The market continues to see signs of improvement throughout the area serviced by our multiple listing service. Check out these statistics for the week ending 3/14/09 compared to the same week last year:
- New Listings: Down 22.6%
- Pending Sales: Up 19.4%
- Active Listings: Down 20.6%
- Months Supply of Inventory (as of Feb): Down 15.4% (7.6 months supply)
And some of the best news for anyone looking to buy a home: The Housing Affordability Index is at the level we were at in early 2003! This index is at 154 right now, which means that the median income in the area is 154% of the necessary income to qualify for the median priced home under prevailing interest rates! This is fantastic news!
This information is great for BOTH buyers and sellers! For sellers, you have less competition, and if your home shows well and is in a first time homebuyer market, it will sell. While it is still soft on the upper end market, the entire market is improving. This spring is a great time to sell! Certainly the best time since 2005!
For buyers, it is an unprecedented time to purchase a home! Low prices, lowest rates in history, an $8,000 TAX CREDIT for first time homebuyers (It is much different thisyear than last; please consult your accountant for full details!) is creating multiple contract situations on low priced homes. Houses are again going for list price or higher in that market segment.
One of the best things I see happening in the market is that investors are flooding into the market, buying many of the properties with cash, and getting great returns from rent. The next thing that will happen is that people renting, that are able to buy, will realize that they can own for less than they are paying in rent, and this will increase demand further.
To me, this is all evidence that we have reached the bottom of the market in the DC area. If you haven’t already bought, don’t miss out on what will most likely be the most opportune time in the next decade or two to buy a home!!