Fort Meade - USNA - Andrews AFB: Property Values - Just my opinion!

 
In the past, I've shared statistics with you from MRIS, the regional multiple listing service, so you would have a realistic picture of real estate activity in Maryland. There's nothing like real data, when it comes to dispelling rumors (and media reports, which tend to be rumors), so that is why I usually go with the facts. Yet there is also a place for informed opinions about property values, and that's what I have to offer you today.

This change of direction was inspired by a phone call yesterday from Andre, one of my blog readers who is relocating from Georgia to Maryland.  He asked my informed opinion on whether property values will continue to rise.  So here goes:

It is my opinion that home values are relatively safe, at least in the Crofton area and Anne Arundel County. They have rarely gone down during my 30+ year career - certainly not in the big picture over any number of years. Home values have gone up pretty consistently, with only a few plateaus. In today's so-called "down" market, we're seeing more of a plateau than a drop in property values, at least in the D.C./Baltimore/Annapolis triangle - UNLESS the property was purchased at the height of the five-year price balloon we saw recently. In those cases, motivated sellers may have to sell their homes for less than they paid... and more than they owe.

Most people own a home for a number of years, however, and property values are likely to be on the rise again for the majority of "balloon" home buyers when they're ready to sell. BRAC is a factor which pretty much guarantees that for local homeowners.

For anyone who doesn't know, BRAC is the Base Realignment and Closure Report, which recommends the consolidation of some government and military services by closing some facilities and expanding others. Maryland is on the receiving end of new jobs in this round of BRAC, and the D.C./Baltimore/Annapolis area is short of housing by tens of thousands for anticipated newcomers. Given the impact of supply and demand on prices, I think that housing is still an excellent investment in this area. The rest of the country may have a very different experience, but Marylanders have good reason to be optimistic - especially those in Anne Arundel, Howard and Harford Counties.



Property Values - Just my opinion!
Copyright 2007. Margaret Woda. All rights reserved.