Monday, March 6, 2023 / by Makayla Santa Ana
Maryland Housing Market 2023
In this decade, the U.S. housing market will be dominated by luxury homes and small, intimate homes. People will be looking for places that are rustic and historic, but that also fit their modern needs.
This trend will continue into the next decade thanks to increasing comfort in home decoration and technology. By needing a small, intimate home, people are looking for more space than they would in a large house.
Wherever you live, you can have a beautiful, unique home with little or no outside exposure. You can also choose how big your home is because you can add more space if you want!
Declining unemployment rate
As of now, the market for housing is stable. You can still find a house for sale or a new house to rent. The falling unemployment rate and growing population are proof that the housing market is growing.
Growing populations make more demand for homes, and when there is a lack of homes, people scramble to find one. This happens more frequently when houses are expensive because there is not too many finding them.
When people cannot buy a home, they look outside of it as well. If you have watched Netflix’s A Nice Place to Visit anytime lately, you have seen what happens when someone can’t find a home. It has been reported that up to 60% of the population cancel their television plans due to the lack of programming.
Increasing wages in Maryland
With rising wages and growing demand for housing, the market for new homes is expanding. This increase in the number of homes being sold is a good thing for the housing market, as people are eager to purchase a home and invest in their careers by renting or owning a home.
The amount of houses listed for sale in Maryland has been increasing each year, staying about the same from year to year. This shows that there is a strong demand for new homes in Maryland, which is encouraging sellers to be more diligent about their property.
Some buyers are looking at what they want in their personal housing needs and deciding whether or not it fits into that budget.
Fuel prices and home costs are not strongly correlated
In the past year, two major events have caused home costs to increase sharply: first, diseases caused extensive damage and disrupted the market, second, gasoline prices increased dramatically.
Political changes occur periodically, and when they do happen, like after the terror attacks in 2001 or 2007, home values tend to rise. Desperate times call for desperate measures. After those two events occurred in 2011 and 2017, home values went up by around 10%! This is what brought attention to the housing market in Maryland 2023 Zeitgeist forecast.
Migration trends in Maryland
As people look for ways to make money and live cost-effective lives in the U.S., more and more people are moving to Maryland. This is a great thing, as Maryland has an excellent housing market that is ready to accept new residents.
On average, new homes in the state sell for $325,000-$375,000, making it a cost-effective way to live. Since new homes usually do not go for full price, you can make a more solid profit on your investment.
However, with such high demand coming onto the market and prices going down nearly 20% this year, there may be a problem finding a home.
Younger population growing into prime home buying years
One of the most prominent trends that is expected to impact the housing market in Maryland over the next few years is the increasing number of younger people who are entering the housing market for the first time.
Between statistics from Realtor.com and local census data, there are nearly 2,000 new home owners per year between the ages of 25 and 34. This increases to almost 5 percent when people age 35 to 44.
These newly married couples are stepping into home buying mode at a quick and sustainable rate. Between them, they are more focused and responsible buyers. Having a good understanding of how property prices change over time, these new buyers know what needs to change in order to hold onto them.
Higher housing prices mean higher incomes needed to afford mortgage payments
While many are seeing a rising home value and mortgage interest rate, there are still plenty of houses for sale for less than the average home price.
This is because more and more homes are being built every year. Posted on the internet before it is offered for sale, this shows how much money the seller has to pay for their house.
Some developers use this as a way to gauge demand before building a house. When there is demand, they will build them faster! While it takes time for houses to sell, that time is coming soon.
There were over 1,000 new homes built in 2017 and 2018 combined, which was too many new houses to fill up quickly.
Rising interest rates mean lower housing prices required to pay mortgage payments
As interest rates rise, homeowners are forced to make necessary changes to maintain their balance sheets. This includes paying more for credit, purchasing new property to rent or selling old property to cover payments.
Historically, people with good credit ratings were able to find a mortgage even in difficult times. However, with rising mortgage rates, fewer borrowers have sufficient equity in their homes to secure a loan.
This can put a heavy burden on those with poor credit ratings as they cannot obtain a loan without paying off their debt. For those with good credit ratings who do not sell or trade their home, this can be a very expensive burden to live with.
High debt has also been an issue for many homeowners lately. Many cannot afford the increases in bills that come with owning a home these days and others just do not have the money for them.iere is growing demand for properties that are affordable and in good locations.
Population growth means more demand for housing and higher prices
Two major trends are expected to dominate the Maryland housing market in the next few years. Population growth and higher prices!
More people are moving to Maryland every year, making it more difficult for them to find a place to live. With higher prices, people are more willing to look outside of Baltimore and Washington, DC
Price Increased is another major factor in the increase in price of housing is inflation. When wages do not rise as often as costs go up, buying a house becomes more expensive.
Inflation has increased since the early 2000s when it was rare for it to happen yearly. Today, it happens almost every year! Having inflation every year makes home prices even more likely to increase rapidly over time.