Maryland’s July 2022 Housing Statistics: Prices and Interest Rates Rise,
Inventory Increases as Other Indicators Suggest Consumer Concern
ANNAPOLIS, MD—August 15, 2022—Home sales fell by 27% to 7,376 units, compared to 10,110 units sold the previous year, according to the July 2022 Maryland REALTORS® Housing Statistics report. Despite this drop, prices continued to rise with the average sales price growing 6.1% to $472,656 against last year’s July figure of $445,366. The median sales price rose to $399,000, a 5.4% increase from the July 2021 figure of $378,500.
Months of inventory has steadily increased since the beginning of the year with July’s figure reaching 1.3 months (January 2022’s months of inventory stood at 0.6 months). This increase still pales in comparison to pre-pandemic levels, when July’s 2019 months of inventory stood at 3.2 months. Some factors supporting this inventory increase include a rise in interest rates and consumer concerns with inflation during the current economy.
“An obvious indicator of consumer concern can be seen in the number of new listings in July, with a 25% drop in new listings, 9,898 versus the previous year,” said Craig Wolf, 2022 Maryland REALTORS® President. “The number of showings in this area bears this out.” According to Bright MLS data, showings in the Baltimore Metro market dropped 27.6%, while in the Washington, DC Metro market, showings fell further to 31.5%.”
In the first week of August, Freddie Mac reported the 30-Year Fixed Rate Mortgage at 4.99%, its lowest rate since April 2022. Generally, lower interest rates invite new housing activity. Yet according to Lisa Sturtevant, Chief Economist at Bright MLS, while mortgage applications were up slightly, “new contract activity, showings, those kinds of pre-sale activities were lower than the week before … this market is more than just about mortgage rates: affordability challenges, higher home prices, economic uncertainty is really what’s driving this pull back.”
“It’s clear that the added cost of buying a home has caused an ‘inflection point,’” added Wolf, “and this could be a precursor to a more normal market trend.
We are currently experiencing a shifting market. If you are considering selling or Buying and looking for an experienced agent who can react quickly by monitoring market conditions on a daily basis feel free to contact me. If you have any real estate questions.
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