Apr 10 2008
Baltimore Housing Market Showing Signs of Life
The Baltimore Business Journal reported a 22% increase in home sales between February and March in the Baltimore Area…up 47% from January. Perhaps this is a sign that the market has finally hit bottom. Click here to read the full article.
3 Comments to “Baltimore Housing Market Showing Signs of Life”
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Dear Jeff,
I am happy to see that there is a bit of an upswing in sales in the Baltimore area. Although, looking at last year at the same time, the sales are off by 34% or there of. Across the Bay Bridge in Queen Anne’s County the home sales are nearly off by 50% in comparison to March 2007. More information at: http://www.qachousingmarket.com
And to think this is our busy time. As a realtor, we are holding our breath and hoping for the best. This is a great time for investors who will be granted a $7,000 credit for purchasing foreclosures.
Interesting…is it the realty companies that are offering the credits for purchasing the foreclosures?
We’ll hit a bottom in terms of unit volume within the next year, but it could be more like 18-24 months before prices hit bottom. There is over 13 months of inventory on the market in Baltimore, and that is based on trailing volume, which is still falling, not to mention the fact that foreclosures are surging and builders are still building like crazy.
For prices to stay in equilibrium, there would need to be 3-5 months of inventory on the market. With 13-months of inventory on the market, prices still above the full cycle median in terms of price/ rents and price/ incomes, price must fall a good ways over the near-term for the market to clear. Its just basic economics. Thats not to say that their aren’t desparate people out there now willing to blow their houses out for whatever they can get right now. So I certainly would discourage anyone from putting in offers at “insulting” prices. You never know, you just might find a bargain.