HUGHESVILLE, Md. – April 18, 2022 – As the weather starts to warm up, so does the real estate market typically. But from the beginning of 2021, the housing market in southern Maryland has shown some relatively new patterns.
The most recent data shows the ongoing inventory problems faced nationwide are seen on the micro-level across the region. New listings in March hit a five-year low in year-over-year data, down roughly 18.65% from the same time last year.
Additionally, active listings are not as abundant as last year, as are pending sales. Southern Maryland has seen a 7.29% drop in active listings from the same time last year and a 25.23% decrease in pending sales during the same time.
With such low inventory, there is less potential for sales to take place.
“Signs are showing that the low inventory issue is going to hang around for a while,” Southern Maryland Association of REALTORS® 2021-22 President Gregg G. Kantak said. “So, with more buyers than sellers, buyers continue to be up against some heavy competition, higher prices, and maybe even bidding wars. Buyers will have to work harder or wait a little longer to find their dream home.”
Although the total sold units and dollar volume sold decreased by 14.56% and 7.99%, respectively, home prices thrived. The median sold price across southern Maryland rose 11.43% from the same time last year.
But how long those prices continue to see drastic increases could slow as inflation grows.
While inflation drives many consumer decisions, some forget the impact it has on the real estate market. Economists from the National Association of REALTORS® are forecasting that due to soaring inflation, interest rates will rise, which will likely reduce the number of home sales while also slowing home price appreciation.
The market has already begun to see some likely impacts of these adjustments. When coupling rising interest rates with a lack of inventory, many buyers in southern Maryland cannot find the right home for them.
Although most homes on the market sold in 10 days or less, the average days on the market in southern Maryland during March was 18 days, three days less than it was in 2021.
“Mortgage rates have already started increasing in 2022. Like everything else, mortgage rates are influenced by the economy and inflation,” Kantak explained. “And the Federal Reserve has announced it plans to raise interest rates this year as part of its efforts to slow inflation. While that move alone will not directly impact mortgage rates, the overall change in the Federal Reserve’s policies will likely lead to increased interest rates for all borrowers. That is unfortunate because new buyers will pay more for their house over time.”
Housing market statistics from each county in the Southern Maryland region can be found below:
- Units Sold: 130 (-1.98%)
- Total Sales Volume: $ 55,972,850 (-16.25%)
- Average Days On The Market: 17 (-7 Days from March 2021)
- Median Sold Price: $386,000 (-3.50%)
- Units Sold: 239 (-14.03%)
- Total Sales Volume: $ 103,900,682 (-0.73%)
- Average Days On The Market: 19 (+2 Days from March 2021)
- Median Sold Price: $417,000 (+18.21%)
St. Mary’s County
- Units Sold: 165 (-13.61%)
- Total Sales Volume: $ 60,652,549 (-11.05%)
- Average Days On The Market: 18 (-6 Days from March 2021)
- Median Sold Price: $350,050 (+7.71%)
Statistics for this article were compiled with cooperation from Bright MLS, a leading housing market data source and a real estate listing service for Realtors® throughout the region.