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 Inventory
Let’s take a quick dive into a few of the metrics for Anne Arundel Counties housing inventory.
Coming Soon: There are 155 homes coming soon to the market, which is 49 more than last month.
Active Listings: There are only 412 properties active for sale. This is 9 more homes compared to last month, but a 20% decrease compared to this time last year.
Under Contract: There are 1,295 homes under contract and no longer available to tour or purchase. This is 114 more properties compared to last month, but a 15% decrease compared to this time last year.
Homes Sold: There were 605 homes sold during the month of February. This is 70 more home sales compared to January, but a 22% decrease compared to this time last year.
Anne Arundel County, MD Average Time on MarketThe average days on market went down to 24 days, which is a decrease of 1 day compared to last month, and broke our streak of 7 consecutive months of days on market increasing.
Anne Arundel County, MD Average Home PricesThe average home sale price in Anne Arundel County increased 4.6% to $489,373 last month, which is also a 4% increase compared to prices this time last year.
Closing Thoughts on the Real Estate Market in MarylandThere’s a lot of fear, uncertainty, and doubt happening in the world right now. As the Covid-19 pandemic seems to be coming to an end, it has been replaced with fears of war with Russia, inflation, and a volatile stock market.
But how does this effect real estate and what is the outlook on the market for 2022 and beyond? Are we in a bubble heading for another crash? The short answer is no. There are no signs of a market slow down anywhere in the data according to Altos Research. In fact, we’re seeing the market continue to heat up.
Inventory is beginning to tick upwards as we hit the spring market, but we’re still at historic lows. At the same time, existing home sales hit a 15-year record in 2021.
The most noticeable change with active listings has been the reduction in carry over listings from month to month. Simply put, new listings are flying off the shelves
Because of this low supply and high demand, we’re seeing buyers on average making at least 3-4 offers before getting one accepted. And these are strong offers! Expect to pay over the list price, bring cash to the table, and waive contingencies. Sellers making repairs or accepting home sale contingencies is almost unheard of.
What about interest rates? We saw a brief pause, but rates are expected to continue to rise. This will take some buyers out of the game, but it’s not likely enough to squash the demand and shift the market entirely. Instead of a seller getting 10 offers, they might be getting 8.
The good news is, we are in a buyers market! WHAT?!? Yes, it’s a great time to sell, but buyers are also taking advantage of the low rates and appreciating home values. My clients who bought just a year or two ago have an average of 20% more equity in their homes today. Those who waited, are now paying that difference.
Home prices are forecast to rise an average of 6% this year, which is pretty conservative number. With no signs of a slow down, 2022 is gearing up to be one of the most phenomenal real estate markets in history, but not without its challenges. If you’re going to play the game, make sure you draft the right players to your team!