HUGHESVILLE, Md. –– As the end of summer approaches, the Southern Maryland housing market has shown subtle signs of slowing activity, though prices have continued to increase.
Through the most recently collected data from the Southern Maryland Association of Realtors®, it can be observed that the inventory of homes in the region is not moving as they were at the same time last year.
The total number of units sold during July was down approximately 27.93%, with the total dollar volume down 20.24%, for a total of $63 million less than 2021.
More evidence of these changes can be seen by the significant number of active listings in the region. Active listings are up nearly 44.46% from 2021, creating inventory levels that haven’t been seen since before the start of the COVID-19 pandemic.
This change means good news for buyers, as they will have more options when it comes time to make a purchase. There has also been a slight increase in how long homes are staying on the market, up one day from the same time in 2021 for a total average of 14 days. These patterns tend to create more leverage for buyers during negotiations.
That additional leverage is seen as the average sold price to original list price ratio has dropped from 101.8% in 2021 to now 100.6%. This decrease means that homes that are selling are less likely to see multiple offer scenarios pushing prices higher and that sellers are compromising with buyers more often.
“While rising interest rates may be impacting a buyer’s purchase power, that power still exists and should be utilized,” SMAR 2021-2022 President Gregg Kantak said. “In general, home prices rarely move backward and have never moved backward in response to higher mortgage rates. Additionally, for some buyer-savers, rising interest rates could be a net positive, as they often push up savings rates.”
However, while the total months of inventory that is available have increased from dangerously unhealthy levels over the past few years, it is still largely considered a seller’s market.
More evidence of this can be seen as amid economic uncertainty over the past several months, real estate has remained a thriving investment with home prices in our region seeing large increases compared to 2021. The median sold price of a home in Southern Maryland has gained roughly 11.81% from the same time last year.
“Despite a continuing ‘sellers’ market,’ a Survey of Consumer Finances, released in September of 2020 by the Federal Reserve, found the median U.S. household net worth is $121,700. However, the difference between the net worth of homeowners versus renters is staggering,” Kantak said. “In 2019, homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300…a difference of 40x between the two groups. Interest rates and inventory aside, everyone who can increase their net worth should do so, and real estate is the best example.”
Housing market statistics from each county in the Southern Maryland region can be found below:
- Units Sold: 146 (-35.11%)
- Total Sales Volume: $ 73,255,973 (-26.38%)
- Average Days On The Market: 14 (-3 Days from July 2021)
- Median Sold Price: $472,500 (+22.50%)
- Units Sold: 236 (-29.76%)
- Total Sales Volume: $ 104,488,168 (-24.51%)
- Average Days On The Market: 12 (+1 Day from July 2021)
- Median Sold Price: $422,500 (+6.96%)
St. Mary’s County
- Units Sold: 165 (-16.67%)
- Total Sales Volume: $ 72,590,591 (-4.40%)
- Average Days On The Market: 16 (+2 Days from July 2021)
- Median Sold Price: $405,000 (+12.50%)
Visit https://www.southernmarylandrealtors.org/pages/housing-statistics/ 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.