The housing market has dominated the news cycles for the past several years. Historically high median home prices, rapidly rising inflation, and the Federal Reserve’s move with interest rates have certainly been causes for heavy reporting on this important financial sector.
However, the national trends and forecasts for real estate do not necessarily reflect what is currently happening in the more than 80 major local real estate markets in the United States. Knowing what the future of Annapolis real estate could likely bring will be important information when you make the move to buy or sell a home.
The national real estate market in 2023
The Federal Reserve began to increase interest rates 18 months ago in hopes of winning the battle against inflation and also to drive down home prices. This created a cooling effect on the national housing market, with year-over-year median home prices dropping for the first time in ages in April of 2023.
Experts forecast that the housing market will continue to cool, but only so much before it levels off. Though many potential buyers are hesitant with interest rates continuing to increase, the supply of available homes is still low. The high demand is keeping home prices well above the pre-2020 prices.
But what happens nationally doesn’t necessarily reflect what experts forecast for local markets.
The current real estate market trends in Annapolis
The homes for sale in Annapolis are still in shorter supply, keeping median home prices up when they have fallen slightly in other local markets. The area's growing popularity has also helped keep the demand and home prices higher than ever. But will this trend continue over the rest of the year?
Annapolis real estate market forecast
The market in the capital city will only level off if the demand for homes decreases. But there is no sign of that happening anytime in the near future.
What sellers in Annapolis should consider
This seller's market could continue depending on what the Fed does with the interest rates over the rest of the year. But the more rates increase, sellers will likely lose their advantage.
Having a real estate agent will greatly benefit you as a seller in this market. Along with taking care of the legal aspects of selling real estate, an experienced agent will be able to attract the most qualified buyers to your listing, helping you maximize your home's value.
What buyers in Annapolis should consider
The Federal Reserve is expected to continue to increase the base interest rate. If you think you can wait out the rates until they drop, you might be waiting longer than you think. Buying today takes advantage of rates that will likely be lower than they will be at the end of the year, saving you a great deal of money over time. Additionally, you can always refinance down the road when rates do decrease.
Other buyers are hesitant to secure a new home because they feel that home prices are too high and are waiting for median home values to drop. And though a buyer will certainly pay substantially more for a home now than in 2019, the trend in Annapolis points to prices continuing to rise.
If this holds to be true, a buyer today will build quick equity in a home without investing more than the purchase price. Buying today also means that a home will be purchased for less than what it might be worth by the end of 2023.
Carefully review your financial situation with your mortgage broker. Using an experienced buyer’s agent when exploring the real estate market in Annapolis is also recommended.
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