Howard County, MD, - The Howard County housing market saw a 20.4 percent decrease in home sales last year, according to the Howard County Association of REALTORS® (HCAR), which released its 2023 Housing Report and Economic Forecast on Thursday, February 15, 2024.

 

According to HCAR, in 2023, REALTORS® in the Howard County metro area sold 3,370 homes (down 20.4 percent from 2022) worth a total of $2.04 billion (down 15.5 percent from 2022).

 

Howard County’s overall median sales price for 2023 was $555,000, up 6.7 percent from 2022. Housing prices in Howard County fluctuated drastically throughout 2023; however, all prices are still significantly higher than previous years. In November the median home sale price was $570,000, which is respectively higher than the previous month’s median price of $529,830 (October 2023), but lower than the 2023 high of $623,000 in June. The November 2023 median was also higher than the 2023 low of $470,000 in January.

 

In recent months, Howard County, along with the entire Mid-Atlantic region and the nation, has witnessed a notable rise in sales prices. Although this trend was especially prominent from the middle to the end of 2023, various zip codes were still affected differently. Notably, 20763 in Savage, MD, and 20723 in Laurel, MD, experienced significant increases of 27.2 percent and 20.2 percent, respectively. On the flip side, 21738 in Glenwood, MD (-14.8 percent), 20777 in Highland, MD (-10.6 percent), and 20759 in Fulton, MD (-10.5 percent), saw decreases in prices.

 

Howard County saw 3,798 new listings come to the market in 2023, down 21.4 percent from 2022.

 

Howard County has managed to sustain relatively consistent active listing numbers in approximately half of its zip codes from December 2022 to December 2023. As a whole, Howard County's active listings for December 2023 are just under last December's figures by 1%, totaling 204. However, both attached townhomes and condos ended the year with higher active listings while detached single-family homes were down 12.9%. While months of supply continue to be tight, there has been a steady upward trend over the last two years for all home types.

 

According to Freddie Mac, 2023 closed out with a 6.61 percent mortgage interest rate on a 30-year loan. Comparatively, 2018 closed out with a 3.99 percent mortgage interest rate on a 30-year loan.

The Home Demand Index score decreased once again in 2023 from 74 percent in 2022 to 62 percent. The slowing demand trend follows those of previous years. As seen in 2022, where the Home Demand Index (HDI) score decreased from 128 percent in December 2021 to 74 percent in December 2022. Data shows that we have zip codes that have their own demand scores, but the tale of the number of units sold show that the supply does not meet the Howard County's pent-up demand.

 

In the coming year, the viability of the local real estate market will largely depend on the ability for the county to make inroads to the supply challenges– which directly influences the mortgage interest rate and overall affordability – and inventory availability. HCAR supports policy designed to address the housing shortage, particularly the shortage of middle-income housing. This “Missing Middle” population requires support through a variety of solutions, including Accessory Dwelling Units. As always, HCAR encourages all potential homebuyers and sellers to enlist the services of a REALTOR® - an unparalleled local market expert and skilled negotiator.