HUGHESVILLE, Md. –– The Summer real estate market in Southern Maryland is experiencing a slowdown as several trends point to a challenging environment for both buyers and sellers. Recent data from the Southern Maryland Association of Realtors® (SMAR) reveals a decrease in new listings and a scarcity of inventory, leading to higher prices and prolonged days on the market.
Looking at the most recent year-over-year data, active listings have only minimally decreased by approximately 2.16% compared to last year. However, the real challenge lies in the drastic decrease in new listings, which have plummeted by 38.83% year-over-year, leaving buyers with limited options.
Southern Maryland’s current inventory is estimated to be around 1.53 months, far below the 3-6 months considered healthy for a real estate market. SMAR’s 2022-23 President, Michael Funk, highlights the impact of low-interest rates on inventory, stating, “Inventory has been a challenge in our market for years; however, we are now finding that people feel handcuffed to lower interest rates. Those people are holding on to their properties, keeping many sellers out of the market. That creates many hurdles for people looking for a place to live, especially potential first-time homebuyers.”
The scarcity of inventory has caused sellers who managed to list their homes in the past month to benefit, with marginal increases of approximately 1.52% to the median sold price. However, the total number of sold units and dollar volume experienced significant declines of 20.26% and 19.02%, respectively.
Homes are now spending more time on the market, with an average of roughly 21 days, an increase compared to last year. However, most homes sold had only been on the market for less than 10 days, indicating a fast-paced market once a suitable property is listed.
Despite the limited inventory, buyers seem to have some leverage, as the average selling price to the original list price ratio dropped below 100%. This suggests that buyers can negotiate better deals despite the prevailing inventory shortfall.
Funk emphasizes the importance of pricing homes appropriately, stating, “A house will still sell quickly if it is priced appropriately. Higher interest rates and higher prices are keeping a lot of people out of the market. Right now, the lack of inventory is creating numerous headaches for buyers, and affordability goes hand-in-hand with that problem.”
Below are the housing market statistics from each county in the Southern Maryland region:
Calvert County:
- Units Sold: 112 (-34.88%)
- Total Sales Volume: $57,680,244 (-34.89%)
- Average Days On The Market: 18 (+7 Days from June 2022)
- Median Sold Price: $472,500 (+1.078%)
Charles County:
- Units Sold: 226 (-20.14%)
- Total Sales Volume: $102,958,062 (-19.97%)
- Average Days On The Market: 24 (+13 Days from June 2022)
- Median Sold Price: $450,000 (+5.88%)
St. Mary’s County:
- Units Sold: 158 (-5.39%)
- Total Sales Volume: $70,716,759 (+3.30%)
- Average Days On The Market: 20 (+8 Days from June 2022)
- Median Sold Price: $392,500 (-1.88%)
The housing market in Southern Maryland is closely watched, and individuals can find monthly housing market details on the Southern Maryland Association of Realtors® website at: https://www.southernmarylandrealtors.org/pages/housing-statistics/.
These statistics were compiled with cooperation from Bright MLS, a leading housing market data source and a real estate listing service for Realtors® throughout the region.
Southern Maryland’s real estate market is experiencing a slowdown due to a scarcity of inventory and rising prices. Buyers face limited options, and sellers benefit from increased property values. The situation emphasizes the importance of adequately pricing properties and highlights the ongoing impact of interest rates on the region’s housing market.