Maryland’s October 2021 housing market continued its monthly trend of a decrease in units sold, down 8,665 in 2021, a 10.4 percent drop from 2020’s figure of 9,676. In spite of this dip, the average sales price rose 7 percent to reach $431,461 as compared to 2020’s number of $403,226. The median sales price of $369,700 represented a 7.2 percent increase from last year’s figure of $345,000.
There are signs that suggest an easing of the market. While the number of units sold has decreased, prices are not rising as fast they were earlier in 2021. Median days on market (the number of days a house is listed before it is sold) has grown by a day over the last three months to nine days today, versus eight last year.
“With fewer homes sold, it certainly provides opportunities for people who weren’t able to get into the market earlier this year,” said Craig Wolf, 2022 president, Maryland REALTORS. Regardless, the market needs more sellers. “The number of new listings in October 2021 was 9,944 a 13.2 percent drop from last year’s figure of 11,451. We still need more people wanting to sell their homes.”
About the rise in prices, Wolf noted that there are multiple factors at play. “Labor shortages, on-going supply chain challenges, and high material costs have all contributed to higher prices,” said Wolf. “The real estate market will continue to adapt as consumers shift to more remote work opportunities and changing spending habits.”
The market in Maryland, easing from the pandemic highs of the past several months, supports the assessment made by the National Association of REALTORS (NAR) Chief Economist Lawrence Yun. “The housing sector’s success will continue, but I don’t expect next year’s performance to exceed this year’s,” said Yun at the NAR Annual Conference in San Diego. “With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”