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Baltimore, MD: Real Estate Market & Trends 2016

Published on Tuesday - August 16, 2016

The Baltimore real estate market is experiencing subtle growth in 2016, as it continues to rebound from the housing recession. While prices continue to grow relative to last year, the median home price for the Baltimore real estate market is above the national average and currently sits at $229,200; compared to the national average of $215,767. The next 12 months should see the trend continue, as home affordability, unemployment and new housing construction rates are expected to drive the Baltimore housing market upwards in the second-half of 2016.

Baltimore, MD Real Estate Market Statistics:

Baltimore real estate investing

Equity gains for Baltimore real estate investors and homeowners continue to be a major concern in Q1. The first quarter of 2016 saw homes in the Baltimore real estate market appreciate 2.7 percent to $9,845 while the national average saw equity gains of 6.1 percent or $15,781. Along with disappointing first quarter results, the last three years have witnessed equity gains in the Baltimore area of 1.2 percent or $14,960; while the national average has earned a whopping $49,356. The last five years have seen gains of $32,879 despite the national average being almost double — $68,727. For those looking to invest in the Baltimore real estate market, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Baltimore, MD housing market one year ago have appreciated, on average, by $11,062. The national average was $15,781 over the same period.
  • Homes purchased in the Baltimore, MD housing market three years ago have appreciated, on average, by $53,161. The national average was $49,356 over the same period.
  • Homes purchased in the Baltimore, MD housing market five years ago have appreciated, on average, by $70,871. The national average was $68,727 over the same period.
  • Homes purchased in the Baltimore, MD housing market seven years ago have appreciated, on average, by $84,639. The national average was $59,758 over the same period.
  • Homes purchased in the Baltimore, MD housing market nine years ago have appreciated, on average, by $79,484. The national average increased $16,435 over the same period.

While appreciation rates continue to stew, the good news is rental returns for the Baltimore real estate market are high. Recent results by RealtyTrac show Baltimore real estate ranks number one for counties with the highest annual gross rental yields (28.5 percent) for single-family homes. In terms of zip codes, the Baltimore area was home to two of the five highest potential single-family rental returns in 2016. Zip code 21223 in the Baltimore, Maryland metro area had a 102.0 percent return and 21205 with a 87.8 percent gain.

One positive sign for Baltimore investors and homeowners is the decline in the number of foreclosure filings. In the first quarter of 2016, Baltimore real estate in some stage of foreclosure (default, auction or bank owned) fell 37 percent from the same period in 2015. According to RealtyTrac, home auctions dropped 55.8 percent from 2015 while the number of bank owned properties (REOs) fell 51.1 percent from the same period in 2015.

Baltimore, MD: Real Estate Market Summary:

Baltimore real estate investment

  • Current Median Home Price: $229,200
  • 1-Year Appreciation Rate: 2.7%
  • 3-Year Appreciation Rate: 1.2%
  • Unemployment Rate: 4.9%
  • 1-Year Job Growth Rate: 2.6%
  • Population: 623,696
  • Median Household Income: $71,501

Baltimore, MD: Real Estate Market (2016) — Q1 Updates:

Baltimore real estate investors

Despite minimal appreciation gains, the Baltimore real estate market continues to thrive in the first quarter of 2016. Home affordability continues to be a bright spot for Charm City, which is currently below its historical average. Homeowners paid approximately 8.8 percent of their income to monthly mortgage payments in Q1, while the nation paid on average 14.5 percent. While historically strong, the Baltimore area is now one of the most affordable cities in the nation.

Another step in the right direction for Baltimore real estate can be found in the city’s unemployment rate, which remains slightly lower than the national average. Employment rates in first quarter of 2016 have held up considerable with unemployment rates settling at 4.9 percent, a decrease of last year’s 5.6 percentage. That said, the Baltimore area has seen a one-year job growth rate of 2.6 percent, a 0.6 percent increase over the national average of 2.0 percent. Compared to other markets, Baltimore’s local employment growth is forecasted to remain strong in 2016 and beyond.

One aspect that has Baltimore real estate investors licking their chops is the rise in new housing construction. According to the National Association of Realtors (NAR), Baltimore’s current level of construction is 35.8 percent above the long-term average, and the number of single-family housing permits in Q1 was 17.6 percent compared to the national average of 11.3 percent. This could bode very well for Baltimore real estate investments down the line.

The first quarter of 2016 saw home price expectations fall 0.6 percent to 2.8 percent compared to the same period in 2015, which saw expectations at 3.4 percent. Moving forward, home price expectations for the Baltimore real estate market are forecasted to fall below the national average as Maryland is anticipated to experience weaker price growth in the next 12 months, according to the NAR. That said, the Baltimore real estate market remains a haven for investors and homebuyers alike.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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