HUGHESVILLE, Md. –– What is typically a scorching hot real estate market to accompany the summer weather has been relatively mild for this time of year. We have seen some significant trends that the market has been cooling off since the Federal Reserve enacted several interest rate hikes to counteract inflation.

The result: a more mild and seemingly competitive real estate market in Southern Maryland.

Across the region, several factors have led to this tightening of the market. Prices have continued to rise while inventory remains low, and economic uncertainty and higher rates push buyers away.

The total number of units sold in Southern Maryland over the last month decreased by approximately 24.51% year-over-year. This total number of units sold decreases contributes to the total sold dollar volume decrease of roughly 13.88%, down to $285.7 million from where it was last year at over $330 million.

It can be noted that while that total sold dollar volume decreased, it would have been worse if home prices hadn’t continued rising. The median sold price over the last month in Southern Maryland was approximately $425,000, an increase of 11.84% from last year.

However, the market is getting more competitive as buyers are gaining more traction during the transaction than they’ve had in years. The average sold price to original list price ratio dropped by approximately 1.57% from last year. This means that where sellers were getting close to 102.6% of what they listed their properties at, that number is now 101%, showing a shift in the market.

These shifts could be the results of many things; however, economists have predicted this change comes as buyers cope with higher interest rates, market uncertainty, and are just holding out for something they want.

While significant inventory lapses still exist nationwide, sellers remain in the driver’s seat for most transactions. Active listings have increased by approximately 27.86% from the same time last year, but new listings declined by roughly 15.31%. This reinforces that fewer homes on the market are selling and that fewer sellers are potentially interested in selling at this time.

However, homes that do sell, often still sell in a timely fashion. The days on the market last month were identical to where it was last year: 11 days on average.  

“While the market may have cooled, our region remains highly transient,” SMAR 2021-2022 President Gregg Kantak said. “Those buyers selecting from any of our region’s incredible school districts prior to commencement of the new school year or active military families relocating to or from our region, all are actively searching through limited inventory.  Sellers should foresee a change in the market and take advantage of opportunities now.  Buyers should secure financing at the most competitive rates and lock in those rates while they select the best home for their lifestyle.”

Housing market statistics from each county in the Southern Maryland region can be found below:

Calvert County

  • Units Sold: 172 (-20.37%)
  • Total Sales Volume: $ 88,588,057 (-7.03%)
  • Average Days On The Market: 11 (No change from June 2021)
  • Median Sold Price: $467,500 (+14.02%)

Charles County

  • Units Sold: 283 (-28.72%)
  • Total Sales Volume: $ 128,643,135 (+11.57%)
  • Average Days On The Market: 11 (No change from June 2021)
  • Median Sold Price: $425,000 (+10.25%)

St. Mary’s County

  • Units Sold: 167 (-20.85%)
  • Total Sales Volume: $ 68,459,622 (-10.62%)
  • Average Days On The Market: 12 (-1 Day from June 2021)
  • Median Sold Price: $400,000 (+12.68%)

Visit every month for additional details about the housing market in Southern Maryland.

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.

Leave a comment

Leave a Reply