This is your monthly real estate market update for Anne Arundel County Maryland with James Bowerman and the Real Creative Group of Compass.
Anne Arundel County, MD Housing Inventory
Let’s take a quick dive into a few of the metrics for Anne Arundel Counties housing inventory.
Coming Soon: There are 147 homes coming soon to the market, which is 13 less than last month. Properties cannot be in the Coming Soon status for more than 21 days.
Active Listings: There are 755 properties currently active for sale. This is 157 more homes compared to last month, and a 6% increase compared to this time last year.
Under Contract: There are 1,330 homes under contract and no longer available to tour or purchase. This is 83 fewer properties compared to last month, and a 32% decrease compared to this time last year.
Homes Sold: There were 958 homes sold during the month of May. This is 39 more home sales compared to April, but a 14% decrease compared to this time last year.
Anne Arundel County, MD Average Time on MarketThe average days on market increased to 13 days, which means homes sold 1 days slower on average compared to the previous month. However, the median days on market is still only 5 days.
Anne Arundel County, MD Average Home PricesThe average home sale price in Anne Arundel County in May was $555,336, which is a 11% increase compared to prices this time last year.
Closing Thoughts on the Real Estate Market in MarylandChanges in the real estate market are occurring due to several economic factors. Consumer confidence is low due to rapid inflation and a declining stock market. Midterm elections in November have many people pumping the brakes to “wait and see” what happens.
Interest rates rose to an average of 5.23% in May according to Freddie Mac. Although this isn’t historically a significant jump from the high two’s and low three’s, the speed at which rates increased has pushed some buyers out of the market.
It’s near impossible to time the market in real estate, buying low and selling high, because changes occur more slowly than the stock market. However, a lot of sellers may be trying to list now and not “miss” the peak, as the curve begins to flatten. Pricing your home correctly will be more important as the market cools and inventory levels rise. We are seeing more price reductions and increased days on market. This is good news for buyers, but sellers need to manage their expectations.
Lastly, as we likely head towards a recession, don’t expect to see home prices plummet. In four of the last six recessions, home prices continued to appreciate. We are not going to see a repeat of 2008, which was mainly due to poor lending practices. Buyers should be confident that now is a good time to buy, and values will continue to rise over the next several years.