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August Housing Market Update: Charles County Real Estate Is Moving Fast

WALDORF, Md. — Much like the rest of the Old Line State, the Charles County real estate market is moving at a rapid pace. Homes are selling faster than they are coming on the market, and that is creating an odd conundrum that even has some experts scratching their heads.

It is no surprise that there is an inventory shortage across Maryland, but Charles County has seen rather extreme impacts from it. In the year-over-year model comprised of the most recently available data, Charles’ active inventory dropped 65.01% compared to the same time in 2019. For further context, that is 496 fewer listings, meaning there are currently only 267 homes for sale across the county(that are registered to the local multiple listing service).

More concerning than the inventory shortage, new listings are also down compared to last year by 16.47%. Also, pending sales are up 12.94%, and total units sold is 22.13%, meaning that more transactions are still transpiring. This raises some cause for concern as home sales are outpacing new listings by relative comparison to last year.

In addition to the inventory crisis, home prices have grown across the board while the average days on the market have declined, and the average sold price to original list price ratio is high. These are typically three key factors that can help to determine the type of market we are facing, which at this time highly favors home sellers.

Both the average sold price and median sold price double-digit percentage increases, 11.54%, and 14.52% raises, respectively. Days on the market dropped 11.11% from the same time last year, dropping from 36 to 32 days. The sale price to original list price ratio is up from 98.2% to now 99.4%, the highest point it has reached in Charles County in at least the past two years. People who are selling properties are getting close to what they are asking in Southern Maryland and across much of the state.

However, to emphasize the first market statistic listed, it cannot be overstated how poor the current state of market inventory is. Active listings in Charles County— as with all other counties in Southern Maryland and many others in the state— inventory is at least seeing a 10-year low. While Charles is seeing a more steep drop than many other areas, the problem has become nearly systematic in the state.

Now the question remains: what will happen if the market can’t recover quickly enough? Potential economic havoc that is on par with the impacts of COVID-19 has been an idea floated, but we will have to wait and see for sure.

The good news, for now, is most home sellers likely won’t have trouble selling their homes for a good market value anytime soon.

All statistics for this article obtained via the Bright Multiple Listing Service and Maryland Realtors.

Contact Zach at zach.hill@thebaynet.com

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