Home Buying In Baltimore Amid Covid 19 Pandemic: An Update

The world was badly devastated by the recent Covid-19 pandemic. All sectors were not spared to its effect economically and financially – including the real estate market. Now that the world is starting to recover from the effects of the recent pandemic, it’s about time we go through the current real estate market conditions in the city of Baltimore as well as the quantifying the extent of COVID-19 effect to the city’s housing market.

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Home Buying In Baltimore Amid Covid 19 Pandemic An Update

Just as everyone else expected, the housing market in Baltimore remains flat in April and May where the COVID-19 pandemic is at its peak as far as the number of infected is concerned. Melody Simmons of Bizjournals.com wrote an interesting article that discussed the recent April home listing hitting a 10-year low in the Baltimore area as part of the COVID-19 effect in the real estate market. Check out the article below and find out more about this not so good news.

Baltimore-area April home listings hit 10-year low

A pause in the residential market last month blamed on Covid-19 led to a 10-year low in new listings around the Baltimore metro area, a new report showed.

The report used data provided by MarketStats by ShowingTime. It is based on listing activity from Bright MLS and showed that sellers impacted by the novel coronavirus declined to put their homes on the market, creating the highest year-over-year decline in 10 years.

“In April, the area felt the effect of COVID-19 related stay-at-home and social distancing orders put in place during late March,” the report said. “Potential new sellers opted to pause putting their homes on the market.”

The strain on listings, though, had a boomerang effect on sales prices, the data showed. The narrow supply of homes resulted in a boost to the median sales price for a home in the Baltimore metro area to $300,000 — the highest in a decade. By comparison, last year’s median sales price during April was $275,000 and that figure for the same month in 2019 was $267,900.

The data reflected a national trend in the residential housing market as the Covid-19 pandemic continues to impact local and state economies and everyday life. Similar home sale data has been reported across the U.S. as in-person home tours have all but ground to a halt and most potential buyers are sheltering in place rather than seeking to move.

Bright MLS officials said that could reverse in the coming months as those stay-at-home orders are lifted and interest rates remain at record lows.

“While sellers are holding off listing, they still desire to enter the market when social distancing regulations relax, indicating a future surge in properties for sale,” the agency said. Read full article here…

The COVID-19 pandemic has prompted the real estate market to pause, which resulted in a whopping 10-year low primarily in new listings around the Baltimore area. This is expected as both the local and state economies still suffering from the effects of the pandemic, causing potential home buyers are forced to stay inside their homes than going out. However, things could get better as the country is slowly recovering from the pandemic, economies and the housing market starts to normalize.

Also in an article published by Hallie Miller of The Baltimore Sun, the city of Baltimore saw a decade-low volume of new home listings amid COVID-19. Read the article below to find out more.

Baltimore region housing market sees decade-low volume of new listings amid coronavirus, but there are glimmers of hope

Baltimore’s real estate market slowed dramatically in April as the coronavirus pandemic continued to disrupt the normal behavior of the state’s economy — and potential sellers and buyers

The number of homes sold last month fell to a five-year low, while new listings of homes for sale plunged to a 10-year low, according to new data. However, the data published Tuesday by Bright MLS also shows that local homebuyers have laid claim to much of the available housing inventory, a phenomenon that experts and real estate professionals said gives them confidence the market will rebound quickly once Maryland begins to ease its stay-at-home restrictions.

Just over 3,000 homes sold in the Baltimore region, which includes the city and Anne Arundel, Baltimore, Carroll, Harford and Howard counties, the MLS data shows. That’s the lowest level for April since 2015.

New listings in the region stood at 3,628, the fewest in a decade for April, which is a prime month for putting homes on the market.

But, with less inventory to choose from, buyers were bidding properties up and moving more quickly. The region’s median sales price jumped by $25,000 to reach $300,000 in April, the highest for that month in the past 10 years, the MLS data shows. Meanwhile, many homes were sold in less than two weeks as the median number of days on the market dropped to 12 days in April from 27 a year ago.

“What’s out there is selling, and selling at a good price,” said Chris Finnegan, a spokesman for Bright MLS, which represents thousands of real estate professionals in the Mid-Atlantic region. “People are just not as apt to put their stuff out there during this window.” Amid the unpredictable financial climate, potential clients are more risk-averse, whether to attempt to sell or buy a home. Either requires interaction with others outside their immediate family, whether it’s having strangers tour your home or touring someone else’s home. Read full article here…

While home listings saw a decade low in numbers, real estate market experts see some glimmers of hope as during this time of the pandemic, potential clients are more risk-averse regardless of they are buying or selling a home. New data also claims that Baltimore’s local homebuyers have laid claim to a handful of available housing inventory, and this data gives confidence to real estate market experts that the housing market will surely bounce back.

While real estate professionals in Baltimore are optimistic that the local real estate market will bounce back, U.S home prices on the other hand continue to rise as the real estate market continues its slow recovery from COVID-19. Pete Catapano of Mansion Global digs deeper into this development.

U.S. Home Prices Rise as Real Estate Market Continues Its Slow Recovery From Covid-19

The U.S. real estate market is emerging from its spring nadir brought on by the coronavirus pandemic, as prices rise and inventory slowly rebounds, according to realtor.com’s monthly housing trends report released Thursday.

Amid decreasing inventory and miniscule price growth, the overall housing market reached a low point in mid-April, the report said, only to see the median listing price surge to a record of $330,000 in May. Year-over-year that marked a 1.6% increase.

“May’s home price data demonstrate the underlying strength of the U.S. housing market despite the challenges brought by the Covid-19 pandemic,” realtor.com’s chief economist, Danielle Hale, said in the report.
“The fact that home prices are at an all-time high shows that the momentum the market had prior to the pandemic has helped to keep buyer and seller expectations stable. Ongoing inventory shortages, that continue to worsen, also push home prices higher even while homes sell more slowly,” she said.

The areas with the highest annual median price growth in May were Los Angeles-Long Beach-Anaheim, California (+14.9%) and Pittsburgh (+14%).

Though the price increases are bringing a semblance of stability to the real estate market, many cities have been hammered by a dearth of available properties.

Metro areas that saw the biggest declines in active listings year over year in May were East Coast regions hit hardest by the coronavirus, The top three are: the region encompassing Philadelphia; Camden, New Jersey; Wilmington, Delaware and parts of Maryland (-38.6%); Providence-Warwick, Rhode Island and parts of southern Massachusetts (-35.8%); and Baltimore-Columbia-Towson in Maryland (-34.5%). Click here to read more…

With people throughout the country are forced to leave their homes, the demand for home buying and selling tremendously dropped, which resulted into rising in home prices Though the price increases are bringing a semblance of stability to the real estate market, many cities have been hammered by a dearth of available properties. Until things start to normalize as far as the movement of people is concerned, these numbers will not show significant changes.

With home prices on the rise, it is a good time to sell your house fast for quick cash. If you don’t know how to it during these times, Dependable Homebuyers can help you sell your house fast by finding the right buyer for your property. To learn more, check out this link https://www.dependablehomebuyers.com/sell-your-house/ and let’s get started.

Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
(443) 266-6247

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