With the 2018 spring real estate season underway, prevailing market conditions in the Baltimore area are cause for excitement. Interest rates are rising, but still low. The economy is strong, and Maryland has been steadily adding jobs, with the highest growth in the Baltimore metro area of Baltimore-Columbia-Towson, according to the Maryland Department of Labor.
House prices are steadily rising too. Median prices in the Baltimore Metro area rose 6.5 percent in February over last year’s prices, with Baltimore City showing close to an 11 percent increase. Like it or not, rising prices are an indication of a healthy real estate market, with inflation likely to drive prices even higher in the future.
The problem, of which buyers are well aware, is inventory. Baby boomers, unsure of their next move, are holding onto their homes, and this winter, housing inventory in the Baltimore area hit lows not seen since 2005. “Sales volume is typically lowest in January, said Redfin senior economist Taylor Marr, “so that in itself is not a cause for concern.” Sure enough, April saw new listings up 16 percent since last month (although still down from last year) in anticipation of warmer weather and the end of the school year. By the end of the year, Zillow predicts home builders will be starting new construction in quantities that will start to close the gap.
READ FULL ARTICLE HERE
