The Baltimore real estate market has experienced notable shifts and trends, impacting both buyers and sellers. With a significant decrease in new listings and closed sales, market conditions indicate slow activity. However, limited supply and high demand create a sellers market, giving them more negotiating power. Despite challenges, Baltimore’s affordability, strong rental market, and diverse economy make it an attractive option for both investors and homebuyers. Additionally, the city’s historic charm and access to prestigious higher education institutions contribute to its appeal. In this article, we will explore the prices, trends, and forecast for the Baltimore real estate market in 2023.
Housing Market Conditions and Outlook
The Baltimore real estate market is experiencing a decline in new listings and closed sales, indicating slow market conditions and a continuation of the seller’s market. In July, there were only 2,852 new listings, a significant decrease of 38.7% compared to the previous year. This marks a more than 20-year low in new listings. Closed sales also saw a decline of 18.4% compared to last year. The low inventory has had a direct impact on home prices, with the median sales price increasing by 2.9% from the previous year to $380,000 in July. Despite this, prices in Baltimore City have fallen in 6 of the past 7 months, but they are still nearly 30% higher than before the pandemic. The limited supply and high demand have created a sellers’ market, where buyers may need to compromise on their preferences. Overall, the Baltimore housing market trends suggest that low inventory is driving up home prices.
Baltimore Closed Sales and Median Sales Price
An analysis of the Baltimore real estate market reveals a decline in closed sales and a 2.9% increase in the median sales price, indicating the current state of the market. The impact of low inventory on closed homes for sale is evident, with new listings at a more than two-decade low, down 38.7% compared to last year. Closed sales in July were down 18.4% from the previous year and 28.8% from 2019. Limited supply and high mortgage rates contribute to the low sales. On the other hand, the effect of high mortgage rates on the median sales price is apparent, as the median price increased by 2.9% from last year. Despite a drop in prices in Baltimore City over the past few months, they remain nearly 30% higher than pre-pandemic levels. The market outlook suggests a continuing seller’s market due to low inventory and stable or rising home prices. Prospective homebuyers may need to compromise on home or neighborhood characteristics, while sellers have more negotiating power. Overall, the Baltimore real estate market is experiencing challenges due to low inventory and high mortgage rates, resulting in a decline in closed sales and an increase in the median sales price.
Buyers or Sellers Market
Due to limited inventory and high demand, the Baltimore real estate market is currently leaning towards a sellers market, where sellers have more negotiating power and buyers may need to compromise on their preferences. Factors influencing buyer and seller dynamics include a high percentage of sales occurring over the list price, the rapid pace at which homes are going pending, and the limited inventory compared to high demand. The impact of low inventory on the market is evident in the new listings, which reached a more than two-decade low in July, with a 38.7% decrease compared to last year. This has led to a decrease in closed sales and an increase in median sales price. Despite these challenges, the Baltimore housing market remains vibrant and competitive, making it an attractive option for real estate investment.
Baltimore Real Estate Investment
Investors looking to capitalize on the growing population and diverse economy of Baltimore should consider real estate investment opportunities in the city. Baltimore offers affordable properties and a strong rental market, making it an attractive option for investors. The city’s population growth has led to increased demand for housing, creating opportunities for rental income. Additionally, Baltimore’s diverse economy, with industries such as healthcare, technology, finance, and education, provides a stable foundation for real estate investment. The table below highlights some key market conditions and outlook for the Baltimore real estate market:
| Market Conditions | Data |
|---|---|
| New Listings | Down 38.7% YoY |
| Closed Sales | Down 18.4% YoY |
| Median Sales Price | Up 2.9% YoY |
| Sellers Market | Limited inventory |
| Rental Market Growth | Strong demand |
Investing in Baltimore real estate offers the opportunity to benefit from affordable prices, a growing population, and a thriving rental market. With its historic charm, access to higher education institutions, and proximity to major cities, Baltimore has the potential for long-term growth and profitability in the real estate market.
Historic Charm and Access to Higher Education
With its unique character and proximity to prestigious universities like Johns Hopkins and the University of Maryland, Baltimore attracts a significant number of students, faculty members, researchers, and professionals in need of housing. The impact of these universities on the real estate market in Baltimore is undeniable. Here are some key points to consider:
- Baltimore neighborhoods and their unique character: The city is known for its diverse and vibrant neighborhoods, each with its own distinct charm and atmosphere. From the historic rowhouses of Federal Hill to the trendy cafes and boutiques of Hampden, there is a neighborhood to suit every taste and lifestyle.
- Increase in property values and rental prices: The presence of renowned universities like Johns Hopkins and the University of Maryland not only attracts students but also drives up property values and rental prices in the surrounding areas. This demand for housing creates a competitive market for buyers and renters alike.
- Economic growth and development: The universities also contribute to the economic growth and development of the city. They bring in research grants, attract talent and businesses, and create job opportunities, all of which have a positive effect on the real estate market.
Overall, the presence of prestigious universities in Baltimore adds to the city’s appeal and has a significant impact on its real estate market, making it an attractive destination for both residents and investors.
