HUGHESVILLE, Md. – The housing market in Southern Maryland is grappling with increasing high-interest rates and a lack of available inventory, reflecting a larger trend across the United States. According to the Southern Maryland Association of REALTORS® (SMAR), recent data shows concerning changes in the local real estate market over the past month.
The median sold price for houses in the region has experienced a slight decline of about 1.18% compared to last year, settling at an estimated $420,000. Additionally, there’s been a significant 26.33% decrease in the number of units sold. Houses that did sell remained on the market longer, with average days increasing by 50% to 21 days. However, it’s noteworthy that most homes sold within 10 days or less of being listed.
Michael Funk, the 2022-2023 President of SMAR, emphasized that solving the issues affecting homebuyers, the housing market, and the economy should be a priority. “Finding solutions to the problems facing homebuyers, the housing market, and the economy should be a priority for our elected leaders on all levels,” Funk said.
Year-over-year, active listings in Southern Maryland are down approximately 17.03%, and new listings have decreased by roughly 32.33%. There’s also a decline in new pending sales by about 10.78%, indicating fewer transactions in the marketplace.
While inventory shortages have been a concern for years, the situation has been exacerbated by rising interest rates. Federal mortgage purchaser Freddie Mac recently announced that interest rates have reached levels last seen in 2001. “These higher rates now heavily contribute to the ever-increasing affordability problems facing homebuyers currently in the market,” Funk added.
This month’s statistics underscore an ongoing affordability crisis. The impact of a small percentage point increase in interest rates can result in a homeowner paying hundreds of dollars more each month, according to Funk. This dynamic is forcing many people to stay where they are, further limiting the number of houses available on the market.
Below are county-specific statistics for the Southern Maryland region:
- Calvert County:
- Units Sold: 104 (down 28.77%)
- Total Sales Volume: $48.7 Million (down 33.57%)
- Average Days On The Market: 18 (up 4 days from July 2022)
- Median Sold Price: $416,000 (down 11.96%)
- Charles County:
- Units Sold: 196 (down 16.95%)
- Total Sales Volume: $87.3 Million (down 16.43%)
- Average Days On The Market: 21 (up 9 days from July 2022)
- Median Sold Price: $430,945 (up 2.00%)
- St. Mary’s County:
- Units Sold: 103 (down 37.58%)
- Total Sales Volume: $44.5 Million (down 38.75%)
- Average Days On The Market: 24 (up 8 days from July 2022)
- Median Sold Price: $400,000 (down 1.23%)
For more detailed information on the housing market in Southern Maryland, visit SMAR’s housing statistics page every month. A video breakdown of the local statistics for the month can also be found on the SMAR YouTube page.
Statistics for this article were compiled in cooperation with Bright MLS, a leading housing market data source, Southern Maryland Association of REALTORS® (SMAR) and real estate listing service for Realtors® in the region.