06/13/2022
Market Update: Home prices continued to rise, according to the latest Maryland REALTORSÂŽ Housing Statistics report, with average sales prices rising 11.4% to $484,283, compared to 2021âs figure of $434,847. Median sales prices rose 9.5% to $405,000 against last yearâs median price of $370,000. As these prices have risen, unit sales have continued to drop; units sold in May 2022 dropped 12.3% to 8,467 versus last yearâs volume of 9,658.
While active inventory dropped 25.3% in May, the inventory gap between 2022 and 2021 appears to be shrinking since January 2022, when active inventory dropped 41.8%. Months of inventory have been increasing as well: since February, this figure has been rising by one-tenth of a month, each month. While May 2022âs months of inventory, 0.9 months, is lower than May 2021âs figure of 1.2 months, itâs higher than February 2022âs rate of 0.6 months.
Both active inventory and months of inventory data suggests that housing inventory may be easing, but other signsâhigher sales prices, increased mortgage rates, and a recent study from the Mortgage Bankers Association of America, which reported that the volume of mortgage applications dropped to its lowest level in 22 yearsâsuggest a more challenging picture moving forward. âWhile the easing of inventory is a good thing, opening opportunities for homebuyers, weâre also seeing mortgage interest rates climbing, which dampens sales,â said Craig Wolf, 2022 President, Maryland REALTORSÂŽ. âFreddie 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 youâre looking to buy a home, doing so sooner rather than later can assure the best possible rate.â
