The following analysis of the Baltimore, MD Metro Area and the Washington, D.C. Metro Area housing market has been prepared by RealEstate Business Intelligence (RBI), and is based on May 2012 MRIS listing data. Click here to view full releases.
Shrinking inventory persists; condo market gains strength
The Baltimore Metro Area housing market continues to see declining inventory and median sale prices that are trending upward. As the shrinking supply lingers, upward pressure on pricing should continue, as evidenced by the fourth consecutive year-over-year median sale price increase in May for the region. Rising demand is also driving up prices, as new contracts and closed sales continue to increase, following seasonal patterns. Notably, the condo market is picking up strength with seven consecutive year-over-year gains in closed sales, and a 21.5 percent increase in new contracts compared to May 2011. Current trends also point to a diminishing supply of foreclosures and short sales in the market, which now account for 17.1 percent of all active listings, the lowest percentage in two years.
Diminishing supply continues; double-digit price increase for the 2nd straight month
Inventory in the Washington region continues to shrink. In May, the level of active listings was at its lowest May-level since 2005. Additionally, the number of distressed property listings (foreclosures and short sales) is at the lowest level since MRIS began tracking this metric in April 2009. The reduction in supply is putting upward pressure on prices, as evidenced by the 11 percent rise in the median sales price from May 2011. This price gain reflects the fourth consecutive year-over-year gain, and the second consecutive double-digit increase for home prices in the region. These trends, coupled with decreasing Days on Market (average down 17.6 percent from May 2011), and an increasing sale-to-list price ratio (up 1.9 percent from May 2011) signal that it is a Seller’s market heading into the summer months.
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