Northwest DC Inventory is a bit scarce at the moment. Some sellers are waiting until the spring market to list their homes. The spring market has already sprung.
Some of my buyers (first timers and those looking to upgrade) are wondering where all the inventory is. The lack of inventory is due to the season, yet buyers are not waiting until the spring to buy. They’re anxious to buy right now.
These buyers are trying to take advantage of the federal tax credit. This means that they must have a ratified contract on a home by April 30, 2010 and settle by June 30, 2010. It’s crunch time for these buyers.
I’m not suggesting that you sell your place just for the sake of selling. I’m suggesting that if you’re waiting for the spring market, don’t wait! You’ll have more competition (other listings) to contend with in upcoming months and buyers are out earlier than in years past. Interest rates are low, the tax incentive is significant and prices are good.
Click here for MRIS Trends in Housing in the DC region.
Here is a breakdown of what you’ll see…
* New listings are down in late December. That’s typical for this time of year.There are fewer listings this year than there were at this time last year. (-6.1%. Last 3 months compared to the same 3 month period last year) Lower inventory with more active buyers is a positive sign to towards a balanced market.
* Pending sales are up from last year. 34.3%. We have seen more contracts with lower inventory. Again, that’s a good sign for the market (i.e. reaching a balanced market).
* Active listings have gone down drastically. -26.2%. Supply and demand tells you the market is stabilizing.
* Days on the market have gone down. -8.5%. The market is absorbing the inventory faster.
* Percentage of original list price received at sale is up.
* Housing affordability is up.
* Monthly supply of inventory is down to 6 months. This is very interesting because the market is considered balanced at a 6 month absorption rate. Over 6 month absorption rate is considered a buyers’ market and less than 6 months is considered a sellers’ market.
Would you like to know what your home is worth? Call (301) 370-4499 or write to andy.peers@LNF.com.
