BALTIMORE, MARYLAND - Real estate statistics and trends for Baltimore show that the median home price is still higher than the national average. However, home sales volume is down. In addition, interest rates are increasing. Home prices will continue to rise in Baltimore as inventory levels remain limited. This article will explore key factors affecting home prices and trends in Baltimore.
Rents In Baltimore Increased By 10% Year-over-year
The average rent for a four-bedroom apartment in Baltimore, MD, is $1,900. This is a decrease of 10% year-over-year from the previous year. The median rent for a three-bedroom apartment in Baltimore is $3450. The increase in rent is largely due to higher prices for homes near public transportation.
The national index of rents rose 0.5 percent in August, which is slower than last month's increase. While the growth rate is below the historical average, the rate of rental inflation is still higher than before the pandemic. In 2022, rents are up 7.2 percent, which is still higher than the 14.8 percent increase in 2021. However, year-over-year rent growth has slowed from last year's high of 18 percent.
Interest Rates Are Increasing
The recent rise in interest rates has slowed Baltimore's real estate market. This increase is largely attributed to the Federal Reserve's ongoing effort to control inflation. The average commitment rate for a 30-year fixed-rate mortgage is now 2.27 percentage points higher than last year. This will likely slow demand for homes and drive down home values.
The average home value in Baltimore is expected to decline by 0.5% in the coming years. While the housing market has experienced constant price increases for years, the economy has slowed, which means fewer buyers compete for limited inventory. Despite this price drop, this market still has a lot of potentials.
Home Sales Volume Is Down 10 Percent Year-over-year
The Baltimore, real estate market is experiencing a slight decline in sales volume, with fewer properties on the market than last year. Although the number of homes on the market has dipped in recent months, it remains far above the five-year average. The number of unsold homes is up slightly more than 1% from last month, which is still significantly lower than last year. The median list price increased by 14.3% year-over-year.
Despite the drop in sales volume, prices are still rising in the Baltimore region, even if at a slower pace than last year. As of July 2018, the median home sale price in the Baltimore region was $369,450, up 5.3% from a year earlier. At the end of July, there were 4,648 active listings in the Baltimore region, an increase of 18.7%.
Low Foreclosure Rate
If you're interested in purchasing a home in Baltimore, you should consider the market trends and current low foreclosure rates. Foreclosure rates are expected to increase slightly in the coming months, but the Baltimore metro area has a low inventory compared to the demand for homes. For example, in January 2022, there was only one month of housing inventory, which was significantly lower than last year and July 2021. As a result, sellers were in the driver's seat, and most units sold for their asking price.
Foreclosure starts have increased steadily over the last few months, and ATTOM Data Solutions considers the increase to be a sign that the foreclosure market is returning to normal levels. In August 2022, the number of foreclosures starts was more than eighty percent of August 2019. Still, experts believe the foreclosure rate will remain below the level before the foreclosure pandemic. This is due to the fact that the majority of borrowers who are facing foreclosure have some equity in their homes. Because of this, they can sell their homes at a profit and avoid foreclosure auctions and lender repossessions.
Impact Of Amazon Fulfillment Center On Baltimore's Real Estate Market
The impact of Amazon's fulfillment center on Baltimore's real estate market is likely to be dramatic, especially if it is built near jobs. The company has already set up dozens of warehouses in the city, including a one-million-square-foot facility in Southeast Baltimore. As of June 2018, the company employs more than 29,000 people in Baltimore. It has also added sort centers and last-mile delivery outposts.
The city's real estate market is also supported by the low unemployment rate and the high proportion of working-class renters. In October 2021, the unemployment rate in the Baltimore-Towson, MD, area was only 4.9%, down from 6.4% in June 2021. As more Americans receive vaccinations and restrictions are eased, unemployment figures are expected to continue to drop.