HUGHESVILLE, Md. – As fears of a recession loom across the country, the Southern Maryland housing market has already begun showing some new trends.
Although the market is still busy, as would be anticipated at this time of year, it appears that the impacts of economic uncertainty have started to impact our region.
Based on the most recently available data provided to the Southern Maryland Association of REALTORS® (SMAR), the Southern Maryland region saw a total sold dollar volume decrease of approximately 2.84% year-over-year, for a total of $272.4 million sold.
The region has also begun to see active inventory grow, but new listings have slightly slipped. Year-over-year, active listings are up approximately 8.45%, and new listings are down 9.96%.
Approximately 624 units were sold over the last month in Southern Maryland.
Months of supply indicate that we are still in an unhealthy seller’s market, with approximately 0.81 months of supply available. The amount of supply will likely continue rising and reach healthier levels as new regulations begin to drive the market.
Homes are still moving relatively quickly from the market, as the average days across the region saw a slight drop from last year, down from 12 to 10 days on average.
Over 87% of all homes that sold last month were on the market for 20 days or less.
One sign that the market is slowing is seeing a decrease in the sold price to original list price ratio. This variable helps illustrate how much flexibility is in the market between buyers and sellers, and it decreased year-over-year from 102% to 101.4%
The average sold price and median sold price both saw increases, up 8.95% and 9.93%, respectively.
This could be the result of numerous factors, however, economic uncertainty paired with higher interest rates often leads fewer people to buy or sell homes. Seeing inventory begin to sit for lengths of time we saw pre-pandemic might become more common in the coming months.
As interest rates rise, consumers will not be able to afford nearly the same home price that they used to. Experts from the National Association of REALTORS® have emphasized the need to increase oil supplies to help tame inflation and prevent mortgage rates from rising more.
“While our economy struggles with recession and while interests are increased to curb that economic factor, buyers should not wait to enter into homeownership,” SMAR’s 2021-2022 President Gregg Kantak said. “The impact of higher interest rates may result in potentially less purchase power, but the power still exists, and the time to purchase remains now. This is not a wait-and-see moment, but it is ripe with opportunity, and your Realtor® can help you achieve your homeownership goal.”
Housing market statistics from each county in the Southern Maryland region can be found below:
Units Sold: 155 (-22.11%)
Total Sales Volume: $ 72,543,716 (-16.21%)
Average Days On The Market: 9 (-5 Days from May 2021)
Median Sold Price: $435,000 (+11.54%)
Units Sold: 281 (-9.94%)
Total Sales Volume: $ 125,054,230 (+1.98%)
Average Days On The Market: 10 (-1 Day from May 2021)
Median Sold Price: $425,000 (+11.11%)
St. Mary’s County
Units Sold: 188 (-3.09%)
Total Sales Volume: $ 74,832,350 (+5.12%)
Average Days On The Market: 11 (-2 Days from May 2021)
Median Sold Price: $382,572 (+12.19%)
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 can be found on the SMAR YouTube page at: https://www.youtube.com/watch?v=uc9tGHmnJY4
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.