Welcome to our Q3 2024 real estate market report. This comprehensive review highlights key insights and data from the Greater Annapolis region, which encompasses Anne Arundel County. Known for its blend of historic charm and sought-after waterfront properties, this region remains one of the most desirable luxury markets in Maryland. In Q3, we observed further evolution in buyer behavior, inventory trends, and price movements as the market adjusts to changing economic conditions and consumer preferences. Our report covers these shifts in detail, providing community spotlights, luxury market trends, buyer insights, and a quarterly forecast to help you prepare for what's ahead in the Greater Annapolis market. Whether you're considering a primary residence or a second home, this report equips you with the latest data to make informed decisions and seize opportunities in one of the Mid-Atlantic's premier real estate markets.
Table of Contents
What You’ll Find in This Report
This report offers a deep dive into the real estate trends in Greater Annapolis, which we are defining as properties in Anne Arundel County worth over $1M.
Key Insights Covered:
Market Performance: Quarter-over-quarter and year-over-year comparisons on transactions, sales value, price per square foot (PPSF), and days on market.
Community Spotlights: Deep dives into the top-performing neighborhoods, highlighting local trends, new developments, and buyer demand.
Luxury Market Analysis: Breakdown of notable luxury sales, including the top sales, and what factors are driving premium prices.
Buyer Insights: A closer look at who is buying, including demographic data, preferences for waterfront vs. non-waterfront properties, and shifts in cash vs. financed purchases.
Visual Data: Graphs and charts to make key data points accessible, such as trends in inventory, average sale price growth, and notable sales over time.
Quarterly Forecast: Expert predictions for the next quarter based on current data, interest rate trends, and inventory projections.
Greater Annapolis Market Analysis
In Q3 2024, the Greater Annapolis market maintained strong momentum, although there were slight shifts in key metrics. The total number of transactions increased slightly by 2.34%, reflecting continued demand for properties in the region. However, waterfront transactions saw a year-over-year decline of 15.91%, signaling a potential shift in buyer priorities or available inventory.
Despite the dip in waterfront sales, the overall total sales value dropped by 5.01% year-over-year, settling at $212,999,511. The average sales price also declined by 7.18%, reflecting a shift in buyer behavior towards lower-priced or non-waterfront properties. Nevertheless, the price per square foot saw a modest increase of 1.10%, reaching $519.23, indicating that buyers are still willing to pay more per square foot for the right properties, especially in competitive segments.
Properties continued to sell at a steady pace, with the average days on market decreasing by 3.13%, down to 31 days compared to 32 days in Q3 2023
Key Metrics
Metric | Q3 2024 | Q3 2023 | % Change Year Over Year |
---|---|---|---|
Total Transactions | 131 | 128 | +2.34% |
Waterfront Transactions | 37 | 44 | -15.91% |
Total Sales Value | $212,999,511 | $224,230,055 | -5.01% |
Average Sales Price | $1,625,950 | $1,751,797 | -7.18% |
Price Per Square Foot | $519.23 | $513.59 | +1.10% |
Days on Market (Average) | 31 | 32 | -3.13% |
Waterfront Lifestyle Feature
Greater Annapolis offers an unparalleled lifestyle for those seeking waterfront living. The region provides quick access to the Chesapeake Bay, world-class marinas, and opportunities for boating, sailing, and water sports. Many homes feature private docks, offering the perfect retreat for waterfront enthusiasts.
Click below to view our complete waterfront guide to Greater Annapolis!
Curious what your waterfront property is worth? We do private consultations regularly and happy to do one for you as well. They don't always mean you're interested in selling. You can use our valuations to help with estate planning, financial forecasting or just for your own information.
Community Spotlights
Historic Annapolis offers a rare blend of historic charm, waterfront views, and a thriving cultural scene, making it one of the most sought-after neighborhoods in the region. The cobblestone streets and 18th-century architecture provide a picturesque backdrop for both residents and visitors, while a vibrant downtown offers shopping, dining, and cultural attractions within walking distance.
Q3 2024 Key Metrics:
Total Sales Value: $7,065,500
Average Sales Price: $1,413,100
Number of Transactions: 5
Average Days on Market: 7
Homeowners in this community are drawn to the area's rich history, including landmarks like the Maryland State House and St. John’s College. Despite its old-world charm, Historic Annapolis provides modern conveniences, with luxury homes featuring state-of-the-art amenities alongside preserved historical details.
This quarter, homes sold incredibly fast, with an average of just 7 days on the market, highlighting the fierce competition for homes in this prime location. Whether you’re looking for a historic home, waterfront property, or simply a walkable lifestyle, Historic Annapolis continues to stand out as a premier destination for luxury buyers.
Tucked away just west of downtown, West Annapolis is a hidden gem that combines a quieter residential feel with convenient access to Annapolis’ bustling city life. Known for its tree-lined streets and charming neighborhood vibe, West Annapolis is popular among families, professionals, and those looking for a close-knit community feel.
Q3 2024 Key Metrics:
Total Sales Value: $6,536,000
Average Sales Price: $1,307,200
Number of Transactions: 5
Average Days on Market: 5
The area offers a unique mix of locally-owned shops, cafes, and eateries, giving residents a small-town experience while being just minutes from downtown. Homes in West Annapolis often feature spacious yards and classic architecture, attracting buyers who appreciate a suburban lifestyle with the bonus of Annapolis’ waterfront and cultural attractions nearby.
This quarter, homes sold extremely fast, with an average of just 5 days on the market, reflecting high demand for this centrally located community. Whether you're seeking a family-friendly neighborhood or proximity to some of the best schools in the area, West Annapolis continues to be a top choice for those seeking a balance of convenience and tranquility.
Located just outside the bustling city center, Eagles Passages offers a serene and peaceful escape while still being a short drive away from the conveniences of Annapolis. This exclusive community is characterized by larger homes on spacious lots, surrounded by the natural beauty of trees and open spaces. Perfect for families or those seeking a more private, suburban lifestyle, Eagles Passages is ideal for those who appreciate tranquility and a close-knit neighborhood.
Q2 2024 Key Metrics:
Total Sales Value: $6,938,000
Average Sales Price: $1,387,600
Number of Transactions: 5
Average Days on Market: 24
The area provides easy access to outdoor activities, including nearby parks, walking trails, and the Chesapeake Bay, making it a haven for nature lovers. Residents enjoy a quiet lifestyle while being within reach of Annapolis’ shopping, dining, and waterfront amenities.
In Q3 2024, properties in Eagles Passages sold at a healthy pace, with an average of 24 days on the market, a reflection of the community’s appeal and desirability. With its spacious homes and proximity to nature, Eagles Passages continues to attract buyers seeking luxury living with room to breathe.
Luxury Sales
The luxury market in Greater Annapolis remained active in Q3 2024, with significant demand for high-end properties, especially large waterfront estates. This quarter's highest-priced transaction was a stunning estate on Roundhill Rd, which sold for $6.75 million. The continued desire for waterfront living and premium amenities kept competition high in this segment, with many properties selling swiftly.
The luxury real estate market in Anne Arundel County remains strong, with properties ranging from $1M to $6M. This demonstrates the high demand for premium homes, particularly in sought-after areas like Annapolis, Arnold, and Edgewater. Buyers are willing to pay top dollar for these properties, which contributes to the competitive sales environment.
Homes are selling quickly, with many properties closing in just a few days and often selling near or above the list price. This high demand is particularly noticeable in key areas like Gambrills, Davidsonville, and Severna Park, where luxury homes continue to move off the market rapidly.
Colonial, Craftsman, and Coastal-style homes dominate the luxury market, offering buyers modern amenities and appealing architectural designs. These properties tend to be in excellent or very good condition, further increasing their attractiveness to prospective buyers.
Financing for these homes remains stable, with most sales being standard and financed through conventional loans or cash offers. Many homes are also part of HOA communities, indicating well-organized neighborhoods with shared amenities and maintenance.
Buyer Insights
The buyer profile in Greater Annapolis continues to favor high-net-worth individuals seeking primary residences or weekend homes, particularly those with waterfront views or access to exclusive amenities. The third quarter of 2024 reflects a fiercely competitive market, with a particular emphasis on privacy, modern designs, and proximity to Annapolis' vibrant downtown and maritime culture. Buyer interest in properties that offer both scenic and lifestyle advantages has kept prices elevated, especially in sought-after areas.
Key Insights
Buyer Demographics: Many buyers are drawn from Washington, D.C., and Baltimore metro areas, reflecting a mix of high-income professionals, retirees, and second-home seekers. The influx of out-of-town buyers fuels demand for larger estates, luxury homes, and waterfront properties, where lifestyle and convenience intersect with prestige.
Property Preferences: Waterfront properties continue to top the list of priorities for buyers, with homes that feature direct water access, docks, and privacy commanding premium prices. Buyers increasingly seek new construction and turnkey homes, especially those with modern amenities, smart-home technology, and high-end finishes. There is also a growing demand for homes within walking distance of downtown Annapolis. Areas like Murray Hill and Eastport remain highly desirable for their easy access to cultural attractions, dining, and community amenities.
Financing Trends: Cash purchases dominate the high-end market, as affluent buyers capitalize on their liquidity and favorable market conditions. However, there is also significant financing activity in the $1M-$2M range, with buyers opting for mortgages at still-reasonable interest rates to maximize their investment potential in this price segment.
Eco-Friendly and Sustainable Living: Luxury buyers are increasingly attracted to homes that align with their environmental values. Many new homes in Greater Annapolis now feature eco-friendly systems such as solar panels, energy-efficient appliances, and sustainable materials. Buyers prioritize these features as part of their commitment to sustainability, without sacrificing the luxury and comfort they expect.
Quarterly Forecast (Q4 2024)
Market Outlook for Q3 2024
Continued Demand for Waterfront and Luxury Properties: Waterfront properties and homes with modern, high-end finishes will continue to command premium prices, particularly in the most desirable areas. The demand for privacy, scenic views, and direct water access should remain steady, even as the market cools slightly due to seasonal factors. However, the luxury segment is often less affected by seasonality compared to lower price points.
Slight Slowdown in Market Activity Due to Seasonality: As is typical in Q4, overall market activity may slow down slightly due to the holidays and winter months. However, high-net-worth buyers are less constrained by these trends, and serious buyers will continue to make moves, especially with interest rates still relatively favorable for financing.
Increased Interest in Sustainable Homes: As environmental concerns become more prominent, buyers will increasingly prioritize eco-friendly features such as energy-efficient heating systems, solar power, and sustainable materials. This trend is expected to grow, especially in the luxury market where buyers are looking for long-term investment value.
Stabilizing Home Prices: The rapid price appreciation seen in earlier quarters may stabilize as the market moves towards the end of the year. While the demand for luxury and waterfront properties will remain robust, the pace of price increases may moderate, creating more balanced conditions. However, limited inventory in prime areas could keep prices elevated, especially for homes with desirable features.
Potential Impact of Economic Trends: Broader economic factors, including inflation, interest rates, and stock market performance, may play a role in shaping the Q4 market. Affluent buyers who rely on investment portfolios to fund real estate purchases could be cautious if market volatility persists. However, the Annapolis market, with its proximity to major metropolitan areas and appeal as a retreat, is likely to remain resilient.
Exclusive Offerings for Buyers
Private Consultations and Home Tours
Interested in finding your perfect Annapolis waterfront home? Schedule a private consultation with us for a tailored home tour or to discuss investment opportunities. We offer exclusive access to some of the most desirable properties in the region.
In conclusion, the Greater Annapolis real estate market continues to thrive, driven by high-net-worth buyers seeking both primary and second homes, particularly those with waterfront access and modern amenities. While seasonal factors may lead to a slight cooling in overall activity, the demand for luxury properties remains robust, especially in desirable neighborhoods close to downtown Annapolis.
The market is also seeing increased interest in eco-friendly and sustainable living, aligning with broader trends in environmental consciousness. As we head into Q4, the Annapolis market is expected to remain competitive, with stable pricing and ongoing demand for premium homes, despite potential external economic factors. This resilience, combined with the area's unique charm and lifestyle offerings, positions Greater Annapolis as a sought-after destination for affluent buyers.
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