Maryland REALTORS: Baltimore County Home Sales Decline But Prices Rise Amid Inventory Shortage
BALTIMORE COUNTY - Despite a sharp drop in home sales, home prices in Baltimore County, Maryland, are still rising, according to the April 2023 Maryland REALTORS® Housing Statistics Report. Home sales fell 30.5% year over year in April, from 991 units in 2022 to 689 units in 2023.
Despite the decrease in sales, the report showed a 7.5% increase in the average sales price to $417,327 and a 6.9% hike in the median sales price to $348,000 compared to April 2022.
This contrast between falling sales and rising prices is primarily attributed to the ongoing issue of low inventory, which currently hovers around a month's supply. According to Maryland REALTORS, A six-month inventory supply typically indicates a balanced market.
Interestingly, while there was a decrease in units pending (homes under contract) to 911 from 1,007 and a reduction in Active Inventory to 724 from 946, the median days on the market remained almost unchanged from 5 days in 2022 to 6 days in 2023. The spring sales period, a traditionally busy time for both new and existing home sales, caused the brief times on the market, Maryland REALTORS clarified.
Maryland REALTORS® President, Yolanda Muckle, noted the importance of homes as a cornerstone of generational wealth despite the current economic conditions and interest rates. "While the number of homes sold has dropped significantly, they are still holding their value and even increasing slightly," said Muckle.
She emphasized the necessity of more 'missing middle housing in Maryland. This category includes multifamily housing of four to eight units, smaller-scale homes clustered around a shared courtyard, accessory dwelling units (ADUs), duplexes, and triplexes. This type of housing offers greater diversity in home sizes and price points than traditional single-family homes.
Muckle also expressed concern about the state-wide shortage of 122,000 housing units for Marylanders and criticized initiatives like the Prince George's County Council's consideration of a two-year moratorium on townhouse development.
"We are not going to solve this problem by focusing on single-family homes. Marylanders in every county in this state need options," she concluded.