Prices reduced on 40% of Baltimore homes for sale
Baltimore homes for sale with at least one price reduction now make up 40 percent of the market, according to real estate site Trulia.
That's higher than all but three of the country's large cities -- Minneapolis (44 percent), Mesa, Ariz. (43 percent) and Phoeniz, Ariz. (42 percent). Nationally, 27 percent of homes for sale have had at least one price drop.
Average reduction in Baltimore, according to Trulia: 12 percent, or more than $23,000.
Trulia focuses on cities rather than suburbs, but there are plenty of homes in the counties around Baltimore that are listed for less than they once were, too. (You can find pages and pages of "reduced!" listings in Annapolis, Columbia, Owings Mills and other communities.)
HousingTracker.net, a separate site that looks at what people are asking for their homes, says the typical listing price so far this month is $222,000 in the Baltimore metro area as a whole. It was $325,000 in December 2006 -- a more than $100,000 change in four years. (Unfortunately, HousingTracker.net doesn't go back much farther than that.)
While we're on the subject of home prices:
Another real estate site, HomeGain, said 75 percent of Maryland agents it surveyed said they think their sellers' homes are worth less than the sellers do.
About as many of their buyers think homes on the market are overpriced -- even though the agents report that when they list homes for sale, it's usually for less than the number the sellers had in mind.
And on a related note: Almost 300,000 Maryland homes were worth less than their mortgages during the summer, according to estimates from real estate data firm CoreLogic. That's 22 percent of all mortgaged homes, and about the same as the situation in the spring.
Just over 100,000 of those underwater mortgages are in the Baltimore metro area, CoreLogic estimates.
The firm, in its announcement this week, says such "upside down" homeowners "are not likely to behave similarly to homeowners with equity, because their financial interest (the equity) has disappeared and has only a small prospect of returning soon given price trends."
"The lack of equity means upside down homeowners are not likely to maintain and improve their property and are more likely to behave like renters," the firm concludes.
If you owe more than your home is worth, or you're close to that point, do you find yourself loath (or unable) to spend money on your place?