Now that we’re halfway through 2019, it’s time to look back on how our Baltimore and Carroll County markets have been doing lately. As always, I’ll be referencing the last three complete months (in this case, May, June, and July) in comparison to that same period last year.
Let’s start by discussing new inventory. Year over year, only about 100 more homes hit our market this year compared to the same three-month period in 2018.
The number of homes going under contract, however, actually decreased by 16%. This is a bit of a red flag, as it indicates our market is slowing down. And this theory is further supported by the fact that the current average days on market (which represents the amount of time it takes for homes to sell) has gone up by 10% year over year.
Additionally, homes are also selling for less money. The average sales price dropped 4.5% year over year. While this may not sound like a lot, you have to consider that homes are worth hundreds of thousands of dollars—so even a “small” change in percentage equates to a drastic shift in dollar amount.
So what does all of this mean?
Unfortunately, I don’t have a crystal ball, so I can’t say for sure. However, I do believe that we’re in for a little bit of a market shift. The real estate market runs on a cycle, and this cycle usually takes about seven years from peak to peak. Right now, though, we’ve been on an upward trend since 2009. Therefore, we’re far overdue for a pullback in the market.
But while our market may be softening, there are still many positive factors at play. Interest rates remain phenomenally low, prices have dropped slightly, and affordability is high. That said, sellers still have a slight advantage.
Whatever your real estate goals, there are plenty of opportunities still out there right now. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.