January 2025 Clover Hill Market Report

The report below summarizes Clover Hill 2024 sales and provides summary statistics by neighborhood for the three year period 2022-2024. During that timeframe, prices have risen as follows:

• Clover Hill 1: + $99,487 (+20%)
• Clover Hill 2W: + $121,072 (+22.8%)
• Clover Hill 2E: + $20,725 (+4.5%)
• Clover Hill 3: + $99,654 (+16.8%)
• Overall CH: + $113,555 (+21.5%)

For additional perspective, here are the results from the 5-year period between 2020-2024:

• Clover Hill 1: + $205,246 (+53%)
• Clover Hill 2W: + $257,446 (+65%)
• Clover Hill 2E: + $197,450 (+70%)
• Clover Hill 3: + $240,101 (+53%)
• Overall CH: + $388,902 (+65%)

It is shocking to understand that since the beginning of 2020, Clover Hill prices have risen 65%. That price growth has several explanations, including:

• Insufficient housing supply (builders hadn't kept up with population growth post 2008 great recession).
• Historically low interest rates due to Federal Reserve Covid-19 policy.
• Huge influx of Covid-19 stimulus money flowing into the economy.
• Widespread adoption of remote work opportunities, which drove buyers to outlying suburbs.
• Continued popularity of Frederick County (fastest growing county in the state).

At some point all financial markets correct, including real estate. Knowing when that will happen to our local market is impossible to predict, but the second half of 2024 felt like the second half of 2006 when the sizzing hot 2002-2005 market began to change. Last fall felt more similar to a "normal" market than a sizzling hot seller's market. Days on market increased, buyers were employing home inspectors, and several transactions in the community went under contract, then came back on the market. A few homes were withrawn completely, and will likely reappear later this spring. Normal markets are more fair to both buyers and sellers, so I believe such a change will be welcomed by agents and their buyer clients.

We will learn a lot more about what is really going on in this market over the course of the next 6 months. As always, I will keep you informed. Call me to learn more! Greg