ValcoMD Market Conditions Update Baltimore / Washington DC Metros:
December 2024 Housing Market Update: The DC Metro median sales price keeps rising at 5.3% to $600,000, pending sales grew 13.8%, active inventory rose 10.6%, closed sales were up 7.7%, and showings popped 21.1% compared to a year ago. Conversely, new listings were down 5.2%, months of supply rose to 1.67, and days on market was 13.
The Baltimore Metro showed similar changes. The median sales price of $399,945 was up 8.3%, pending sales grew 5.7%, active inventory rose 9.8%, closed sales were up 8.3%, and showings rose 9.9% compared to a year ago. New listings were down 8.6%, months of supply rose to 1.80, and days on market was 12.
Within the state of Maryland for November 2024 vs 2023 stats were similar to the MSAs: 5,216 closed units rose 1.4%, $425,000 median SP$ grew 6.3%, there were 5,401 pending units vs. 4,781, there was 10,627 active inventory vs 11,993 equating to 1.9 months of inventory vs 2.1, there were 4,592 new listings vs 5,714, while days on market was 12.
Locally, the recent drops in Fed Rates have not positively influenced the Real Estate and Mortgage sectors. As we have addressed, it is not only about rates, but also about affordability, monthly costs, and demographics. Just look at the drop in new listings above. Our older population is aging in place, staying in their homes longer and not selling. Locally we see an increase in HECM/reverse mortgages. Younger buyers are priced out of the markets (cities/urban areas) they want to live in. Anyone with a 4% mortgage rate or lower is not selling. The nation’s largest home builder’s (DR Horton) below-expected sales and earnings were primarily attributed to the fact that new construction is too expensive. I see a growth in demand for manufactured and “tiny homes” as the GSEs (Fannie Mae and Freddie Mac) launch programs to finance them. Last month the GSEs announced that they will require appraisals to contain a Market Area analysis to support time adjustments and market conditions. We have been providing similar information in every report since 2020 (see below). 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 and not providing an interpretation is worthless to the patient. Be wary, as an unchartered housing market has forced many to rethink how to forecast and analyze. Locally, it will be interesting to see if the new administration’s commitment to shrinking the government and spending will impact the DMV housing market in 2025+. Lastly, THANK YOU to the 70+ Clients who trusted us to appraise $410+ million of their properties in 2024. We take our responsibility to protect the public trust very seriously. Feedback is a gift, and we would appreciate yours (click here): Feedback / Survey — ValcoMD
Source: Freddie Mac, Fannie Mae, MBA, RIHA, Barrons, Bright MLS and Associated State, Local Real Estate Boards, December 16, 2024.
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.