Written by your Local Anne Arundel County Realtor
To keep up with the market I walk around and drive around the various Crofton Townhouse neighborhoods a few times each week.
I can’t help but notice that there seems to be several more townhouses on the market and staying on the market each and every month.
I just got finished analyzing the real estate transactions for all Crofton Townhouse sales over the last 6 months (December 2005 to May 2006). A few things to notice:
First, the sheer volume of townhouses coming on the market every month continues to be high. An average of 48 townhouses a month are listed for sale. But the number of townhouses being bought and going to settlement continues to hold at around 20 per month. So we obviously have a market that is over-supplied.
Secondly, of the townhouses that do sell, the average time on the market is about 34 days. So we’re still seeing market conditions where it is taking longers for sellers to get their homes sold. Looking through the data, this 24 days is actually being brought down by some unusually quick sales. I think it would be safe to say that the average time on the market for a townhouse in Crofton should be around 40 days.
Third, list prices continue to climb at a pace that is equal to about 20% per year every month. So, even though we have more supply than demand, each month townhouse prices continue to climb. Now, while I look at averages for the entire town of Crofton - the same statistic holds true for individual neighborhoods.
For instance, when I look at similar unites in Nantucket Mews, I can see that list prices increased 2.3% per month for the last six months. The Knolls increased an average of 1.2% per month. Similar townhouses in the Walden neighborhoods increased an average of 1.4% per month.
These increases aren’t absolute. In fact all of the above neighborhoods had some listings that were actually listed for less than comparable properties that had been listed the month before. And in some neighboorhoods (e.g. Wellfleet Mews at Crofton Village, Sycamore Mews and Stonehaven) housing prices have flattened out, or have actually gone down a small percentage for similar styled properties.
One last thing, looking at these numbers it is clear that pricing a property is important to a quick sale and settlement. How much of a price difference are we talking about?
Well, looking at similar townhouses in the same neighborhoods it looks like the difference between a property that is sold in under 40 days and one on the market for many more days after that can be anywhere from $8000 to $18000 diffence in sales price.
If you have any questions about this article, or you’re interested in your own Crofton Townhouse and how you an price and sell it quickly - please don’t hesitate to contact me.