Growth trend for sales, new contracts and new listings continues
Demand in the Baltimore Metro Region remains strong in the summer months, as shown by increases in sales and pending contracts. Inventories continue to decline, but the pace has slowed, bolstered by new listings. High demand and low supply contributed to median sale price gains throughout the region. All counties in the region had median sales price increases in July, and the median price for the region as a whole reached its highest level since summer 2008. The median days-on-market continues to be historically low and is now at its lowest July-level since 2005. While the number of sales decreased from June, this is typical of summer seasonal patterns and the decline was smaller than in past years. The Baltimore Metro Region continues to recover, with increases in new listings helping to meet pent up demand. Increasing prices may encourage potential sellers to list their homes, continuing the growth in new listings.
Double-digit sales growth nine months out of the past year, including the past four months. There were 3,006 sales in the Baltimore Metro Region in July, an increase of 29.5 percent from this time last year, and the highest July total since 2007. This is the fourth consecutive double-digit gain for year-over-year sales. The number of sales decreased 2.0 percent from last month; however this is the smallest decline since 2003 and is slower than the 10-year average June to July decrease of 12.3 percent. Townhomes led all property segments in year-over-year sales growth, increasing 41.0 percent from July 2012. Sales of condos rose 25.2 percent from last year. Sales of single-family detached homes increased 24.1 percent, which is the highest growth for any month since May 2010.
Median sales price steadily increases throughout the region. At $264,062, the median sales price in the Baltimore Metro Region is up 5.6 percent from this time last year, a gain of over $14,000. This is the highest median sale price the region has seen for any month since the summer of 2008. Condos had the highest growth rate of all property segments rising 13.7 percent from July 2012, a gain of $24,650. The median price of townhomes increased 12.6 percent from last year, an increase of $22,500. At $335,000, the median sales price for single-family homes increased by $10,000, or 3.1 percent, from last year. At the jurisdiction level, Baltimore City led in growth with a 10.0 percent increase from July 2012. The year-to-date median sale price for the region as a whole increased to $240,000 from $230,000, a 4.3 percent gain from the same period last year.
New contract growth continues to trend upward in all property segments. There were 3,123 new contracts signed in July, up 8.3 percent from this time last year. Condos led in terms of growth rate, rising 12.3 percent from a year ago. New contracts on single-family detached homes and townhomes rose 8.9 percent and 6.2 percent, respectively, from a year ago.
Decline in active listings, and double-digit growth in new listings, low days-on-market playing a role. There were 11,308 active listings in the Baltimore Metro Region at the end of July, a drop of more than 930 listings from this time last year. This is the lowest July-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 July. While the inventory declined 7.6 percent from this time last year, the pace of the decline is slowing and this is the first single-digit decrease since June 2011.
The decline in inventory has been tempered by increases in new listings. There were 4,221 new listings in July, 23.3 percent higher than this time last year, and the fourth consecutive month of double-digit growth. Condos continue to lead all property segments in new listing growth, rising 45.0 percent from last July. New listings of townhomes rose 22.4 percent and single-family homes rose 18.7 percent from this time last year. The decrease in active listings despite the increases in new listings could indicate that demand for new units is strong enough to absorb the supply of new listings. 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 26 days, the lowest July-level since 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.