This is your monthly real estate market update for Anne Arundel County Maryland with James Bowerman, Realtor with the Real Creative Group of Compass.
Happy New Year and welcome to the 2023 real estate market! A lot of experts aren’t too sure what this year will bring, so let’s start by taking a look back at 2022 at what we do know, and then I’ll share my outlook for this year.
Last year, the world population reached a new high of 8 billion people, more than doubling the number of people on Earth in the past 50 years. I can’t say this had an impact on the real estate market without sounding like a conspiracy theorist, but it’s very interesting nonetheless.
What I can tell you is that housing inventory has been on the decline for a decade. With the surge of demand during 2020 and 2021, we finally hit critical mass in 2022. Last year we sold just 8,900 homes in Anne Arundel County, which is a 27% decrease compared to 2021. Although the active inventory is currently higher than it was this time last year, there are still very few homes for sale.
Last year we saw interest rates more than double at a record setting rate. This pushed a lot of buyers out of the market and caused others to pause and rethink due to affordability as home prices continue to rise. However, the Fed’s efforts to raise interest rates and combat inflation may have been too little too late, like throwing a bucket of water on a home that is already nearly burned to the ground.
But, it’s not all bad news! Interest rates have slowed and even come down recently. And due to the slower demand, particularly this time of year, many homebuyers have been able to take advantage. With homes sitting on the market longer and not receiving multiple offers, many buyers are getting discounts as well as closing help. Homes that sold in December averaged just under a 97% list to sold price ratio.
There are lots of economic factors we can’t predict that will impact the housing market this year. I don’t believe that what we’re currently experiencing will last as we enter the Spring market come late February and into March. The supply levels are just too low, and if interest rates remain stable, or even come down, we’ll start to see more competition enter the marketplace.
Timing the real estate market is nearly impossible, but right now might be the best time to buy in 2023. If I can be of any help, please don’t hesitate to reach out!
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 49 homes coming soon to the market, which is 5 more than last month. Properties cannot be in the Coming Soon status for more than 21 days.
Active Listings: There are 580 properties currently active for sale. This is 176 fewer homes compared to last month, but a 25% increase compared to this time last year.
Under Contract: There are 628 homes under contract and no longer available to tour or purchase. This is 81 fewer properties compared to last month, and a 34% decrease compared to this time last year.
Homes Sold: There were 501 homes sold during the month of December 2022. This is 35 fewer home sales compared to the previous month, and a 45% decrease compared to the same time last year.
Anne Arundel County, MD Average Time on Market
The average days on market increased to 30 days, which means homes sold 7 days slower on average compared to the previous month. In the last 30 days there have been 182 price reductions, which is significantly less than the previous 30 days and about 31% of the active inventory.
Average Home Prices
The average home sale price in Anne Arundel County in December 2022 was $521,368, which is a 3% increase compared to prices this time last year.