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Total home sales (By Chad Trovinger/Graphic Artist / February 11, 2013) |
Washington County was king of the region’s real estate market before the recession, posting more in total sales than any Tri-State-area county west of Frederick.
But in the past two years, Washington County has lost its crown, with sales growing more slowly than in Franklin County, Pa., which has taken the lead, according to data from Metropolitan Regional Information Systems Inc.
In 2012, Franklin widened its lead and Berkeley County, W.Va., muscled into second place, MRIS data shows.
Now, for the first time in at least 10 years, Washington County’s housing market is only the third largest in the region.
The question is: Why?
Top leaders of the region’s two Realty associations whose members handle virtually all of the thousands of property sales in the area every year cite three main reasons — price, job growth and tax benefits for retirees.
“I think a large part of (what’s happening) is jobs,” said Betty Hays, president of Pen-Mar Regional Association of Realtors.
“I love Hagerstown. I love Washington County. I think it has a lot to offer,” Hays said.
But she noted that more jobs have been created in the Chambersburg area of Franklin County and the Martinsburg area of Berkeley County in the past few years than in Washington County.
“Macy’s went in over there in Martinsburg, and there’s new development going up around Chambersburg, but here, all we seem to get is big warehouse facilities,” Hays said. “People generally want to work close to where they live now. They don’t want to spend money on gas.”
The MRIS data is worth watching, but by itself, it doesn’t say anything conclusive about Washington County’s economy, said Brien J. Poffenberger, president of the Hagerstown-Washington County Chamber of Commerce.
“There are a number of ways to measure growth, including household income, property turnover, building permits,” he said.
Dwindling sales
Ten years ago, in 2003, property sales in Washington County totaled $291 million. That was almost a third of the $920 million in deals posted that year in the six-county Tri-State area west of Frederick.
Washington County was the region’s sales leader from at least 2003 through 2006, during the economic boom fueled by subprime mortgage lending that sent home sales and prices soaring.
In 2006, the last full year before the nation sunk into recession, Washington County’s sales totaled $415 million of the region’s $1.4 billion housing market. By comparison, Franklin County’s sales that year reached $365 million and Berkeley County’s topped out at $339 million.
In 2007 and 2008, as the new mortgages adjusted to ever-higher interest rates, homeowners began struggling to pay them, foreclosures became more common, credit tightened, demand for housing fell, unemployment increased and the nation soon was deep in economic recession.
Although Franklin County’s sales dropped to $320 million in 2007 and to $239 million in 2008, it became the region’s market leader because Washington County’s sales fell even more steeply. Washington County’s market reached just $291 million in 2007, followed by $226 million in 2008.
Berkeley County’s market was the third largest, with sales totaling $270 million in 2007 and $224 million in 2008.
But in the past two years, Washington County has lost its crown, with sales growing more slowly than in Franklin County, Pa., which has taken the lead, according to data from Metropolitan Regional Information Systems Inc.
In 2012, Franklin widened its lead and Berkeley County, W.Va., muscled into second place, MRIS data shows.
Now, for the first time in at least 10 years, Washington County’s housing market is only the third largest in the region.
The question is: Why?
Top leaders of the region’s two Realty associations whose members handle virtually all of the thousands of property sales in the area every year cite three main reasons — price, job growth and tax benefits for retirees.
“I think a large part of (what’s happening) is jobs,” said Betty Hays, president of Pen-Mar Regional Association of Realtors.
“I love Hagerstown. I love Washington County. I think it has a lot to offer,” Hays said.
But she noted that more jobs have been created in the Chambersburg area of Franklin County and the Martinsburg area of Berkeley County in the past few years than in Washington County.
“Macy’s went in over there in Martinsburg, and there’s new development going up around Chambersburg, but here, all we seem to get is big warehouse facilities,” Hays said. “People generally want to work close to where they live now. They don’t want to spend money on gas.”
The MRIS data is worth watching, but by itself, it doesn’t say anything conclusive about Washington County’s economy, said Brien J. Poffenberger, president of the Hagerstown-Washington County Chamber of Commerce.
“There are a number of ways to measure growth, including household income, property turnover, building permits,” he said.
Dwindling sales
Ten years ago, in 2003, property sales in Washington County totaled $291 million. That was almost a third of the $920 million in deals posted that year in the six-county Tri-State area west of Frederick.
Washington County was the region’s sales leader from at least 2003 through 2006, during the economic boom fueled by subprime mortgage lending that sent home sales and prices soaring.
In 2006, the last full year before the nation sunk into recession, Washington County’s sales totaled $415 million of the region’s $1.4 billion housing market. By comparison, Franklin County’s sales that year reached $365 million and Berkeley County’s topped out at $339 million.
In 2007 and 2008, as the new mortgages adjusted to ever-higher interest rates, homeowners began struggling to pay them, foreclosures became more common, credit tightened, demand for housing fell, unemployment increased and the nation soon was deep in economic recession.
Although Franklin County’s sales dropped to $320 million in 2007 and to $239 million in 2008, it became the region’s market leader because Washington County’s sales fell even more steeply. Washington County’s market reached just $291 million in 2007, followed by $226 million in 2008.
Berkeley County’s market was the third largest, with sales totaling $270 million in 2007 and $224 million in 2008.