor JJ Fegan, “new home sales have hit their highest since 2008…The highest since that year’s housing market bomb, followed by years of weak sales reports. This is good news.”

A solid start to 2017 continues the trend that blossomed last summer. Statistics from two suburban counties, Prince George where there is room for development, and Montgomery where the market is more established, tell the tale. According to the Washington Post, “In Montgomery, the average sales price of homes rose 1.82 percent to $508,412 compared with 2015. In contrast, homes in Prince George’s rose 5.54 percent to $254,060 this year.”

The Post article lists the cities with the highest average home prices in each county:

  • Chevy Chase: $1,062,804 (Montgomery)
  • Prince George: $339,365 (Prince George)

 

Strong, Steady Demand for Maryland Real Estate in 2017

Here are the specifics about Maryland real estate in 2017.

1. The Rising Tide of Prices Continues

There is a rising housing tide throughout the country, and the market here in Maryland will continue to reflect it. Realtor.com says that 2017 will be, “a year of slowing, yet moderate growth,” nationwide, and that prediction looks accurate for Maryland too, with one market exceeding exceptions. The Baltimore-Columbia-Towson real estate market is expected to see home price growth significantly higher than the national average growth forecasted to be 3.9 percent.

2. Lower Inventory and Faster Sales

Inventory is down about 11 percent nationally and here in suburban Maryland. That fact, along with strong demand, is the reason the homes are staying on the market an average of just 57 days compared with an average of 68 days in the top 100 US metropolitan markets and 79 days in the US overall. One of the takeaways here is that buyers need to have pre-approved financing, make up their mind quickly and act immediately when they find a home they want. Buyers’ agents need to be on top of their game too, keeping their clients informed about new listings, so they can see them ASAP and be first in line should they want to buy. Having a customizable, easy-to-use software that features automation functions will prove invaluable for this purpose.

3. Boomers and Millennials are Leading Buyers

The two largest demographic groups are buying the bulk of the homes, which shouldn’t surprise anyone. Boomers are expected to buy 25 to 30 percent of homes sold in 2017 while Millennials will purchase about 33 percent. There is concern that if interest rates continue to rise, as expected, it might lower the number of Millennial first-time buyers, as 95 percent of them rely on financing to make the purchase.

How Maryland Realtors Will Succeed in 2017

These proven Maryland real estate sales tips will be used by savvy agents to make the most of the continued strong market.

First, inform past clients, buyers and sellers, that home prices are up and they’re selling fast. While this might not be music to the ears of those who plan to buy larger locally, it will get the attention of Boomers that are considering downsizing or moving out of the area to a region with lower home prices. Informing them that there is money to be made might spur them to list. Letting homeowners who would require financing for an upgrade know that interest rates are ticking higher might get them to act now too.

Next, grow your contact list, and keep in consistent touch with those on it. You should consider getting a dedicated CRM for this purpose, and utilize the industry specific tricks in order to get the most out of your leads. With tightening inventory, you’ll want to expand your contact list through direct mailing, offering relocation assistance to major private and public employers in your area and other forms of outreach that have proven effective for you in the past. You might also find success contacting investors looking for rental properties in outlying areas. Higher home prices are keeping some potential buyers out of the buyers’ market, and this should produce a renters’ market that will continue to be strong.

Which of these strategies is right for you? Successful realtors know that they all play a part in attracting buyers and sellers and doing more deals in 2017.

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