ValcoMD Market Conditions Update Baltimore / Washington DC Metros:
February 2025 Housing Market Update: The DC Metro median sales price somehow rose 4.4% to $558,285, pending sales fell 6.4%, active inventory spiked 22.8%, showings declined 6.5%, new listings were down 4.1%, months of supply continues to rise to 1.45, days on market was 23; however, closed sales were up 10.6% versus a year ago
The Baltimore Metro showed similar changes. The median sales price somehow rose modestly at 2.3% (some would consider stable) to $363,000, pending sales fell 6.3%, active inventory spiked 15.5%, showings declined 5.8%, new listings were down 3.0%, months of supply continues to rise to 1.52 days on market was 22; again, closed sales were up 9.6% versus a year ago.
Within the state of Maryland for January 2025 vs 2024 stats were a bit different from the MSAs: 3,968 closed units rose only 2.1%, $425,000 median SP$ grew 5.5%, there were 4,637 pending units vs. 4,765, there was 9,338 active inventory vs 10,480 equating to 1.6 months of inventory vs 1.9, there were 4,980 new listings vs 5,942, while days on market rose to 22.
As we have addressed, there are significant affordability concerns in the local and many other markets. Nationally, one in three sellers have reduced list prices while the median contract price is $375,000 supporting activity in the lower pricing. Nationally weaker demand and negative pricing pressure on sellers as competitive listings grow. Locally, we have seen almost the exact opposite. The recent Federal Government mandate that employees return to the office ending many telecommuting positions. Maryland has over 160,000 Federal employees, many bought homes in the suburbs post Covid. They now face the dilemma of commuting one hour+, moving closer to work, or to seek other employment. Many that I speak to are concerned and nervous as they enjoy living outside of the Metros. Locally, Fed’l Gov’t economic and political uncertainty have also caused some to pause or accelerate the timing on a home purchase or sale. We have not yet seen softening values as supported by the above; however, recent market conditions diligence is trending down. We are not in a coastal or high risk area and we have not seen spike in insurance premiums but we heard that there are more insurance inspections for roofs, pools, yard toys, etc. 2024 was a growth year for us despite appraisal headwinds. Our appraisal volume (orders) was up 15.1% while revenues increased 7.1%. We did not see fee compression but rather an increased mix of FHA work (more 1004Ds at lower price point) and HELOC and default related 2055 exteriors (also lower pricing). THANK YOU to the 70+ Clients who trusted us to appraise $410+ million of their properties. We have donated $1,000 to four worthy charities as a small token of our appreciation: https://valcomd.com/helpothers
Source: Altos, ICE, Bright MLS and Associated State, Local Real Estate Boards, February 22, 2025
The GSEs announced that they will require appraisals to contain a Market Area analysis to support time adjustments and market conditions in Q1 2025. This does NOT have to be complex or time consuming, but that does not minimalize its importance. We have been providing similar information in every report since 2020. We are not statistical or analytics experts. However, one of the most important roles of the local appraiser is to provide data and comment on local market stats and trends. A robot can pull the data and provide the stats, but only the local pro can reconcile the data and guide the reader to see the issue(s). A doctor returning an x-ray or scan from a technician, and not providing an interpretation is worthless to the patient.