National Real Estate News
Inflation a lot lower
Both the price inflation seen by companies (PPI) and the price inflation seen by consumers (CPI) dropped significantly in March. Look how much lower we are already compared to the peaks (11.6%, 8.9%) set in 2022! As inflation continues to fall, mortgage rates will follow – especially if the economy moves into a recession and the Fed stops raising short-term interest rates.
When mortgage rates drop…
…buyers rush in. With average 30-year, fixed-rate mortgages dropping from just over 7% to near 6% over the course of March, loan demand jumped. With inflation clearly trending lower (and mortgage rates likely to follow), we could see rates below 6% again. And if that happens, there will be a stampede of buyers, more competition, and higher sales prices. In other words, waiting could backfire.
Inflection point for home prices
The percentage of loan officers and real estate agents seeing home price INCREASES in April was 33%, just slightly below the 34% seeing price decreases. We’re clearly at a crossover point, with several reputable measures of home prices (FHFA, CoreLogic etc.) already showing monthly increases. The issue is inventory: the supply of homes available for sale remains very low.
Local Market Trends
As of Friday, April 14, 2023
Jared Neale
Local insights for Central Anne Arundel County, MD
| Area | Median Price | Active Listings | New Listings – 5 days | Median Days on Market |
|---|---|---|---|---|
| Glen Burnie, MD | $419,900 | 71 | 17 | 20 |
| Severn, MD | $575,000 | 33 | 7 | 24 |
| Pasadena, MD | $622,000 | 48 | 8 | 27 |
| Gambrills, MD | $774,900 | 12 | 5 | 8 |
