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Maryland Housing Market Update for Anne Arundel County December 2022

My name is James Bowerman, a real estate agent in Pasadena, Maryland, and this is your monthly real estate market update for Anne Arundel County. 

We are certainly living in a unique time, with many economic concerns, that were triggered or exacerbated by a global pandemic in 2020. In real estate, we’ve been riding the momentum of a giant wave for the last 10 years. The question then is, is the wave going to come crashing down on all of us?

If you read the negative, fear inducing headlines of the mainstream media, you might think that this is the case. All good things must come to an end, and as David Childers of Keeping Current Matters jokingly said, I’ve “never been to a great party where there hasn’t been a hangover.” However, I would argue that once you stop feeding on the clickbait, and start to take a look at the data, you’ll find a far less dramatic story. 

So far in 2022 we’ve sold 23% fewer homes on average compared to 2021. This comes after over a decade of declining inventory. Low interest rates and a huge demand in people wanting to move because of the pandemic, along with an economy being pumped full of money, drained an already low supply of housing. Even with the active inventory currently on the rise at 24% over this time last year, we would need an increase of over 200% to get us back to inventory levels just 3 years ago which was still a sellers market.

Don’t expect a housing crash in 2023. In some areas, home values might decrease as much as 5%, but we’re more likely to see a very flat market next year. Most homeowners are sitting on lots of equity, and a low interest rate, and will have little motivation to move, keeping the inventory down. Worse case, the conversation with sellers is NOT going to be how much are you going to lose (2008), but instead, how much less are you going to make (2023)?

It’s always important to remember that the housing market is cyclical, and we’re currently in a seasonal decline. However, come Spring, there will be more buyers and sellers entering the market, because they have to move. In Maryland, we have a high population of government and military employees that insulates us more than other markets. I believe that the year-over-year appreciation we’ve seen is not sustainable, and will need to slow to a more reasonable rate because consumers are feeling the pain of a weakening economy and dwindled savings.

If you have questions or concerns about the real estate market I’d love to hear them. And if you do need to make a move, let’s talk about your options in 2023.

Anne Arundel County, MD Housing Inventory

Let’s take a quick dive into a few of the metrics for Anne Arundel Counties housing inventory.

Coming Soon: There are 44 homes coming soon to the market, which is 30 less than last month. Properties cannot be shown while in the Coming Soon status, which has a limit of up to 21 days.

Active Listings: There are 756 properties currently active for sale. This is 102 fewer homes compared to last month, but a 24% increase compared to this time last year. 

Under Contract: There are 709 homes under contract and no longer available to tour or purchase. This is 111 fewer properties compared to last month, and a 44% decrease compared to this time last year. 

Homes Sold: There were 536 homes sold during the month of November. This is 29 fewer home sales compared to the previous month, and a 43% decrease compared to this time last year. 

Anne Arundel County, MD Average Time on Market

The average days on market decreased to 23 days, which means homes sold 1 days faster on average compared to the previous month. In the last 30 days there have been 330 price reductions, which is fewer than the previous 30 days and about 44% of the active inventory. 

Average Home Prices

The average home sale price in Anne Arundel County in May was $503,527, which is a 1.5% increase compared to prices this time last year.

2560 1440 James Bowerman

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