Demand For Baltimore Homes Still High Despite Declining In October
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Demand for homes in Baltimore remains high, Bright MLS’ recent housing market update reveals. Notably, median home prices peaked at $355,000 with materials price hikes, construction and manufacture delays, and countrywide labor shortages collectively responsible. Although Baltimore real estate has long-been considered affordable, the recent pandemic-driven change in consumer habits has resulted in price hikes across the region.
Median sales price
Baltimore had a median home sales price of $335,00 in October, roughly a 5% increase from October 2020 and a 20% increase from October 2019. So, despite falling buying demand (likely due to seasonality), sellers nevertheless continue to fare well on the market. Baltimore City had the largest increase in median sales prices: $210,000, a 14% hike from 2020 and 36% from 2019. Close behind was Howard County with a $495,000 median, a 13% increase from 2020 and 23.8% from two years ago. Whatever the price of real estate, Baltimore residents often need financial aid to successfully purchase affordable homes. Mortgages insured by the Federal Housing Administration (FHA) are particularly helpful for buyers in tough financial situations. FHA mortgage companies facilitate better deals for buyers with lower down payments and closing costs.
Closed sales in October reached 3,943 in the Baltimore metro area, down from 4,200 in September and almost a 10% decrease from 2020. However, this is still a 24% increase from October 2019, and demonstrates the lingering effects of high demand and limited supply on the area. Baltimore County had the most sales (1,060), while Anne Arundel County had 950, Baltimore City 899, Howard County 424, Harford County 370, and Carroll County 240.
Declining supply levels
Supply levels remained consistent between September and October. In the metro area, just over one month’s supply is available, meaning it would take around just one month for consumers to purchase all the homes for sale. Conversely, a six-month supply is considered healthy and has been the norm for Baltimore over the last decade. But, even before the pandemic, levels were dwindling, down to under two months’ volume by October 2019.
Across the region, mid-priced single-family homes and cheaper condos are the lowest in supply, while more expensive single-family homes and condos are in higher supply. Unfortunately, low inventory is expected to make it harder for first-time buyers and those in financial hardship to get their foot on the property ladder.