Baltimore-area home sales are expected to drop 6% in 2023 when compared to this year's figures as the residential market continues to cool down.
The expected decline in residential sales in the coming 12 months is based on rising mortgage rates, which hit 7% this fall and then dropped by a half percentage point a couple of weeks ago.
Bright MLS monthly sales report showed closings declined by close to 38% when compared to November 2021.
New listings dropped by close to 20% over the same period.
Many sellers are sitting out the market because they have low rate mortgages themselves and are waiting for increased home prices.
The median sales price rose 2.7% to $339,000, the Bright MLS report showed. The data gives a glimpse at what is likely in store for the coming year in the city and Baltimore, Howard, Harford, Anne Arundel and Carroll counties.
Last month, Baltimore County led the metro area in the number of closed sales with 666 followed by Baltimore City with 583 and Anne Arundel County with 538.
Looking ahead, about 35,529 home sales are expected in Greater Baltimore in 2023 compared to 37,977 in 2022 — a drop that could total 6.4% and put transactions at their lowest level since 2014.
Across the U.S., home sales are expected to drop 15.1% in 2023 when compared to 2022 data. Despite the expected dip, though, the market is expected to remain strong for sellers.
2023 the year to finally buy a home? Maybe.
Inventory levels are still low, but there are more homes coming on the market
Bidding wars and mind-boggling offers over the asking price have died down
Buyers can once again insist on inspections, contingencies, and repairs before the deal closes.
Homes are sitting on the market for longer, so buyers can sleep on it rather than submitting an offer in the middle of an open house.
Payments are 92% more than they were just two years earlier. In other words, today’s buyers will pay about double what they would have for the same house in 2020 if they take out a mortgage.
Sources: Realtor.com, Bright MLS, Baltimore Business Journal