Low Inventory Is Still Driving Home Prices in Baltimore and Country at LargeApril 25, 2018
Low home inventory continues to strengthen the real estate market, with home prices in Baltimore and many other cities across the country steadily rising. The median home listing price in the nation in March was up 8% from last March to $280,000.
In comparison, the median home price in Baltimore City was up by 11% for a similar period, from February 2017 to this past February. And even though prices were higher for the entire Baltimore Metro area, prices hadn’t increased by as great a rate as in the city. Home prices in the metro were up by 6.5% in February year over year.
What’s the Inventory Situation in Baltimore?
Based on a recent article in the Baltimore Fishbowl, one of the reasons inventory is so low in the area is that baby boomers are staying put in their homes. But according to the article, things are on track to change. Warm weather is prompting more listings this spring, and the increased listings, combined with more new construction, is expected to boost inventory by the end of the year.
While many sellers have held onto houses over the past decade while they’ve waited for prices to rebound, now is actually a great time to sell in Baltimore. The former president of the Baltimore Board of Realtors, Ross Mackesey, was quoted in the Fishbowl on the subject: “People who bought at the height of the market in 2006 don’t have to sell. But now that prices have rebounded, the stock market is booming, and people are getting bonuses again, they are starting to put their houses on the market. It’s a great time to profit as a home seller.”
Competition Is Changing the Way Home Buyers Shop
The strong competition in the real estate market right now has caused home buyers across the country to adapt. For instance, one in three home buyers now makes an offer on a home sight unseen. And this number is even higher for millennials, with 40% now bidding on homes they’ve never seen in person.
To get sellers to accept their offers, many home buyers are also making offers that exceed asking prices. They’re also not requiring home inspections and not asking for contingencies from sellers, to encourage sellers to accept their offers.
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