There is a normal cycle of real estate to have buyer's markets and seller's markets. For the last 2-3 years, when someone would ask me "what market we are in?"(buyer or seller), the answer was
Oh No Not Again
Dated: August 24 2020
Here we go again! It's looking like 2004 in the real estate market for Frederick County and surrounding areas.
History is always a good teacher! How can you benefit from understanding what I am about to explain? It can help you both save money and make money!
Back in 2004 we saw an unprecedented Seller's Market. It began as low inventory. Political strategy desiring to encourage home ownership for all added fuel to the fire and we began seeing crazy loans for anyone with two legs. Actually I heard about a cat getting approved for a mortgage as well!
What began as a typical swing in the real estate trends continued and accelerated into the largest real estate bubble in American history. And then, in late 2007, that bubble sprang a leak. Yes it was actually a leak! Hurricane Katrina created the perfect storm that caused our demand to begin to decline. Consumer confidence began to dip and the swing went in the down direction.
The year of 2008 saw thousands of banks fail and our economy in trouble. The financial markets tanked in response and home values fell dramatically. During the years of 2004 to 2008 we saw year over year increase between 20% and 30%. After the market deflated to flat, we saw our values all the way back to what there were in 2003.
But not every real estate swing in American history has ended up so dramatically low. Over history, values go up, fall a little and then go up some more.
In 2019 we began seeing low inventory concern buyers in our area. New home sales began to rise and competing offers began to be our norm.
In comes Covid! The real estate market has seen low inventory very similar to the last real estate bubble. Values are rising year over year and buyers line up to get their offers accepted on the first day a home is listed for sale.
This photo shows what is happening in Maryland in general. Home values are definitely on the rise. So it's a great time to SELL! As a buyer, I recommend you see this as your opportunity as well. Homes purchased at the beginning of an upswing in values can see rising equity as a plus.
If you are thinking of selling, let's talk! If you are thinking of buying, I'd like to share some highly successful competitive strategies with you and help you find your home!
Terry La Scola is a lifelong resident of Frederick County Maryland and has been involved in the business community of Frederick since 1979. As an entrepreneur, Terry has an extensive knowledge of sal....