Even though real estate agents sold fewer houses in 2006 than 2005, the value of the property held up during a tough year for the sector.
In 2005, the median selling price of a home in the Baltimore metro area increased 20 percent, about twice the growth seen during 2006, according to market statistics.
According to the Metropolitan Regional Information System Inc.?s real estate trend indicator, the median selling price in the area rose 9.24 percent from 2005 to 2006, preliminary figures show.
“The numbers continue to look strong,” said Jody Landers, executive vice president of the Greater Baltimore Board of Realtors. “Even though the total units sold continues to be down overall, a portion of the numbers were based on a lot of investment activity taking place. Some of that has fallen off, and now we are down to the serious homebuyers. The numbers show there is pretty steady demand. The median and average sold prices continue to go up, if only slightly.”
The average selling price of all homes sold in the region rose 18.08 percent in 2005, and just 7.66 percent in 2006, according to early statistics. In December, the average price of a home in the region, which includes Anne Arundel, Carroll, Harford, Howard and Baltimore counties and Baltimore City was $309,639, up $3,100, or 1.01 percent, from the same month in 2005.
“Baltimore City selling prices soar above the rest because there are so many affordable housing units there,” said John McClain, senior fellow at the Center for Regional Analysis at George Mason University. “And spillover from nearby Washington, D.C.?s booming economy continues to provide a steady stream of homebuyers.”
Landers said the number of houses on the market is tightening, from 17,6000 listings on the market in September to 14,693 in December.
“That inventory beginning to drop is a positive sign going into 2007,” he said.
Realtor Magan Drane of Long & Foster said she is seeing a steady stream of first-time homebuyers coming back to the market for a look.
“This year, 2007, things are actually moving,” Drane said. “All of a sudden I am getting a lot of first-time homebuyers and some investors, who are looking for placed they can redo ? the boarded-up town houses.”
