These homes are selling
Nearly 20 percent more properties priced from $120,000 to $249,999 sold in the first three months of the year than in the same period in 2007, according to a report released yesterday by Metropolitan Regional Information Systems. That comes as sales in all pricier categories, particularly $500,000 and over, continued to fall sharply.The report, prepared for the multiple listing service by real estate research firm Delta Associates, is a potent reminder that price matters. Homes affordable to first-time buyers are getting contracts faster because those buyers don't have property of their own to sell first. The $120,000 to $249,999 category, which accounted for one-fifth of sales in the early part of last year, swelled to more than a third of the market in the first quarter.
Other interesting statistics from the MRIS/Delta report that I couldn't fit in the story:
--Vacancy among Baltimore metro area Class A apartments is rising (6.1 percent in the first quarter, up from 4.4 percent a year earlier). Rental prices are essentially flat, at $1,296.
--Vacancy is also rising in the Baltimore metro area office market -- it's 12 percent, up from 10.9 percent a year ago. While homebuilders have been assiduously cutting back to get inventory under control, office development is still growing. Delta reports that there are 4 million square feet under construction, compared with 2.5 million square feet a year ago.







Comments
Wouldn't this also be due to the fact that with the price decreases, more homes are now falling into this range? I suspect that very few houses fell out of this range (<$120k), so this gives the appearence of growth.
Posted by: Jason | May 8, 2008 2:39 PM
Price decreases are a definite part of the story. Clickity click on the link for the tale of the Baltimore homeowner who found that $199,900 was a much better asking price than $300,000-plus.
Sales decreases have been so large overall that it seems notable that any price category is seeing ~more~ sales, even with price decreases swelling the inventory ranks.
Posted by: Jamie Smith Hopkins | May 8, 2008 3:25 PM