Maryland Market Report

Comparing Maryland Housing Market Trends

Units Sold

  The spring real estate market is in full swing! According to the Maryland Realtors Housing Statistics, there were 5,456 residential and commercial units sold in April 2023. This shows a minor decrease of 253 units sold compared to March 2023. 

This data also shows a decrease of about 34%, 2,784 units, compared to the number of units sold in April 2022. Even though this is a noticeable difference compared to last year; it’s understandable considering the effects of the ups and downs of nationwide inflation and mortgage rates. With the economy stabilizing, more buyers are re-entering the market this spring. Realtor.com has the latest:

“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”

 If you’re planning to buy a home this season, this is the perfect time to get pre-approved and begin searching. If you’re planning to sell your home this season, this is the perfect time to get it on the market. Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as Realtor.com tells us, if you’re a seller, you need to prepare:

“If homeowners are planning to sell in 2023, now is the time to get ready.”

This means working with a local real estate agent to maximize your home’s appeal and get it listed at the ideal price for your area.

Bottom Line

The housing market is warming up for spring. If you’re thinking about selling your house and taking advantage of this recent uptick in buyer activity, let’s connect.

Months of Inventory & Median Days On Market

According to Maryland Realtors Housing Statistics, there is currently 1.2 month’s worth of available MD housing inventory. This shows a ten percent increase in the amount of Maryland’s housing market inventory from January to March of this year. This data tells us the homeowners who’ve been preparing to sell all winter are finally putting their homes on the market and attracting the buyers who’re looking for more spring inventory,

Also, based on the Maryland Realtors Housing Statistics data, the median number of days homes are sitting on the market has shortened from eleven to seven since last month. This data tells us buyers are moving faster with submitting offers on available homes for sale. Additionally, many sellers are currently winning this spring by listing their home for fair market value and receiving multiple offers to choose from. If you are considering listing your home soon, let’s connect to discuss the fair market value.

Average Price

The average price of a Maryland home in April 2023 was $467,986; stated by the latest Maryland Realtors Housing Statistics. This shows an increase of $23,234 compared to the March 2023 average price of $444,752. The data shows sellers are listing their homes at higher prices. The sellers market over the past two years caused homes to have a dramatic overall increase in fair market value. In today's market, sellers are simply pricing their home at fair market value and seeing major profits in comparison to a couple of years ago.

What You Need To Know About Home Price News

The National Association of Realtors (NAR) has released its latest Existing Home Sales Report. The information it contains on home prices may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report repeat sales prices. The vast majority of the repeat sales indices show prices are starting to appreciate again. But the median price reported on Thursday may tell a different story. 

Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. According to the Center for Real Estate Studies at Wichita State University:

“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold.

For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”

People buy homes based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense affordable. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value. 

Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR explains:

“Changes in the composition of sales can distort median price data.”

For clarification, here’s a simple explanation of median value:

• You have three coins in your pocket. Line them up in ascending value (lowest to highest).
• If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
• If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
• In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.

The same thing applies to today’s real estate market.

Bottom Line

Actual home values are going up in most markets. The median value reported tomorrow might tell a different story. For a more in-depth understanding of home price movements, let’s connect.

March 2023 Data