Home sales rose and foreclosures fell in May in Frederick County, leaving real estate professionals cautiously optimistic about the outlook for the industry.

There were 312 homes sold in Frederick County in May, according to RealEstate Business Intelligence, up from 260 in April. RealtyTrac, which monitors distressed properties from initial delinquent payments to repossessed homes back on the market, reported 111 foreclosures in the county last month, down from 117 in April.

“There continues to be concerns about the most recent activity,” said Hugh Gordon, loan officer with Fitzgerald Financial. “Most people I have spoken to of late are forecasting July will yield weak numbers if activity doesn’t pick up soon.”

Gordon said there is uncertainty about the economy, and tighter lending regulations are forcing some potential buyers out of the market. Lending laws require down payments from borrowers, rather than being able to borrow the total mortgage as in past years.

Gordon said one point he found is that buyers are preferring face-to-face personal relationships and interactions with real estate professionals.

“It is hard to believe in 2014 that that statement would be true,” Gordon said, noting the increased use of Internet-generated business.

Buzz Mackintosh, who operates Mackintosh Inc. Realtors with his brothers, said forecasters are predicting home prices will  increase about 4 percent over the next 12 months.

While the spring market has picked up, Mackintosh echoed Gordon’s statement on tighter mortgage lending. The increase in home prices has also pushed some potential buyers out of the market.

Michael Kurtianyk, president of the Frederick County Association of Realtors, said the spring market is usually busy as buyers want to settle before the school year begins in August.

“As the winter broke, Frederick County saw a lot of activity on home sales,” Kurtianyk said.

Price is always a factor, said Wayne Six, an appraiser and owner of Six and Associates.

“You can talk to four different sellers who have their homes listed and get four completely different answers when you ask how the market is doing,” Six said.

Six said lower-priced homes are picking up in appreciation, but higher-priced ones are remaining flat. Houses less than $250,000 are selling quickly; those between $250,000 and $400,000 relatively briskly, and it’s much slower for the $400,000 to $600,000 range, Six said.

“And houses over $600,000 in price are struggling as there is a lot of inventory in this price range and substantially fewer buyers,” Six said.

The national outlook

New-home builders were less optimistic in May. The National Association of Home Builders/Wells Fargo Housing Market Index fell one point to 45 in May from April. Any level below 50 is considered negative on the index, the result of a survey of homebuilders nationwide.

Also on the NAHB website, the association’s chief economist, David Crowe, said consumers are waiting to feel more secure about their financial situation. 

Construction employment is rebounding, according to the Associated General Contractors of America’s website. The construction industry unemployment rate was 8.6 in May, the lowest May level in six years. The AGCA includes all types of construction, not just residential.

RealtyTrac reported that Maryland ranks second in distressed homes in the nation when looking at 1 on every 621 homes in the state is in some phase of foreclosure, from an initial delinquent payment to homes back on the market after repossession.

By the numbers

Home sales

Frederick County: (2013) May, 280; June, 343; July, 340; Aug., 312; Sept., 226; Oct., 240; Nov., 216; Dec., 244; (2014) Jan., 159; Feb., 168; March, 222; April, 260; May, 213.

Average price for home sold in Frederick County in May: $308,562.

Comparisons of home sales in May 2014: Carroll County, 157; Montgomery County, 1,103; Washington County, 148; Loudoun County, Virginia, 523; Jefferson County, West Virginia, 62; Franklin County, Pennsylvania, 143.

Source: RealEstate Business Intelligence

Foreclosures

Frederick County: (2013) May, 130; June, 53; July, 143; Aug., 112; Sept., 136; Oct., 143; Nov., 186, Dec., 211; (2014) Jan., 106; Feb., 116; March, 132; April, 117; May, 111.

Comparisons on foreclosures in May: Carroll County, 83; Montgomery County, 200; Washington County, 138; Maryland, 3,829; U.S., 109,824.

Source: RealtyTrac