Anne Arundel County Home Prices Skyrocket: An In-depth Look at our Current Housing Market
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! - - - Jen Holden, Realtor® | Principal The Jen Holden Group of Compass 443.803.7620 (m) | 410.429.7425 (o) jen@thejenholdengroup.com www.movewiththejhg.com
Decoding the Headlines: Understanding Home Equity Amid Market Fluctuations
A Drop in Equity Doesn’t Mean Low Equity You may see media coverage talking about a drop in homeowner equity. What’s important to understand is that equity is tied closely to home values. So, when home prices appreciate, you can expect equity to grow. And when home prices decline, equity does too. Here’s how this has played out recently. Home prices rose rapidly during the ‘unicorn’ years. That gave homeowners a considerable equity boost. But those ‘unicorn’ years couldn’t last forever. The market had to moderate at some point, and that’s what we saw last fall and winter. As home prices dropped slightly in the back half of 2022, equity was impacted. Based on the most recent report from CoreLogic, there was a 0.7% dip in homeowner equity over the last year. However, the headlines reporting on that change aren’t painting the whole picture. The reality is, while home price depreciation during the second half of last year caused equity to drop, the data shows homeowners still have near record amounts of equity. The graph below helps illustrate this point by looking at the total amount of tappable equity in this country going all the way back to 2005. Tappable equity is the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio (LTV). As the data shows, there was a significant equity boost during the ‘unicorn’ years as home prices rapidly appreciated (see the pink in the graph below). But here’s what’s key to realize – even though there’s been a small dip, total homeowner equity is still much higher than it was before the ‘unicorn’ years. And there’s more good news. Recent home price reports show the worst home price declines are behind us, and prices have started to go up again. As Selma Hepp, Chief Economist at CoreLogic, explains: “Home equity trends closely follow home price changes. As a result, while the average amount of equity declined from a year ago, it increased from the fourth quarter of 2022, as monthly home prices growth accelerated in early 2023.” The last part of that quote is particularly important and is the piece of the puzzle the news is leaving out. To further emphasize the positive turn we’re already seeing, experts say home prices are forecast to appreciate at a more normal rate over the next year. In the same report, Hepp puts it this way: “The average U.S. homeowner now has more than $274,000 in equity – up significantly from $182,000 before the pandemic. Also, while homeowners in some areas of the country who bought a property last spring have no equity as a result of price losses, forecasted home price appreciation over the next year should help many borrowers regain some of that lost equity.” And even though Odeta Kushi, Deputy Chief Economist at First American, references a slightly different number, Kushi further validates the fact that homeowners have a lot of equity right now: “Homeowners today have an average of $302,000 in equity in their homes.” That means if you’ve owned your home for a few years, you likely still have way more equity than you did before the ‘unicorn’ years. And if you’ve owned your home for a year or less, the forecast for more typical price appreciation over the next year should mean your equity is already on the way back up. Bottom Line Context is everything when looking at headlines. While homeowner equity dropped some from last year, it’s still near all-time highs. Let’s connect so you can get the answers you deserve from an expert who’s here to help as you plan your move this year. - - - Jen Holden, Realtor® | Principal The Jen Holden Group of Compass 443.803.7620 (m) | 410.429.7425 (o) jen@thejenholdengroup.com www.movewiththejhg.com
Memorial Day Open Houses in Anne Arundel County | Find Your Dream Home this Weekend!
Your Dream Home Awaits at This Weekend's Open Houses in Anne Arundel County! 🏠✨🔑 Hey there, friends! Happy Memorial Day Friday! As we embark on what promises to be a vibrant and joyous holiday weekend, I wanted to provide a few suggestions for those of you who might have a little extra time on your hands and an interest in exploring new housing opportunities. I have taken the liberty to compile a list of over 70 open houses taking place across Anne Arundel County this Memorial Day weekend. You'll find all the details below. 🏡🏡 If any of these homes pique your interest or if you require additional details, please don't hesitate to text me at 443.803.7620. Should you choose to visit any of these open houses on your own, kindly inform the on-site agent that Jen sent you.👍 In case you're contemplating the current value of your home or eager to explore a customized search for your new dream home, I have just the right tools for you. Click here, and we will set you up with an automated market update and personalized search portal, all designed to serve your unique needs. 🏡🏡 I sincerely hope you find this information valuable and useful in your house-hunting journey. Please remember I am always a text away at 443.803.7620 for any further information or assistance you may need. Have an awesome and adventure-filled weekend, and let's seize the opportunity this Memorial Day to find you the perfect home! Warmest regards, Jen AA County Open Houses $1M and above AA County Open Houses- $500K-$1M AA Cty Open Houses Under $500k
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