Inventory is down but the average sales price is up.
December was a busy month in Maryland for home sales. The number of units sold rose by 12.6 percent compared to the same time last year. The average price was also higher.
“The average sales price increased from $331,681 to $349,629 and the median price increased from $287,000 to $300,000,” said Maryland REALTORS® President John A. Harrison. “Months of inventory dropped to a low of 2.2 months, compared to 3.7 last year. December was an unusually busy month for settlements, defying the typical fall and early winter slowdown.”
Brisk sales were pushed by a dip in interest rates, but just like many areas of the U.S., buyers faced a shortage of inventory available for purchase. In Maryland, inventory in Maryland was 16, 239 versus 25,511 in December of 2018.
According to data released by the National Association of Realtors, the U.S. is short 3.8 million homes. Even though 5.9 million single-family homes were built between 2012 and 2019, it isn’t enough to offset the 9.8 million new households formed.
“Simply put, new home starts are not keeping pace with demand. Homebuilders have a mountain of opportunity, but a big hill to climb,” said Javier Vivas, director of economic research, realtor.com®. “The current inventory crisis and the need for 3.8 million new homes means a nearly insatiable appetite from potential buyers, especially in the lower end of the market.”