Maryland REALTORS December Housing Report Shows Slow Market
MARYLAND - Maryland home sales fell 41.9% to 5,124 units in December 2022, according to the latest Maryland REALTORS® Housing Statistics Report.
Despite the drop in the number of units sold, home prices rose slightly in December, with the average sales price rising 0.2% to $433,018 and the median sales price rising similarly 0.3% to $370,250.
According to Maryland REALTORS, these indicators point to a year-end market slowdown. In addition to unit sales and prices, pending sales fell 27% to 4,218, and active inventory slipped 9.7% to 8,172.
Yolanda Muckle, 2023 President of Maryland REALTORS, says the slow market isn't making things easy for new home buyers.
"This market hasn't been easy for the consumer, and affordability issues aren't helped when the 30-year fixed rate—6.48% now—is more than double what it was last December," Muckle said. "As an association, we are working hard to increase housing opportunity, and we will be discussing various solutions, such as Accessory Dwelling Units, with Maryland lawmakers in Annapolis."
December's statistics are broadly representative of 2022's overall numbers. In 2022, Maryland's home sales fell 21.2% to 84,658 units, versus 2021's figure of 107,407, while the average sales price rose 6.3% to 453,759, and the median sales price rose 6.5% to $385,000.
Another sign that points to a slowdown in 2022 is the drop in Units Pending. The total number of houses on the market fell to 82,199, a 22.3% decline from 2021's figure of 105,728.
Despite the harrowing statistics, Muckle says it's not all doom and gloom in the Maryland housing market.
"While 2022 wasn't a picnic, homes are continuing to retain their value as the market heads into 2023," Muckle said. "Having recently attended the First Friday Economic Forum hosted by the Maryland Bankers Association, we've heard different takes on what may happen in 2023, but most concern revolves around inflation. This is what we'll be keeping an eye on, as it directly affects what the Feds may do with the interest rate."
Rental prices in Maryland have also increased over the past year. According to a study by moving experts at Forbes Home, Marylanders spend the seventh most of any state on rent.
According to the study, The average monthly income in Maryland is $5,818, with $1,478 of this going towards rent on average, a percentage of 25.39%.