Monthly MD Market Report

Meizona Willis • December 30, 2022

Comparing Maryland Housing Market Trends

 

Units Sold


According to the Maryland Realtors Housing Statistics, there were 5,201 residential and commercial units sold in November 2022. This shows a decrease of 544 units sold compared to October 2022. Fall and winter are naturally slow seasons for real estate sales, so this isn’t a surprise. This is actually the perfect time for buyers who’re looking for less competition to begin searching for a home. 

 

This also shows a significant decrease of about 40%, 3,547 units, compared to the number of units sold in November 2021. Even though this is a drastic difference compared to last year, it’s very understandable with the ups and downs of nationwide inflation and mortgage rates this year. Also at the end of 2021, buyers were still experiencing the severe effects of the extreme seller’s market caused by the COVID-19 pandemic. Therefore, compared to last year there’s less buyer panic due to the buyer pool being more stabilized.
 




Months of Inventory


According to
Maryland Realtors Housing Statistics, there’s currently 1.3 month’s worth of available MD housing inventory. This is a 10% decrease in the amount of Maryland’s housing market inventory from October 2022. Once again, this isn’t a surprise being as though the real estate market naturally tends to slow down in the winter season. Over the holidays sellers tend to stay in their homes and prepare to list in the new year. 


This current data also shows a 10% increase from the 1.2 month’s worth of MD housing inventory in November 2021. Proving the housing market is slowly but surely continuing to stabilize from the effects of the COVID-19 pandemic. The graph below, provided by
Keeping Current Matters, shows the national home inventory data from the National Association of Realtors for the past twenty-three years. This data shows the current national home inventory of a little over three months is still low compared to 2018’s inventory of four months, but higher than last year’s inventory of a little over two months.





Average Price


The average price of a Maryland home in November 2022 was $444,246, stated by the latest
Maryland Realtors Housing Statistics. This only shows a slight decrease of about $954 compared to October’s average price of $445,200. The data shows the significant decreased trend of average home prices we saw in the fall season has basically come to a halt. Sellers are holding firm on home prices and offering less wiggle room for negotiations.


2023 Mortgage Rate Predictions


In 2022, mortgage rates were the main topic of conversation when referring to the housing market. According to
Keeping Current Matters, this year’s mortgage rates exceeded 6% for the first time in over a decade. Last year’s mortgage rates were closer to 3%. This year’s hike in rates caused many buyers across the nation, who were excited to begin the home buying process last year, to back out of the buying process due to the lack of affordable housing. 


As we wrap up 2022 and prepare to enter into the new year of 2023, experts are expecting mortgage rates to lower and stabilize again by the end of 2023. The graph below, provided by
Keeping Current Matters, shows mortgage rate projections for 2023. According to Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors this data shows the mortgage rate average should be around 5.73% by the end of the fourth quarter next year. Living in an era of unpredictability, I’m interested to see what mortgage rates will actually look like around this time next year.





October Data




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