The state of Maryland continues to suffer as a result of the recession that began in the fall of 2008.  Home sale and median sales price levels continue to fluctuate and real estate experts don’t have any solid signs of consistent improvement to be made in the coming months.  Although some surprising luxury home sales and increasing number of construction or renovation projects have taken place over the past months, real estate experts aren’t certain that the real estate in Maryland has hit bottom and is ready to rebound.  Many experts feel that recovery won’t begin until late 2010 or 2011, and looming fears of another wave of foreclosures in the Maryland commercial real estate market many prolong the expected recovery.

According to the Baltimore Business Journal, many Maryland-based banks are increasing their reserves for the expected wave of problem loans, especially those in the commercial real estate market.  Both the residential and commercial real estate markets are struggling in Maryland as job security is becoming a major problem.  Commercial real estate vacancies are high and many companies are struggling to pay increasing rents.  Many experts in Maryland believe that the number of successful businesses in Maryland will determine the success of both the commercial and residential real estate market since jobs will become more stable.  The Baltimore Business Journal has also reported that based on a LoopNet survey, many real estate experts don’t expect the Baltimore real estate market to recover until 2011.  A majority of experts also believe that Baltimore will continue to experience declines over the next year until it bottoms out sometime during mid 2010.

The Baltimore Sun has also reported that despite a weak real estate market in Baltimore, many contractors are experiencing increasing construction and renovation projects.  As many prospective home-buyers are opting to invest only in low-end, affordable housing, many home and apartment owners are opting to make slight renovations to make affordable housing options even more attractive.  Currently, most of the activity in the Baltimore real estate market is in the lower priced homes and apartments, with luxury properties continuing to struggle to find buyers.