Baltimore Metro #4 overpriced area

In a recent Forbes article, Baltimore metro area was ranked as the fourth most overpriced area in the United States. Francesca Levy of Forbes wrote a piece titled “Where U.S. homes are most overpriced.”

According to the December 3rd, 2009 Forbes article, the top ten overpriced metro areas in the U.S. are:

1. Orlando-Kissimmee, Florida
2. Miami-Fort Lauderdale-Pompano Beach, Florida
3. Jacksonville, Florida
4. Baltimore-Towson, Maryland
5. Chicago-Naperville-Joliet, Illinois-Indiana-Wisconsin
6. San Antonio, Texas
7. Denver-Aurora, Colorado (tied)
7. Tampa-St. Petersburg and Clearwater, Florida (tied)
9. Indianapolis-Carmel, Indiana
10. Austin-Round Rock, Texas (tied)
10. Nashville-Davidson-Murfreesboro-Franklin, Tennessee (tied)

To read the original Forbes article and view the full list of the 40 most overpriced metro areas in the U.S. go here Forbes.com.

The table in the article goes on to rank the Baltimore metro area:

ninth (9th) when looking at Properties with Price Reductions
eight (8th) when considering List Price versus Absorbed Price
tenth (10th) in Days On Market
twenty-first (21st) on the Five Year Price Forecast

Basically, this determined that homes, here in Baltimore, were on the market longer and sold for less than the original list price. I am uncertain if that should or would be an accurate measure of how to be ranked. It is, however, certainly interesting information and could help explain quite a bit about our current market.

Housing Market Rejuvenation?

THE EMERGENCY ECONOMIC STABILIZATION ACT

As you know or at least you have heard by now about the “Bailout or Rescue.”

Basic Synopsis: On October 3rd, President Bush signed emergency legislation to help stabilize financial markets and improve bank dealings with borrowers in foreclosure. The legislation includes provisions that reinsert monies back into credit markets to help future homeowners. The package also includes provisions increasing federal insurance on bank accounts, as well as some limited tax relief for real estate.

The need to sell and buy real estate remains constant. People still relocate as a result of job transfers. Young families still want to move into larger homes. Upwardly mobile families still desire to move into more expensive homes. Empty-nesters still want to downsize.

People need to feel good about making a financial decision as large as buying a home. There needs to be a certain level of confidence. Events such as those surrounding the financial markets erode this confidence.

The $700B bailout, is likely to produce multiple positive economic and psychological effects on the residential real estate market.

There IS hope in sight for our floundering economy! This recent action by President and Congress will help reduce the supply of homes and increase demand. Thereby rejuvenating the housing market – freeing up much needed mortgage funds. Plus the Federal Reserve is considering lowering interest rates again. Lower mortgage rates, reduced foreclosures, and stabilized home prices will mean more buyers.

Don’t be left on the sidelines. Now is the time to act – before home prices start to rise and fewer homes become available.