Are Charles County Home Values Still Declining?
The answer to that question depends on your unique situation. For the first two months of the year Charles County homeowners overall are seeing a decline in property values again this year. Multiple Listing statistics place the decline, year-to-date, at -8.6% compared to this time last year. A home for sale in a healthy market is on the market between 3 and 6 months. The overall Supply and demand ratio for Charles County suggests a years worth of inventory is currently on the market, with a move towards more supply than demand by 2.5% per month. Homes priced at over $500,000 are siting in an inventory that will last 7 years at the current rate of sales.
There is however a silver lining in all this not-so-good news. The homes priced below $200,000 in Charles County and most of Southern Maryland are seeing multiple offers. Mainly we are seeing investors making these purchases. When a homes value reaches a price point equal to what you might pay in a monthly rental fee for that home, it is considered a good investment. There are many of these home now available, and many of them are Bank owned or pre-forclosures, also known as short sales.
According to Realtytrac.com more than 100 homeowners every month in Charles County Maryland are receiving Foreclosure notices. There is a huge need for affordable rental homes and the investors are answering that call. DeHanas Property Management has seen a dramatic swing in the number of rental applications from prevcious homeowners who have lost their home to Foreclosure.
OK, so I have gotton off track, but my point is, the market is still moving, and perhaps the beginning of the end is rearing its head. The trickle up affect will begin once we have cycled through all of the inventory of Bank owned properties. This is a very good sign and once that has been long awaited.