Home Economy Demand, supply improving for housing market

Demand, supply improving for housing market

252
Image by Paul Brennan from Pixabay.

Maryland’s August 2021 housing market continued its trajectory in sales figures with average prices rising 8.4 percent in 2021 to $435,798 and median prices rising 10.3 percent to $375,000. Months of inventory stood at 1.1, matching July 2021, yet down from last year’s figure of 1.8. The number of units sold rose 2.9 percent to 9,740, versus 9,462 in 2020.

“As this market continues to grow, August’s data suggests that it’s easing a little, becoming more friendly for first-time homebuyers,” said Dee Dee Miller, Maryland REALTORS president. “We’ve watched the 2021 average sale price inching closer to 2020’s figure, from 19 percent in May to 8.4 percent this August, while at the same time witnessing months of inventory move from 0.9 to 1.1. With prices rising more slowly, it opens up additional possibilities, whether it’s a first-home purchase, second home or even a move across town.”

The National Association of REALTORS (NAR) has witnessed an easing within the market as well across the United States. According to its latest Weekly Sales Monitor, housing demand is easing while supply shows signs of improvement, narrowing the demand-supply gap. This has moderated the pace of price appreciation, according to NAR research.

“It’s a promising sign,” said Miller, “and while inventory remains tight with houses on the market for only a week before they’re purchased, there’s more that needs to happen to increase housing opportunity for all in Maryland.”

Advertisement