Baltimore real estate sales are red-hot despite Covid-19. As the number of cases approaches 15,000 for the city, and exceed 6 million for the nation, reports show that residents were snatching up so much single-family property that the city hit a 10-year record pace for the month of July, 2020.
Due to the sluggish spring season in local real estate brought on by the global pandemic, it appears that residential sales have bounced back with a vengeance in July.
Data released in mid-August by MarketStats showed results from Bright MLS, which revealed a sharp jump in suburban home sales. It seems that buyers are taking advantage of these record low interest rates and investing in more living space.
In fact, as of September 3, 2020, the average rate you’ll pay for a 30-year fixed mortgage is 3.06 percent, which is a decrease of 1 basis point since the same time last week. A month ago, the rate was 3.08 percent.
Based on an article on mortgage rates on Bankrate.com, you’ll pay a combined $424.85 per month in principal and interest for every $100,000 you borrow.
Compared to July 2019’s report, single-family median sales priced homes rose 7.1 percent, making a new record.
The MarketStats report delivered a snapshot of Carroll, Anne Arundel, Howard, Harford, and Baltimore counties – broken down by each month of residential activity in the city and its jurisdictions.
The Baltimore market hit a median sales price of $320,000 last month for a single-family home regardless of Covid-19. Interest rates falling as low as 2.99% lead experts to conclude that buyers are happily taking advantage on these rates to get into a home for the first time or move to a bigger home.
But that’s not where the story ends. To add to the high sales prices we’re seeing in Baltimore, the report also shows a record of just 11 days for time on the market within this housing sector.
Housing sales hit a 10-year high, at a pretty high housing price, and these homes spent a mere 11 days on the market – on average.
Baltimore real estate was on fire in July, and there’s no reason that trend is slowing down up to this publication.
Finally, the Bright MLS report also showed that housing inventory was at a 10-year low in July. Single-family new listings were down 3.2 percent, which was the lowest point in a July in seven years.
What does all this mean for local residential real estate investors?
For one, if you have property that you want to unload, this could be an ideal time to sell. Buyers are willing to pay more for a home because of the low interest rates. In such a hot market you may sell relatively fast, and for top-dollar.
This also means it’s a great time to buy more property, with such low interest rates.
Every market brings pros and cons. You’ve got to identify the best approach to capitalizing on this market and seize the moment.