Home prices rise; real estate adjusts to a 'new normal'
Home prices rise; real estate adjusts to a 'new normal'
Washington County home sales fell, but prices rose in March, while sales and prices rose in Franklin County Pa., according to monthly reports.
At the same time, however, real estate leaders cautioned that the economic slowdown related to the novel coronavirus will affect their business. And one local real estate leader sees a "new normal" in virtual real estate transactions and connections.
With current limits on conducting business in person, it has become more critical to stay in touch via technology and social media, according to Jim Cramer, president of the Pen-Mar Regional Association of Realtors and director of sales for Exit Preferred Realty. In an email Tuesday, Cramer wrote that many agents are relying more heavily on automated programs that help them manage the increased need to engage with clients and prospects virtually.
Jim Cramer
He anticipates that "this is will be our new normal" for some time to come and for the future of real estate transactions.
Cramer also pointed to the stock market's recent ups and downs, U.S. Treasury bonds that yield less than 1% and 30-year fixed mortgage rates that remain at historic lows.
"We are seeing public events and gatherings canceled. Schools are closed now until the end of this school year. In addition, many businesses are at a reduced output or closed completely," he wrote. "All these events are contributing to a preview of a down real estate market for the near and extended future" in the region.
In a news release, Maryland Realtors President John A. Harrison said real estate agents are trying to adjust to the market and do business in a safe manner.
"Although we can't predict the scope or duration of this situation, we can do our part to bolster the local economy by providing essential housing services to those in need and doing so in a way that honors Gov. (Larry) Hogan's 'stay-at-home' order issued late March," Harrison said in the release. "While many of our members weathered the 2008 housing crisis, this situation is very different. Back then, housing was not on solid footing. Today, the industry as a whole is in a better position to rebound."
According to the monthly report from Maryland Realtors, Washington County's home sales slipped 5.8%, from 156 in March 2019 to 147 last month.
But the average price jumped 10.4%, from $197,441 to $218,063.
And the median price rose 13%, from $177,000 to $200,000. The median is the midway point, with half of homes selling for less and the other half selling for more.
The number of pending sales rose from 177 to 181.
Statewide, home sales increased by 2.5%. Average prices rose by 9.3%, to $361,710, and the median price increased by 8.9%, to $312,000.
Montgomery County reported the most home sales, at 980, and the highest average price, at $562,912. Somerset had the fewest sales, at 16, and Allegany County reported the lowest average price, at $101,320.
March home sales and prices also climbed in Franklin County, according to figures from the Pen-Mar association.
The number of sales jumped 20.5%, from 122 to 147, according to the report. The average sales price rose 8%, from $179,141 to $193,378. And the median price increased by 6.7%, from $174,875 to $186,500.
Sales in area counties
The following home-sale statistics for March for selected Maryland jurisdictions list the number sold and average price, with the percentage change from one year earlier:
• Allegany County: 50 (down 15.3%); $101,320 (down 16.5%)
• Carroll County: 205 (up 8.5%); $355,379 (up 8.2%)
• Frederick County: 395 (up 23.4%); $357,171 (up 1.5%)
• Garrett County: 40 (up 5.3%); $283,635 (down 11.1%)
• Washington County: 147 (down 5.8%); $218,063 (up 10.4%)
• Statewide: 6,822 (up 2.5%); $361,710 (up 9.3%)
Source: Maryland Realtors
Mike Lewis covers business and economic issues and the town of Hancock for Herald-Mail Media. He can be reached by email at mlewis@herald-mail.com.