Baltimore real estate was one of the hardest hit in the state of Maryland when the nationwide economic recession began in the second half of 2008. The crisis in Baltimore began in largely the same manner as it did in the rest of the country - local sub-prime mortgages went into default, foreclosure rates skyrocketed, and home sales as well as property prices plunged. Unemployment rose rapidly as a result of the weakness in the Baltimore real estate market, and the entire economy started reeling by the end of the year. In the present day, it seems possible that Baltimore real estate is starting to make a tentative recovery, as some of the vital statistics regarding properties and sale rates are beginning to trend upwards.
According to a July blog post in the Baltimore Sun, “Economists seem to be hanging their hat on the trend, which is positive for the past three months. Not considering the margin of error, of course. I was hoping for something a bit more hopeful, and also more local, so I turned to new-home permits issued in June. Builders got permits for 442 units in the Baltimore metro area, down 16 percent from a year ago.” The article, written by Baltimore Sun reporter Jamie Smith Hopkins, continued to say that “Now, I realize that doesn't sound like a woohoo-worthy statistic - unless you're in favor of less building - but it's a much smaller drop than the one nationwide.”
The Baltimore Business Journal reported on July 10 of 2009 that “Home sales in the Baltimore area increased in June, the first year-over-year increase in more than two years and a potential sign that buyers are renewing their confidence in the crumbled housing market.” Towson University Professor Daraius Irani said that “It's too early to say that the housing market is rebounding, but it does show that there is some renewed optimism in the housing market.” Realty Trac, Inc. also found that the number of foreclosures in the Baltimore real estate market decreased nearly 22.5 percent in June of 2009 from June of 2008.