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 160 homes coming soon to the market, which is 39 more than last month. Properties cannot be in the Coming Soon status for more than 21 days.
Active Listings: There are only 598 properties active for sale. This is 78 more homes compared to last month, but a 13% decrease compared to this time last year.
Under Contract: There are 1,413 homes under contract and no longer available to tour or purchase. This is 49 more properties compared to last month, but a 24% decrease compared to this time last year.
Homes Sold: There were 919 homes sold during the month of February. This is 74 more home sales compared to March, but a 7% decrease compared to this time last year.
Anne Arundel County, MD Average Time on MarketThe average days on market went down to 12 days, which means homes sold 4 days faster on average compared to the previous month. However, the mean days on market was only 5 days.
Anne Arundel County, MD Average Home PricesThe average home sale price in Anne Arundel County in April was $538,724, which is a 9.7% increase compared to prices this time last year.
Closing Thoughts on the Real Estate Market in MarylandFor the past few years, historically low-interest rates have made purchasing a home more affordable for many buyers. However, as interest rates begin to rise, affordability is becoming an increasingly pressing concern.
With each increase in rates, buyers are faced with the choice of either accepting a higher monthly mortgage payment or scaling back their home purchase. In either case, the result is less money available for other expenses. As interest rates continue to rise, it is likely that affordability will become an even greater issue for potential home buyers.
For months, the housing market has been defined by low inventory and high demand. Homes have been selling quickly, often with multiple offers, and buyers have been facing increasing competition. However, this dynamic is beginning to shift.
The rising inventory of homes for sale, coupled with some buyers pausing their home search, is leading to less competition and more opportunity for those who have been struggling to find a home. So, if you've been searching for a home without success, now may be the time to try again. With less competition from other buyers, you may finally be able to find the perfect home.
Some homeowners may feel trapped with their current 3% interest rate and not want to buy a home with a rate over 5%. They're comfortable and content where they are, and don't want to take on the risk of refinancing at a higher rate. Others may be on the fence about whether or not to move, but the thought of dealing with interest rates that are higher than they're used to is enough to keep them from making a decision.
In the end, people don't move because of interest rates, they move because they have to. Their job may be relocating them, their family may be growing and they need more space, or they may simply be ready for a change. Whatever the reason, when the time comes to make a move, interest rates will be just one of many factors that come into play.