As the golden leaves of autumn begin to fall, the real estate market in Baltimore is showing signs of significant transformation. Whether you’re a homeowner, a potential buyer, or simply a curious mind, understanding the current market trends is crucial. Today, we’re diving deep into the latest data from August 2023, shedding light on the intricacies of Baltimore’s housing landscape. From record-breaking median sales prices to the swift pace of transactions, there’s a lot to uncover. So, grab your favorite cup of coffee, settle in, and let’s embark on this enlightening journey together!
- Key Findings for Baltimore Market in August 2023:
- New pending sales: 2,863 (↓21.0% vs. August 2022)
- New listings: 3,094 (↓24.5% vs. August 2022)
- Active listings: 4,035 (↓10.3% vs. August 2022)
- Months of supply: 1.48 (↑24.4% vs. August 2022)
- Closed sales: 54,851 (↓17.1% vs. August 2022)
- Median sales price: $385,000 (↑4.6% vs. August 2022)
- Median days on market: 7 (↓2 days vs. August 2022)
- Observations:
- The median sale price in the Baltimore metro area in August was a record high, matching the June 2023 median price.
- Prices rose 4.6% regionwide between August 2022 and August 2023.
- Despite high mortgage rates, prices continue to rise.
- Sales activity is slower than typical, with a decrease in new pending contracts and closed sales compared to a year ago.
- Closed Sales: 2,903 closed sales in August, down 22.1% from last year.
- Median Sale Price: $385,000 in August, a 4.6% increase year-over-year.
- Median Days on Market: Stayed flat from the previous month and decreased by 2 days year-over-year.
- New Pending Sales: 2,863, down 21% from last year.
- Active Listings: 4,035, down 10.3% from last year.
- Showings: 54,851 in August, a 17.1% decrease from the previous year.
| Jurisdiction | Median Sales Price (August 2023) | Year-over-Year Change |
|---|---|---|
| Anne Arundel County, MD | $475,000 | +6.6% |
| Baltimore City, MD | $224,000 | +4.2% |
| Baltimore County, MD | $341,675 | +5.5% |
| Carroll County, MD | $465,000 | +9.8% |
| Harford County, MD | $360,000 | +5.1% |
| Howard County, MD | $567,000 | +4.6% |
| Baltimore Metro (Overall) | $385,000 | +4.6% |
Local Markets: Median home prices increased in all local jurisdictions in the Baltimore metro area in August. The strongest growth was in Carroll County (+9.8%) and Anne Arundel County (+6.6%).
New Pendings, New Listings, and Median Days on Market
| Jurisdiction | New Pendings (August 2023) | Change vs. August 2022 | New Listings (August 2023) | Change vs. August 2022 | Median Days on Market (August 2023) | Change vs. August 2022 |
|---|---|---|---|---|---|---|
| Anne Arundel County, MD | 667 | -21.5% | 646 | -26.8% | 6 | -2 days |
| Baltimore City, MD | 734 | -14.7% | 981 | -17.1% | 16 | +0 days |
| Baltimore County, MD | 763 | -20.8% | 807 | -21.6% | 7 | -2 days |
| Carroll County, MD | 144 | -35.4% | 131 | -40.2% | 7 | -1 day |
| Harford County, MD | 237 | -21.5% | 245 | -25.1% | 6 | +0 days |
| Howard County, MD | 318 | -25.0% | 284 | -38.1% | 5 | -2 days |
Active Listings and Months of Supply
| Jurisdiction | Active Listings (August 2023) | Change vs. August 2022 | Months of Supply (August 2023) | Change vs. August 2022 |
|---|---|---|---|---|
| Anne Arundel County, MD | 733 | -8.7% | 1.23 | +36.7% |
| Baltimore City, MD | 1,704 | -8.8% | 2.45 | +21.3% |
| Baltimore County, MD | 894 | -11.9% | 1.22 | +18.4% |
| Carroll County, MD | 159 | -11.2% | 1.03 | +25.6% |
| Harford County, MD | 273 | -2.8% | 1.12 | +36.6% |
| Howard County, MD | 272 | -22.3% | 0.93 | +6.9% |
- The 30-year fixed mortgage rate surpassed 7% in mid-August. The difference between a 6% and 7% rate can mean a difference of hundreds of dollars each month to a buyer.
Showings and Home Demand Index
| Jurisdiction | Showings (August 2023) | Change vs. August 2022 | Home Demand Index (September 2023) | Change vs. September 2022 |
|---|---|---|---|---|
| Anne Arundel County, MD | 12,345 | -16.6% | 87 | -21.6% |
| Baltimore City, MD | 13,639 | -7.2% | 70 | -13.6% |
| Baltimore County, MD | 15,150 | -17.6% | 94 | -23.6% |
| Carroll County, MD | 2,701 | -21.9% | 71 | -31.7% |
| Harford County, MD | 4,073 | -21.2% | 84 | -22.9% |
| Howard County, MD | 6,943 | -28.1% | 106 | -32.5% |
For Home Sellers:
- Rising Median Sales Price: The median sales price in the Baltimore metro area reached a record high in August 2023. This trend indicates that sellers could potentially list their homes at higher prices and expect them to sell at or near those prices.
- Low Inventory: The number of active listings has decreased across the board, with some areas experiencing significant drops. This scarcity of supply can work in favor of sellers, as fewer available homes can lead to increased demand for the ones that are on the market.
- Quick Sales: The median days on the market for homes is relatively low, with some areas like Howard County having homes on the market for just five days. This suggests that homes are selling quickly, which is beneficial for sellers looking for a swift transaction.
- Decreased Showings: There’s a decline in the number of showings, which might indicate less buyer interest. However, given the low inventory and quick sales, this might not be a significant concern for sellers.
- Potential for Continued Price Growth: The report suggests that there’s no expectation of significant supply increases this year. With demand still present and inventory low, prices are likely to continue rising, favoring sellers.
For Home Buyers:
- Higher Prices: The rising median sales prices mean that buyers will likely have to pay more for homes compared to previous years. This could strain budgets and make it harder for some buyers to enter the market.
- Competitive Market: With the low inventory and quick sales, buyers might find themselves in competitive situations, potentially facing bidding wars or having to make decisions rapidly.
- Higher Mortgage Rates: The report mentions that the 30-year fixed mortgage rate surpassed 7% in mid-August. This increase can significantly impact monthly payments, making homes less affordable for buyers.
- Decreased Choices: The decline in new listings and active listings means buyers have fewer options to choose from. This can be particularly challenging for those with specific needs or preferences.
- Potential for Further Price Increases: With the ongoing low inventory and no significant expectation of supply increases, prices might continue to rise. This could further challenge affordability for buyers.
- Mental Burden of Rising Rates: The report mentions the mental burden of rising mortgage rates. Buyers might feel pressured to buy before rates increase further or may be discouraged from entering the market altogether.
In summary, while the current market conditions seem to favor sellers with rising prices and quick sales, buyers face challenges with higher prices, increased competition, and rising mortgage rates. Both sellers and buyers need to be strategic and well-informed to navigate the Baltimore metro area’s housing market effectively. If you need help getting a plan together text me at 410-936-7999