Harford County Maryland, Real Estate Market Update, July 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 July 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 July 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 June at 2 months which shows that inventory is still staying low.
The average sale price for a home in Harford County is $391,169 but keep in mind that is the average across all areas. That average price is up, from this time last year, at $360,938 in July of 2022 but it is down from $396,584 in July of this year. If you have been paying attention to the market you will know that this is the first time we have seen a decrease in the average sale price this year. So as of right now, the summer market seems to have finally hit sale prices. From what I have seen I believe August is going to continue this trend due to people trying to soak up the last weeks of summer before kids start school but only time will tell on how this continues. Since inventory is not expected to increase anytime soon these prices might not change drastically, but would be the perfect time to take advantage as a buyer.
Moving along, the average list-to-sale price ratio was 102.6% in July. That simply means that properties were selling for 102.6% of the list price. So bidding wars are still very much occurring but not as much as June’s 104.6%. However, that is still up from this time last year which was 101.9%. I am going to say that this lower list-to-sale price ratio is from the summer market finally showing itself as well as sellers pricing their homes on the higher side which is causing a slowing in the bidding wars. The lack of inventory is still keeping that number above 100% though.
It seems that July actually has shown a decrease in the number of days on the market at 13 days from June’s average of 14. That is also down from last year when it took 16 days. I think the lowering of days on the market is still from sellers accepting offers quicker and not allowing homes to stay on the market long. This month I am noticing not as many offers on homes but when sellers receive one they are taking them immediately.
OK if you’re thinking about buying real estate in the near future, mortgage rates today edged up slightly to 6.85%-7.125% depending on your situation. These can change daily either higher or lower and have basically stayed the same from last month.
So in summary when you look at July’s market statistics, it seems we are finally seeing that summer market hit although it has taken much longer this year to hit than in the past. The average sale price and list-to-sell price ratio have both dropped showing buyers are not out overbidding as much as they have been. However, it does seem when a seller gets an offer even if it’s just one they are still good offers and have been taking them immediately. So the question lies in what will occur in the remaining month of the summer. With inventory still remaining super low the likelihood is we will remain somewhat stable. However, being out in the field has made me notice the competition isn’t as fierce and we are seeing price reductions, home inspection repairs, and closing costs being offered. 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 be an excellent time to purchase a home while the market is stalling, and if you are looking to sell this is still a good time to sell your property but certainly not all-out mayhem like months prior.