The Baltimore region’s residential real estate market was strong in October, with steadily rising sales and prices compared to a year earlier, according to Long & Foster Market Minute reports. The Baltimore region includes Baltimore, Anne Arundel, Carroll, Howard and Harford counties and the city of Baltimore.

In Baltimore City, demand was particularly robust. The number of homes sold increased by 12 percent, while prices also rose 12 percent and inventory fell 13 percent. Harford County also saw a double-digit increase in units sold, with volume 10 percent higher than last year. Howard County experienced a 25 percent decline in the number of homes sold, as the number of available properties dropped by 19 percent and the median sale price rose 5 percent. Days on the market ranged from 40 to 54.

Gary Scott, president of Long & Foster Real Estate, said an increase in new listings in Baltimore – 1,339 versus 1,070 a year earlier, helped meet some of the increased demand.

“October was a good month – even better than we expected,” Scott said. “It was a solid month for sales, listings and closings.”

The next year is expected to bring more of the same conditions that currently characterize the residential market: low inventory, low-but-increasing interest rates and strong demand.

Many homeowners bought or refinanced at historically low interest rates in recent years, and they won’t be eager to sell if the costs of borrowing go up, even as those entering the market hope to take advantage of still-low rates. Rising values might raise concerns about affordability, but they could also play a role in alleviating inventory challenges, as more homeowners who bought before the downturn gain equity and decide to sell.

“We believe the economic indicators will be very similar to what they have been,” Scott said. “Every month, more people in our regions are gaining equity because of increasing property values. So price appreciation is a positive, but it also has an adverse impact on affordability.”

The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.

Information included in this report is based on data supplied by Metropolitan Regional Information System and its member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS or Long & Foster Real Estate.