Article

Are you looking for a great investment? Then Baltimore condominiums area is the perfect answer for you. It has increased its interest in the last year, thus becoming such a popular business for homebuyers, developers and speculators. The number of sales and the tremendous number of cranes touching the skies across the city indicates the importance of the area, although many industry watchers weren't so confident in this investment and waited for the market to cool off. But, to their surprise, others were amazed by the interest the Baltimore condominiums area emerged, so they decided to take a closer look at the whole situation.

The first analysis of the market of Baltimore condominiums was issued last month by a Virginia-based real estate research firm called Delta Associates, company which was been researching for many years the Washington condominium market. William Rich, an analyst with Delta Associates quotes: "As Baltimore condominiums have had increased its activity, we now think it is the time to include it in our report", taking a snapshot of the basic idea about what's actually going on. Last month, the company issued its first-quarter 2006 mid-Atlantic condominium and apartment report, with a section dedicated to the Baltimore condominium -area market.

Not only the city, but also Howard counties, Anne Arundel, Baltimore and Harford were included in the Baltimore area for the report's purpose. Corresponding to it, 45 percent of the 484 Baltimore condominiums were sold in the city. On one hand, in the city, during the first half of last year, Baltimore condominiums re-sales were amassing huge price inflation, with the median resold condominium rising in value by nearly 26 percent. More amazing is the fact that the number dropped to 6 percent starting July last year, making it a "telling sign", the report confirms.

On the other hand, in Baltimore and Harford counties, the price increase for re-sales during the first half of 2005 was about 24 percent, number which dropped to about 3 percent during the second half of the year. We certainly can't forget Anne Arundel and Howard, where re-sales brought 18 percent more during the first half of 2005 but only 6 percent until the year finished. With only a 12 percent re-sale return during the first half of 2005, and only 3 percent during the second half of the year, Washington City's price increases were surpassed by the ones of Baltimore city. William Rich steps in with a good reason why this was happening: "That can be attributed to the relatively small supply of Baltimore condominiums compared to Washington, and the relatively new demand. And keep in mind that prices for Baltimore condominiums are about to diminish during the following years. Nevertheless, the geographical position of the two cities makes it almost impossible not to observe resemblances between the Washington and Baltimore condominium markets. Having a tight supply of condominiums will slightly make the prices in both markets rise." Another strong resemblance between the market for Baltimore condominiums and Washington's market is that they both are somewhat insulated from dramatic downturns in value. What is also interesting, Rich said, is the increasing number of incentives offered by developers that build Baltimore condominiums, incentives which range from freebees, such as free electronic equipment, to closing-cost assistance. And here is the moment for a broker in the Federal Hill office of Long & Foster Real Estate, Joe Craig, to step in with his opinion: "There is no urgency to buy. It's not like a year ago. Sales are just going to be slower. I mean, that had to happen."