The market has slowed down significantly as the transition from an overheated market to a buyers market occurs. The sellers are clinging to the previous prices they got for their homes, and many are putting their homes on the market to try to lock in their gains before the market retrenches.
Now the Baltimore and Washington DC markets, which at this point last year were overheated, need to settle in and find its equillibrium. The sellers have to find the comfort area for buyers and the buyers have to find the point that they are confident to buy their home and not have significant losses.
Overall 3,909 houses sold at an average price of $319,633 in Baltimore and the five surrounding counties, compared with 5,048 homes in June 2005, according to statistics compiled by Metropolitan Regional Information Systems Inc. That represents the steepest year- over-year decline for any month since Rockville-based MRIS began tracking data in the region in March 1999. Sales fell in every jurisdiction.
Selling also took longer – 51 days on average versus 38 days a year earlier – as the number of houses for sale continued to mushroom. There were more than twice as many houses for sale in June this year as last, MRIS statistics showed, with 6,950 new listings added during the month but just 3,137 contracts signed. In total, more than 16,000 houses were on the market in June in the city and five surrounding counties.
“The market has changed to significantly more sellers,” said Stephanie Bamberger, a Realtor with Zip Realty. “The buyers I’ve been working with are not as anxious to jump on properties as they’d been in the past year. There’s more hesitation and not wanting to pay the price sellers are asking.” via the baltimoresun.com.
