While the statistics show increasing strength in the market, which is correct, the rapid gain in price may be more a function of the “trade up market” than the numbers reveal. What is the Trade Up Market? This is when an existing homeowner sells their house and buys a more expensive property. The result is that there are more sales in the higher price ranges which has the effect of pulling up the averages. While this is good and is a sign of strength, when it first starts, as is now happening, it creates a statistical surge. Market Statistics for Rockville, Maryland
- # of Homes for Sale: 525 (down from 599 in May, 537 in April and down from 586 at the same time last year)
- # of Homes Sold: 151 (up from 128 in May, 96 in April, and up from 111 at same time last year)
- Average Home Price: $407,377 (up from $375,747 in May, $336,663 in April and up from $389,344 one year ago)
- Average days on the market: 53 (up from 40 in May, but down from 62 in April, down from 92 one year ago). Continued reduction in time on market shows increasing demand.
The home buyer tax credits probably had the effect of shifting some demand forward, similar to what the “Cash for Clunkers” did to car sales. So I am expecting a bit of a reduced volume of transactions until September when we get back to “normal.”
A little about Rockville: Richard Montgomery High School is a premier magnet county high school which draws students from all over the county. Montgomery College, Johns Hopkins University and the University of Maryland at Shady Grove all have campuses in Rockville.
Data, commentary and analysis provided by David Hess, Executive Vice President, Avery-Hess, Realtors
Find Your Home. Plan Your Life. www.averyhess.com