While home prices continued to increase over a tumultuous year, the housing market in Southern Maryland encountered several notable changes over the past 12 months, signaling the return to a pre-pandemic market state.
According to year-over-year data compiled by the Southern Maryland Association of Realtors®, while total sale volume decreased in 2022, prices still saw moderate increases.
This year, the average sold price across the region rose by 8.06%, and the median sold price rose by 6.93%. These are roughly 4% less than homeowners’ double-digit increases last year.
As for the severe decline in market activity over the past year, this is evident in the total dollar volume and units sold. In Southern Maryland, roughly 6,206 units sold for over $2.7 billion in 2022. This is a drop of over 2,000 units and over $500 million when compared to 2021.
Southern Maryland currently has approximately 1.25 months of housing supply, while a healthy market will typically have between 3-6 months. The months of supply have increased for the past nine consecutive months.
“Although market activity is down, home values have still been rising. These more moderate increases are much healthier for the market,” 2022-23 SMAR President Michael Funk said. “While we are still concerned about a lack of available housing and affordability, the trends over the past few months have been promising in terms of a more historically normal market.”
One sign of a healthier housing market is evident in how buyers began to regain some leverage during transactions toward the second half of the year. The sold price to original list price ratio dropped from 101% in 2021 to 100% this year, meaning buyers were less likely to pay above the original asking price or waive sale contingencies.
Additionally, buyers were more likely to hold out for better deals and concessions, as the average days on market in 2022 rose three days from 2021, up to 19 days.
Several other factors contributed to these changes in buyer behavior, but the most prominent is attributed to rising interest rates over the year. These increases from historically low rates diminished the buying power of many buyers, pricing many potential buyers out of the market.
“Interest rates have started to see slight declines over the past few weeks, and even a slight change to a rate can influence hundreds of dollars to a monthly mortgage bill,” Funk explained. “We are seeing rates and market conditions closer to what they were before the pandemic, and that isn’t a bad thing.”
Housing market statistics from each county in the Southern Maryland region can be found below:
- Units Sold: 1,537 (-29.56%)
- Total Sales Volume: $ 772,529,691 (-23.32%)
- Average Days On The Market: 20 (+1 Day from 2021)
- Median Sold Price: $420,000 (+7.69%)
- Units Sold: 2,934 (-24.32%)
- Total Sales Volume: $ 1,289,535,727 (-17.29%)
- Average Days On The Market: 18 (+5 Days from 2021)
- Median Sold Price: $415,000 (+6.96%)
St. Mary’s County
- Units Sold: 1,735 (-21.56%)
- Total Sales Volume: $ 692,300,052 (-15.49%)
- Average Days On The Market: 21 (+2 Days from 2021)
- Median Sold Price: $375,000 (+8.70%)
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.