As the majority of housing markets nationally begin to cool, Maryland’s housing market appears to be stabilizing; prices appear steady.
In a recent article by the Washington Post, housing markets nationally are starting to cool off. Growth in the price of homes has slowed considerably from its pandemic highs, fueled by cheap capital and high demand from consumers. A cooling market does not mean cheaper prices though, as prices have begun to stabilize, but not fall.
According to the Washington Post,
A cooling market does not necessarily mean lower home prices — just that they are rising more slowly. The median price per square foot in August was still 9 percent higher than a year ago. But the price growth has slowed: In February prices were 18 percent higher than the year prior.
Analysis of County Level Data:
The article showed data from 13 of Maryland’s 24 counties. The data examined price per squarpe foot, off market in two weeks, sale-to-list price ratio, pending sales, price drops, and inventory.
- Price per square foot: Prices were either stable or cooling, with only one jurisdiction reporting an increase in pricing.
- Market in two weeks: Across all jurisdictions the quantity of houses selling within two weeks was declining.
- Sale-to-list price ratio: Across all jurisdictions the sales to price ratie remained relatively stable.
- Pending sales: In all but one jurisdictions pending sales were declining.
- Price drops: Across all jurisdictions price drops were declining or stable.
- Inventory: All but two jurisdictions were seeing an increase in inventory.
Key Take Aways:
Housing will remain a major concern nationally even if the market is cooling down. Prices have increased considerably over the course of the pandemic, and even though all signs point to an increasing price stability, the recent elevation in price is still putting many homes out of reach for many buyers. Increasing mortgage rates, which are attached to inflation-fighting measures from the Fed will not help to make housing more affordable either. The only way out of the current housing crisis is for all levels of government to work together.
MACo Housing Symposium