Prince Frederick, MD – When analyzing the year-over-year market stats for Calvert County over the past month, we can see that the effects of supply and demand appear to be taking course.
Looking at the most recent data available from April 2019, we can see the average sales price for the county hovering at around $364,825 which is up nearly 8.99 percent from that time last year. However, the driving force behind these price increases could be a result of decreased inventory. Active listings through the month of April 2019 were down over 10.73 percent when compared to 2018, sitting at 499 currently listed across the county.
This inventory decline and near shortage is nothing new to the economic climate of Maryland and the United States as a whole. The Maryland Association of Realtors® reported that while nearly identical in equivalence to this time last year, the “Months of Inventory” for the state comes up just shy of three months. Although not quite to the point of being considered an inventory shortage, months of inventory has generally been considered a gauge to determine who is benefiting in the housing market nationally, with less than six months of inventory being a market that favors the sellers.
Additionally, the sales price to originally listed price ratio has declined to 96.9 percent when compared to 97.7 percent in 2018, meaning that homes across Calvert County are generally selling for less than originally listed for. This statistic falls directly in line with the slight change to the average days on market, which increased to 97 days in April of 2019, as opposed to 96 days in April of 2018. Homes that spend more time actively on the market, tend to drop their prices.
While all of this statistical data points to typical supply and demand economics at work, the rather steep decline of inventory should raise a couple of questions as to where the housing market is currently heading. Many people across the country have pondered whether nationally low inventory could be a sign of an impending recession.
Looking specifically at Calvert County, the health of the oncoming summer real estate market appears to be just as hot as past years. With active inventory being as low as it is across the state(roughly 2.9 months of inventory), one can clearly identify that we are in the midst of a sellers market. Prices are coming back higher than last year, even though it is taking longer to sell homes and the original asking price is often not being obtained.
All statistics for this article were obtained via the Bright Multiple Listing Service and Maryland Realtors®.