Restrictive rules help buffer Baltimore from housing woes
— -- During the red-hot housing boom, Baltimore-area developers sometimes struggled to get new construction permits because of restrictive rules.
What was then cause for major frustration now looks pretty good given the subsequent nationwide housing meltdown: The region was not saturated with new homes.
Home prices have remained relatively stable, and there have been fewer foreclosures in the region than other parts of the country, says Anirban Basu, CEO of Sage Policy Group, an economic consulting firm in Baltimore.
The Baltimore metro area doesn't get much attention because it's overshadowed by New York City and Washington, D.C. But it has sound employment that also helped shield it from much of the economic crisis.
"The job loss has not been as significant here as it has been nationally," Basu says. That is mostly because the Baltimore area benefits from federal-government-related jobs, health care and medical research.
"Johns Hopkins University and most of the medical system are a strong draw," says David McIlvaine, president of Greater Baltimore Board of Realtors.
That is not to say that the local housing market has been totally immune from economic woes. In April, Baltimore County's home sales were down 20.3% from the same month in 2008.
Home prices also have come down, leading to a buyer's market.
"Sellers have become more realistic with their pricing strategy," McIlvaine says. That's attracting first-time home buyers who had been pushed out of the market during the boom years.
Not only are homes more affordable, but mortgage rates are low, and first-time buyers can receive a tax credit.
"Home buyers who were sitting on the fence are coming forward," McIlvaine says.
That doesn't mean that the local housing market is bouncing back. It probably won't hit bottom until next year, Basu says.
But there are reasons those in real estate have a positive outlook. This year, Forbes magazine said Baltimore was one of the nation's top 10 job growth markets.
