Sales figures for single-family homes are down big in the Baltimore area over the last year — but at least they’re not into negative numbers, like the condo market.
Canceled contracts signed in better economic times resulted in a net of negative-38 condos sold in the metro area in the third quarter, according to a recent report by Alexandria, Va.-based Delta Associates.
“A lot of those contracts signed back in 2006 and 2007 were for condo projects delivering by 2008,” said William Rich, Delta vice president. “Those buyers had a few years to mull over going to closing and buying. Once they started getting delivered, the buyers backed out.”
For the year ending Sept. 30, a total of 83 condos were sold, meaning the unit had a binding contract of sale with a deposit, according to Delta. But in the previous year ending Sept. 30, 2007, 682 units were sold in the Baltimore area.
However, much of the condo stock is in the surrounding counties. According to Delta, there were 904 unsold units in Baltimore City, compared to 1,693 in the combined Baltimore County and Harford County area and 1,048 in Anne Arundel and Howard counties.
Some downtown condo sellers said they’re still seeing traffic, but as in the single-family home market, the customers aren’t casual tire-kickers.
“Right now, we’re still doing OK. I wrote a contract this weekend, [and] last week,” said Ricki Rutley, sales manager for the 312-unit 414 Water St. in downtown Baltimore. “They don’t come in unless they’re serious. You don’t get a lot of people just looking to look. They need to buy.”
Rutley said the project, with units starting at $209,900, hasn’t had a major problem with contract cancellations. But she said the near freeze in the country’s credit market has created a slowdown.
“It’s mainly due to credit,” she said. “It’s just tighter credit, [and] the hoops we have to jump through to get them to close.”
Rich said it will take time for the older contracts to either close or be canceled, and he thought the current condo market conditions will likely continue through the new year.
“Unfortunately, I think so,” he said. “That’s what we’re expecting, things aren’t going to get much better soon. It’ll take some time for the cancellations to filter through the market.”
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Baltimore-area condo sales
Baltimore City Northern Suburbs Southern Suburbs Total
2nd Quarter 2008 9 23 27 59
3rd Quarter 2008 -61 -13 36 -38
12 months ending -155 188 50 83
Sept. 30, 2008
12 months ending 183 309 190 682
Sept. 30, 2007
Source: Delta Associates
