How is the (Housing) Market?

“How is the market?” That’s usually the first intro question that anyone I’d met in my past career life as a Realtor, would ask me. Listening to what agents have told me, at the present time, there is a shortage of supply.

According to the new report by Delta Associates and MRIS (Metropolitan Regional Systems), the Mid-Atlantic housing market showed signs of moderate recovery. No housing boom yet. But it’s moving. Via Washington Post.

Sales volume was up 9 percent over the same time a year ago, and prices ticked up 3.3 percent. The average home spent 71 days on the market, down from 110 days during the first quarter last year -- the shortest time since 2006.

First American Logic reports that home prices in Washington-Arlington-Alexandria, including sales of foreclosed homes (also known as distressed properties), increased by 4.48 percent in February 2010 compared to the same period last year.

REPORTS FOR NORTHERN VIRGINIA and WASHINGTON DC

NVAR (Northern Virginia Association of Realtors) region – Arlington and Fairfax counties:

The total number of homes sold in March up by 4.62 percent from 1,384 to 1,448 homes. Average days on market dropped from 89 days to 52 days. Homes for sale currently under contract (for the same period) increased by 12.49% from 2,306 in 2009 to 2,594 in 2010. That brings to year-to-date sales price of $429,605, up from $385,285 or 11.5%.

Among the three types of dwellings – single family, townhouse and condo – sales of condos actually improved a lot in March, it’s up from 385 to 446 units.

Here’s why we have shortage in the market, via NVAR.

• total number of active listings drop 10.37% from 8,096 to 7,232 homes for sale.
• inventory of homes falls 14.33% for number of months supply 4.99 months.

GCAAR (Greater Capital Area Association of Realtors) – Washington DC:

SINGLE FAMILY HOME

Total number of single family homes sold in March up 49.5% from 204 to 305 units, which brings the year-to-date sales of 742 units up 39.2 from last year at 533 homes. However, the average sales price have been trending down. In 2009, average sales was $551,236. March 2010, the average sales price was $487,648, a drop of 11.5%. Ditto for median sales: from $408,000 to $335,000 or 17.89%. [via GCCAR]

 
 via: GCAAR

Homes for sale supply up 11.7% from 599 units to 669 units. In comparison to last year, single family homes supply on a year-to-date basis drop by 30.6%. This is the same situation Northern Virginia faced: shortage of supply.

CONDOMINIUM

The number of condominium sold up 19.2% from 172 to 205 condos. What’s striking is the number of condos under contract: it’s up 58.5% from 248 to 395 units. Year to date data showed an increase of under contract condos up 40.3%, from 590 to 828 units.

Sales price stay flat at $408,000- $409,000 level. Even median price shows not much of a drop around $350,000- ish. [via GCCAR]

Condos supply for DC paint a different picture than single family homes, because supply is actually trending up.

THE FORECAST

This is the forecast per Center for Regional Analysis (CRA), George Mason for up to June 2011.

TAKEAWAYS:

For buyers still on the sideline, waiting for something perfect to come. Nothing perfect will ever come. You’re the only one who can make your house perfect! Yes, YOU.

With regards to the right price, the one thing that I learned from the day of peddling mutual funds and stocks, home prices will always fluctuate. No one has control over it. So you will have to trust your gut and move forward. Take the plunge.

That’s my take.

How about you? What have you heard about the housing market lately? If you’re buying, what's your experience been?

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