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 111 homes coming soon to the market, which is 7 less than last month. Properties cannot be shown during the Coming Soon status which has a maximum of 21 days before going active.
Active Listings: There are 800 properties currently active for sale. This is 80 fewer homes compared to last month, and an 11% decrease compared to this time last year.
Under Contract: There are 1,089 homes under contract and no longer available to tour or purchase. This is 128 fewer properties compared to last month, and a 35% decrease compared to this time last year.
Homes Sold: There were 954 homes sold during the month of August. This is 89 more home sales compared to the previous month, but an 11% decrease compared to this time last year.
Anne Arundel County, MD Average Time on Market
The average days on market increased to 16 days, which means homes took 2 days longer to sell on average compared to the previous month. In the last 30 days there has been 392 price reductions, which accounts for about 49% of the active inventory.
Anne Arundel County, MD Average Home Prices
The average home sale price in Anne Arundel County in August was $523,991, which is a 6% increase compared to prices this time last year.
Closing Thoughts on the Real Estate Market in Maryland
Home sales year to date are at 6,745, which compared to 2021 in the same time period, is an 18% decrease from 8,286. This means we are on track to sell fewer homes in 2022 than last year, ending the year-over-year increase run since 2010.
To put the current market in context, let’s take a look back at 2012, a decade ago and compare that market to today. In all of 2012 there was a total of 5,864 home sold, which is fewer than we’ve sold year-to-date in 2022. However, in August of 2012 there was 2,646 active listings for sale. At the time, the market was fairly balanced with 4.8 months of inventory. Compare that to today’s 800 active listings and only 0.8 months of inventory, which by definition is a sellers market.
We did feel a shift in the market, when in June and July we saw back-to-back increases in inventory from the previous year. This provided a welcome drop in competition for home buyers, albeit a temporary one, because inventory dropped again in August and September. The last time we saw a similar increase in inventory was October 2018, which lasted through May 2019.
Lastly, the national average for a 30 year fixed interest rate is at 6.08%, the first time since November 2008 that we’ve breached the 6% mark. This will certainly cause some issues with buyers regarding affordability. Although, it’s important to note that most people don’t move because of interest rates. They move because they have to, due to some kind of life event. That said, people who don’t have to move, will stay put and hold on to their 3% mortgages, which will effect inventory levels.
My expectations through the remainder of 2022 is that serious buyers will still be on the hunt for housing. Demand is still higher than the supply. We will see the typical seasonal slow down, but sellers who need to move can take advantage of less competition. My last listing sold after 40 showings the first weekend, and one I listed today already has over one dozen scheduled. If you’re thinking about buying or selling before the end of the year, please don’t hesitate to reach out. Happy Fall everyone!