Record-breaking home prices have swept across the greater central MD/Baltimore Metro area, creating an intriguing seller’s market. In June, Anne Arundel County witnessed a remarkable surge in median sales price, reaching a high of $499,000. This surge in pricing, a significant 2.7% increase from the previous months, comes as demand for housing continues to grow.

Simultaneously, the number of available listings is dwindling, sitting at a mere 37.8% of 2019 levels. The result? A constricting market with tight inventory likely keeps the competition fierce and the prices high for the foreseeable future.

The unique circumstance of homeowners enjoying low mortgage rates is partially responsible for the current state of affairs. They’re less enticed to sell, leading to the lowest new listings in the Baltimore Metro Area in two decades. If you're a buyer in today's market, be prepared to act swiftly on any home that catches your eye.

Market Outlook: Keep an Eye on the Inventory

Despite the increase in mortgage rates, buyer demand remains robust. The scarcity of inventory, particularly in suburban single-family homes, is the primary bottleneck slowing down the local housing market. With homeowners feeling "locked in" due to low mortgage rates, the prospect of more listings entering the market as interest rates decrease over the next six months is promising. However, those expecting a sudden flood of properties may find themselves disappointed.

Closed sales in June 2023 slightly dipped compared to June 2022, influenced by the more favorable interest rates at that time. But, a subtle month-over-month increase of 2.6% in sales may be a positive signal for the market.

Riding the High Tide of Home Prices

After a brief period of stability, the median price in the Baltimore Metro Area experienced a modest year-over-year boost in June. The current median price stands at an unprecedented $385,000. Each property type, except condos, has also seen a rise in their median sale prices.

A Fast-Paced Market Keeps Buyers on Their Toes

The rapidly moving market is maintaining pressure on buyers, with homes spending a median of just six days on the market for the second consecutive month. The scarcity of inventory continues to fuel competition amongst buyers vying for a limited pool of homes.

Showings and Local Markets: Signs of Life Amidst Low Inventory

Despite lower year-over-year showings, the interest in the available properties remains steady. June 2023 recorded 66,575 showings, down by a minor 11.4% from the same period last year.

In local markets, Anne Arundel County leads the pack with an impressive 10.5% price growth, reflecting the robust demand for suburban housing in the Baltimore Metro Area. Conversely, new listings are down by over 40% in Anne Arundel, Carroll, and Howard counties, keeping the market hot and buyer activity high.

Source: BrightMLS, June 2022 - June 2023 

Source: BrightMLS, June 2022 - June 2023 

Source: BrightMLS, June 2022 - June 2023  

In conclusion, the dynamic Baltimore Metro Area housing market continues to evolve. The record-breaking home prices, strong demand, and limited inventory are interplaying to create an engaging market narrative. Keep an eye out for our next update to see if any of these trends start to shift as we move into the late summer market!

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Jen Holden, Realtor® | Principal

The Jen Holden Group of Compass

443.803.7620 (m)  | 410.429.7425 (o)

jen@thejenholdengroup.com

www.movewiththejhg.com