HUGHESVILLE, Md. –– Amid the Spring housing market, typically one of the most popular times of the year to sell a home, property owners seem to be holding onto their assets. Although there are many reasons why someone might not sell now, several key patterns have emerged over the past several months leading to this shift in the market.
Looking at the most recently available year-over-year data from the Southern Maryland Association of Realtors®(SMAR), new listings in the region have dropped roughly 42.44% from last year.
Additionally, there has been a slight uptick in how many homes are actively listed on the market, with approximately 95 more homes or a 19.67% increase. However, Southern Maryland and many other places across the country are still faced with an unprecedented inventory shortage.
While roughly 3-6 months of inventory is considered a healthier market, Southern Maryland currently has an estimated 1.22 months of inventory.
“As interest rates have continued to rise, the pool of prospective buyers has continued to shrink,” SMAR 2022-2023 President Michael Funk said. “Many people locked in lower interest rates over the past few years and now would rather keep their low rate than sell. Plus, people need a place to go if they are going to sell, and many places are facing an inventory and housing crisis just like our region.”
However, many sellers are still seeing hurdles when they do decide to list their homes. Although most homeowners saw significant gains in home equity over the past two years, those gains have begun to grind to a halt.
The median sold price in Southern Maryland last month grew by roughly 2.5%, however, that was largely due to the larger price growth in St. Mary’s County.
Additionally, homes are sitting on the market longer, and sellers are giving more concessions than they have had to over the past couple of years. The average days on the market for the region last month was 29 days, which is up roughly 70.59% from last year.
As those homes sit longer, sellers have often made price reductions or offered closing assistance to possible buyers. This is evident as the average sold price to original list price ratio dropped by 2.78%, and now sits under 100%, as opposed to this time last year when it was 101.5%.
“A good home that is priced appropriately will still sell quickly in this market,” Funk said. “Historically, April has been one of the hottest months to see new listings. However, last month’s numbers were underwhelming, and potential buyers are already feeling that added strain in addition to higher interest rates and higher prices.”
Housing market statistics from each county in the Southern Maryland region can be found below:
Calvert County
- Units Sold: 108 (-20.59%)
- Total Sales Volume: $ 50,333,044 (-23.53%)
- Average Days On The Market: 37 (+23 Days from April 2022)
- Median Sold Price: $435,000 (-1.68%)
Charles County
- Units Sold: 186 (-28.74%)
- Total Sales Volume: $ 79,794,586 (-29.82 %)
- Average Days On The Market: 28 (+13 Days from April 2022)
- Median Sold Price: $415,000 (-1.19%)
St. Mary’s County
- Units Sold: 122 (-25.61%)
- Total Sales Volume: $ 47,343,128 (-28.39%)
- Average Days On The Market: 24 (+1 Day from April 2022)
- Median Sold Price: $392,000 (+3.28%)
Visit https://www.southernmarylandrealtors.org/pages/housing-statistics/ every month for additional details about the housing market in Southern Maryland. A video breakdown of the local statistics for the month can be found on the SMAR YouTube page at: https://www.youtube.com/watch?v=QIyDtJ48i7g
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.