Home sales in the Baltimore area soared to the highest level for May in nearly a decade and prices continued to rise as the region's housing market continued a strong spring.
Roughly 3,710 homes changed hands last month in Baltimore City and its five surrounding counties, a 15 percent increase from May 2015, according to a report released Friday by ShowingTime RBI, a firm that provides software and market data to the real estate industry.
The activity extended a 22-month streak of year-over-year growth and took a bite out of the number of homes available. There were 12,196 listings last month, down more than 10 percent from May 2015, according to the report, which is based on listing activity from the MRIS multiple listing service.
As supply fell, prices edged up.
The median sales price for the region increased 4.8 percent from May 2015, hitting $262,000 last month. That's the highest of any month in nearly two years and less than 5 percent below the May peak in 2007, before the housing bust.
"The sun came out here at the end of April, and our buyers were ready to go," said Ivy Gifford, a real estate agent in Carroll County, where she is opening a new Keller Williams office and where sales spiked 29 percent year over year. "They were excited. They felt some urgency."
Rising prices also reflected a decline in distressed sales, including foreclosures, which typically fetch lower sums. Distressed sales in the region fell 10.5 percent year over year to 573, while their median price increased.
Not including distressed sales, last month's median price in the metro area was $289,900, essentially flat compared to May 2015.
Maryland has seen less price appreciation than other parts of the country in recent years, but if supply continues to drop, prices are likely to climb faster, said Jonathan Hill, vice president of communications and marketing for MRIS.
There were just 5,757 new listings in May, down 5 percent from a year earlier, according to the report. And fewer sellers than expected listed homes in the previous months as well, he said.
"We're concerned that inventory doesn't look like it's going to keep up and that pushes the pedal to the metal on … sale price," he said. "I don't know what it's going to take to bring that inventory to market."
The number of people who owe more on their mortgage than the value of their house also has fallen, but the relatively limited price appreciation may still constrain some sellers looking for their next home, said Daraius Irani, senior economist at Towson University's Regional Economic Studies Institute.
That may tilt demand to lower price brackets or keep sellers on the sidelines waiting for more equity to build, analysts said.
"We're getting better," Irani said. "We haven't fully recovered — that might be too bold of a statement."
At the top of the market, many homes are still sitting for extended periods, but things have gotten better as the economy improves, said T. Ross Mackesey of Long & Foster's Timonium office.
"I feel as though we're at the beginning of being able to predict steady growth," he said. "The best thing for real estate are jobs."
The month's results continued long-standing regional trends.
Howard County remained the most expensive market, with a median sales price of $415,000, up 3.8 percent from May 2015. Sales grew 8.9 percent.
Baltimore City held its place as the most affordable market. It experienced the greatest price appreciation, with the median jumping 9.2 percent year over year to $155,000. Sales increased 11.7 percent.
"We're getting calls nonstop," said Rodney Dotson, a real estate agent with the Charm City Team of Keller Williams Legacy, which specializes in West Baltimore neighborhoods, including Reservoir Hill, Bolton Hill and Ashburton.
Investors and others are sensing opportunity, as the government and other groups focus more attention on West Baltimore, he said.
"Specifically in West Baltimore, I know that there is a buzz because there is a renewed sense of community," he said.
Carroll County had the second-highest level of price appreciation. The median price climbed 8.7 percent from May 2015 to $314,000.
More buyers are turning to Carroll for its big, relatively new homes, with prices that are comparable to — or lower than — areas like Timonium and parts of Howard County, said John Kessler, a Timonium-based real estate agent with Long & Foster.
"If it's a nice house in a good location with any updates, it is very, very active," he said.
Anne Arundel County followed Howard in terms of expense, with a median price of $329,295, essentially flat from last year. Sales increased 21 percent.
In Baltimore and Harford counties, the median rose 3.8 percent year over year, reaching $230,000 and $244,000 respectively. Sales rose 19.7 percent in Harford and 11 percent in Baltimore County.