Focusing in on the Rockville 20851 zip code shows a very tight market. New Listings are down -35.7% from January 2013 but up +28.6% in
Montgomery County, Maryland is made up of many zip codes – the part of the county that I have chosen to focus on today is the 20853 area.
Reporting on the Real Estate Market in Rockville, Maryland is not always simple. Rockville is located in Montgomery County, spanning five zip codes. I am beginning to see a NEW more positive Real Estate Market take shape and I have high hopes for the Spring Market
Although November 2010 sounds like such a long time ago, it really has only been around 45 days. Remember we all had the holidays just around the corner and FLASH -Here we are in a brand new year with many positive things to look forward to.
There have been less unites for sale than one year ago when had Home Buyer Stimulus #1. So comparing this time period to last year is not an equal comparison. But that said, here are the statistics for Rockville, Maryland:
There is around a four percent increase in homes for sale this year compared to the number for sale one year ago. However, the numbers of units sold is about about nine percent lower. The current average days on market, is still below what it was last year but it does continues to rise.
Let’s look at the big picture: Fewer houses are for sale than there were one year ago, but more houses have sold. Houses are on the market for on average a month less than they were this time last year and today’s market prices are about the same or slightly higher. Interest rates are lower and are pretty much at the lowest level they have been in 30 years. 168 people bought a house in Rockville last month, should you?
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
The sales action is still predominantly in the lower price ranges in Rockville. This is holding back the average and median prices. Other parts of Montgomery County, MD’s stats are showing increases due to the rise of a trade up market. The Rockville stats are not yet reflecting that.
The real estate market in Montgomery County has been gaining strength steadily since December 2008 when prices bottomed. As the county seat, Rockville is an active area, both the newly built downtown and in the surrounding neighborhoods.