Baltimore-area home values declined last month by the largest margin since the 14-month-old recession began, according to data released Tuesday, as the number of units sold continued to slide.
The median sale price, the point at which half of homes sold for more and half for less, in Baltimore City and its five surrounding counties fell 8 percent in January to $230,000 from $250,000 a year ago, according to Realtor-owned Metropolitan Regional Information Systems Inc. The statistic, which tracks only homes sold in a given month, has declined for 15 straight months.
The number of units sold also fell 21 percent to 1,015 from 1,288. Buyers on average sold their home for 88 percent of what they listed it for, down from 91 percent last year, according to the data.
Despite steadily falling mortgage rates, local Realtors said buyers may be waiting for the federal government to pass its $800 billion bailout plan before looking at homes.
“I think a lot of it has to do with confidence,” said Vito Simone, president of the Greater Baltimore Board of Realtors. “There’s a sense that the stimulus bill needs to be in place, that housing actions need to be taken, that people think the government is doing something.”
Baltimore City values saw the sharpest decline in the metro area, down 19 percent to $117,450 from $145,000 in January 2008. The number of units sold in the city dropped 24 percent to 274 from 362.
Baltimore County values fared the best last month, down 4.21 percent to $229,900 from $240,000 last year.
Declining rates may have made a difference in one MRIS statistic, however. Simone said the standing inventory of homes declined in January, rather than increasing as it usually does in the slow winter month.
“With more loan modification comes less of a dire need to sell now, and that’s one factor in the reduced inventory,” Simone said.
A lack of confidence among buyers remains the single biggest factor in real estate, said Daraius Irani of Towson University’s Regional Economic Studies Institute.
“The way the economy is, they don’t feel comfortable with their long-term prospects,” Irani said. “They’re so focused on keeping their job and paying down outstanding debt. If they’re already in a house, they’re focused on staying in that house.”
