November did not produce any dramatic change in the market for the City of Alexandria. The biggest issue here is the absorption rate, which is about 8 months.
Absorption rate is best explained as how long it will take to sell all the properties currently on the market, given the rate they have been selling, if no new properties came on the market. So eight months means we have a lot of inventory to sell.
The bad news is that buyers have not been rushing out to make purchasing decisions. With excess inventory prices continue to fall, but we are starting to see a leveling off and indications are that interest rates are going up and will continue to climb. Those buyers waiting for prices to continue to fall will end up paying for it in higher interest rates if they don’t do something soon.
The average sales price, while up substantially from November 2009, was down 2% from the previous month. The average days on the market continues to be around 2 months. Buyers are still making offers and sellers are accepting just under 94% of their list price, down a little from last month.
While the inventory is declining slightly the number of pending contracts is down as well. Most analysts agree that the outlook for the coming year sees improvement in the market. Alexandria will see the benefits of an upturn in the market. Buyers should be prepared to enter into the market while the conditions for making wise decisions still exist.
Market data and commentary by Charlie Carroll, Managing Broker at Avery-Hess, Realtors.
Search for homes in the City of Alexandria, and the rest of the DC Metro: www.averyhess.com