Maryland Housing Market Statistics. In this blog post, we will analyze the latest housing statistics for Maryland, as reported by Maryland Realtors. These statistics provide valuable insights into the current state of the housing market in the state, including information on units sold, average sales prices, median sales prices, units pending under contract, active inventory, months of inventory, median days on the market, and new listings.
Is the Maryland Housing Market Slowing Down?
The Maryland housing market presents a mixed picture in October 2023. While there is a noticeable decrease in the number of units sold, the pricing trends and inventory dynamics suggest a market that remains robust. The increase in months of inventory may indicate a shift towards a more balanced market, providing both challenges and opportunities for buyers and sellers alike.
Montgomery County is the most expensive real estate market in Maryland with a median sales price of $570,00. Allegany County is the least expensive real estate market in Maryland with a median sales price of $139,900.
Looking at the number of units sold, there was a significant decrease of -14.5% compared to the same period in 2022. This decline sparks curiosity about the factors influencing the market and the potential implications for homeowners and prospective buyers.
The average sales price in October 2023 reached $465,816, marking a 4.7% increase from the previous year. Similarly, the median sales price saw a rise of 5.2%, reaching $399,900. These figures indicate a positive trend in terms of pricing, contrasting with the decrease in the number of units sold.
Examining the housing inventory is crucial for understanding market dynamics. The number of units pending (under contract) stands at 5,629, a slight increase from the previous year. However, the active inventory has decreased from 12,585 in 2022 to 10,023 in 2023, suggesting a potential shift in supply and demand.
Months of Inventory and Days on Market
The months of inventory, a key indicator of market balance, have increased from 1.6 in 2022 to 1.8 in 2023. This uptick could indicate a slightly more buyer-friendly market. Meanwhile, the median days on market have remained relatively stable, standing at 10 in 2023.
One of the critical aspects of market vitality is the influx of new listings. In October 2023, there were 6,397 new listings, showcasing the ongoing activity in the real estate sector.
Is It a Buyer's or Seller's Housing Market?
Analyzing the current state of the Maryland housing market, it appears to be in a state of transition. The decrease in the number of units sold, coupled with an increase in the months of inventory, suggests a shift towards a more balanced market. This could potentially offer advantages to both buyers and sellers.
The increase in months of inventory from 1.6 in 2022 to 1.8 in 2023 indicates a slightly more favorable environment for buyers. A higher months-of-inventory figure often suggests more choices for buyers, potentially leading to negotiations favoring them. However, it's important to note that the median days on market remain relatively low at 10, indicating continued demand and competitiveness.
On the other hand, the positive trends in average and median sales prices suggest that sellers are still benefiting from a market that appreciates property values. The active inventory decrease from 12,585 in 2022 to 10,023 in 2023 may also create a sense of urgency among buyers, potentially benefiting sellers.
Ultimately, the current housing market in Maryland seems to be transitioning to a more balanced state, providing opportunities for both buyers and sellers, although each group will need to navigate specific challenges.
Will the Maryland Housing Market Crash?
The question of whether the Maryland housing market will crash is a complex one, dependent on numerous factors. As of October 2023, the market does not exhibit immediate signs of a crash. Instead, it reflects a nuanced scenario with a decrease in units sold and a simultaneous increase in pricing.
Several factors contribute to market stability, including a relatively low median days on market and continued demand as reflected in the number of new listings. However, the increase in months of inventory from 1.6 in 2022 to 1.8 in 2023 suggests a slight shift that could impact market dynamics.
It's crucial to monitor economic indicators, interest rates, and local developments to make more accurate predictions about the future of the housing market. While the current data doesn't indicate an imminent crash, real estate markets can be influenced by external factors that may require continuous scrutiny.
Maryland Housing Market Forecast 2023-2024
The Maryland housing market is undergoing dynamic changes, with data from various sources providing insights into the current state and future predictions for the market. Among the key players in tracking these trends is Zillow, offering valuable information for homeowners, buyers, and investors. Here's a glimpse of the latest housing market forecast for Maryland:
Key Maryland Housing Market Stats
Before we dive into the forecast, let's look at some key statistics for the Maryland housing market as of September 30, 2023:
- Average Home Value: The average home value in Maryland is $405,031, reflecting a 2.8% increase over the past year.
- Median Days to Pending: Homes in Maryland typically go pending in about 7 days, indicating a brisk and competitive market.
- Median Sale to List Ratio (as of August 31, 2023): This ratio stands at 1.002, which suggests that, on average, homes are selling very close to their list prices.
- Percent of Sales Over List Price (as of August 31, 2023): Approximately 52.7% of home sales in Maryland are going over the list price, highlighting strong demand.
- Percent of Sales Under List Price (as of August 31, 2023): About 25.9% of sales are happening under the list price, indicating some negotiation room for buyers.
Housing Market Forecast for MSAs
Zillow provides market forecasts not just for the entire state but also for different metropolitan statistical areas (MSAs) within Maryland. Here are the forecasts for several MSAs:
Baltimore, MD (MSA) – Zillow predicts a slight decrease in home values, with a forecasted change of -0.9% by September 30, 2024.
Hagerstown, MD (MSA) – The forecast for Hagerstown suggests a positive trend with a projected increase of 1.9% by September 30, 2024.
California, MD (MSA) – Zillow anticipates a minor decline in home values, with a forecasted change of -0.7% by September 30, 2024.
Cumberland, MD (MSA) – The forecast for Cumberland shows a modest increase, with a projected change of 0.4% by September 30, 2024.
Easton, MD (MSA) – Zillow predicts a healthy growth in home values, with a forecasted increase of 1.2% by September 30, 2024.
Cambridge, MD (MSA) – The forecast for Cambridge also indicates growth, with a projected change of 1.5% by September 30, 2024.
Will Home Prices Rise or Drop in Maryland in 2024?
Based on Zillow's forecasts, it's clear that the Maryland housing market is experiencing varied trends. While some MSAs are expected to see declines in home values, others are poised for growth. The statewide average shows a moderate increase in home values over the past year.
Whether prices will rise or drop largely depends on the specific area within Maryland. Potential buyers and sellers should keep a close watch on these forecasts, and consulting with a local real estate expert is advisable for making informed decisions. Factors like location, local economic conditions, and housing demand play pivotal roles in the real estate market's trajectory.
In conclusion, while Maryland's housing market is dynamic, the overall trend suggests a mix of price changes, making it essential for individuals to stay informed and work with professionals who can provide guidance tailored to their specific circumstances.