February 2021 Housing Statistics Shows an Increase in Sales Amidst a Shrinking Median Days on Market
Maryland’s housing market continued its robust sales pace in 2021 with strong February sales figures that outpaced the previous year’s sales by 12.3%. The average sales price, $383,743, reflected an increase of 13.9% from February 2020’s figure of $336,841, while the February 2021 median sales price of $325,000 outpaced the previous year, $295,000, by 10.2%. The ongoing concern—months of inventory—remains at 0.8, yet further squeezed by median days on market, which was ten days in January 2021 and now stands at eight days for February 2021. In February 2020, the median days on market stood at 29 days. Rising interest rates can also put a squeeze on buyers. “There’s no doubt that buyers, sellers, and REALTORS® are feeling this squeeze, especially new homebuyers entering the market,” said Dee Dee Miller, 2021 President, Maryland REALTORS®. “With diminishing months of inventory and the rapidity of how quickly homes are sold, we need to find solutions at the state and federal level to open the market further to first-time homebuyers.” Dr. Lawrence Yun, NAR Chief Economist, has forecasted a 10% increase in home sales in 2021. He also sees other opportunities that could help first-time homebuyers. "The Biden Presidency could bring several impactful changes to the housing market," said Yun. Citing one example, "the first-time homebuyer tax credit [Biden] proposed as a candidate would help Americans cover their down payment costs and is a likely firmer assurance of government guarantees to mortgages backed by Fannie Mae and Freddie Mac."
Information provided has been supplied by the Maryland Realtors Association press release dated 3/15/21.