Buy: Baltimore

Is Baltimore’s Housing Industry Entering a Catfish Recovery?

07/05/2011 02:15:02 PM: Selling homes in Baltimore and surrounding areas such as Fells point or Canton is currently on the u...

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Baltimore Foreclosures

02/15/2011 09:38:55 AM: With rising foreclosure notices being sent to borrowers and asset managers beginning to liquidate th...

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Real Estate Outlook 2011

01/03/2011 01:53:11 PM: Baltimore's real estate market at the close of 2010 had seen values continue to fall, inventory rise...

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Real Estate Outlook 2011

Published: 01/03/2011 01:53:11 PM

Baltimore's real estate market weakened following the first time home buyer tax credit expiration on April 30, 2010. Some economists thought the tax credit would stimulate enough activity into the market that the housing recovery would build momentum through 2010 and into 2011. Instead, Baltimore city's real estate market experienced declines in sale prices and number of homes sold following the tax credit. Further impacting the recovery process has been the media's sensationalism used when reporting on the housing market. Many prospective first time home buyers in Baltimore remain taken back by the overwhelming amount of inventory and do not feel that investing in a home is a safe and secure investment. Distressed homes, short sales, and foreclosures continue to dominant the activity in the Baltimore real estate market, increasing the inventory levels and impacting values of surrounding homes.

Full recovery of Baltimore's real estate market likely will not happen any earlier than 2012, but signs of the market beginning to level out are here. The key factors to watch in 2011 will be reducing the enormous amount of supply, conventional home sales becoming a bigger part of the market than distressed home sales, and small increases in values to help bring back consumer confidence.

Despite dealing with many of these lingering issues heading into 2011, there is still plenty of reason for optimism for buyers and a brighter future in store for sellers. Interest rates continue to remain at record lows, there is a high supply of inventory to choose from (over 7 months worth) and mortgage servicers have gotten better equipped to handle the high volumes of foreclosures and short sales in Baltimore. Baltimore also boasts a job market that remains strong and is expected to grow stronger through 2011 as nearly 11,000 new jobs move to the area as part of BRAC (Maryland's Base Realignment and Closure). As someone who is constantly asked when has the market hit bottom and when is the best time to buy or invest...the answer is 2011.

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