The Maryland housing market reflected the national trend of low inventory and high demand, and property prices increased over the course of the year in 2023. Some of the fastest growing markets in Maryland are within the communities in or close to Baltimore and Washington D.C. What are some other trends and predictions for the Maryland housing market in 2024?
Prediction #1: Maryland Housing Inventory will Increase
Financial analyst Meredith Whitney, who accurately predicted the 2008 financial crisis, predicts that the inventory of homes will increase and prices will decrease. She believes this is due to a number of baby boomers who are looking to downsize their homes.
What does this mean for homebuyers?
A larger selection of homes is usually favorable to prospective buyers who have more options and leverage to influence the pricing of homes. Additionally, buyers may have more opportunities to view several homes within an area before making an offer.
What does this mean for home sellers?
In Maryland locations with high housing inventory, there are strategies for sellers to make their home more desirable without a high risk of financial loss. Some strategies include making necessary repairs and/or improvements before listing the house, decluttering for showings and photos, and pricing it appropriately in relation to similar properties in the area.
Prediction #2: The Number of Maryland Homebuyers Will Rise
The high interest rates in 2023 prevented some prospective homebuyers from purchasing homes in Maryland. As interest rates lowered towards the end of the year, mortgage demands raised and brought buyers back to the housing market. This trend is expected to continue through the new year. Mortgage interest rates are expected to stabilize towards the second half of the year.
Prediction #3: Home Prices Will Drop in Some Areas of Maryland
According to Zillow as of November 2023, the average home value in Maryland increased 3.6% over the course of a year. The forecasted data for specific Maryland regions suggests that the following areas will see a gradual decline in home prices in 2024: Baltimore, Hagerstown, California, Cumberland, Easton, and Cambridge.
Prediction #4: Median Home Prices Will Rise in Maryland
The average home value is just over $400,000 in Maryland, based on the data from Redfin and Zillow. This is higher than the national median home price of $394,000. There is a significant difference in the average price of housing, ranging from $205,000 to $1,275,000 in various regions of Maryland. The median home prices are expected to gradually increase during 2024.
Work with Our Maryland Real Estate Agents
While it’s important to pay attention to the real estate predictions and trends in Maryland, working with a knowledgeable real estate professional in your area can help you navigate the complexities of the housing market. Our agents are here to make the best of your home buying and selling experience.