The real estate markets throughout Baltimore and Baltimore County are in a much different place today than they were in January 2020. For homeowners short on equity, struggling to make payments, and considering foreclosure, this market delivers a lot of hope of a favorable outcome.
Both the City of Baltimore and Baltimore County experienced rapidly increasing sales prices throughout 2020. Below, we’ll look at the latest trends and what to expect from the Baltimore real estate market in 2021.
What Is Driving the Baltimore Real Estate Market?
Similar to the Metro D.C. area, Baltimore City and Baltimore County are suffering from severe decreases in available inventory. With the supply of homes so constrained, prices were bound to rise. But in addition, this recent decline of available homes has coincided with an increase in demand, a recipe for skyrocketing listing prices.
Here’s a quick look at December’s available inventory compared to the historical average:
Baltimore City Active Listings
December 2020: 1,447
5-year December Avg: 2,449
Baltimore County Active Listings
December 2020: 763
5-year December Avg: 1,767
Baltimore City Market Snapshot
The real estate market in Baltimore was friendly to sellers, as median sales prices hovered just under $200,000 for most of the year. Prices reached an average of $175,000 as soon as the spring selling season began, and the market retained those gains throughout the year.
Sales momentum was peaking as the year came to an end, with closed listings blowing away their historical averages:
Closed sales at 934 were up 22.7% from November and up 27.2% from December 2019.
The December median sales price of $197,000 is up an incredible 35.6% from a year ago.
The average number of days on the market in December was 39, down from the year-to-date average of 50 days.
Overall, the median sales price in 2020 was $180,000 in Baltimore City, up 12.5% from 2019 at $160,000.
On average, listings in the City of Baltimore are selling for 96.9% of the original list price. This number is considerably higher than the 5-year December average of 94% and up slightly from the 2020 average (96.1%).
Baltimore County Snapshot
The real estate market in Montgomery County reached new heights in 2020, and the momentum is likely to carry over into 2021. Despite a drop in available inventory, closed sales in 2020 were up 7.2% over 2019, and closings in December were well-above historical averages.
With 1,084 closed sales, December 2020 was up 24.7% over December 2019.
The December median sales price of $270,000 is up 11.1% over December 2019.
The December average number of days on the market was 25, which is 21 days below the 5-year December average of 46, and a week less than the YTD average of 32 days.
Compared to the original listing price in Baltimore County, the average sales price was 99.3% this past December. This number was well-above the 5-year December average of 96.1% and was also trending higher than the 2020 YTD number of 98.5%.
Median sales prices peaked in August at around $285,000 but have adjusted down to $270,000 more recently. Moving forward, we are likely to see months that reach a median sales price of $300,000 as the 2021 selling season heats up.
If you’re on the fence about selling, now is the time to get off
All markets can be fickle, and real estate is no different. A seller’s market today can become a buyer’s market in a month. As far as we can tell right now, though, this is prime time to sell the home you’re no longer able to afford or to potentially minimize shortfall in equity if you’re living anywhere in the city of Baltimore or Baltimore County. If you’re thinking about selling your home, please do not hesitate to reach out for a consultation.