2008 Year End Review - Cecil County, MD

The Housing Market ended the year with a decline of 30% in the number of sales (to 704 units) compared to the prior year end total of 1008. The number of properties available for sale has increased by 4.8% to 902 (see chart 1).  Pricing indicators show the median sales price declined 8% to $235,000 compared to $255,000 for the prior year. Similarly the average sales price declined 6%, from $279,214 to $262,226.

The various market segments within Cecil County experienced decreases from 4% to 50% with the exception of Colora, Conowingo, and Elk Mills which saw increases in median sale price. Many of the market areas had relatively few sales though, which will skew the data from one year to the next.  As we have stated before - "real estate is local" - and the year over year results within this housing market are a testament to that fact (see chart 2).
 
The days on market until a property is sold has increased to 127 days versus 100 days last year.  Potential buyers are taking longer to make purchase decisions and have more property choices.  As inventory rises, there is the expectation that there will be an increase in negotiability resulting in larger discounts from list price.

Looking at three housing market indicators on a monthly basis - the number of new listings on the market, the average number of days it takes for a home to sell and the average sold price as a percentage of average list price - all confirm that the market is showing the continued stress of our weakening economy and tighter credit.

For 2008, the number of new listings decreased nearly 14% (chart 3) compared to the same time period last year - fewer properties entering the market is a  positive trend for the overall absorption rate of homes for sale. Clearly, homeowners who have no urgency to sell are reluctant to list their properties until economic conditions improve. The average time on market prior to sale has increased in comparison to last year but did show slight improvement toward the end of the year (chart 4). Finally, the average sold price as a percentage of average list price has declined in comparison to last year, with the past six months' data showing a fair amount of volatility (chart 5). Homes are selling with further reductions from the original list or asking price, as motivated sellers seek the "new market price" for their properties.

 Looking to sell your home in today's market? Realize that you must commit to pricing it better than the vast majority of its competition. Gone are the days when "Location, Location, Location" ruled the day, now it's "Price, Price, Price"!

If you are in the market to buy; despite what you hear, mortgage money is readily available within a changed lending environment. A larger down payment, larger cash reserve, and tighter qualifying ratios can be expected.

(All reports presented are based on data supplied by MRIS. MRIS does not guarantee nor is it responsible for its accuracy. Data maintained by the MLS may not reflect all real estate activities in the market. Information is deemed reliable but not guaranteed. Data is as of 1/20/09)


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