Chai Shai Chaishai with me
ArticlesBusinessWorld

Maryland Housing Market 2023: Trends & House Prices

Maryland’s Housing Market Continues to Surge Amid Inventory Shortage

Despite a slowing market this year, Maryland’s housing prices continue to rise, with an average quarterly increase of approximately 2.5%, according to Joe Shaver, a realtor with Re/Max Realty Center in Olney, Maryland. This growth comes in the wake of a nearly 5% increase in home prices before the pandemic.

One of the contributing factors to the sustained demand and rising prices in Maryland’s housing market is the steady influx of government workers and military personnel, thanks to the region’s proximity to Washington D.C. Major military installations and the regular turnover in government offices due to national elections make Maryland an attractive destination for homebuyers.

A Maryland Housing Needs Assessment & 10-Year Strategic Plan by the National Center for Smart Growth predicts that the state will add approximately 178,000 new households by 2030, particularly in the greater Baltimore area and Washington D.C. suburbs. The plan emphasizes the need for affordable housing, especially for low-income households.

Despite the surging demand, the number of monthly listings in Maryland has significantly decreased in 2023, falling from 9,900 at the same time last year to 6,491. The state’s housing inventory has also declined, with the inventory dropping from 1.5 months in 2022 to 1.4 months in July 2023.

Homes in Maryland are selling rapidly, spending only about seven days on the market before going pending. Some reports suggest even faster sales, with homes listed for a median of just six days before entering pending status.

The shortage of available homes for sale is a key driver behind the rising property prices in Maryland. The average sales price in the state has increased by 3.2% in 2023, reaching $486,385, according to Maryland Realtors.

In Baltimore, the median price in July 2023 exceeded the city’s five-year average significantly, standing at $290,000 compared to the five-year average of $266,980. Furthermore, a substantial portion of homes statewide is selling above their list prices, with 53.2% of sales in June 2023 exceeding the list price, according to Zillow.

Several counties in Maryland have experienced significant year-over-year growth in average prices, with Dorchester County leading the way with a 27.6% increase. Worcester County and Allegany County also saw substantial increases of 8.7% and 8.6%, respectively. However, Kent County experienced a 27.1% decrease in average prices year-over-year.

Montgomery County boasts the highest average sales price statewide at $750,482, while Allegany County offers more affordable options with an average price of $163,256.

Redfin’s data analysis identified Elkridge, Montgomery Village, Cambridge, Ilchester, and Annapolis as the cities with the fastest-growing prices in Maryland. Perry Hall, Bel Air, and Bel Air North were identified as the areas where buyers are most likely to pay above the list price.

Looking ahead, experts do not anticipate significant changes in Maryland’s housing market. Interest rates are expected to remain relatively stable, which may attract new buyers, but the primary challenge remains the shortage of available homes. Maryland’s housing construction has not kept pace with its population growth, with fewer than 15,000 housing units being built annually since 2008, while the state’s population has grown by 40,000 residents per year.

While sellers may benefit from the current market conditions, potential buyers should be aware that waiting for the market to cool down and interest rates to drop may not necessarily result in cost savings, as home values continue to rise. Mortgage lenders in Maryland have introduced various programs to alleviate the impact of high interest rates, such as buydown programs and free refinancing options if rates decrease within a specified period. Additionally, the Maryland Mortgage Program offers fixed-rate mortgages, down payment assistance, and partner matches to make homeownership more accessible.

In conclusion, Maryland’s housing market remains robust, with rising prices driven by strong demand and limited inventory. Buyers and sellers should carefully consider their options and explore available assistance programs in the state’s dynamic housing market.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button