Are People Still Buying Single Family Homes in Annapolis?

As we continue to navigate these unprecedented times with social distancing and COVID-19 cases fluctuating up and down, the Annapolis real estate market feels largely unaffected. In this article we analyze the real estate data in the area to really understand what is happening.

For this analysis, we compared the real estate data each month in 2020 against its 5-Year Average for that month. This comparison will shed light on how the current market is performing compared against historic performance, while taking into account monthly and seasonal variations.

ANNAPOLIS NEW LISTINGS:

In Annapolis, the new year started out strong with new listings for detached homes in January being comfortably above the 5-year average compared to the month of January in past years. New listings in February and March were only a little under the 5 year average. As COVID-19 cases in the United States began to rise in late March, the new listings started to taper off in April and May, dropping to 67% of the 5-Year average for April new listings.

Table 1: New Listings for Detached Homes in Annapolis

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ANNAPOLIS NEW PENDINGS & CLOSED SALES:

New pending sales represent the number of homes that went under contract. Once again, a similar trend was observed, where the months of January and February started off strong and mirroring the 5-Year Average for those months. In April, it dropped significantly to 60%, before rebounding greatly in May to about 105%. As closed sales lag the new pendings by about 30 days, we do see the strong figures for closed sales for January, February, March, and April, followed by a drop in May to 71%. Although the June 2020 figures are not available yet, we do anticipate a strong increase in closed sales on account of the 126 pending sales in May.

Table 2: New Pendings for Detached Homes in Annapolis

Table 3: Closed Sales for Detached Homes in Annapolis

ANNAPOLIS ACTIVE LISTINGS:

Active listings represent the available homes on the market. Historically, the summer months of June and July represent the peak availability of homes on the market. The 5-year average of active listings for detached homes in May is 351 and in May 2020, there were 233 active listings, which is 34% less than the 5-year average. Because of COVID-19 active listings are significantly less than the five year average for the month of May. In the 13 instances where the number of active listings dropped below 300 within the past decade recent months account for seven of those. However the drop to below 300 active listings began in November five months before the stay at home orders began. The bottom line is that while the supply of active listings in Annapolis have decreased, Annapolis seems largely unaffected by the virus by this metric.

Table 4: Active Listings for Detached Homes in Annapolis

ANNAPOLIS MEDIAN SOLD PRICE & AVERAGE DAYS ON MARKET:

The lower inventory of homes is supporting a very robust sellers market, maintaining strong home prices and low days on market. In 2020, the median sales price for detached homes peaked at 109% of the 5-year average. The median sales prices from January through May are still well above the 5-year average, with fluctuating prices without an obvious downward trend. When the June 2020 data becomes available, it will be very interesting to see if this market cooling trend continues or if the low inventory will continue driving prices up.

When we look at the average days on market, In January and February the days on market stayed close to the five year average. Both March and April had average days on market under 60 days, which is below the 5-year averages. However the days increased in May back to around the same as January and February which returned above the 5-year average. With the historic low inventory of homes and strong buyer demand, there would be no reason to believe this trend will dissipate anytime soon.

Table 5: Median Sold Price for Detached Homes in Annapolis

Table 6: Average Days on Market for Detached Homes in Annapolis

About Peggy Yee

Peggy Yee is a supervising broker at Frankly Realtors and is a local Top Producer. She has sold over $180 million in sales and was one of Northern Virginia Magazine's Top Realtors since 2015. She has been quoted in the Around Reston Magazine, Washington Post, Money Magazine, Consumer Reports, Zillow, Trulia and Realtor.com. Peggy is 100% committed to making your move the best experience possible! Don't just take our word...Click here to see what Peggy's past clients have to say about the experience working with her from Buyer and Seller Video Testimonials and you'll understand why she is one of the top real estate agents in Annapolis with dozens of 5 Star Zillow reviews. Click here for Zillow Reviews.

* Data Source: BrightMLS and SmartCharts. Information deemed reliable but not guaranteed.