Positive Housing Trends Continue into June in the Baltimore Area

Growth trend for new listings continues, good news for buyers; Lowest median days-on-market since the end of 2005, sellers take notice

OVERVIEW

The Baltimore Metro Region housing market continues to show signs of strength relative to last year, and some indicators are at multi-year highs.  Sales and new pending contracts rose at double-digit rates for the third month in a row, and the median sales price is nearing its pre-recession level.  The number of active listings in the market continues to fall, and remains at an 8-year low.  New listings on the other hand are trending upward, growing at a double-digit rate for the third consecutive month.  The condo market has rebounded considerably from last year, and led all property segments in terms of growth rate for several indicators including sales, new contacts, and new listings. 

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The median days-on-market for the region is the lowest it has been for any month since December 2005.  This indicator is an important measure of buyer behavior, and can be a big factor for sellers deciding to list their properties.  The conditions appear ripe for continued growth in the region’s housing market, as the rise in new listings will help meet some of the pent up buyer demand.  Sellers are starting to notice the higher price-points compared to the past several years, which is also fueling this growth.

CLOSED SALES
Double-digit sales growth 8 months out of the past year, the trend continues in June.  There were 3,068 sales in the Baltimore Metro Region in June, an increase of 19.5 percent from this time last year, the highest June total in five years, and the third consecutive double-digit gain.  This also represents the first time the region has seen more than 3,000 in any given month since August 2007.  Condos continue to lead all properties segments in year-over-year sales growth, rising 32.4 percent from June 2012.  Sales of townhomes rose 21.2 percent from last year, and sales of single-family detached homes climbed 16.4 percent.  The recent sales growth indicates buyers remain active in the market, and more sellers are willing to list their properties as price points have risen to near pre-recession levels in some areas.

PRICES

Median sales price nearing pre-recession levels, growth picking up across most of the region.  At $262,750, the median sale price in the Baltimore Metro Region is up 5.1 percent from this time last year, a gain of over $12,000.  This is the highest median sale price the region has seen for any month since the summer of 2008.  Townhomes led all property segments in terms of growth rate, rising 5.8 percent from June 2012, a gain of $10,900.  At $334,900, the median sales price for single-family detached properties rose 4.7 percent from last year, a gain of $14,900.  The median price of condos remained essentially unchanged at $195,000, rising only 0.8 percent from last year.  At the jurisdiction level, Harford County led in growth, rising 10.5 percent from last June.  Anne Arundel County was the only jurisdiction to post a decline in median sales price, falling 3.0 percent from a year ago.  The year-to-date median sale price for the region as a whole went from $228,000 to $237,500, a gain of 4.2 percent.

NEW CONTRACTS

New contract growth continues to trend upward.  Condos and townhomes both rise over 20 percent.  There were 3,294 new contracts signed in June, up 14.7 percent from this time last year, the third consecutive month of double-digit growth.  The recent new contract growth has been fueling the sales gains, and provides evidence of healthy demand in the market.  New contract growth continues across all property segments.  Condos led in terms of growth rate, rising 29.7 percent from this time last year.  New contracts on townhomes and single-family detached homes rose 21.0 percent and 8.3 percent respectively from a year ago. 

INVENTORY

Sharp decline in active listings and double-digit growth in new listings, low days-on-market playing a role. There were 11,192 active listings in the Baltimore Metro Region at the end of June, a drop of over 1,400 listings from this time last year.  This is the lowest June-level of active listings the region has seen since 2005.  All property segments continue to post inventory declines, and remain at 8-year lows for the month of June.  Despite the persistent decline in active listings, new listings are once again showing signs of life.  There were 4,304 new listings in June, 13.7 percent higher than this time last year, and the third consecutive double-digit growth for this indicator.

Condos continue to lead all property segments in new listing growth, rising 24.6 percent from last June.  New listings of single-family homes rose 12.6 percent, and townhome listings rose 12.5 percent from this time last year.  The persistent decline of active listings concurrent with the recent surge in new listings indicates that demand in the market is absorbing the influx of inventory.  Based on the historically low median days-on-market, it is possible that many of the new listings are going to contract the same month they are listed.  The median days-on-market for the Baltimore Metro Region is now 23 days, the lowest level of any month since November 2005.

About the RBI Metro Housing Market Update

The Baltimore Metro Area Housing Market Update provides unique insights into the state of the current housing market by measuring the number of new pending sales, trends by home characteristics, and key indicators through the most recent month compiled directly from Multiple Listing Service (MLS) data in RBI’s proprietary database. The bulk of this report’s content is readily available, down to the ZIP code level of granularity, via interactive charts and reports offered via rbiEXPERT, a premium subscription service offered to real estate professionals interested in growing their business with the help of industry-leading and user-friendly analytics. The Baltimore Metro Area housing market includes the City of Baltimore, Anne Arundel County, Baltimore County, Carroll County, Harford County and Howard County in Maryland.