Southern Maryland, November 8, 2023 – Over the past month, the Southern Maryland housing market has experienced a series of “frightening” trends, leaving many potential homebuyers hesitant to enter the market. As interest rates and prices continue to climb, the local housing market has been historically slow, with new listings and pending home sales seeing substantial declines.
According to data from the Southern Maryland Association of REALTORS® (SMAR), new listings in the region dropped by more than 27%, while new pending sales declined by over 23%. These numbers coincide with mortgage rates reaching a 20-year high, soaring to approximately 8% for a standard 30-year home loan.
“A lack of inventory is not a new problem. However, with interest rates going up, it is not surprising to see more buyers starting to sit out for the time being,” stated SMAR 2023-2024 President Tracy Vasquez. “It is really difficult to define what a regular housing market would be, but these strains on homebuyers and lack of market activity is not something Southern Maryland would consider normal.”
Despite the rising interest rates deterring some buyers, the median sold price in the region has increased by approximately 8.74%. Although fewer units were sold compared to the previous year, those that did sell did so in less time, with an average of 20 days, which is four days less than in 2022.
An essential indicator of the market’s resilience is the average sold price to the original list price ratio, which rose by 1.61% to approximately 99.5%. This signifies that despite the drop in the number of buyers, there is still enough demand to empower sellers in the transaction.
However, the Southern Maryland housing market is far from having a healthy supply of housing. The months of supply have risen by over 20% year-over-year, indicating an ongoing imbalance in the market.
Vasquez commented on the situation, saying, “There is a reason why many sellers feel handcuffed to their low-interest rates, and that is in part because we don’t know the next time we might see rates that low. Buyers should not be scared of this market. Interest rates are up from our recent history, but many homebuyers will remember a time when these rates would be considered normal or even better.”
Housing market statistics for each county in Southern Maryland reveal notable changes:
- Units Sold: 95 (-34.48%)
- Total Sales Volume: $49.2 Million (-27.23%)
- Average Days On The Market: 19 (-7 Days from September 2022)
- Median Sold Price: $500,000 (+28.53%)
- Units Sold: 203 (-7.31%)
- Total Sales Volume: $88.5 Million (-6.94%)
- Average Days On The Market: 23 (+2 Days from September 2022)
- Median Sold Price: $425,000 (+4.94%)
St. Mary’s County:
- Units Sold: 118 (-21.85%)
- Total Sales Volume: $50.1 Million (-17.83%)
- Average Days On The Market: 18 (-7 Days from September 2022)
- Median Sold Price: $375,000 (+2.74%)
Despite the challenges and uncertainties in the current market, the Southern Maryland Association of REALTORS® encourages buyers and sellers to stay informed about the latest developments. For monthly updates and in-depth housing market statistics, visit their website southernmarylandrealtors.org/pages/housing-statistics/. Additionally, a video breakdown of the local statistics for the month can be found on the SMAR YouTube page at youtube.com/watch?v=E5H9XP8ZKZw.
The statistics in this article were compiled with the cooperation of Bright MLS, a leading housing market data source, and a real estate listing service for Realtors® throughout the region. The challenging conditions in the Southern Maryland housing market underscore the complex interplay of interest rates, supply, and demand that continue to shape the real estate landscape in the region.