The real estate market may see another slump this year as a lack of inventory keeps home prices up, according to experts.
Home sales in Maryland may be slow in 2024 due to a lack of inventory on the market, which will continue to keep the prices of houses high-a trend that was seen in 2023. This comes amid rising demand for housing among Marylanders of all income levels.
"It's harder and that's why you know, when we're talking about this missing middle, it's important to understand these people are priced, they make too much for certain programs and not enough to qualify for others, and it creates a whole vacuum if you will, in housing and that's a real problem," Chris Hill, President of the non-profit real estate association Maryland Realtors said, as quoted by CBS News. "We have to address it head-on, which means we need to deal with this missing middle conversation immediately."
How Did Maryland's Real Estate Market Perform In 2023?
According to Redfin, the median sale price of homes in the state was $409,600 in November, up 7.6% compared to the same month in 2022. The median home price also went up from $408,200 in September. In comparison, the national median home price is only $394,300.
The number of homes sold in November of last year was down 7.2% compared to the same period in 2022. The decrease followed a 15.5% slump in home sales in September. However, houses put up for sale only spent 29 days on the market, down by four year-over-year, but up from the numbers in September when homes spent an average of 41 days on the market.
Despite an expected slump, Hill noted that interest rates are coming down, which means buyers and home sellers can offset some of the cost of purchasing a new home. He also recommended working with a realtor to help with the selling process.
"Each community in Maryland has different needs, and having a realtor that works with and understands those needs to be the greatest tool on your toolbox," he said.