This is your monthly real estate market update for Anne Arundel County Maryland with James Bowerman and the Real Creative Group of Compass.
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 118 homes coming soon to the market, which is 20 less than last month. Properties cannot be in the Coming Soon status for more than 21 days.
Active Listings: There are only 880 properties currently active for sale. This is 33 fewer homes compared to last month, and a 12% decrease compared to this time last year.
Under Contract: There are 1,217 homes under contract and no longer available to tour or purchase. This is 38 fewer properties compared to last month, and a 29% decrease compared to this time last year.
Homes Sold: There were 865 homes sold during the month of July. This is 93 fewer home sales compared to June, and a 25% decrease compared to this time last year.
Anne Arundel County, MD Average Time on Market
The average days on market was 14 days, which means homes sold in the same amount of time as they did the previous month. In the last 30 days there has been 458 price reductions, which is more than the previous 30 days which is about 52% of the active inventory.
Anne Arundel County, MD Average Home Prices
The average home sale price in Anne Arundel County in May was $561,561, which is a 11% increase compared to prices this time last year.
Closing Thoughts on the Real Estate Market in Maryland
A few months ago we saw the real estate market begin to decelerate. This was a necessary shift, influenced heavily by rising interest rates, along with a typical summer slow down.
Home buyers were hit with about a 3% increase in rates, shooting up from about 3% to 6% in a very short span of time. However, even with the Fed raising their baseline 3/4 of a percentage in July, rates have continued to come down.
Every year we see the market begin to cool down as Summer heats up because people start to go on vacation. This has been a common theme coming from buyers agents with concerns about their clients being out of town when a new listing hits the market. In a “post-Covid” world, where travel is normalizing, more and more people seem to be taking time off.
Two key takeaways from the data that clearly illustrate this slow down is the 29% decrease in homes under contract, and a 25% decrease in home sales compared to last year. To compensate, a lot of sellers have had to make price reductions to accommodate for the shifted market. We can no longer look at homes that sold 90 days ago to determine how to price your home. What has sold in the last few weeks and what is active and sitting will give us a much better idea of where we need to be.
With all that said, inventory is still very low and homes are selling like they were back in 2019. There are still hot properties where buyers are getting into multiple offer, best and highest situations, while others can be negotiated to include inspections, closing help, and even home sale contingencies.
It will be interesting to see what happens towards the end of this month as people return from vacations, kids go back to school, and temperatures begin to cool – while housing inventory typically continues to fall. If rates remain low, I think it will be a very good time to buy or sell.