After five years of its home value appreciation rates lagging those in the Washington MSA, Baltimore area appreciation rates are expected to nearly match Washington’s in 2014.
The Burns Metric of the Month
According to the Burns Home Value Index™, while home values in metro Washington surged 7.4% YOY in 2013, Baltimore’s home values increased a modest 4.4%. Both metro areas lagged the national average of 9.7% for 2013; however, in the Washington area, buyers motivated by rising interest rates and relatively affordable home values were met with limited supply of resale inventory, which sent values up. In Baltimore, there was less demand, due largely to slow job growth and a larger supply of resale homes from which to choose.
We expect that difference to decrease as Baltimore area home values remain affordable, the job picture improves, and rising interest rates continue to motivate people to buy homes.
Beyond this year, our research shows Baltimore continuing slow and steady growth through 2018, while Washington begins a modest correction.