The graphic is from mdrealtor.org
The following was published in The Daily Record:
Maryland’s real estate market is following nationwide housing trends, with prices continuing to grow even as inventory also increases.
The past several months have seen an increase in real estate inventory throughout the United States, after falling to a four-decade low during the pandemic, according to reporting in Fortune Magazine.
In Maryland, the amount of inventory has been rising since hitting a low of 5,217 active units in February, per data provided by Maryland Realtors, an association representing the state’s real estate agents. According to the organization’s May 2022 data, that number has since increased to 7,706, though it is still down about 35% from this time last year.
Months of inventory, a metric that is calculated by using current available inventory and monthly sales over the past year, has also been increasing by approximately a tenth of a month, each month, since February. In May, 0.9 months of inventory was available, up from 0.6 months in February — again, well below May 2021’s figure of 1.2 months.
Unit sales are also declining year-over-year, with data showing that 8,467 units were sold in May 2022, a 12.3% decrease from May 2021.
These statistics mirror nationwide trends. Realtor.com® Economic Research declared that May was a “major turning point” in inventory, with more new listings entering the market than any month since June 2019.
Craig Wolf, 2022 president of Maryland Realtors, noted the impact of higher interest rates on the market.
“While the easing of inventory is a good thing, opening opportunities for homebuyers, we’re also seeing mortgage interest rates climbing, which dampens sales,” he said in a news release. “Freddie Mac reported that the 30-year rate has jumped to 5.23%, up from 5.09% last week. In May 2021, the average rate was 2.96%. Rates are expected to increase throughout 2022, which means if you’re looking to buy a home, doing so sooner rather than later can assure the best possible rate.”
