Today MSNBC reports “Home prices fall by sharpest annual rate ever”.   The report cites a 16.6% average price drop in home values nationwide as revealed by the Case-Shiller Home Price Index.   The numbers reflect an average home price of $164,570 in August 2008 versus an average price nationwide of $197,370 a year prior.

Bad news for would-be home sellers, good news for home buyers, but what do our local numbers say?

For the same period, August 2007 versus August 2008, average home values in Howard County fell 7.05% according to the Metropolitan Regional Information Service (“MRIS”). Not great news for local home sellers, but less than half the average drop in home prices that the nation experienced as a whole. (Click here to request a monthly update of Howard County home sales – including average prices # of homes sold, # of homes unsold each month).

Why is Howard County holding its own in the current housing market?  Partly it is due to our strong local economy, including the coming B.R.A.C. (Base Reallignment Commission) job transfers to Ft. Meade.  Probably also due in part to the very strong Howard County public school system.   I believe it is also a reflection of the fact that “what goes up (less) must also come down (less).”  During the boom of 2002-2005 other area county’s prices went up higher and faster than Howard County’s, so it is only natural to expect our prices to “deflate” at a calmer pace too.

One other factor is that home foreclosures in Howard County are at a lower rate than other counties, meaning foreclosures and short sales are having less of an influence on prices here.  However, home foreclosures and short sales can still be found in Howard County HERE.

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