Maryland Real Estate Still Going Strong
JULY 2005

The Real Estate Industry is not as strong as it was a year or two ago, but it is still a very strong market. Prices in many neighborhoods are still skyrocketing, but buyers tend to be pickier than they were a few years ago, when everything in the more desirable neighborhoods was selling.

The Washington, D.C. metropolitan area seems to be the biggest driving force for the real estate industry in Maryland. The Federal government is big business, and demand for property around Washington has sent prices soaring. This has driven many people to outlying areas. Baltimore, Frederick, Annapolis and Southern Maryland, as well as outlying areas in Virginia have all experienced a real estate boom initiated by people that have been priced out of the Washington market.

Once the initial flood of buyers was forced into areas within commuter range of Washington, this set off a ripple effect that has substantially increased the demand for housing in areas farther out. Carroll and Harford counties have experienced a significant amount of growth in recent years, and now Cecil county is seeing a large influx of residents that commute to both Baltimore and Philadelphia.

While the real estate industry has slowed in some parts of the country, there is no indication that the real estate market will die off in Maryland anytime in the near future. Last Thanksgiving through mid-February was the first time in a few years where the holiday season has been a little sluggish, but that's not in any way unusual. The previous few years, in which sales soared right on through the holidays was the abnormal situation.