As housing prices increase nationwide, Maryland’s housing inventory also increases.
According to the Daily Record, housing stock had reached “a four-decade low during the pandemic.” Maryland’s housing inventory rose from 5,217 active units in February to 7,706 in May. Unfortunately, year-over-year sales have declined by 12.3%, comparing May of 2021 to May of this year. The Daily Record quotes Craig Wolf, 2022 president of Maryland Realtors, on the issue of high interest rates:
‘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.’
Housing prices continue to increase throughout Maryland and the rest of the country, also attributable to rising interest rates. In Maryland, the median price of a home was “$405,000 in May, up 9.5% from $370,000 this time last year.”
Housing affordability continues to be a significant concern across Maryland. In late 2021, the state issued residential revenue bonds to support home buying opportunities for low-and moderate-income Marylanders through the Maryland Mortgage Program. Earlier this year, the state announced several funding initiatives to increase the housing supply, focusing primarily on affordable rental housing.