Baltimore Foreclosure Rate on the Rise

Posted in General, October 9th, 2006 |

Foreclosure statistics in the Baltimore area can be deceiving. While during the past four years the number of foreclosures in Baltimore has fallen by nearly 8%, the foreclosure market in Baltimore is still ripe. The percentage of foreclosures as compared with the number of homeowners in the city is nearly double in Baltimore what it is in Philadelphia. So while the number of foreclosures has dropped, the cities rate of foreclosure is still very high.

However, these are very different cities, so comparing them we can draw some conclusions that can be universally applied when examining the real estate situation in any city. Philadelphia is marked by a growing economy and a rising number of ocupants. New jobs have been created, and more people are moving to Philadelphia. Baltimore has been marked by a sluggish economy, and while statistics on how many residents were moving in and out wer enot available at the time of this article, it can be assumed that more people are moving out of Baltimore than moving in. Since the amount of foreclosures has gone down, but the rate of foreclosure has remained the same, it’s safe to assume that people have moved out of Baltimore.

Therefore, while it may be easier to purchase a foreclosure in Baltimore for less than in Philadelphia, buying in Philadelphia is probably still a better investment. Sure, more foreclosures on the market means better prices for investors, but the probability of turning a profit on that home in a city which isn’t experiencing growth could be difficult. Turning a foreclosure in Philadelphia for a profit may be more lucrative, since there are more people moving into the city, and thus the demand for real estate is higher.

It’s important to remember to consider statistics such as these when deciding which foreclosures to buy, where and when.