Author: Atlas Home Group

Baltimore Metro Real Estate Market Update – April 2024 – A Guide for Homeowners Facing Foreclosure

Posted by Atlas Home Group on

Created by Teal Clise, Vlad Kats

If you’re a homeowner in the Baltimore Metro area facing foreclosure, understanding the current real estate market can help you make informed decisions about your property. This update will provide insights into distressed property trends, including short sales and foreclosures (REOs), and offer guidance on navigating your options.

The State of the Market

The Baltimore Metro area has seen varying trends in closed sales over recent years. Comparing data from the same months across different years highlights these seasonal patterns:

  • April 2024: 2,704 closed sales
  • April 2023: 2,510 closed sales
  • April 2022: 3,783 closed sales

While there has been a decrease in closed sales in April 2024 compared to April 2022, there has been a rebound from April 2023, indicating a potential recovery.

Distressed Properties: A Growing Trend

Distressed properties, including short sales and foreclosures, have significantly impacted the market. Understanding the prevalence of these properties can help you determine the best course of action.

Foreclosures (REOs):

  • April 2024: 89 REOs (3.29% of total sales)
  • April 2023: 56 REOs (2.23% of total sales)
  • April 2022: 49 REOs (1.29% of total sales)

Short Sales:

  • April 2024: 11 short sales (0.41% of total sales)
  • April 2023: 19 short sales (0.76% of total sales)
  • April 2022: 26 short sales (0.69% of total sales)

What This Means for You

The data indicates an increase in foreclosures and a decrease in short sales in April 2024 compared to previous years. If you are facing foreclosure, now might be an opportune time to consider a short sale. Here’s why:

  1. Market Conditions: The rising number of REOs suggests that more homeowners are struggling to keep up with mortgage payments. However, the relative scarcity of short sales means there may be less competition for selling your property this way.
  2. Financial Relief: A short sale can potentially minimize the financial impact on your credit score compared to foreclosure. It also provides a way to settle your mortgage debt with your lender’s approval.
  3. Faster Process: With fewer short sales currently on the market, lenders may be more willing to expedite the process to avoid the lengthy and costly foreclosure process.

Future Outlook: Short Sales on the Rise?

It is also important to consider that the increase in REOs might indicate a forthcoming rise in short sales. REOs are often seen as a leading indicator for short sales. As more properties go into foreclosure and are repossessed by banks, lenders may become more proactive in negotiating short sales to mitigate losses and avoid the costs associated with managing and selling REOs.

Historically, when the market sees a surge in REOs, it often leads to an increase in short sales shortly thereafter. Therefore, if you are contemplating a short sale, acting now could position you ahead of a potential increase in the number of short sales, providing a competitive advantage.

Comparative Analysis

Looking at the data from the past three years provides a clearer picture of the trends:

  • March 2024: 79 REOs (3.36% of total sales) and 13 short sales (0.55% of total sales)
  • March 2023: 82 REOs (3.04% of total sales) and 14 short sales (0.52% of total sales)
  • March 2022: 64 REOs (1.78% of total sales) and 18 short sales (0.50% of total sales)

This trend shows a slight increase in REOs from 2023 to 2024 and both have increased significantly compared to 2022.

Taking the Next Steps

If you’re considering a short sale, here are some steps to get started:

  1. Consult with a Real Estate Agent: An experienced agent can help you understand the process, evaluate offers, and negotiate with your lender.
  2. Prepare Your Home: Even in a short sale, making your home presentable can attract better offers.
  3. Gather Documentation: Be ready to provide financial documents to your lender to demonstrate your need for a short sale.

Conclusion

Navigating foreclosure is challenging, but understanding the current market trends in the Baltimore Metro area can help you make the best decision for your situation. With the rising trend in foreclosures and the potential benefits of a short sale, now might be the right time to explore this option. Additionally, considering that increasing REOs may lead to a rise in short sales, acting sooner rather than later could provide you with a significant advantage.

For personalized advice and support, contact Atlas Home Group. Our team of real estate and short sale experts is here to guide you through the short sale process and help you find the best solution for your needs.

Top 5 Mistakes to Avoid When Selling Your Home via a Short Sale

Posted by Atlas Home Group on

Selling a home can be a daunting task, especially when you’re considering a short sale. A short sale occurs when you sell your home for less than what you owe on your mortgage. While it might seem like an appealing solution to avoid foreclosure, there are some pitfalls that you need to avoid. Here are the top five mistakes to steer clear of when selling your home via a short sale:

1. Not Seeking Professional Advice:

One of the most significant mistakes homeowners make is not seeking professional advice. Selling a home through a short sale involves intricate legal and financial processes. Consulting a qualified real estate agent or a real estate attorney can help you understand the implications of a short sale and guide you through the necessary paperwork. Their expertise can save you from costly errors and ensure a smoother transaction.

2. Neglecting to Communicate with Your Lender:

Open and honest communication with your lender is crucial during a short sale. Some homeowners avoid contacting their lenders, hoping the situation will resolve itself. This is a mistake. Lenders appreciate borrowers who are proactive about their financial difficulties. We often find that lenders are flexible and willing to consider the short sale when our attorney communicates professionally on our clients’ behalf.

3. Incorrectly Pricing Your Home:

Setting the right price for your home is essential for attracting potential buyers in a short sale scenario. Overpricing your property can lead to limited interest and prolonged listing times, making it harder to secure a buyer. Conversely, underpricing your home might lead to significant financial losses. Consult your real estate agent to determine a competitive and realistic price that reflects the current market conditions.

4. Neglecting Home Maintenance:

Even in a short sale, maintaining your property is vital. A well-maintained home is more appealing to potential buyers and can lead to a quicker sale. Neglecting repairs or upkeep can decrease the perceived value of your home, potentially causing interested buyers to walk away. Put in the effort to keep your home in good condition to maximize its attractiveness to potential buyers.

5. Ignoring the Short Sale Process Timeline:

Short sales typically take longer to complete than standard home sales due to the additional negotiations involved with the lender. Not understanding this extended timeline can lead to impatience and frustration. Set realistic expectations from the beginning and be prepared for potential delays. Staying patient throughout the process can help you navigate any obstacles that may arise.

It’s never fun having to make a significant financial decision, but avoiding these common mistakes can significantly improve your chances of success. You can navigate the short sale process more smoothly and find a viable solution for your financial situation. Remember, taking the time to avoid these errors can make all the difference in achieving a successful short sale.  Contact us today to learn how we can help you.

A Guide to Short Selling Your Home: Important Steps for Sellers

Posted by Atlas Home Group on

Short selling a home can be a unique and challenging process for sellers. It involves selling the property for less than what is owed on the mortgage, with the lender’s approval, to avoid foreclosure and financial strain. To succeed in this journey, sellers should follow these essential steps:

  1. Find a Knowledgeable Real Estate Agent: Get help from a real estate agent experienced in short sales. They can guide you through the process, negotiate with the lender, and attract potential buyers for your home.
  2. Organize Financial Documents: Gather important financial papers like bank statements, tax returns, and pay stubs. These documents show the lender that you are facing financial difficulties and help justify the need for a short sale.
  3. Communicate with the Lender: Contact your lender’s loss mitigation department or short sale department early on to let them know about your plan for a short sale. Understand their requirements and the paperwork needed to start the process.
  4. Determine the Right Price: Work with your agent to select pricing that is comparable to other sold homes. This competitive pricing will help attract buyers and increase the chances of lender approval.
  5. Create a Comprehensive Short Sale Package: Prepare a complete package with documents like a hardship letter explaining your financial situation, a market analysis, financial statements, and a signed purchase offer. This package convinces the lender to approve the short sale.
  6. Market Your Home: Work with your real estate agent to market your home effectively. Write an appealing description, take high-quality photos, and use virtual tours to showcase your property’s features. Online listings, open houses, and networking with other agents can help attract potential buyers.
  7. Be Patient and Persistent: Short sales can take time and involve negotiations with the lender. Be patient and ready for delays and paperwork. Stay persistent to keep the process moving forward.

Remember, the requirements for short selling a home can vary depending on your lender, location, and situation. Reach out to us today to take the first step toward eliminating the financial burden.

Key Short Sale Advantages

Posted by Atlas Home Group on

A short sale can offer numerous benefits to homeowners who find themselves in financial distress or need to sell their property quickly. Here are the key advantages of a short sale:

  1. Avoiding Foreclosure: One of the primary benefits of a short sale is the ability to avoid foreclosure. When homeowners are unable to keep up with mortgage payments or owe more on their home than its current market value, they may face the risk of foreclosure. Foreclosure can have severe consequences, including the loss of the property and long-term damage to credit. A short sale allows homeowners to sell their property for less than what is owed on the mortgage, settling the debt with the lender and preventing foreclosure.
  2. Minimizing Credit Damage: While a short sale does have an impact on credit scores, it is generally less damaging than a foreclosure. A foreclosure can stay on your credit report for up to seven years and significantly impact your ability to obtain credit in the future. In comparison, a short sale may result in a smaller drop in credit score, and the negative mark typically remains on the credit report for a shorter period. This can allow homeowners to rebuild their credit more quickly and regain their financial stability.
  3. Debt Relief: With a short sale, homeowners can negotiate with the lender to forgive the remaining debt after the sale. In some cases, the lender may agree to release the homeowner from any further obligation to repay the shortfall between the sale price and the outstanding mortgage balance. This debt forgiveness can provide significant financial relief to homeowners who are struggling to meet their financial obligations. It eliminates the burden of the remaining mortgage debt, allowing them to start anew and move forward with their lives.
  4. Potential for Faster Sale: Short sales can often be expedited compared to traditional sales. As the homeowner is motivated to sell quickly, the price is typically set below market value to attract potential buyers. This can attract investors or individuals looking for a good deal, leading to a faster sale and reducing the time and stress associated with the selling process. Homeowners can avoid the lengthy foreclosure process, which can be time-consuming and emotionally draining.
  5. Relocation Assistance: For individuals facing military relocation, out-of-state promotions, or similar situations, a short sale can provide valuable assistance. Some relocation programs, particularly those associated with the military or certain employers, may offer incentives or benefits for individuals who choose a short sale over foreclosure. These programs acknowledge the unique challenges faced by individuals who need to move quickly and may provide financial assistance or additional support during the transition. This can help alleviate the financial burden associated with the move and make the relocation process smoother.
  6. Maintaining Dignity and Control: Opting for a short sale allows homeowners to take a proactive approach to their financial situation. It provides them with the opportunity to have more control over the selling process and negotiate with the lender to find a solution that benefits both parties. This can help homeowners maintain a sense of dignity and control over their financial future. By actively participating in the short sale process, homeowners can make informed decisions and work towards a resolution that best suits their needs.
  7. Legal and Emotional Relief: Foreclosure can be a stressful and emotionally challenging experience for homeowners. It often involves legal proceedings, public auctions, and the loss of one’s home. Choosing a short sale can provide legal and emotional relief by avoiding the foreclosure process. Homeowners can sell their property in a more controlled manner, with the assistance of real estate professionals who specialize in short sales. This can help minimize the emotional toll associated with foreclosure and provide a smoother transition to a new living situation.

It’s important to note that the specific benefits and outcomes of a short sale can vary depending on individual circumstances, lender policies, and local real estate market conditions.

Consulting with a real estate professional or financial advisor experienced in short sales can provide personalized guidance and help homeowners make informed decisions based on their unique situation. If you’re facing this situation, do not hesitate to contact us to reach out to our experienced Short Sale team! 

Maryland Tops List for US Foreclosure Rates January 2023

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As of January 2023, the foreclosure rate in Maryland is a topic of concern for many residents and policymakers. According to recent data, Maryland has one of the highest foreclosure rates in the country, with many families struggling to make their mortgage payments.

The foreclosure rate in Maryland has been steadily increasing over the past few years, with January 2023 marking a particularly difficult period for many homeowners. According to data from the Maryland Department of Housing and Community Development, there were over 6,000 foreclosure filings in the state during the month of January 2023 alone. This represents a significant increase compared to the same period in 2022, when there were just over 3,000 filings.

The rise in foreclosure rates can be attributed to a number of factors, including the ongoing economic impact of the COVID-19 pandemic, as well as an increase in the cost of living and housing prices in the state. Many families are struggling to make ends meet, with rising healthcare costs, job loss, and other financial burdens making it difficult to keep up with mortgage payments.

To address the foreclosure crisis in Maryland, policymakers and community organizations are working together to provide support to homeowners who are struggling to keep their homes. This includes offering financial assistance, counseling services, and legal representation to those who are facing foreclosure.

In addition, there are a number of programs and resources available to help homeowners navigate the foreclosure process and protect their homes. For example, the Maryland Department of Housing and Community Development offers a variety of programs to assist homeowners, including the Maryland Mortgage Program, which provides financial assistance to eligible borrowers to help them keep their homes.

It is important for homeowners in Maryland to be aware of their options and to seek help if they are struggling to make their mortgage payments. By working together and taking advantage of the resources available, we can help to reduce the foreclosure rate in Maryland and support families in keeping their homes.

The foreclosure rate in Maryland in January 2023 is a cause for concern, but it is not a hopeless situation. Community organizations and policymakers are working to support homeowners and reduce the number of foreclosure filings in the state. If you find that staying in your home simply isn’t feasible or desirable, rather than opt for foreclosure, contact us to discuss your options for selling right away.

Hardship: Pandemic and Tired Landlords

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The pandemic has created a new kind of tired landlord in 2021. Historically tired landlords
were property owners who had some good tenants yet had enough bad tenants which drove
them to sell their properties. This week the Center of Disease Controls announced yet another
extension to the eviction moratorium.

One in Four Tenants is Behind

It is estimated that of approximately 23 million rental units in the US, approximately 6 million renters are past due on their rent payments. With rents past due on nearly 1 in 4 units, landlords are unsure how they will recapture what is owed to them.

The truth is, it’s unlikely that they will.

Post-pandemic landlords are a whole new kind of tired after over 12 months of eviction halts.
This begs the question – has the pandemic caused a legitimate hardship for landlords? All signs
point to yes. We are currently seeing favorable results for homeowners who are underwater on
their mortgages including those who are not occupying the properties such as landlords.

Who Will Buy My Property?

Investors are also buying properties at record numbers. Investors are motivated enough that we
are seeing some buy properties with slow paying tenants. This could be a rarely seen perfect
timing for tired landlords begging for relief and investors looking to grow their portfolios.

Where do I go for Help?

If you’re a landlord who is ready to move on from your investment properties, you might need a short sale or a quick sale. Either way, reach out. You may now have a qualifying hardship. Talk with a team of agents experienced with helping sellers in distress.

Atlas Home Group has over a decade of experience in this area. Please call us at 443- 660-8080 or

visit our website to submit a consultation form on our website. We are here to answer your questions so you can choose whether selling now is right for you.

Short Sale vs. Deed in Lieu of Foreclosure

Posted by Atlas Home Group on

Not having enough money to pay your monthly mortgage is a common issue faced by millions of Americans. If you’re having trouble paying your monthly mortgage on time and your lender has denied a request for a loan modification plan or if the loan modification seems unmanageable, there are a few options to consider prior to foreclosure: a short sale (if the equity is underwater) or a deed in lieu of foreclosure.

If you can relate to this situation, you may not be not sure which path is right for you. In this article, we will go over the pros and cons of short sales and a deed in lieu of foreclosure. You can use these as an informal guide when considering your options. Before finalizing your choice, consult a real estate agent experienced with short sales and distressed properties. Agents experienced in these areas understand that these sales are about you, the homeowner, moreso than they are about the house itself.

What Is a Short Sale?

A short sale is when you attempt to sell your house for less than what you owe to the bank. For a short sale to take place, your lender must agree to allow it. There are requirements for the owner to complete a short sale since the lender wants to ensure everything is done to recoup any potential loss. Typically, homeowners are late on their payments before a lender to consider a short sale.

Upon the sale of your home, you may or may not owe money to the lender, depending on your situation. Short sales typically occur when property values have gone down significantly in the area, substantially affecting property value.

The Benefit of a Short Sale

The benefit of a short sale is that you are provided with an avenue to sell your house and “make good” with the bank. Essentially, the benefit of a short sale for the seller is that they can wash their hands and walk away from the situation. There is also an opportunity to request a waiver of the deficiency amount.

Does a Short Sale Affect My Credit?

Yes, a short sale will make a significant impact on your credit score. The higher your score before the short sale, the more significant the drop will be, up to -150 points. Each credit profile will be impacted differently.

What Is a Deed In Lieu of Foreclosure?

We know that foreclosure is not a fun option, so what exactly is a deed in lieu of foreclosure? Technically, a deed in lieu of a foreclosure is a document that transfers the title of the property from you to the bank in exchange for being relieved of your debt.

When struggling to make monthly payments, a homeowner may request a loan modification from their lender, which is a new agreement at lower monthly payment terms. However, if a loan modification is no longer an option, a deed in lieu of foreclosure might make sense.

The Benefit of a Deed in Lieu of a Foreclosure

The main benefit of a deed in lieu of foreclosure is how quickly a homeowner can wash their hands of a property they no longer want or can afford. If approved, the process is quick and efficient, and when it’s over and done.

Foreclosures can be incredibly time-consuming and costly by nature. The process is also public and out in the open. By contrast, a deed in lieu of foreclosure is a private transaction with your bank and you.

Reasons You Might Be Rejected for a Deed in Lieu

If your home has depreciated in value to the point that it is worth less than what you owe to the bank, your lender may only accept a deed in lieu of foreclosure if you can pay the difference.

If there are liens (HOA, condo, utilities, etc.) or tax judgment on the property, a lender will not agree to a deed in lieu. Also, there are some government-backed loans where the lender is only given a payout if the home goes to foreclosure. In this instance, your lender will not agree to a deed in lieu of foreclosure.

Reasons Why Your Lender May Be Interested

Rather than pay legal fees to undertake foreclosure proceedings, your lender might be happy to take control of your property and move on with business. In many cases, your lender will save both time and money by agreeing to a deed in lieu of foreclosure, rather than foreclosing on the property.

Does a Deed in Lieu of Foreclosure Affect My Credit?

A deed in lieu of foreclosure will have a negative affect on your credit. You may also owe taxes on your loan forgiveness if it totals more than $600.

What If I Have Multiple Mortgages?

It is still possible to partake in a short sale with multiple mortgages. But it is not an option for a deed in lieu of foreclosure.

Where do I look for help?

If you’re in a financial position that you aren’t sure how to manage, there are a couple of places to seek help. Ff you’re considering selling your home, talk with a team of agents experienced with helping sellers in distress. Atlas Home Group has over a decade of experience in this area. Please call us at 443- 660-8080 or visit our website to submit a consultation form on our website.

You can also call the Maryland HOPE hotline at 1-877-462-7555 to find a state-approved nonprofit agency that can provide individual guidance for homeowners facing foreclosure.

Real Estate Market Updates in the City of Baltimore and Baltimore County

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The real estate markets throughout Baltimore and Baltimore County are in a much different place today than they were in January 2020. For homeowners short on equity, struggling to make payments, and considering foreclosure, this market delivers a lot of hope of a favorable outcome.

Both the City of Baltimore and Baltimore County experienced rapidly increasing sales prices throughout 2020. Below, we’ll look at the latest trends and what to expect from the Baltimore real estate market in 2021.

What Is Driving the Baltimore Real Estate Market?

Similar to the Metro D.C. area, Baltimore City and Baltimore County are suffering from severe decreases in available inventory. With the supply of homes so constrained, prices were bound to rise. But in addition, this recent decline of available homes has coincided with an increase in demand, a recipe for skyrocketing listing prices.

Here’s a quick look at December’s available inventory compared to the historical average:

Baltimore City Active Listings

December 2020: 1,447

5-year December Avg: 2,449

Baltimore County Active Listings

December 2020: 763

5-year December Avg: 1,767

Baltimore City Market Snapshot

The real estate market in Baltimore was friendly to sellers, as median sales prices hovered just under $200,000 for most of the year. Prices reached an average of $175,000 as soon as the spring selling season began, and the market retained those gains throughout the year.

Sales momentum was peaking as the year came to an end, with closed listings blowing away their historical averages:

Closed sales at 934 were up 22.7% from November and up 27.2% from December 2019.

The December median sales price of $197,000 is up an incredible 35.6% from a year ago.

The average number of days on the market in December was 39, down from the year-to-date average of 50 days.

Overall, the median sales price in 2020 was $180,000 in Baltimore City, up 12.5% from 2019 at $160,000.

On average, listings in the City of Baltimore are selling for 96.9% of the original list price. This number is considerably higher than the 5-year December average of 94% and up slightly from the 2020 average (96.1%).

Baltimore County Snapshot

The real estate market in Montgomery County reached new heights in 2020, and the momentum is likely to carry over into 2021. Despite a drop in available inventory, closed sales in 2020 were up 7.2% over 2019, and closings in December were well-above historical averages.

With 1,084 closed sales, December 2020 was up 24.7% over December 2019.

The December median sales price of $270,000 is up 11.1% over December 2019.

The December average number of days on the market was 25, which is 21 days below the 5-year December average of 46, and a week less than the YTD average of 32 days.

Compared to the original listing price in Baltimore County, the average sales price was 99.3% this past December. This number was well-above the 5-year December average of 96.1% and was also trending higher than the 2020 YTD number of 98.5%.

Median sales prices peaked in August at around $285,000 but have adjusted down to $270,000 more recently. Moving forward, we are likely to see months that reach a median sales price of $300,000 as the 2021 selling season heats up.

If you’re on the fence about selling, now is the time to get off

All markets can be fickle, and real estate is no different. A seller’s market today can become a buyer’s market in a month. As far as we can tell right now, though, this is prime time to sell the home you’re no longer able to afford or to potentially minimize shortfall in equity if you’re living anywhere in the city of Baltimore or Baltimore County. If you’re thinking about selling your home, please do not hesitate to reach out for a consultation.  

Moratorium on Foreclosures Ends Soon, the Time to Seek Relief is Now

Posted by Atlas Home Group on

Homeowners have endured a whirlwind of emotions over the past 12 months. From the lows felt when the virus first took hold to the temporary relief when the CARES Act was passed, one constant through it all has been a sense of uncertainty. Luckily, homeowners struggling to pay their mortgage each month have a source of support—but as of January 31, 2021, that assistance may no longer be an option.

What Happens on January 31?

On January 31, 2021, mortgage lenders can begin to initiate foreclosure proceedings on defaulted loans. Currently, there is a moratorium on single-family foreclosures, which was extended on 12/2/2020. So, no matter how many payments you may have missed recently, your lender was unable to initiate a foreclosure. That all changes on January 31.

An important exception to note is that if you had a foreclosure in process on April 3, 2020, your foreclosure might proceed at any time—so do not wait to take action.

What Does This Mean for Me?

You must act quickly to avoid a foreclosure if you have missed multiple payments. If your lender is unwilling to extend the forbearance, arrangements need to be made to bring payments current quickly.

What Is a Mortgage Forbearance Plan?

A forbearance agreement is between a borrower and a loan servicer that suspends or reduces mortgage payments for a period of time. One of the critical benefits of forbearance for a homeowner is that the loan servicer cannot initiate a foreclosure during this time.

While homeowners receive relief from their monthly mortgage payment, the relief is only temporary, and the payments must still be paid in full. Speak with your mortgage provider for the specific details of your forbearance agreement.

Key points to remember with a forbearance:

  • The total amount you owe does not decrease
  • Interest continues to accrue on skipped payments
  • The forbearance period is temporary

Differences in Forbearance Rules

The terms of your forbearance agreement can vary depending on the type of mortgage you have and who your lender is. Some of the variables can include:

  • How long the forbearance period lasts
  • What, if anything, is due during the forbearance period
  • How the skipped or lowered payments will be repaid once the forbearance period ends

Once the forbearance period ends, the lender is expecting payment to begin as agreed. If you are still facing financial hardship when the forbearance period ends, your lender may offer you a modification agreement.  If a modification is declined, the lender is then able to begin foreclosure proceedings.  An avenue to avoid a foreclosure is to consider selling your home. 

Short Sale or Quick sale

If selling your home becomes the best option to avoid foreclosure and the lingering impacts, a short sale (home is valued at less than is owed) or a quick sale (there is equity in the home however it needs to be sold quickly) are options to consider. 

In both cases, these sales require special expertise to be handled properly and quickly. Contact us for a confidential conversation to learn more about available options before it is too late.  We have specialized in sales like these since 2008. 

Low Inventory and Increased Demand Lead to Hot Seller’s Market in D.C. Metro Area

Posted by Atlas Home Group on

On the outside looking in, you may not have thought that 2020 would be a strong year for the real estate market. But despite social distancing and stay at home orders as a global pandemic presided over the year, the real estate market continued to produce ever-increasing sales prices.

As we enter 2021, both Prince Georges County and Montgomery County continue to experience red-hot sellers’ markets.  This creates a big opportunity for underwater sellers who need to choose a short sale to escape the burden of their current mortgage payment, maintenance issues or delinquency.

What Is Driving the D.C. Metro Real Estate Market?

There are various reasons for the sizzling markets in Prince Georges County and Montgomery County. But primarily, the market is being driven by two factors: low inventory and low interest rates.

Buyer demand increased throughout 2020 due to record-low mortgage rates, which have dipped below 3% at times. When an increase in demand combines with minuscule inventory levels, the result is a market that heavily favors sellers. No statistic bears that out more than “Sales Price to Original List Price,” which in December was 101.2% in Prince Georges County and was 100.2% in Montgomery County.

When homes are selling for above original listing price, that is a market you want to enter as soon as possible as a seller.

To illustrate how little inventory is available, we can compare the active listings in December 2020 to the 5-year December average:

Prince Georges County Active Listings

December 2020: 663

5-year December Avg: 1,475

Montgomery County Active Listings

December 2020: 906

5-year December Avg: 1,463

Prince Georges County Market Snapshot

The real estate market in Prince Georges County continues to reach new heights, as closed sales finished 23.1% higher in December than they were a year ago.

The median sales price of $355,000 is up 12.7% from a year ago.

The average number of days on market was 15, down from the year-to-date average of 25.

Overall, the median sales price in 2020 was $345,00, up 11.3% from 2019 ($310,000). Continued momentum has carried over in 2021, and the selling market will only grow hotter as the spring season approaches. With an average market time of just 15 days, make sure your bags are packed when the listing goes live.

Montgomery County Market Snapshot

The market continues to stay hot in Montgomery County, where closed sales were up 26.4% compared to December 2019 and were up 9% over November’s numbers.

The median sales price of $480,000 is up 6.7% from a year ago.

The average number of days on market was 22, down from the year-to-date average of 27 days.

Compared to the 5-year December average of 40 days on market (DOM), the December 2020 DOM nearly cut that in half at 22. While the Montgomery County market does not seem quite as on-fire as Prince Georges, that is most likely due to the higher price point of Montgomery County.

Selling your Home Has Never Been More Lucrative in the D.C. Metro Area

You might be thinking, “sell my home during a pandemic, are you crazy?” Besides being a hot market for sellers, it has also never been simpler to sell your home. With innovations such as virtual walkthroughs and digital signatures, selling your home is much easier than you may be imagining.

With no catalyst in sight for a rapid increase of inventory, prices should continue to rise at a higher-than-average rate as the market matures in 2021.

The competition among buyers is already fierce and will continue to intensify, especially at lower price points that attract more offers. As a seller, this is music to your ears. If you’re considering selling an underwater property or need to sell a home with some equity quickly, it’s time to reach out to Atlas Home Group to understand the options.