This is your monthly real estate market update for Anne Arundel County, Maryland with James Bowerman and the Real Creative Group of Douglas Realty.
Anne Arundel County, MD Housing InventoryLet’s take a quick dive into a few of the metrics for Anne Arundel Counties housing inventory.
Coming Soon: There are 70 homes coming soon to the market, which is 22 less than last month.
Active Listings: There are 608 properties active properties for sale. This is 189 fewer homes compared to last month, and a 36% decrease compared to this time last year.
Under Contract: There are 1,257 homes under contract and no longer available to tour or purchase. This is 245 fewer properties compared to last month, and an 32% decrease compared to this time last year.
Homes Sold: There were 945 homes sold during the month of November. This is just 10 fewer homes compared to last month, and only a 1% decrease compared to this time last year.
Anne Arundel County, MD Average Time on MarketThe average days on market for increased to 21 days, which is 5 consecutive months of days on market increasing.
Anne Arundel County, MD Average Home PricesThe average home sale price in Anne Arundel County decreased 1.5% to $496,340 last month, but we are up 9.2% compared to prices this time last year.
Closing Thoughts on the Real Estate Market in Maryland
The CPI (Consumer Price Index) report was just released showing inflation has soared to 6.8% in the past year, which is the highest in 39 years! That’s important to note as we look at the rising costs of real estate property values and rent prices.
I don’t often talk about rentals, but in the past year we’ve seen rental prices increase 5.4% on average in Anne Arundel County, to an all-time high of $2,310 per month. This is due heavily to the decline in available rental properties over the last 5 years. We saw a 28% decrease in available rental properties from 2020 to 2021 alone.
We’ve already sold 11,445 homes in 2021 which is 5% more than we sold in 2020, with a few weeks left to go (I personally have 4 more transactions set to close in December). Let’s take a look at the different market segments and where we stand year to date.
Let’s start with first-time homebuyers as it relates to affordability. Entry-level homes under $400,000 made up 44.8% of the total market. However, this was a 19% decrease from 2020.
Next, let’s look at the move-up buyers which also corresponds with the down-sizers. Mid-level homes between $400,000-$800,000 made up 46.6% of the market. This was a 21% increase from 2020.
And lastly, Luxury homes over $800,000 made up only 8.5% of the market, but saw an increase of 27% in home sales compared to 2020.
Out of the 11,445 homes sold so far this year, New Construction accounted for just 7.7% of the total market. Only 1% of entry level homes, priced under $400,000, were new construction.
Mid-level attached homes saw the largest growth in market segment over 2020 with a 58% increase, and accounted for 41.2% of all new construction homes sold in 2021.
In summary, if you’re a first-time homebuyer looking for an entry level home under $400,000, you’ll have the most options, but market share is shrinking as prices continue to rise. The largest growth was in the mid-level range for move-up buyers, purchasing new townhomes or resale from down-sizers in detached single family homes.