Category: Market Reports

Baltimore Metro Real Estate Market Update – April 2024 – A Guide for Homeowners Facing Foreclosure

Posted by Atlas Home Group on June 15, 2024

If you’re a homeowner in the Baltimore Metro area facing foreclosure, understanding the current real estate market can help you make informed decisions about your property. This update will provide insights into distressed property trends, including short sales and foreclosures (REOs), and offer guidance on navigating your options.

The State of the Market

The Baltimore Metro area has seen varying trends in closed sales over recent years. Comparing data from the same months across different years highlights these seasonal patterns:

April 2024: 2,704 closed sales
April 2023: 2,510 closed sales
April 2022: 3,783 closed sales

While there has been a decrease in closed sales in April 2024 compared to April 2022, there has been a rebound from April 2023, indicating a potential recovery.

Distressed Properties: A Growing Trend

Distressed properties, including short sales and foreclosures, have significantly impacted the market. Understanding the prevalence of these properties can help you determine the best course of action.

Foreclosures (REOs):

April 2024: 89 REOs (3.29% of total sales)
April 2023: 56 REOs (2.23% of total sales)
April 2022: 49 REOs (1.29% of total sales)

Short Sales:

April 2024: 11 short sales (0.41% of total sales)
April 2023: 19 short sales (0.76% of total sales)
April 2022: 26 short sales (0.69% of total sales)

What This Means for You

The data indicates an increase in foreclosures and a decrease in short sales in April 2024 compared to previous years. If you are facing foreclosure, now might be an opportune time to consider a short sale. Here’s why:

Market Conditions: The rising number of REOs suggests that more homeowners are struggling to keep up with mortgage payments. However, the relative scarcity of short sales means there may be less competition for selling your property this way.
Financial Relief: A short sale can potentially minimize the financial impact on your credit score compared to foreclosure. It also provides a way to settle your mortgage debt with your lender’s approval.
Faster Process: With fewer short sales currently on the market, lenders may be more willing to expedite the process to avoid the lengthy and costly foreclosure process.

Future Outlook: Short Sales on the Rise?

It is also important to consider that the increase in REOs might indicate a forthcoming rise in short sales. REOs are often seen as a leading indicator for short sales. As more properties go into foreclosure and are repossessed by banks, lenders may become more proactive in negotiating short sales to mitigate losses and avoid the costs associated with managing and selling REOs.

Historically, when the market sees a surge in REOs, it often leads to an increase in short sales shortly thereafter. Therefore, if you are contemplating a short sale, acting now could position you ahead of a potential increase in the number of short sales, providing a competitive advantage.

Comparative Analysis

Looking at the data from the past three years provides a clearer picture of the trends:

March 2024: 79 REOs (3.36% of total sales) and 13 short sales (0.55% of total sales)
March 2023: 82 REOs (3.04% of total sales) and 14 short sales (0.52% of total sales)
March 2022: 64 REOs (1.78% of total sales) and 18 short sales (0.50% of total sales)

This trend shows a slight increase in REOs from 2023 to 2024 and both have increased significantly compared to 2022.

Taking the Next Steps

If you’re considering a short sale, here are some steps to get started:

Consult with a Real Estate Agent: An experienced agent can help you understand the process, evaluate offers, and negotiate with your lender.
Prepare Your Home: Even in a short sale, making your home presentable can attract better offers.
Gather Documentation: Be ready to provide financial documents to your lender to demonstrate your need for a short sale.

Conclusion

Navigating foreclosure is challenging, but understanding the current market trends in the Baltimore Metro area can help you make the best decision for your situation. With the rising trend in foreclosures and the potential benefits of a short sale, now might be the right time to explore this option. Additionally, considering that increasing REOs may lead to a rise in short sales, acting sooner rather than later could provide you with a significant advantage.

For personalized advice and support, contact Atlas Home Group. Our team of real estate and short sale experts is here to guide you through the short sale process and help you find the best solution for your needs.

Real Estate Market Updates in the City of Baltimore and Baltimore County

Posted by Atlas Home Group on January 29, 2021

The real estate markets throughout Baltimore and Baltimore County are in a much different place today than they were in January 2020. For homeowners short on equity, struggling to make payments, and considering foreclosure, this market delivers a lot of hope of a favorable outcome.

Both the City of Baltimore and Baltimore County experienced rapidly increasing sales prices throughout 2020. Below, we’ll look at the latest trends and what to expect from the Baltimore real estate market in 2021.

What Is Driving the Baltimore Real Estate Market?

Similar to the Metro D.C. area, Baltimore City and Baltimore County are suffering from severe decreases in available inventory. With the supply of homes so constrained, prices were bound to rise. But in addition, this recent decline of available homes has coincided with an increase in demand, a recipe for skyrocketing listing prices.

Here’s a quick look at December’s available inventory compared to the historical average:

Baltimore City Active Listings

December 2020: 1,447

5-year December Avg: 2,449

Baltimore County Active Listings

December 2020: 763

5-year December Avg: 1,767

Baltimore City Market Snapshot

The real estate market in Baltimore was friendly to sellers, as median sales prices hovered just under $200,000 for most of the year. Prices reached an average of $175,000 as soon as the spring selling season began, and the market retained those gains throughout the year.

Sales momentum was peaking as the year came to an end, with closed listings blowing away their historical averages:

Closed sales at 934 were up 22.7% from November and up 27.2% from December 2019.

The December median sales price of $197,000 is up an incredible 35.6% from a year ago.

The average number of days on the market in December was 39, down from the year-to-date average of 50 days.

Overall, the median sales price in 2020 was $180,000 in Baltimore City, up 12.5% from 2019 at $160,000.

On average, listings in the City of Baltimore are selling for 96.9% of the original list price. This number is considerably higher than the 5-year December average of 94% and up slightly from the 2020 average (96.1%).

Baltimore County Snapshot

The real estate market in Montgomery County reached new heights in 2020, and the momentum is likely to carry over into 2021. Despite a drop in available inventory, closed sales in 2020 were up 7.2% over 2019, and closings in December were well-above historical averages.

With 1,084 closed sales, December 2020 was up 24.7% over December 2019.

The December median sales price of $270,000 is up 11.1% over December 2019.

The December average number of days on the market was 25, which is 21 days below the 5-year December average of 46, and a week less than the YTD average of 32 days.

Compared to the original listing price in Baltimore County, the average sales price was 99.3% this past December. This number was well-above the 5-year December average of 96.1% and was also trending higher than the 2020 YTD number of 98.5%.

Median sales prices peaked in August at around $285,000 but have adjusted down to $270,000 more recently. Moving forward, we are likely to see months that reach a median sales price of $300,000 as the 2021 selling season heats up.

If you’re on the fence about selling, now is the time to get off

All markets can be fickle, and real estate is no different. A seller’s market today can become a buyer’s market in a month. As far as we can tell right now, though, this is prime time to sell the home you’re no longer able to afford or to potentially minimize shortfall in equity if you’re living anywhere in the city of Baltimore or Baltimore County. If you’re thinking about selling your home, please do not hesitate to reach out for a consultation.

Low Inventory and Increased Demand Lead to Hot Seller’s Market in D.C. Metro Area

Posted by Atlas Home Group on January 10, 2021

On the outside looking in, you may not have thought that 2020 would be a strong year for the real estate market. But despite social distancing and stay at home orders as a global pandemic presided over the year, the real estate market continued to produce ever-increasing sales prices.

As we enter 2021, both Prince Georges County and Montgomery County continue to experience red-hot sellers’ markets. This creates a big opportunity for underwater sellers who need to choose a short sale to escape the burden of their current mortgage payment, maintenance issues or delinquency.

What Is Driving the D.C. Metro Real Estate Market?

There are various reasons for the sizzling markets in Prince Georges County and Montgomery County. But primarily, the market is being driven by two factors: low inventory and low interest rates.

Buyer demand increased throughout 2020 due to record-low mortgage rates, which have dipped below 3% at times. When an increase in demand combines with minuscule inventory levels, the result is a market that heavily favors sellers. No statistic bears that out more than “Sales Price to Original List Price,” which in December was 101.2% in Prince Georges County and was 100.2% in Montgomery County.

When homes are selling for above original listing price, that is a market you want to enter as soon as possible as a seller.

To illustrate how little inventory is available, we can compare the active listings in December 2020 to the 5-year December average:

Prince Georges County Active Listings

December 2020: 663

5-year December Avg: 1,475

Montgomery County Active Listings

December 2020: 906

5-year December Avg: 1,463

Prince Georges County Market Snapshot

The real estate market in Prince Georges County continues to reach new heights, as closed sales finished 23.1% higher in December than they were a year ago.

The median sales price of $355,000 is up 12.7% from a year ago.

The average number of days on market was 15, down from the year-to-date average of 25.

Overall, the median sales price in 2020 was $345,00, up 11.3% from 2019 ($310,000). Continued momentum has carried over in 2021, and the selling market will only grow hotter as the spring season approaches. With an average market time of just 15 days, make sure your bags are packed when the listing goes live.

Montgomery County Market Snapshot

The market continues to stay hot in Montgomery County, where closed sales were up 26.4% compared to December 2019 and were up 9% over November’s numbers.

The median sales price of $480,000 is up 6.7% from a year ago.

The average number of days on market was 22, down from the year-to-date average of 27 days.

Compared to the 5-year December average of 40 days on market (DOM), the December 2020 DOM nearly cut that in half at 22. While the Montgomery County market does not seem quite as on-fire as Prince Georges, that is most likely due to the higher price point of Montgomery County.

Selling your Home Has Never Been More Lucrative in the D.C. Metro Area

You might be thinking, “sell my home during a pandemic, are you crazy?” Besides being a hot market for sellers, it has also never been simpler to sell your home. With innovations such as virtual walkthroughs and digital signatures, selling your home is much easier than you may be imagining.

With no catalyst in sight for a rapid increase of inventory, prices should continue to rise at a higher-than-average rate as the market matures in 2021.

The competition among buyers is already fierce and will continue to intensify, especially at lower price points that attract more offers. As a seller, this is music to your ears. If you’re considering selling an underwater property or need to sell a home with some equity quickly, it’s time to reach out to Atlas Home Group to understand the options.