Buying or selling a home is a major life decision. It significantly impacts your financial standing and reinvents the future you’ve designed for yourself. While these moves can be incredibly exciting, they can also feel slightly daunting, especially since the real estate market is always changing, particularly in the wake of the COVID-19 pandemic.
In such a transformative landscape, it can be tough to keep up with changing trends and how they will affect your purchase or sale. If you’re thinking of buying or selling in Baltimore, try not to stress. We’ve got you covered with this handy guide to understanding the Baltimore real estate market.
The Important Figures
According to this article, the median sale price of a Baltimore home in July 2021 was roughly $225,000. This means that half the homes sold for more than $225,000 while the other half sold for less. The total number of homes sold during this month was 1,152 (up from 1,097 in July 2020). The median number of days on the market was 20 (a massive 52.4% decline year-over-year).
Baltimore house prices surged in April 2021, with the median price hitting $330,000. More specifically, median sales in Baltimore, Baltimore County, and Anne Arundel County reached peaks of $218,000, $285,000, and $415,000, respectively.
As reported by Forbes, the Baltimore real estate market has seen steady growth in recent years, with the median sale price of homes rising by 10% year-over-year.
Overall, the Baltimore real estate market is considered to be slightly competitive. On average, homes sell for 2% above asking price; however, some high-demand homes (also known as “hot homes”), can sell for roughly 4% above asking price.
In 2018, Baltimore was listed as one of the worst cities in the United States for foreclosures. That year, the foreclosure rate in Maryland was 0.86%, which was double the national average. It was the third highest ranking, coming behind New Jersey and Delaware.
However, foreclosure rates in Baltimore lowered in the following years, likely due to the ban on such actions following financial hardship caused by coronavirus (COVID-19). The moratorium was initially meant to conclude in May 2021, but was ultimately extended to July 31, 2021. Although certain entities, namely the Consumer Financial Protection Bureau, have suggested prolonging the ban into 2022, we have yet to see any such extension.
Despite the lack of extension, analysts say that a spike in foreclosure rates is unlikely.
Tips For Selling or Buying a Baltimore Home
Now let’s explore some important tips you must keep in mind when buying or selling a home in Baltimore.
Tips for sellers:
- Price your home reasonably (based on size, location, and market value)
- Showcase the potential
- Consider home staging to help buyers visualize themselves in the space
- Consider completing some upgrades and/or repairs to boost list price
- Remove clutter to make the home as inviting as possible
Tips for buyers:
- Do your research on the market value of homes in different areas
- Walk around various neighborhoods to get a feel for their livability, safety, etc.
- Consider recruiting a realtor to assist you
Baltimore’s real estate market is always changing and evolving, which is why it’s so important to stay up to date on recent trends, regardless of whether you’re buying or selling. With this information, you hopefully have a better understanding of the Baltimore real estate market and feel more confident navigating it.