Real Estate Investing Baltimore Md

Baltimore Md Real Estate Is Ripe For Investment

Real estate markets throughout the U.S. have been experiencing an intense sellers market. In many cities, it seems like a home that used to cost an affordable $200,000 is now worth half a million – and out of the price range of many home searchers.

As a result of COVID-19, more people than ever before are considering the benefits of working from home permanently and moving out of expensive cities like NYC and San Francisco.

Baltimore is well-poised to be a haven for these types of employees, because home prices – even in highly desirable neighborhoods – are still incredibly affordable when compared to other major cities across the U.S. The average home today sells for $173,000, which represents a slow but steady gain from an average value of $137,000 five years ago. Its a good time to invest, though – Zillows prediction for Baltimore MD real estate next year is that the region will experience an incredible 8.7% jump in value, and according to Houwzer’s End of Year housing outlook, “Median home prices in Greater Baltimore are up 14.8% vs. this time last year.”

Baltimore still has a lot of up-and-coming areas, advises local buyer agent Sophia Matsangatis. Theres a lot of opportunities for people who are looking to get into investing, or who have a portfolio they want to grow. Theres parts of Baltimore like Mount Washington, for example, that are still going to build out and develop, and there will be a lot of upward margins.

Things You Should Know Before Buying A Home In Baltimore

Header photo courtesy: Acroterion

Baltimore is a relatively quiet, coastal city and somewhat of a hidden gem – it lacks the fanfare nearby DC has, yet is home to what a lot of people are looking for in terms of convenience and urban culture. Renowned for its crabcakes and beautiful harbor views, its a convenient home base for people who need to occasionally commute to DC or Philadelphia, and it attracts residents who appreciate a strong neighborly vibe.

The Baltimore real estate market has been hopping lately. If youre planning on buying a home in Baltimore or one of the surrounding suburbs, here are six things you should keep in mind.

Baltimore Housing Market Forecast 2022

The macroeconomic environment of the U.S. economy is shifting, and the Baltimore housing market along with it. With inflation at its highest point in nearly 40 years, a softening economy, and less activity, real estate in Baltimore will diverge from its recent path. At the very least, the market is working with different indicators than in years past, which begs the question: What does a Baltimore housing market forecast look like over the rest of 2022 and into next year? Lets take a look:

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Why Baltimore Is A Great Real Estate Market For Investors

Home » Real Estate News » Why Baltimore is a Great Real Estate Market for Investors

As Baltimore hard money lenders, were always looking at trends that are happening in our own backyard. Though we lend in more than 30 states, we got our start right here in Maryland and are still very active in the local area. As locals, we see a bright future for this city despite the challenges it has been facing in the wake of disinvestment and diaspora in past decades. While other cities in the Northeast Corridor between DC and Boston have experienced ballooning costs of living, Baltimore remains a holdout of relative affordability, and we believe this to be a boon to the overall real estate market in years to come.

Of course, we wouldnt espouse this way of thinking if there werent data to back up the idea that Baltimore is a great place to invest in real estate. There are a lot of factors to consider when looking at whether or not a particular area is good to invest in, so here well highlight some of the brightest spots that prove Baltimore is an up-and-coming city, not a forgotten relic doomed to decay slowly over time.

Real Estate Investors In Baltimore Md

There are Real estate investors in . Search for and connect directly with active property investors in Baltimore, MD.

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Thinking About Investing In Baltimore Real Estate

Were more than happy to connect with real estate investors who are considering investing in the Baltimore market. Considering its literally our backyard, we know all of the ins and outs of investing in this city and what investors should be looking for when looking for quality deals. Unlike standard lender-borrower relationships, at Pimlico, we see ourselves as your business partner we know that we are our most successful when youre experiencing success in growing your business, so we take an active interest in ensuring that your projects will be worthwhile investments for you.

Have a deal youd like to discuss today? Feel free to give us a call at , or get a ballpark quote on rates you may qualify for by filling out our online rate calculator.

Find The Ideal Neighborhood

Step one is to evaluate the neighborhood thoroughly. The area statistics determine what the property is worth and the rental amount you can expect. Ask yourself the following questions:

• What is your overall impression of the neighborhood?
• How are current crime statistics? What types of crimes are occurring?
• Is the area walkable?
• Are there any local attractions or cultural activities nearby?
• Is there easy access to either public transit or commuter highways?
• What shopping centers, parks, or recreational areas are nearby?

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Affordable Entry For Investors

After setting aside the possibility of snapping up homes by buying tax and utility liens, the Baltimore area remains an affordable metro area to invest in. There is a significant price variation. For example, homes in Baltimore City have a median sale price of around $225,000. At the other end of the market, the most expensive suburb of Baltimore, Howard County, had a median home sell for roughly $482K in June 2021. This means you can buy luxury homes in Baltimores suburbs that cost less than a fixer-upper in many hot markets.

Limited Housing Inventory Causing Steady Appreciation

For those who want to buy a home, the market cannot meet demand. The Baltimore metro area has a low inventory of quality single-family homes relative to demand. This is why the median sales price in January 2022 was $318K, an increase of 6% from the previous year. January 2022 was the 3rd month with less than a one-month supply of homes and the fourth month where levels fell by -20% or more from a year ago. The constricted inventory kept sellers in the drivers seat, with units typically going for the full asking price.

Sales volume was down 10 percent year over year, but active listings were down to a nineteen-year low, reflecting the ongoing need for housing in the metro. It is a symptom of declining inventories and a faster turnaround. The median days on the market figure rose seasonally up +1 day from a year ago. While days on the market continued to tick up month-to-month, homes are still moving quickly relative to prior Januarys over the past five years. This limited inventory relative to high demand will keep home prices growing for the foreseeable future.

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Premier Authority In Real Estate

If you are in Owings Mills, Rossville, Towson, Baltimore, or other surrounding areas in and around Baltimore County and are in need of expert help and guidance you can trust on your first or next real estate investment you could not have come to a better place!

When it comes to real estate investment, one must know exactly what he wants to achieve with the property and how it can be done. Finding the right property, knowing how to bring it back to its optimal condition, and finding the right buyer are just some of the things one has to take proper care of if he wants to be successful at this endeavor. This is why before getting into the real estate investment scene, it is of the utmost importance to find a seasoned mentor and guide who will lead on the path to success in this business.

If you are in Baltimore, MD or its neighboring areas and are on the lookout for trusted expert help with your real estate investment and rehabilitation efforts this is the best place for you!

Historic Price Changes & Housing Affordability

The historic change in home prices and the affordability of housing are two reports real estate investors can analyze to help forecast future potential property appreciation and the likely demand for rental property.

Each month Freddie Mac releases its House Price Index report with up-to-date data on the change in home prices for all markets across the U.S. The most recent FMHPI report for the Baltimore-Columbia-Towson MSA shows:

• 5-year change in home prices: 39.1%
• One-year change in home prices: 12.2%
• Monthly change in home prices: 1.4%

A housing affordability index or HAI – uses a baseline of 100, then assigns an affordability index number of existing single-family homes for every metropolitan area in the U.S. These index rankings are determined by comparing the median family income needed to purchase a median-priced, existing single-family home using a conventional mortgage with a 20% down payment.

Based on the latest report from Home Town Locator, the HAI for the Baltimore-Columbia-Towson MSA was 127 in July 2021. This means that the median family has a little more than the necessary income needed to purchase a median priced, single-family resale home in the Baltimore metro area.

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Is Baltimore A Good Investment

According to this Baltimore Sun report, the real estate market in Baltimore is vibrant and doing extremely well, with some properties selling in as little as 6 days. Known as the City of Neighborhoods, this is good news for anyone looking to invest in real estate in the city. There are several neighborhoods to choose from and each has their own unique characteristics that make them appeal to a wide range of home buyers. Is Baltimore a good investment? Take some time to learn more about this real estate market before you make that investment.

Baltimore County Housing Market Trends July 2022

Because of historically low-interest rates, the real estate market in Baltimore was booming during the last two years. Despite rising rates, the real estate market is currently performing well. Baltimore’s housing supply is consistent with the national trend of increased demand for single-family homes. Baltimore currently has less than one month’s worth of housing inventory available.

State of the Market

• In July 2022, 862 housing units were sold in Baltimore County versus 1,295 last year, according to Monthly Statistics.
• The total number of units sold last month was lower than at this time last year, representing a 33.4% decrease over July 2021.
• The median sale price was $325,000, up 6.6 percent from the previous year.
• It means that sellers are increasing their prices in response to an increase in demand.
• The median sale price for Baltimore City was $245,000, an increase of 8.9% as compared to last year.
• 764 homes were sold in Baltimore City in July 2022 versus 999 last year, a 23.5% drop in sales.
• The median days on market were 7 in Baltimore County and 12 in Baltimore City.

Baltimore County Housing Inventory

• The total number of available homes is down by 322 units or -23.6%.
• This July, the total number of active inventory was 1,041, compared to 1,363 in July 2021.
• Baltimore County had 1.0 months of supply available, compared to 1.3 months in July 2021.

New Listings & Pending Sales

Baltimore Listing Price Trends 2022

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Frederick: Best For Value

With solid stats across all real estate categories, Frederick offers Maryland real estate investors great value for a variety of investment approaches.

As the second-largest city in Maryland, Frederick is home to over 3,500 businesses and is among the highest in the state for population growth rate in major cities.

Between the consistently growing population and the military presence in nearby Fort Detrick, there is consistent demand for rentals in Frederick and the surrounding area. Recent efforts to revitalize the area have also created opportunities to buy intoup-and-coming neighborhoods with great upside potential.

The booming economy, solid job market, and relatively affordable housing makes this a great value bet for anyone investing in Maryland real estate.

Invest In Foreclosures Auctions And Off

Unfortunately, there’s a price to pay for the convenience of finding properties on the MLS or Zillow: everyone else is looking at those same properties. All that competition inevitably results in higher prices and closing fewer deals.

One way to circumvent this problem is to look for deals in less obvious places. Foreclosures and real estate auctions are one way to locate distressed properties that might be the diamond in the rough you’re looking for. Seeking out other off-market properties can also be a good way to find your hidden cash cows.

If you’re not interested in or not able to do the work yourself to renovate a property, you can use HomeAdvisor to solicit quotes from up to four local professionals to compare rates for high-quality service.

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Should You Invest In The Baltimore Housing Market

The pandemic has impacted real estate entrepreneurs on a national level. In the first quarter of 2020, markets across the country were brought to a standstill in a matter of weeks, and the Baltimore real estate investing community was no exception. Fear and uncertainty caused a bottleneck in the U.S. housing sector, as buyers refused to tour homes and sellers pulled listings off the market. Still, investors persisted. Despite numerous setbacks, real estate entrepreneurs found a way to prosper over the course of the pandemic. Government stimuli and pent-up demand were enough of a catalyst to make real estate investing a lucrative endeavor.

According to ATTOM Data Solutions latest Home Sales Report, profit margins on median-priced single-family home and condo sales across the United States hit another new record of 55.5 percent following the largest quarterly gain in a decade.

According to Sharga, While price growth may slow down as higher mortgage rates dampen demand from prospective homebuyers, home sellers should continue to profit from the record $27 trillion in homeowner equity in todays market.

In addition to profit margins growing slimmer, interest rates on traditional financing are still relatively low. With rates just over five percent, the Baltimore real estate investing community may simultaneously offset higher acquisition costs and increase monthly cash flow from rental properties placed in operation.

Traditional Values Investment Insight

Alex. Brown Realty is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with clients and joint venture partners in properties located throughout the United States.

For over four decades, in virtually all types of real estate and under widely varying economic conditions, ABR has represented the interests of its clients, maximizing the value of their investments.

ABR is an SEC-registered investment adviser.1

300 East Lombard Street, Suite 1200 Baltimore, Maryland 21202

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Investment Properties In Baltimore Md

Find properties to flip in BALTIMORE, MD. Find cheap houses for sale that can be wholesaled or purchased below market value. Browse the Connected Investors marketplace to locate vacant properties, foreclosures, pre-foreclosures, REO properties, bank owned, probate, courthouse auctions, online auctions, and houses offered by wholesalers.Signup to Connected Investors for free.

Baltimore Is A Historical City

Baltimore was founded in 1729 and grew swiftly throughout the 1800s. By the 1970s, however, growth had slowed. This means that many of the available homes in Baltimore are old – some predating 1950, but plenty far older than that. This can lead to beautiful, historical architecture:

It is an older city, so youll see a lot of that character and the row houses a lot of the original stone and the masonwork, notes Matsangatis. Overall, people try to maintain that – even with renovations theres a lot of exposed brick and a lot of exposed stone – I think thats a bit unique to the city.

In light of this, though, the home inspection and home disclosure take on extra importance – issues with foundations, plumbing, roofing, and electrical wiring are more common simply due to age. Maryland requires home sellers to inform home buyers of any property defects they know of. Even though homes in this state can be sold as is, buyers must still be informed of latent defects .

Its a good idea to work with an experienced Baltimore real estate agent who can point out issues before you even get to the point of making an offer on a home – potentially saving you a lot of valuable time and money.

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