Brunswick Crossing is excited to introduce a NEW Builder to the Brunswick Crossing family - Ryan Homes. Ryan Homes, along with DRB Homes is excited to offer homeownership opportunities in the thriving housing market of Frederick, MD. Let's review the state of the Maryland Housing Market and why now is the right time to explore homeownership at Brunswick Crossing.
Seasonal Shifts in the Maryland Housing Market
We are well into the fall housing season here in the Central Maryland. Demand has slowed, which is usual for this time of year, but also helped by higher mortgage rates. But there are still buyers looking for their dream home in Brunswick, MD and beyond.
Home prices in Maryland were up 4.8% compared to last September, selling for a median price of $408,200. The number of homes sold was down 20.0% on adverage and there were 5,477 homes sold in September this year, down 6,842 homes sold in September last year. The median days on the market was 24 days, down 5 year over year. View these housing stats and more at RedFin.
Factors Contributing to the Maryland Housing Market
Limited Months of Supply: According to May 2023 data, only a 2.6-month supply is currently available. This scarcity in inventory clarifies why numerous buyers find themselves compelled to offer bids surpassing the listing price. Following the principles of supply and demand, home prices are anticipated to remain steady for the time being.
Low Newly Constructed Housing Supply: The supply of newly constructed homes has not yet reached levels seen before 2007. Additionally, acquiring land, obtaining regulatory approval, and increasing the supply cannot be done swiftly by homebuyers. New Home Communities, like Brunswick Crossing, are an excellent opportunity to explore new home ownership options.
An influx of New Buyers: There is a high demand for homes across diverse demographics, with Millennials entering their prime years for home purchases. Consequently, the available inventory remains limited.
Stringent Lending Standards: In Maryland, like in many other states, mortgage lenders typically consider factors such as credit score, income, employment history, debt-to-income ratio, and property value. The stricter the lending rules, the higher the credit score and income may need to be for an applicant to qualify for a mortgage.
Diminished Foreclosures: Most homeowners currently hold substantial home equity, contributing to stronger personal balance sheets compared to 15 years ago. Consequently, the likelihood of a surge in foreclosures in Maryland is minimal.
Is Now the Right time to Buy?
The Maryland housing market offers advantages for buyers. While it might be tempting for buyers to step back; waiting for the Maryland housing market to cool and mortgage interest rates to decrease may not be the best course of action.
According to market experts, waiting for rates to go down means the value of homes continues to rise. The increased housing costs could potentially outweigh any savings on interest payments.
To mitigate the impact of high-interest rates, mortgage lenders in Maryland have introduced various programs. Some feature buydown programs, offering lower initial payments for the first two years of the mortgage. Additionally, certain lenders promise free refinancing if rates drop within a specific period.
The state of Maryland, through the Maryland Mortgage Program, is actively working to enhance the affordability and accessibility of homeownership.
Government initiatives encompass fixed-rate mortgages, down payment assistance, and partner matches. While eligibility requirements exist, your best opportunity to fully understand your options is to work with your lender and your Brunswick Crossing New Home Specialist.
Want to learn more or review our sources? See more housing market data and references here.