Harford County Maryland, Real Estate Market Update, September 2023
I’m back with a new “How’s the Market?” update so if you’re a homeowner in Harford County, Maryland, or planning to become one, I’m going to be sharing the latest real estate market trends from September 2023. Make sure you stick around to the end of this video so that you can take advantage of some hidden opportunities whether you’re thinking about buying or selling.
Alright, overall in September there were still 2 months of supply available in Harford County, which, keeps things firmly in the seller's market territory. Months of supply tells you how many months it would take for all of the homes currently on the market to sell, given the average sales volume. 4-6 months of inventory indicates a more balanced market, less than 4 months means there’s not a lot of inventory available which can drive prices up. More than 6 months of supply means there are lots of properties available for buyers to choose which can drive prices down. How is that number trending vs. last month? Well, it’s the same from August at 2 months which shows that inventory is still staying low.
Average Sale Price
The average sale price for a home in Harford County is $354,911 but keep in mind that is the average across all areas. That average price is up, from this time last year, at $343,349 in September of 2022 but it is down from $373,876 in August of this year. This is now the third month we have seen a decrease in the average sale price this year and this one was another big drop. So we could be seeing this decrease for a number of reasons that don’t necessarily have to do with interest rates, although that could certainly be a factor. Number 1 this could be a continuation of the summer market slump since the summer market started so late this year. We didn’t actually see it hit until the very end of July, early August when historically it starts in June. Number 2 it could be the price point of the houses that are being listed. We are still critically low on inventory with almost no one listing their house to buy another one. We are seeing a lot of sellers who are retiring to another state or downsizing with a few divorces and estate sales mixed in. I have not seen a ton of inventory with higher priced homes and this could be simply that most of the houses being listed right now are in that $250-$450 price point. Number 3 could certainly be the market currently with high interest rates, school loans hitting and inflation prices at an all time high. People might be finally feeling the pinch. And Number 4 could be now that school loans are hitting it might be drying up the pool of first time millennial and gen z’ers who are a massive percentage of who is buying homes right now. Only time will tell on how this continues. This still might be a great time to take advantage as a buyer though.
List to Sale Price Ratio
Moving along, the average list-to-sale price ratio was 102.2% in September. That simply means that properties were selling for 102.2% of the list price. So bidding wars are still very much occurring and seem to be about the same as August’s 102.3%. However, that is actually down from this time last year which was 104.3%. This is actually the first time we have seen a decrease from 2022’s list-to-sale price ratio this year. I am going to say since this number is all but the same as August we aren’t seeing any type of movement in the offer price department. People are still offering over list which makes me think the decrease in the average sale price has something to do with other than interest rates. The decrease from 2022’s numbers is probably from the fact that historically September is the start of the fall market which was in full effect in 2022. We aren’t seeing that here yet but the lack of inventory is still keeping that number above 100% though.
Days On Market
It seems that September actually has shown an increase in the number of days on the market at 23 days from August’s average of 15. That is also the about the same from last year with 21 days. I think the increase of days on the market is following suit with the rest of this months numbers. Less buyers out there purchasing has caused homes to stay on the market for a little longer but let’s not forget this is still a very low amount of days, in retrospect.
Interest Rates
OK if you’re thinking about buying real estate in the near future, mortgage rates today edged up again to 7%-7.6% depending on your situation. These can change daily either higher or lower and have increased since last month.
Summary
So in summary when you look at September’s market statistics, we are seeing something brewing for sure but with so many in’s and out’s going on right now in the world it’s hard to point a finger at what is causing it. The average sale price has dropped with the list-to-sell price ratio staying the same. So even though we have a lower average sale price people are still offering over list to sellers. This makes me think it’s not as cut and dry as the media seems to try and make you think. If the market was in this devastating time why would people still be getting over list price on their homes and the average sales price still higher than 2022 which was a ridiculous year for real estate? So the question lies in what will occur in October? Historically, the fall market should pick back up again but with interest rates on the rise and uncertainty in the market place only time will tell. With inventory still remaining super low the likelihood is we will remain somewhat stable. Being out in the field has made me notice that homes are still going super fast depending on the area. Almost every home I have showed has ended in a bidding war unless they were listed significantly overpriced. Either way, one really important thing to understand is that these numbers encompass all of Harford County which doesn’t mean that this is happening in every neighborhood. Right now could still be an excellent time to purchase a home while the market might be stalling, and if you are looking to sell this might be a good time to capitalize on the potential Fall market.