Ocean City Maryland Real Estate Market Report: October 2024
Our Current Market
The Ocean City, MD real estate market is one that is significantly different from other more traditional markets, specifically those in Maryland. So far this year, Ocean City, MD has experienced a relatively steady pace in new condo sales and new listings. While inventory is still historically low, it has increased enough that buyers have often times have good ‘options’ to choose from.
Of course, this is all a matter of perspective and likely depends on who you’re talking to. Sometimes Real Estate agents will gauge the market on how busy THEY are, not how busy the market itself is.
While our team of local real estate experts does rely heavily on their gut instincts, we’ll also be the first to tell you that "numbers don't lie”. Whether it's the number of new listings in our area, the average days on market, or any other metric, the numbers will tell you a story…. And important story!
We’re firm believers in “The more information you have, the better decision you can make”.
Today, we'll be giving you an October Ocean City, MD Real Estate Market Report! Let's dive right in!
October 2024 Ocean City, MD Market Report
Number of New Listings in Ocean City, MD by Month
The number of new listings in Ocean City, MD in October of 2024 was 165. Compared to the average homes listed in October of 2021-2023 (141.67), meaning the amount of homes that were put up for sale was 16.5% higher than the average of the 3 previous years.
What does this mean?
A quick interpretation of this chart tells us that new listings are temporarily outpacing new contracts, resulting in a slow and steady increase in inventory. The real question we should be asking is “Is this a long-term trend, or a short-term opportunity?”
Only time will tell, but I suspect that this is the result of a few relatively big monetary changes impacting property owners at the beach. First, the condo buildings in Ocean City are well into the introductory phase of Maryland’s new Reserve Study requirement (from HB107). The result for many of our local condo buildings has been an increase in condo fees, and even a special assessment (in some instances). The other factor that could be contributing to the increase in new listings is likely the return-to-normalcy of the Short-Term-Rental market. Gone are the days of free-covid-money, which drove vacation rental income to never before seen heights. As the rental market (and rental income) for properties in Ocean City returns to normal, those property owners that were depending on the covid-years type of rental income have turned to selling their condos after realizing their expectations were a little ‘unrealistic’.
The next six months will likely tell us whether or not this change in inventory is here to stay, or a short-term opportunity for Buyers.
Number of Pending Sales in Ocean City, MD by Month
Before we jump in and look at the numbers, we want to make sure you understand what pending sales means. The number of pending sales reflects how many properties went "under contract" that month. This essentially means a buyer and a seller agreed to the terms of a sale- but doesn't necessarily mean those terms have been met.
Compared to the average of the number of pending sales in October of 2021-2023 (82), the number of pending sales in October of 2024 was (57) which is a 30.5% decrease. While this may seem a bit alarming, October of 2021 was a bit of an outlier, as the Ocean City, MD real estate market was extremely "hot" after COVID-19.
Closed Sales in Ocean City, MD by Month
The number of closed sales in Ocean City, MD in October of 2024 was 84. Compared to the average of closed sales in October of 2021-2023, this is a 32.4% decrease. Once again, the outlier of October 2021 is going to cause this number to seem a bit scary.
The percent difference between October 2024 and October of 2022-2023 is 14.7%, which is still a decrease but is certainly less alarming. Overall, we are optimistic as the number of closed sales did increase from September.
Average Days On Market in Ocean City, MD by Month
Okay, before we give you the numbers, we know you saw that huge bar above October of 2023, and you're probably wondering "what in the world happened?" Luckily, we have an answer for you.
Interest rates in October of 2023 reached 7.79% which is the highest since 2000 per themortgagereports.com. So, when we give you the numbers, we'll take that out of the equation.
Compared to October of 2021-2022, the days on market increased 190.9%. If you're listing your home, this may be a bit concerning, but it's important to understand there are many factors that go into this.
For one, the figures for October of 2021 & 2022 are still low as the Ocean City market was still humming from its boom after COVID. Furthermore, Days On Market can be reflective of sellers wanting more than their home is worth.
Median Sales Price in Ocean City, MD by Month
So far, The average of the median sales price of a property in Ocean City, MD in 2024 is $425,940, which is a 1.6% increase from 2023. This is good news for property owners at the beach, as their property values have been rising!
Months Supply in Ocean City, MD by Month
Just in case you're not already familiar with this metric, months supply reflects how many months of inventory our market has. This is calculated by dividing the number of homes available in a given area at the end of the month by the number of properties sold in that area.
As you can see, the months supply has been climbing since the big "boom" we keep referring to right after COVID. The months supply of 5.8 is significantly higher than October of 2021-2023, but it has decreased substantially from September.
This is good news for buyers, particularly those "savvy" buyers we mentioned earlier that are going to be looking to buy at the beach during the winter months. More than likely, if you know what type of beach property you're looking for, you'll be able to find it!
What Impacts the Ocean City, MD Real Estate Market the Most?
The single biggest factor that affects the real estate market is the time of year.
Our beach town is hustling and bustling ALL summer long, but not quite as much during the off-season.
Most local Realtors will tell you there’s a rather consistent ebb-and-flow to the local beach market. No, it never turns off. Yes, certain times of year are much busier (Spring for example, being the busiest). With weather playing a big role as well. As the shoulder-season and off-season take hold, our market is bound to be bustling on the first bright, sunny, warm day of Spring (whenever that happens).
Summer itself is a mixed bag of opportunity. Sure, it’s when the most people are here in town. But often times they’re here on vacation, renting a property from a company like our friends at Central Reservations. While they may not be actively looking while they’re here over the summer, it may just create that desire to own, which may bring them back to look at condos for sale that Fall!
No matter the reason for considering a beach-home purchase, the season greatly affects our market. A great local Realtor is going to understand that, and they’re going to help you use that to your advantage.
Another factor that can impact the Real Estate Market in Ocean City, MD is Interest Rates.
While this is generally consistent in real estate markets Nationwide, we still feel it is important to mention. Yes, there are significantly more cash buyers in Ocean City, MD as opposed to a primary home market, but interest rates still affect our beach town.
Furthermore, as we all know, being in an election year can have an impact on real estate markets across the country. In case you didn't already know (we're sure you do), 2024 is an election year!
"What does that mean for Ocean City?" You might be asking. Well, historically being in an election year typically means the months leading up to the election tend to slow down a bit, while the months after can create a busier-than-normal winter season at the beach.
What's Next for our market?
If you read all the way through our Ocean City Real Estate market report, you may be thinking "All of this is great... but what happens next?"
Well, as we mentioned before, one thing we do know is that historically our market does slow down a bit once the holiday season starts to roll around. Does that affect the listing price of homes in our beach town? Not necessarily. Does that mean there are less people who want to buy here? No. It just means there are less buyers in the market, and less homes going up for sale... for the time being.
Once we get past the major Holidays the cycle starts over and our beach real estate market will start to warm up again... just like the weather. So, while we may be headed towards a little bit of a lull, rest assured there is light at the end of the tunnel.
And if you want to be a savvy beach buyer, you’ll know the best time to be in the market, is when the competition is the lowest. You’ll start shopping for your new beach-home, right now!
Thanks for reading!
We hope you learned a thing or two while reading our October Ocean City, MD Real Estate market report!
If you're interested in learning more, or are thinking about buying or selling, please don't hesitate to reach out!
Grant Fritschle
Email: grant@grantf.com
Cell: 410-430-5880
Office: 410-524-6400
Jon Barker
Email: jon@markf.com
Cell: 410-935-3810
Office: 410-524-6400
See you at the beach soon!