In 2006, the real estate market in the Baltimore region took a tumble. Local real estate experts believe that the market?s success in 2004 and 2005 spoiled many property sellers, who had a hard time adjusting to more pedestrian sales in 2006. Deborah Ford, a professor of finance at the University of Baltimore, sees a reason for the decline and a need for sellers to adapt.
“The demand is not there, and people aren?t buying anymore because they?re scared they would be buying at top price,” Ford said. “The only way sellers can sell property now is to lower their prices.”
Recent data from Metropolitan Regional Information Systems Inc. shows just how much the market has come down.
Total sold-dollar volume dropped from around $13.01 billion in 2005 to $11.79 in 2006, a decline of about $1.22 billion for Baltimore City and Anne Arundel, Baltimore, Carroll, Harford and Howard counties.
The biggest drop was in Anne Arundel, where there was a 12 percent ? or nearly $450 million ? dip in sales for 2006.
Thomas Hough, president of the Anne Arundel County Association of Realtors, sees things a bit differently.
“Last year was probably our third best year ever, with 2004 and 2005 being No. 1 and No. 2,” Hough said. “[The numbers] are reflecting a drop from record years.”
Property in 2006 also was on the market 62 percent longer than in 2005. Howard and Anne Arundel counties both saw the most substantial jumps in a property?s average time on the market ? 28 days in 2005 to 55 days last year for Howard, and 38 days in 2005 to 69 days last year for Anne Arundel. Carroll County had the highest average number of days on the market at 74.
Real estate sales by county
COUNTY TOTAL SALES 2006 TOTAL SALES 2005
Anne Arundel $3.29 billion $3.74 billion
Baltimore City $1.76 billion $1.88 billion
Baltimore $3.1 billion $3.29 billion
Carroll $731 million $852 million
Harford $1.10 billion $1.14 billion
Howard $1.84 billion $2.11 billion
TOTAL $11.79 billion $13.01 billion
Source: 2006 Year End Data from the Metropolitan Regional Information Systems Inc., Web site.
