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July 20, 2024

Baltimore, MD - Real Estate Market Overview 2024

Zoe Harper

Marketing

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The Baltimore housing market is on the up. In June 2024, median sale prices hit $240,000. This is a 4.3% increase from last year¹. Homes are taking a bit longer to sell, staying on the market for around 36 days¹. Also, there's been a drop in the number of homes sold, down 25% from June 2023 to 652 homes¹.

Trends in Baltimore's real estate market show prices climbing, but sales are stabilizing. This makes the city an appealing place for real estate investors. It offers affordability, growing job opportunities, and a love for urban living. Getting advice from a real estate expert can help you understand this changing market.

Key Takeaways

Baltimore's median sale price increased by 4.3% year-over-year to $240,000 in June 2024¹.
Homes in Baltimore are now spending an average of 36 days on the market¹.
Sales volume has decreased significantly, with only 652 units sold in June 2024¹.
The market speed is slowing down, but prices continue to rise.
Real estate investment in Baltimore remains attractive due to its affordability and job growth opportunities.

Current Housing Market Trends in Baltimore

The real estate market in Baltimore is experiencing notable shifts that are reshaping buyer and seller dynamics. These changes are highlighted through various metrics, including the median sale price, days on market, and overall sales volume.

Median Sale Price

The median sale price for Baltimore homes saw a significant increase in June 2024, reaching $412,500, which represents a 7.1% rise compared to the previous year². Additionally, the Baltimore median sale price stands at $239,000, marking a 4% increase year-over-year¹. This shows the continued desire for homes, even with the financial changes.

Days on Market

There has been a slight deceleration in the market pace. On average, homes are now taking about 34 days to sell, a bit slower than the 36 days before¹.

Yet, half of the homes are sold in less than a week, showing a strong and quick market². This shows the high interest from buyers in Baltimore's market.

Sales Volume

Sales volume has seen a noticeable decline, with June 2024 recording 652 units sold, a 25% decrease from the previous year¹.

In the same month, sales dropped to 695 properties from the 896 sold the previous year². This decline is mainly due to the rise in mortgage rates, making buyers more cautious². Despite this, the Baltimore market still offers good options for long-term investors, thanks to steady demand.

Buyer’s or Seller’s Market?

To know if Baltimore is more for buyers or sellers, we look at different things. This includes how much homes cost, the kind of market it is, and what pushes changes. In the past, Baltimore has been great for sellers. Homes sell fast and often for more than they're listed for.

Market Type

Right now, Baltimore is still a seller's market. The prices of homes have been beating the five-year average, showing a strong market that favors sellers³. Even though prices are growing by about 2.5% every three months, which is slower than before, it still shows people really want these homes⁴. This points out how lively Baltimore's market is.

Price Trends

The prices for homes sold in Baltimore have grown a bit by 2.4% since June 2023. This shows a steady but slow increase³. By July 2023, the median home price hit $290,000. This is more than the five-year average of $266,980⁴. Part of this growth is because homes sell quickly, with few days on the market.

Market Dynamics

Buying or selling in Baltimore is affected by not having enough homes available and lots of people wanting them. Homes are usually taken off the market in about 15 days³. The number of homes for sale has really dropped, from 9,900 to 6,491 within a year as of July 2023⁴. This low supply and high demand, along with job growth and special programs for buying homes, make the market competitive. Places like Johns Hopkins University also help in boosting the local economy³. For more info, check out this detailed guide on Baltimore's real estate.

Factors Affecting Baltimore's Housing Market

Many factors shape the real estate market in Baltimore. We'll explore how interest rates, economic conditions, and population growth impact it.

Interest Rates

Low interest rates have previously helped Baltimore's market, making loans easier for buyers. Recently, however, Baltimore interest rates have started to rise. This could change how people buy homes. Home prices have been going up due to few houses being available⁵.

Economic Conditions

Local employment rates, job diversity, and income levels are crucial for Baltimore economic growth and its housing market. Big employers like Amazon's fulfillment centers offer many jobs, boosting the economy⁵. Top schools like Johns Hopkins University and the University of Maryland draw many people. This increases demand for homes and makes the market competitive⁵. Baltimore's median income is $83,811, showing its economic strength⁶.

Population Growth

Population trends also shape Baltimore's housing market. With steady population trends Baltimore, the city attracts working-class renters due to affordable housing⁵. Colleges in the area mean more students need housing too. This keeps the housing market competitive⁵.

Median Prices by Property Type and Bedroom Count in Baltimore

Get to know the median prices of Baltimore properties, including homes by how many bedrooms they have. This gives a clear picture of what real estate costs in Baltimore. It's vital to note how single-family homes and condos differ in price changes.

Single-Family Homes

Single-family homes in Baltimore are becoming pricier. In particular, detached homes have risen by 6.3% in the last year⁷.

This upward trend shows a strong desire for these types of homes. They are becoming top picks for buyers.

Condominiums

However, the condo market in Baltimore is going through a tough time. For the first time since June 2020, their prices dropped. This marks a change in what buyers are looking for⁷.

Even so, condos in Southeastern Baltimore are priced high. Their median value stands at $650,000, with some as high as $675,000⁸.

Price by Bedroom Count

The value of homes based on the number of bedrooms is also telling. One-bedroom homes have seen the biggest jump, by 12.6%, to $170,000⁷.

Two-bedroom homes went up a little, by 2.5%. Now, they're valued at $235,600⁷.

Three-bedroom homes are chosen often by families. They've grown in value by 7.8%, reaching $314,900⁷.

Four-bedroom homes are more expensive now too, by 5.7%, costing $420,000⁷. Lastly, the biggest homes, with five bedrooms or more, kept their price steady at $600,000⁷.

Comparing Baltimore to Nearby Cities

When we look at real estate in Baltimore and its neighbors, we see clear differences. Baltimore has a mix of home prices and market trends. This tells us a lot about what's happening in each place.

Price Variations

Baltimore's homes are among the cheapest in the U.S., with a median price of $180,200. This is less than in cities like Philadelphia, where homes cost about $205,900⁹. In Brooklyn, Halethorpe, Gwynn Oak, and Dundalk, prices are changing. This affects their market profiles.

In Baltimore, neighborhoods like Canton and Patterson Park offer homes ranging from $300,000 to $1,250,000. This attracts many different buyers¹⁰. Despite the price differences, each area shows unique market trends and values. This helps us understand the real estate scene better¹¹.

Market Stability

Stability is important in comparing Baltimore to other cities. Baltimore saw a 8.8% rise in home values over the past year, unlike Philadelphia's 7.1%⁹. Over 10 years, Baltimore's home values grew by 52.0%. Philadelphia, however, outpaced this with a 74.4% increase⁹. These numbers show how different the growth is in each place.

The foreclosure activity and how packed neighborhoods are in Baltimore add to the story. A closer look at each neighborhood reveals more¹¹.

Differences in price changes and growth rates paint a picture of a complex housing market. Still, Baltimore stands out for its affordability and investment potential. Its real estate market is unique compared to neighboring cities⁹.

Baltimore’s Real Estate Investment Potential

Baltimore is a hotspot for real estate investments, thanks to its varied economy and growing appreciation rates. The city's median home value is around $205,016. In the Baltimore-Columbia-Towson area, it's higher at $367,861 as of January 31, 2024¹². Baltimore’s affordability, compared to nearby cities, makes it very attractive for investment opportunities Baltimore.

The city's dynamic market is driven by its economic state and job openings. Johns Hopkins Hospital greatly influences the market. Changes in unemployment rates have a direct effect on the housing scene¹². Also, the presence of Johns Hopkins University boosts the demand for rentals. This is good news for landlords and investors¹².

Despite limited inventory, single-family homes are in high demand. February 2024 saw a 5.0% rise in homes for sale in Baltimore, totaling 6,777¹². Yet, the market remains tight with listings moving fast, typically within 15 days¹². This shows the strong potential for profitable Baltimore real estate investing.

Those eyeing property investment Baltimore should note the varying prices across neighborhoods. Places like Harbor East are pricier than Park Heights¹². Baltimore’s median sale price is $187,000 and price per square foot is about $143. This promises attractive investment returns¹². Foreclosure deals also offer a chance to buy below market value, possibly earning big rewards¹².

Baltimore’s rental market adds to its investment appeal. As of January 2024, there were 3,519 rentals available¹². With its vibrant culture and diverse housing, the city draws a varied crowd. This solidifies its appeal to both newcomers and experienced investors.

For more insights into Baltimore’s real estate and its opportunities, check out this comprehensive guide ¹².

Inventory and Housing Supply in Baltimore

In Baltimore, the number of homes for sale went up by 1.9% from May to June 2024. This is good news for people looking to buy or sell homes, offering them more choices. At the same time, there were plenty of homes sold, keeping Baltimore’s real estate market busy and competitive.

Homes for Sale

By June 2024, there were 4,866 homes on the market in Baltimore, with the median price at $415,000¹³. This spike in availability could give buyers short-term relief in a usually tight market. But, the big picture still shows a challenge for buyers due to ongoing scarcity.

New Listings

During this time, there was a 12% drop in new home listings in Baltimore¹³. For buyers and sellers, strategic planning is key due to these inventory limits. Even though fewer homes were sold compared to last year, there was a 5% uptick in homes under contract, showing strong demand¹³.

Supply vs. Demand

Baltimore’s housing market clearly has strong demand, regardless of inventory and listing shifts. The ratio of sale price to list price was 101.5%, showing homes often sell for more than their listed price¹³. This competitive scenario emphasizes the need for good advice and timing for real estate investments in Baltimore.

The supply saw a slight 8% increase compared to last June, a bit of good news for buyers. However, the average time homes spent on the market went up by 5%, to 20 days¹³.

Baltimore, MD - Real Estate Market Overview

The Baltimore housing market is changing fast, drawing in both buyers and sellers. This past year, home values went up by 7.12%, but they slowed a bit to 2.51% recently¹⁴. In 2023, more people bought homes, with sales jumping from 562 to 814¹⁴. Even though Baltimore City's median home price dropped by 4.5% to $191,000, the wider area saw a 2.8% rise, reaching $329,000¹⁴. Prices for detached homes in the city climbed by 6.3%¹⁴.

In neighboring areas like Lutherville Timonium, Cockeysville, and Towson, home values are higher, priced at $443,615, $437,404, and $410,149 respectively. Parksville's median stands at $238,739¹⁴. The average income in these areas is $83,811, with a per capita income of $42,782¹⁴. Looking ahead, experts think home prices might dip slightly by 0.5%, suggesting smaller increases and higher rent due to current economic trends¹⁴.

Baltimore's real estate scene is competitive, with 36.6% of homes selling above asking price. County home values have increased by 3.7% to $310,288¹⁴. It now takes about 25 days to sell a home, 20% longer than before¹⁴. Projections show a 1.7% uptick in home values next year².

By June 2024, the median sold price is expected to reach $412,500, up 7.1%. However, sales might drop by 10.9%¹. Baltimore City listings decreased by 25% since last June¹, with 2,025 homes available¹. Homes are going under contract in just 7 days, showing strong competition².

For June 2024, homes might stay on the market for 34 days. Supply could go up by 32% from last year¹. Specialists predict a 4% rise in home values for 2023, pointing to a bullish market outlook in Baltimore¹⁴. Investors and buyers should make well-researched choices, using expert advice to thrive in this dynamic environment.

Conclusion

The Baltimore real estate market is on the rise, thanks to high demand and not enough houses for sale. Each year, about 44,335 households look to move. Most prefer renting over buying. For more details, check out these market insights ¹⁵.

But, it's not all smooth sailing. Higher interest rates and economic doubts could slow down buyer excitement. Still, sellers have the upper hand because there just aren't enough homes available. This shortage means Maryland is in a seller's market¹⁵.

For those looking to invest or buy a home in Baltimore, being smart and planning ahead is key. It's important to keep up with market trends and ask for advice from experts. With the right approach, there are great opportunities in Baltimore's active real estate scene.

FAQ

What is the current median sale price of homes in Baltimore?

The median home sale price in Baltimore stands at $240,000 as of June 2024. This shows a 4.3% increase from last year.

How long do homes typically stay on the market in Baltimore?

On average, homes in Baltimore were on the market for 36 days in June 2024. This is longer than last year's 29 days.

Has the sales volume of homes in Baltimore changed recently?

Yes, there's been a drop in home sales. June 2024 saw 695 homes sold, down from 896 the year before.

Is Baltimore currently a buyer's or seller's market?

Baltimore is more of a seller's market now. Prices are on the rise, and homes sell relatively quickly.

How do interest rates affect Baltimore's real estate market?

Low interest rates used to boost the market. However, rising rates are now affecting how affordable it is to buy a home.

What role does economic conditions play in Baltimore's housing market?

The local economy, including jobs and economic variety, has a big impact. With a median income of $83,811, demand for housing is strong.

How does population growth influence Baltimore's real estate market?

The growing population, thanks to top schools and job opportunities, boosts housing demand. This keeps the market competitive.

What are the median prices for different property types in Baltimore?

The price of single-family homes is going up, with detached houses seeing a 6.3% increase. But, condo prices have dropped for the first time since June 2020.

How do property prices vary by bedroom count in Baltimore?

Prices for one-bedroom homes rose by 3.1%, reaching $165,000. However, three-bedroom homes saw a slight price decrease of 0.1%.

How does Baltimore's real estate market compare to nearby cities?

Baltimore's home prices grew by 2.4%, which is steady compared to places like Brooklyn and Dundalk, which saw different levels of price increase.

What makes Baltimore a good place for real estate investment?

Baltimore is appealing for investors because of its varied economy and steady growth in property values. The ongoing demand for single-family homes, amid scarce supply, enhances its attractiveness.

What are the current trends in housing inventory and supply in Baltimore?

Homes for sale rose by 1.9% from May to June 2024, with variations based on the number of bedrooms. Despite a short-term uptick, the supply remains tight, especially in the suburbs.