2019 Market Update: What's Happening Hampden?
By Rachel Rabinowitz
The housing market is continuing to evolve in one of Baltimore's best known neighborhoods. While sale prices are up, the story isn't that simple. Read on for a state-of-the-market update from guerilla / realty's broker and founder.
In 2018, for the first time since the recession, the average sale price of an attached townhouse in Hampden exceeded $250,000, specifically $251,951. That’s an 11% year-over-year increase from 2017 when the average sold price of a Hampden rowhouse was $225,929.
While the average yield increased, volume was down. Only 136 townhouses sold in 2018 compared to 204 properties in 2017 — a 33% decrease.
However, the market remained swift in 2018 with 42% of listings selling within the first 30 days on market. The average seller achieved 96.4% of their original list price, or to say that another way, the average buyer was able to negotiate a 3% discount in purchase price.
Interest rates on 30-year mortgages remained low, and the majority of sales (62%) were to buyers using conventional mortgages. Buyers are clearly taking advantage of the low down payment loan options (often as little as 3% down), and many elect to request a contribution to their closing costs. Based on the average sale price, the average Hampden buyer is approaching the market with $8000 saved for their down payment.
Curious about nearby Remington? This up-and-coming neighborhood had an average sale price of $192,356 in 2018, which made for an impressive 14% increase from the previous year. Like Hampden, while the average 2018 yield for sellers was up, the amount of volume decreased by 36%.
So far, 2019 Hampden sales are off to a strong start. In January alone, 12 Hampden townhouses sold with an average sold price of $298,042 or approximately $197 per square foot. Of note, these properties all took at least three weeks to go under contract.
What does this all mean for prospective Hampden sellers? It remains a great time to sell your property, but there are fewer buyers than we saw in the past few years. Buyers are willing to pay a higher price per square foot, but that goes with increased expectations for condition. Not just from a maintenance perspective, buyers want renovated homes with contemporary aesthetics.
In 2018 there were a few too many overpriced homes with outdated interiors in the Hampden marketplace. Most of these properties lingered on the market, and a number of them were withdrawn. Sellers need to be realistic about dated interiors and take steps to get market-ready. Hampden area buyers will pay a premium price for style.
*Source of Statistical Data: as reported by BrightMLS, the regional multiple listing service for Baltimore, Maryland