Significant November gains in Baltimore area contracts compared to 2013

Modest decrease in median sales price versus 2013; Closed sales up in all jurisdictions

OVERVIEW

In November, the Baltimore Metro Area housing market continued to have increased buyer activity. Closed sales increased for all property segments and for all jurisdictions in the region. Of the jurisdictions, Baltimore County had the largest increase in sales from last November, rising 14.9 percent. New pending contracts also increased from last year for all property segments. Seller activity continues to improve, though the pace of new listing growth slowed in November. Inventory continues to be above year-ago levels and every property segment had double-digit gains. The median sales price decreased from November 2013 and has now been below its 2013-level for five months this year. The decline in median sales price was driven by single-family detached homes and condo properties. The median sales price of townhomes rose, which was the first increase for the property segment in eight months.

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CLOSED SALES

Highest November-level in five years; increases for all property segments. There were 2,156 closed sales in November, 6.0 percent, or 122 sales, more than last year. Closed sales have now increased from their 2013-level for four months in a row and reached their highest November-total since 2009. Of the property segments, condo properties had the highest growth in sales, rising by 7.3 percent, or by 16 sales, from last year. Closed sales for single-family detached homes increased 6.0 percent, or by 67 sales, from last year. The number of townhomes sold increased 5.7 percent, or by 40 sales. As compared to last month, the number of sales decreased 15.8 percent, which is a sharper decline than the ten-year average October-to-November change of -5.5 percent.

PRICES

Decrease in overall median sales price; mild increase for townhomes. The median sales price for the region decreased 3.9 percent, or by $9,450, from last year to $230,000. The median sales price for townhomes increased 1.7 percent to $165,000 and was the only property segment to increase. At $192,500, the median sales price for condo properties decreased 3.0 percent. The median sales price for single-family detached homes had the sharpest decline, falling 6.1 percent from last November to $291,000. The median sales price for “non-distressed sales”, or those transactions not involving a foreclosure or short sale, dropped 1.9 percent compared to last year to $260,000. This was only the third time since March 2012 where prices in the non-distressed segment were lower than the previous year.

Of the jurisdictions in the region, Baltimore City had the highest median sales price growth, jumping 23.2 percent from last year. The city remains only one of two jurisdictions with a lower median sales price year-to-date than last year, however, with a 4.7 percent decline. Howard County was the only other jurisdiction with a higher monthly median sales price than in November 2013, increasing 3.0 percent. Harford County is the only other jurisdiction with a year-to-date price decline, falling 2.1 percent. The region’s year-to-date median sales price is now a modest 1.0 percent off of last year’s level.

NEW CONTRACTS

Double-digit increase with gains in all property segments.  New contracts increased 15.6 percent, or by 370 contracts, from last year to 2,745 contracts.  This marks the sixth year-over-year increase and the highest November-total in nine years.  Single-family detached homes led all segments in growth, rising 19.8 percent, or by 240 contracts, from last year.  New contracts for condo properties increased 17.4 percent, or by 45 contracts, while those for townhomes properties increased 9.4 percent, or by 85 contracts.  As compared to last month, new contracts decreased 11.8 percent which is a slightly milder decrease than the ten-year average October-to-November change of -13.4 percent.

INVENTORY

Fourteenth month of year-over-year inventory gains; mild increase in new listings across all segments.  Active listings rose 15.6 percent from last year to 13,182 listings.  Active listings have risen from the prior year for 14 consecutive months with double-digit gains for the past nine months.  Inventory reached 65.3 percent of its 2008 peak and the highest November-total in two years.  Active listings of condo properties led the property segments in growth, rising 18.3 percent from last November. Inventory of single-family detached homes increased 16.1 percent from last year.  Townhome inventory increased 14.2 percent.

New listings have now increased from the prior year for 20 consecutive months and reached their highest November-total since 2010.  As compared to last year, new listings increased 2.2 percent for a total of 3,144 listings.  Condos led all property segments in growth, rising 4.9 percent from last November.  New listings for townhomes increased 2.1 percent while new listings for single-family detached were up 2.0 percent.  At 54 days, the median days-on-market increased by 16 days, though homes are selling more quickly than the 10-year average November-level of 59 days.

About the RBI Metro Housing Market Update

The Baltimore Metro Area Housing Market Update provides unique insights into the state of the current housing market by measuring the number of new pending sales, trends by home characteristics, and key indicators through the most recent month compiled directly from Multiple Listing Service (MLS) data in RBI’s proprietary database. The bulk of this report’s content is readily available, down to the ZIP code level of granularity, via interactive charts and reports offered via rbiEXPERT, a premium subscription service offered to real estate professionals interested in growing their business with the help of industry-leading and user-friendly analytics. The Baltimore Metro Area housing market includes the City of Baltimore, Anne Arundel County, Baltimore County, Carroll County, Harford County and Howard County in Maryland.

About RealEstate Business Intelligence, LLC

RealEstate Business Intelligence, LLC (RBI) is a primary source of real estate data, analytics and business intelligence for real estate professionals with business interests in the Mid-Atlantic region. The full monthly data report for all jurisdictions in the MRIS region, along with interactive charts and graphics, can be found at www.getsmartcharts.com.

About the Center for Regional Analysis at George Mason University

The Center for Regional Analysis conducts research and analytical studies on economic, fiscal, demographic, housing, and social and policy issues related to the current and future growth of the Virginia, Maryland, and DC areas. Through its range of research and programs — major economic impact studies, economic forecasts, fiscal analyses, conferences and seminars, publications, information services, and data products — the Center’s activities strengthen decision-making by businesses, governments, and institutions throughout the Greater Washington region.  Visit http://cra.gmu.edu to learn more.