Million Dollar Baby

Before, $1 million was a substantial amount of money to pay for a home in Severna Park and Arnold. For the five-year period of 2015-2019, homes sold above $1 million represented 3% of the total home sales in Arnold and Severna Park, so it was rare to see a home sale above the million-dollar mark. Of the 156 homes that sold above $1 million during that period, 71% were waterfront. Simply stated, the million-dollar category was dominated by waterfront sales for the first half of the last decade.

The data shows an incredible uptick in the five-year period of 2020-2024. Sales above $1 million exploded by 137% and waterfront was less than half of the sales above $1 million in Severna Park and Arnold. Water-privileged communities became destination communities and prices have soared.

It does not require a discerning consumer to notice the dramatic increase, but the explanation is far less obvious. In my professional opinion, there are five core reasons:

Reason 1: Stock Market Growth

The stock market experienced over 10% average growth for the 10-year period between 2015-2024, with only two years of pullback. That means investors doubled their equities (almost twice) during this period. Translated, it has been extremely pleasurable to open monthly statements for the last decade.

Reason 2: Home Values

Home values have risen by nearly 40% so buyers are able to sell their homes and move up. The large equity positions led to significant down payments, and the low inventory pushed their home values to unforeseen values. The idea of selling may not have been planned, but the opportunity to move up was tempting.

Reason 3: Renovated Homes

Our area experienced a renovation boom after the foreclosure crisis (2005-2009) and many of those high-quality homes became available for sale in the last five years. Residents enjoyed their renovations from 2010–2020. Many of the sellers were retiring and the timing was perfect to exit the market, coupled with the reality that buyers favor homes that do not require renovations.

Reason 4: Urban Migration

COVID forced the closure of office work, and working from home became an option for much of the workforce. Urban dwellers from Baltimore and Washington, D.C. flooded our market as homebuyers, and they brought an increased buying power. They have been in pursuit of an outdoor lifestyle with easy access to major metropolitan markets and great public schooling. Severna Park and Arnold check all of those boxes.

Reason 5: Scarcity of New Homes

There simply are not many new homes being built in Severna Park and Arnold. The demand for housing in our area has been outpacing the supply, and general economic forces would tell us prices therefore rise.

The data is very encouraging for our local market. Older homes continue to be renovated, and I would like to make a bold prediction that teardowns will become the norm and residents will build new homes on desirable lots in desirable communities.

David Orso was born and raised in this community and is a proud graduate of Severna Park High School. He is a local market expert whose office is based in Severna Park at the corner of Evergreen Road and Riggs Avenue. Orso has been a top agent in Severna Park and Anne Arundel County for sales since 2013 and has almost 400 five-star reviews online. David and Dawn Orso are well known for their philanthropy and community involvement. They have three children, and outside of kids’ sports, they spend their time playing golf and tennis at Chartwell Golf and Country Club or boating on the Chesapeake Bay.

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