Welcome to the June 2024 edition of our monthly real estate market update for Anne Arundel County. This month, we’re diving into the key factors influencing our local market, including housing inventory, interest rates, and home values. Whether you’re considering buying or selling, understanding these trends can help you make informed decisions.
Housing Inventory
The story of the Anne Arundel County real estate market continues to be dominated by low inventory levels. As of June 2024, there are 634 active listings, marking a 9% decrease from the same time last year. This persistent shortage of homes has made it challenging for buyers to find properties and has kept competition high.
Inventory Breakdown:
- Active Listings: 634
- Coming Soon: 130 (homes expected to be available within the next 21 days)
- Under Contract: 1,024
The significant number of homes under contract (1,024) compared to active listings shows that new listings are being quickly absorbed by the market. This rapid turnover keeps inventory levels low and indicates a strong demand from buyers.
Interest Rates
Interest rates have a direct impact on affordability and buying power. Currently, the average 30-year fixed mortgage rate stands at 7.02%, slightly down from last month’s 7.35%. While this reduction offers some relief, rates remain high compared to the historically low levels seen a few years ago.
Mortgage Rate Insights:
- The average rate for a 30-year fixed mortgage is 7.02%.
- There’s hope for future rate cuts which could further ease affordability issues.
- The spread between mortgage rates and the 10-year Treasury yield is currently 2.85 points, higher than the pre-2020 average of 1.72 points, suggesting potential for rates to decrease if this spread narrows.
Payment Comparisons:
- At 7.02% interest, a $500,000 loan results in a monthly payment of approximately $3,833.
- A reduction to 6.02% interest would lower the monthly payment to about $3,504.
- Conversely, an increase to 8.02% would raise the payment to approximately $4,175.
Home Values
Home values in Anne Arundel County continue to rise, driven by the high demand and low supply. The median sales price in May 2024 was $516,965, reflecting a 3.6% increase from the previous year.
Market Composition:
- Detached single-family homes make up 59.6% of sales.
- Townhomes account for 30.6%.
- Condos represent 9.8%.
The continuous increase in home values highlights the market’s resilience and the ongoing demand for housing in the area.
Conclusion
The June 2024 market update underscores the challenges buyers face with limited inventory and high interest rates, but also points to the continued growth in home values. For sellers, this environment can be advantageous, given the strong demand and rising prices.
If you’re considering buying or selling in Anne Arundel County, now is a critical time to understand these market dynamics. Feel free to reach out to me for personalized advice and assistance.