Can we have a YIKES!
I am certain we can as 1 in 10 homes of the homes sold in Baltimore in the first half of the year were below $10,000. That is the price of a used car. Now these homes are urban foreclosures but at this price it is still ridiculous. Even in the worst neighborhood you probably could invest another $10,000 in repairs and have an positive income producing rental.
But either way these numbers have to be scaring the daylights out of everyone in the Baltimore real estate community.
One of every 10 city homes sold during the first half of the year — about 275 in all — fell in that price range. Twice as many sold for under $20,000.
Often foreclosures, these properties are usually in bad shape but seem like deals to real estate investors and the occasional hopeful owner-occupier — such as Wells.
“I don’t have to worry about trying to get a loan,” said Wells, 40, a bill-processing technician who works in Annapolis. “That was the purpose of me searching in that price range. I could buy something, pay cash, and I could live in it and renovate at the same time.”
Almost exclusively a city phenomenon — very few homes in Baltimore’s suburbs sold for less than $10,000 — it’s a market that has expanded rapidly. More city homes sold for less than $10,000 between January and June than in all of 2009 and 2010 combined. Dozens of city neighborhoods had at least one such sale this year. via the Baltimore Sun