A lot of reduced prices in Baltimore
Just over a third of the homes on the market in Baltimore have had at least one drop in the asking price -- one of the largest shares among large cities. That's according to real estate site Trulia, which regularly compares listings to see how many are reduced.
Among the 50 biggest cities, these had the most homes with price cuts:
1. Jacksonville, Fla. (37 percent)
2. Milwaukee (36 percent)
3. Portland (35 percent) -- tied with Memphis, Tenn.
5. Baltimore (34 percent) -- tied with Indianapolis, Minneapolis and Raleigh, N.C. (Here's an example of a reduced-price city home -- $255,000 off!)
Trulia looked at homes listed for sale Sept. 1, not including foreclosures, to see how many had at least one reduction in asking price over the previous 12 months.
In the country as a whole, 26 percent of homes for sale have had price cuts.
"The average discount for price-reduced homes remains at ten percent off of the original listing price," Trulia said in a press release.
Baltimore's average reduction is 11 percent -- for a grand total of $43 million off.
City owners asking more than $1 million for their homes are feeling it more: Their average price cut was 13 percent -- a whopping $210,000. (By contrast, the entire sales price of the average city home that changed hands last month was $180,000.)
The average reduction for all homes was smaller in the counties, from 10 percent in Anne Arundel to 7 percent in Harford.
But the number of reductions ranged. Anne Arundel County had just as many as Baltimore -- 34 percent -- and Baltimore County had more (36 percent).
Thirty percent of homes in Harford and Howard counties had reduced asking prices, and 28 percent in Carroll County.
Trulia's "price reduced" search feature lets you see the homes with lowered asking prices. One in Columbia -- which bills itself as "the property Jim Rouse originally selected for himself" -- is on the market for $1 million, a quarter-mil less than it was two months ago.
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Comments
I'm left with the question of how well the "sales" proceeded for the other properties put on the market at the same time as the ones where the price was dropped.
Were their asking prices lower to begin with which led to a smoother or at least quicker closing?
Were their prices just as high but they held on and got their price because the upkeep condition and/or other factors justified that happening?
What are you telling us Jamie?
Posted by: MrRational | September 12, 2009 11:31 AM
As some readers here have noted before, a price drop could simply mean the original asking price was unreasonably high. Or it could have been set where homes were selling recently, but prices in the neighborhood dropped since.
So I can't possibly say how many of the homes that have sold fall into your Category A or B. I suspect the answer is "yes" -- as in, some of both.
I know I'm an insufferable know-it-all, but I'm not omniscient. :-)
Posted by: Jamie Smith Hopkins | September 12, 2009 11:56 AM
Jamie, speaking for everyone, we really appreciate your efforts which have a very high batting average but (you knew it was coming) raw data and factoids don't mean much absent context and other background.
You can't hit 'em all out of the park. ;)
Posted by: MrRational | September 12, 2009 12:37 PM
I love context, but sometimes there's none to provide -- well, if you don't count guesses! There are some things in real estate that can't be measured properly.
But I figure some stats are interesting enough on their own (if only in a gee-whiz sort of way) that they're worth sharing. You never know what might spark a good conversation.
Posted by: Jamie Smith Hopkins | September 12, 2009 1:06 PM
That Columbia house looks rather impressive from the pictures. I know I'd love to have a dedicated art studio and covered outdoor pond/sitting area. However, the city townhouse is a prime example of what's wrong in real estate today. Even with that reduction of $255k it's still $395k over the price the owners paid for it just last year. Since Baltimore was a little late to the bubble I think the owners are in for an appropriate and huge shock. I doubt they'll sell unless they find a way to get well under $1million. People like those sellers are the delusional ones driving up the percentage and size of price drops. Very sad.
Posted by: BigDragon | September 12, 2009 7:57 PM
I think you're being a little hard on Jamie with this one. I agree, and usually questions the heck out of raw data, but sometimes that's all there is. Jamie usually provides people with very substantive data, but sometimes things are just interesting, which is where I think this one falls.
Jamie only had to pay me $20 to get her back on this one!
Posted by: M | September 14, 2009 8:31 AM
Check's in the mail, M. :-)
In all seriousness, I'm glad you think there's a place for "stats that make you go hmm." But feel free, folks, to tell me when you think a post is missing something. Better yet, chime in with your own opinion about context.
Posted by: Jamie Smith Hopkins | September 14, 2009 8:38 AM
I wasn't trying to be harsh. I brought up that townhouse's records to see what the taxes are like, and that's when I stumbled upon some rather surprising numbers. You could buy 2 luxury townhouses in Arlington for the amount that one in Baltimore is listed for. I don't intend to be mean to anyone here. I was just rather shocked at the listing and its price history! Looking at comparable and competing sales makes it even more shocking. It's like that stock broker commercial where the guy buys a panting and immediately wants to sell it for more than he paid...
Posted by: BigDragon | September 14, 2009 3:39 PM
BigDragon, I think M was referring to MrRational's concern that this post has no context, not to your comment.
Posted by: Jamie Smith Hopkins | September 14, 2009 3:42 PM
Sorry BigDragon, my comments were not directed at you. I agree with your statement.
Posted by: M | September 15, 2009 7:32 AM