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Baltimore condo sales plummeting in tough residential real estate market
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Related Topics: BALTIMORE
BALTIMORE (Map, News) - Homeowners worried about the sliding value of their home have at least one thing to be grateful for — the condominium market might be even worse.
“The condo market is hurting from same factors hurting the general home market,” said Jody Landers, executive vice president of the Greater Baltimore Board of Realtors. “Financing isn’t easy, and people are deciding this isn’t the time to buy.”
Both new condo sales and condo resales in the Baltimore metro area are well behind last year’s pace, according to midyear data released last week by Delta Associates, a Washington, D.C.-based real estate research firm. Since last spring, condo values have also dropped slightly more than local home values, according to the data.
Just 59 new condos were sold in Baltimore City and Anne Arundel, Baltimore, Harford and Howard counties during the second quarter, down from 303 in the same quarter last year.
In the first quarter, a net of just 13 condos were sold in the metro area, and Baltimore City reported new condo sales of -119, which Delta attributed to cancellations of contracts already signed.
For the year ending June 30, 109 new condos were sold, down 90 percent from 1,101 in the 12 months ending June 30, 2007, according to Delta’s figures.
Condo resales are on pace for a 50 percent decline this year, according to the data. Through May 31, 919 condo resales were reported in the metro region, an average of 184 per month. But last year, 3,237 resales were reported, an average of 270 per month.
Median resale prices in the Baltimore area fell 4.7 percent in May to $225,214 from $236,223 during the same month a year ago.
“They’re not immune to the rest of the market,” said David Martz, a Realtor with Long and Foster Fells Point specializing in condos. “To me, except for the [condo] fee, there’s no difference between a condo resale and a regular town home resale.”
By comparison, metro-area home prices fell 1.14 percent in May and sales volume was down 30.4 percent from the same month a year before, according to data gathered by Realtor-owned Metropolitan Regional Information Systems. MRIS data include condo sales as well as single-family sales.
But Delta’s numbers, especially the number of contracts broken, are reported by the condo developers themselves and so could be suspect, said Ross Mackesey, sales manager with Coldwell Bank Federal Hill who has represented about 50 condo projects.
He said the numbers could also be unintentionally skewed by new, large developments such as those in Harbor East throwing many units on the market at once.
“The Baltimore condo market is finite enough that we can actually look at Delta’s numbers and pin down events that skewed them,” Mackesey said. “But that doesn’t mean year-over-year [numbers] ... don’t have some validity.”
acahall@baltimoreexaminer.com
Condos sales by the numbers
New condo sales
Baltimore City Northern Suburbs Southern Suburbs Total
2nd Q 2008 9 23 27 59
1st Q 2008 119 122 10 13
12 months - 6/30/08 70 107 72 59
12 months - 6/30/07 289 630 182 1,101
Median condo resale prices
May 2008 May 2007 % change
Baltimore City $214,500 $213,500 0.5
Baltimore $199,900 $211,295 -5.4
Harford $185,000 $181,000 2.2
Anne Arundel $259,000 $269,900 -4.0
Howard $252,500 $257,000 -1.8
Metro area avg. $225,214 $236,223 -4.7
Condo resale volume
Condo Unit Condo Unit
Resales, 2007 Resales, YTD though 5/31/08
Baltimore City 412 116
Baltimore 859 270
Harford 346 119
Anne Arundel 933 241
Howard 687 173
Metro area avg. 3,237 919
