Maryland Housing Market Trends
Here are the Maryland housing market trends as seen in July 2022, according to the yearly report from Maryland Realtors. Statewide, sales were 7,376, down 27% from the previous year. It shrunk the monthly supply of inventory to 1.3 months, which means it will take less than six weeks for the current inventory of homes on the market to sell given the current sales pace. Therefore, Maryland is expected to be a tight housing market in 2022, favoring home sellers.
Housing inventory remains low compared to the demand from homebuyers. As a result, the median sales price reached $399,000 in July, which is 5.4% higher than last July's median price of $378,500. The median price is the middle value of the prices of all homes sold in the period in Maryland — the price at which half the sold homes are above and half are below in selling price.
Homes spent a median time of 8 days on the market, which was 1 day more than the previous year. The median represents the middle, with half of the homes spending more time and half spending less. Among Maryland's 24 jurisdictions, Montgomery County reported the most sales in July, as 1,096 units were sold. Somerset County had the fewest, with 26 closed sales in July.
Sales declined in all the counties of the Maryland housing market. Calvert County reported the highest drop in sales (-37.3%). Kent County saw the highest median price growth of +37.8% from the previous year (from $273,500 to $377,000). Homes sold fastest in Harford County with the median days on market being the lowest in the state (5 days).
Montgomery County was the most expensive real estate market in Maryland with a median sales price of $570,000 in July 2022. Allegany County was the least expensive real estate market in Maryland with a median sales price of $134,900.
Maryland Housing Market Forecast 2022 & 2023
The Maryland housing market continues to be robust in 2022 by a combination of high demand, limited supply, and steadily increasing house selling prices. In July 2022, the typical home in the state of Maryland was valued at $406,436. That’s a 9.8% increase year-over-year (YoY), and Zillow predicts the market will continue to rise over the next twelve months. The second quarter of 2023 will see higher home prices in Maryland than the second quarter of the current year.
We continue to hear rumors of a market crash, but local data does not corroborate this at this time. Even if minor, the monthly figures indicate that the market has begun to cool. In July 2022, home prices in Maryland rose 5.4% annually. The number of homes sold decreased by 27%.
Bottom line: We're not seeing any major home price decline or crash in the Maryland housing market just yet. The present supply of homes in Maryland still favors sellers. In July 2022, the number of properties for sale in the state decreased year-over-year, from 13,307 units to 10,331 units. The months of supply in Maryland is 1.3 months, which means it is a seller's market.
The economy of Maryland is strong. In 2021, Maryland's Gross Domestic Product (GDP) was $438.2 billion, up from $410.7 billion in 2020. The largest sector in 2021 was the government, followed by finance, insurance, real estate, and then professional and business services. The population is also growing. It is the 22nd fast-growing state in the nation relative to its population. According to the 2020 census, Maryland's population is 6,177,224, ranked 18th in the nation. Maryland's population continues to grow by at least 7% each decade.
Compared with July 2021, Maryland jobs are up by 78,600, an over-the-year gain of 3.0%. The Professional and Business Services sector experienced the most private sector growth with an increase of 4,700 jobs, all within the Administrative and Support Services Professional, Scientific, and Technical Services subsectors. Last year the housing market performed well with 106,804 units being sold and the median price was $361,000. Here's a review of the last year's housing statistics.
Maryland Housing Market Report For Last Year (Annual)
- 106,804 units were sold in 2021, up 10.5% year-0ver-year.
- The average sales price was $426,388, up +11.2% year-0ver-year.
- The median price was $361,000, up +9.4% year-0ver-year.
- Total pending sales were 106,102 whereas in 2020 there were 99,183 pending contracts.
- The ACTIVE INVENTORY was 6,447 units whereas in 2020 it was 10,385 units for sale.
- MONTHS OF INVENTORY was 0.7 in 2021 whereas in 2020 it was 1.3.
- MEDIAN DAYS ON MARKET was 7 whereas in 2020 it was 11.
- NEW LISTINGS were 122,287 whereas in 2020 there were 112,359 new listings.
Sources:
- http://www.mdrealtor.org/Resources/Publications/Monthly-Housing-Statistics
- https://www.zillow.com/md/home-values/
- https://msa.maryland.gov/msa/mdmanual/01glance/html/pop.html
- https://msa.maryland.gov/msa/mdmanual/01glance/economy/html/economy.html
