Maryland real estate has fared better than most due to the abundance of government jobs which have kept unemployment low. However, the state is not immune to the foreclosure epidemic, and many of the communities face a long climb to recover from damage done by the housing crash. This article by Housing Predictor goes into greater detail on the Maryland real estate market.
Maryland housing sales are rising as a direct result of having one of the best employment rates in the nation. The federal government is hiring workers and government related jobs are growing as a result of the Obama administration, energizing home sales right outside of Washington D.C. Maryland is banking on government assistance in more ways than most other states.
The deflationary cycle in housing prices is showing signs of easing up in Maryland as home sales improve. But the declining values of homes have a long way to go before reaching stabilization as a result of the financial crisis. The days of fast money are over as new mortgage standards replace loose lending practices.
The prices of homes have fallen more than two years in most of Baltimore, which has been devastated by the foreclosure epidemic. Homes changing owners are at less than half of what they were in early 2005. But the first time home buyers tax credit and lower home prices have influenced the marketplace. Foreclosures make up the largest share of sales as declining values slow and the market moves towards a balance. Baltimore home values are forecast to deflate an average of 10.2% in 2009.
As a suburb of the nation’s capitol, Prince George’s County was a haven for new home builders and investors, many of whom have either left the market or are in the process of departing financially ruined by the economic crisis. The volume of home sales is improving, but the housing market will take years to recover in Prince Georges as thousands of homes linger in foreclosure limbo for years. The over supply of inventory is hurting. Home values in Price Georges are forecasted to deflate 11.4% through the end of the year.
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Local Maryland Housing Markets at a Glance
Baltimore − 10.2%
Prince George’s County − 11.4%
Bethesda − 13.6%
Silver Spring − 10.1%
Columbia − 9.3%
At the higher end of the market, Bethesda is seeing more activity in its housing market, and more home sales. But more restrictive mortgage lending is playing havoc with the marketplace. The multi-million dollar homes in Bethesda are seeing their values plummet from the markets peak highs. The time it’s taking to sell a home in Bethesda is shortening as prices decline and is forecast to deflate an average of 13.6% in value in 2009.
Silver Spring has also seen improving conditions in housing sales as one of the lower priced markets in Maryland. But the recessionary environment and lack of consumer confidence is hurting as homeowners in Silver Spring realize they may be removed geographically from the troubles of Wall Street, but are anything but out of its target when it comes to fall out from the credit crisis.
Tourists are beginning to return in the tourist destinations in Silver Spring but are holding on to their wallets more tightly. The recessionary economy’s impact is being felt in a multitude of ways. Rising foreclosures projected for the later part of the year will help fuel the marketplace, but hurt the community, which is forecast to deflate an average of 10.1% in housing values in 2009.
As the second most populous city in Maryland, Columbia fell on hard times as a result of the housing crash after growing steadily since the 1960’s due to enormous government growth. The financial crisis resulted in cancellations of projects due to be built, but contractors are already considering the re-instatement of a few projects that were stalled. Home sales should improve through the rest of the year as government and government backed industries hire for more positions. Hard hit Columbia is projected to see conditions improve with forecast housing deflation to average 9.3% for the year.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate analysis and forecasting site.