Baltimore New Homes Increase in 2011

Baltimore new home construction was up 40% over 2010, which economists often see as a sign of a housing market recovery.

According to an article in the Baltimore Business Journal, the Greater Baltimore region jumped 40%, while the more local Baltimore-Towson region rose 6%.

The December 2011 data for contracts for future residential construction rising a very large amount — $116 million versus $39.2 million in December 2010.

Towson new homes under construction, I am sure, helped a lot with these local numbers. The Towson Green community is well under way and should be delivering new homes in the upcoming months.

New construction tends to be a good indicator of a recovering market because builders won’t build if buyers aren’t there to buy them.

If you’d like more information on Towson new homes or Baltimore new homes, contact me. We’d love to help!

24% of Baltimore Mortgages are Underwater

A recently released report shows that 24% of mortgages in Baltimore are underwater.

A mortgage that is underwater means that the value of the house is less than what is owed to the mortgage company by the homeowners.

The national average of homes underwater is 27%, so Baltimore homeowners are faring a little better than others.

The Baltimore Business Journal shared the data from Zillow.com with these numbers from the end of 2010.

Baltimore house values dropped 9.7% in the fourth quarter, with the national average dropping only 5.9%, which is a larger negative number for Baltimore homeowners.

The drop in house values is good for Baltimore homebuyers, who may be able to get a great home for a lower price than they would have paid in the past and will pay in the future.

If you are considering buying a home in Baltimore, contact me, because now is the time, before the market recovers for sellers. Take advantage now!

Baltimore Ranks 19 out of 50 in High Stress Levels

In a recent study of the 50 largest metro areas, Baltimore ranked 19th in high stress levels.

The data was analyzed by Portfolio.com, which is part of bizjournals, such as the Baltimore Business Journal online.

There was a 10 part formula put together that helped to determine stress factors, including:

1. Unemployment rate (metro area, June 2010, U.S. Bureau of Labor Statistics).

2. Rate of per capita income growth, reflecting the average amount of money received by each resident, encompassing such diverse sources as salaries, interest payments, dividends, rental income and government checks (metro area, 2008-09, U.S. Bureau of Economic Analysis).

3. Families living below the federally designated poverty level, which varies according to family size and composition (metro area, 2008, U.S. Census Bureau).

4. Deaths from circulatory-system diseases per 100,000 residents, covering such maladies as heart failure, hypertension and stroke (central county, 2006, Centers for Disease Control and Prevention).

5. Percentage of possible sunshine received during an average year (central city, long-term annual average as of 2010, National Climatic Data Center and Weatherbase).

6. Ozone level, expressed as the year’s fourth-highest reading in parts per million (central county, 2008, U.S. Environmental Protection Agency).

7. Robberies per 100,000 residents (central city, 2009, Federal Bureau of Investigation).

8. Murders per 100,000 residents (central city, 2009, Federal Bureau of Investigation).

9. Average commuting time from home to workplace, regardless of the means of transportation (metro area, 2008, U.S. Census Bureau).

10. Mortgage affordability, expressed as median house value per $1,000 of median household income (metro area, 2008, U.S. Census Bureau).

The study showed that the unemployment rate in Baltimore was 7.9%, and 57% of days are sunny. (This year, I’d have to say that the % of sunny days has gone up, much to the chagrin of plants, flowers, trees & grass in our area!)

Baltimore was also one of the few cities that saw its’ per capita income rise from 2008-2009 — only three on the list did so, which is great news!

Baltimore housing affordability was also good, with houses being worth about $4,702 per $1,000 of household income. This is great news for Baltimore homebuyers because not only are houses affordable, but on average, values are good to hold on to!

So, if you are considering buying a home in Baltimore, make sure to contact me so I can help you through the process. We aren’t TOO stressful here!

Maryland to Receive $6.8M to Help Stop Foreclosures

The US Housing and Development has awarded Maryland $6.8 Million to help stop foreclosures as part of the Neighborhood Stabilization Program.

Areas receiving awards are allowed to use the money to buy land and property to either rehabilitate or knock down houses, and also to offer downpayment and closing cost assistance programs to low-to-moderate income homebuyers in the areas.

The Baltimore Business Journal reports that $1.8 Million is directed to Price George’s County, while the rest of Maryland will receive $5 Million.

I am hoping that a large portion will be directed to Baltimore homebuyers, where foreclosures have risen so highly, and neighborhood values hurt in many places.

The focus from HUD is that

“These grants will support local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods,” said HUD Secretary Shaun Donovan, in a press release. “We want to make certain that we target these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight.”

Baltimore Home Sales Up 35% in April 2010

Baltimore home sales were up 35% in April over March’s sales as well as over April 2009 sales.

This a telling sign that buyers were looking to take advantage of the ending homebuyer tax credit, as well as hopefully previewing that the economy is beginning a recovery.

The Baltimore Business Journal reported this on information from MRIS, our local multiple listing service.

2,205 homes went under contract in April, while 1,800 happened in March. Last April at the same time only 1,632 homes sold.

I did notice a large number of homes going under contract, but I also have noticed that the first half of May has been very busy as well. I had three homes go under contract in April, and only one was eligible for the tax credit, so that was not a driving force for my set of clients.

Though I agree that it was a nice benefit for those who qualified, I think a really big drive is the combination of low housing prices AND low interest rates, which has rarely happened throughout history.

Baltimore house prices are very low and buyers really can take advantage of this market along with the affordable interest rates!

Baltimore Job Market Getting Better

The Baltimore job market is getting better, according to headhunters in the Baltimore area.

The Baltimore Business Journal reported that Maryland added 36,000 jobs in March, which is a great number. What that number doesn’t state, but the headhunters do, is that many of those jobs are temporary or not “permanent hires”. This means that people looking for long term employment are still having a harder time finding jobs. It is those who will work temporary placements who are doing well in this economy.

The Baltimore housing market is definitely affected by this because without permanent employment, people cannot buy houses. Temporary employment means that these people need to be transient-available, and not looking at long term housing — even apartment-wise.

The good news is that these companies are planning to hire long term if they find these employees fit their needs and their growth continues, which they indicate they are doing. Once these jobs become more permanent, then hopefully we will see a similar upswing in the economy, and therefore Baltimore house values.

Maryland Zoo in Baltimore to Open March 13 After Delay From Major Blizzard Damage

The Maryland Zoo in Baltimore is ready to reopen its gates after two major blizzards caused a tremendous amount of damage to buildings and animal housing.

As I have written in multiple posts about these blizzards, the heavy snow caused damage to many homes, and hurt the Baltimore real estate market. It also has hurt Baltimore businesses and tourist attractions both with their buildings, and the fact that the damage in the zoo’s case, forced them to remain closed for an additional two weeks to repair and remove snow from walkways and the like.

The Baltimore Business Journal reports that the damage to the zoo could top $2.5 million, a hit to the attraction that is already having financial woes.

Tickets for the weekend of March 13-14 will be reduced to $5 to celebrate its’ reopening, and hopefully entice many visitors to come see the animals. Some exhibits may not be open, or they may be modified (for example, the giraffes will not be outside, but can be viewed in their inside habitat) due to the still snowy, cold & muddy conditions, or damage to the area.

After the opening weekend, ticket prices will be $14 for adults, $12 for seniors, and $10 for children on weekdays, and $16 adults, $13 seniors, and $11 children on weekends.

Coming up on March 20th is the popular Samson the elephant’s SECOND birthday party from 11 am-1 pm. It is hard to believe he is now TWO!

So come on down to the Maryland Zoo in Baltimore to support and help them rebuild — just by coming to visit the animals and enjoy the beautiful surroundings in Druid Hill Park.

The Maryland Zoo in Baltimore is located in Druid Hill Park in Baltimore, 21217. The hours once open are 10 am – 4 pm. For more information, call 410-366-LION (5466).

Baltimore County Savings Bank Sells Four Branches to American Bank

Baltimore County Savings Bank (BCSB) is selling four of its branches to Rockville-based American Bank, per the Baltimore Business Journal on January 12, 2010.

Two branches being sold are in Baltimore County — Owings Mills & Catonsville, one in Baltimore City in Hamilton (including the building and property where it is located), and one in Howard County, in Ellicott City.

Baltimore County Savings Bank will still have 14 branches in Baltimore and Harford Counties after this sale goes through.

American Bank’s deposit amount will go up by about $81 million with this sale.

Baltimore County Savings Bank addresses the sale in their news section of their website, in this press release. BCSB states that this will help the community bank focus on the Northeast Corridor of Baltimore and Harford Counties, where most of their branches are located.

This does not affect any loans with Baltimore County Savings Bank.

I am curious to see how this helps Baltimore County Savings Bank in its commitment to Baltimore County and being a local bank. They feel it is better to consoidate and focus more on the Northeast section of Baltimore County, where their main office and most branches are located, and I hope this helps them to continue be a stable local entity.