Tracking the Price

Every month, we eagerly await the publication of the previous month's home sale prices. In April, the region's prices rose slightly, while Baltimore's fell a tiny bit. $3,000, on average, to be exact. The argument is, this is significant because it's the first drop in "more than four years." I'm not sure how significant it really is. People have been talking gloom and doom for months - and prices have continued to rise. While inventories rose, prices were still climbing. It was somewhat inevitable that at some point, the scuttle would catch up with reality ... especially in Baltimore City. In the end, Supply and Demand will do its thing. This does not even discuss the impact of fewer subprime loans, something I suspect will have a greater impact on Baltimore than most places.

Should sellers rethink selling a home now? Perhaps, but probably not. Many factors go into deciding whether to sell a house. If total sale price is the only measure, then perhaps waiting might be a good thing. Then again, these sales are really January and February offers ... so they may not actually reflect the market -today-. Even more, that last $3,000 should not deter most sellers. We move for lots of reasons, and we have to keep the $3,000 in perspective. Often it's in the scope of $20 or $30,000. It's a lot of money, but if it means a longer commute, higher electric bills, or other economic impact, it may come out in the wash. If the property is an investment property, the money should be considered with the tax impact rolled in.