David Rathgeber's
Market Report
THE LOCAL MARKET SUMMARY
This month's market index decreased to 2.9 months supply from 3.0 last month. It is back to normal/healthy for our market after the sales increase resulting from the Federal Tax Credit program. Northern Virginia leads again with 2.4 months supply; then Loudoun County at 2.7; Montgomery County at 3.2; and Washington DC with 3.9.
It is important to keep this information in time perspective: Months supply data above are for June. The July 1 news from the National Association of Realtors reported a big drop in pending contracts nationally for May. You will recall, we reported a big 37% drop in sales for our area on June 1. We are always at least 1 month ahead and area-specific! The average home price increased a whopping 9.3% from last month. Although this is the very latest data available, remember that it is for contracts negotiated in April, the final month for the Federal Tax Credit. We will assess the Tax Credit's effect on average prices in a month or 2, so stay tuned. Meanwhile, buyers were negotiating about 2.4% off asking prices on the average, and 76% of buyers were paying less than the asking price. Foreclosures increased again to 4.3% of homes on the market. Notes
(1) Market Index (Months Supply of Resale Homes): Below 1.5 is a hot sellers' market; 1.5 to 4.0 is a (normal) sellers' market; 4.0 to 6.0 is a neutral market; above 6.0 is a buyers' market. (2) Northern Virginia: Alexandria, Arlington County, and Fairfax County. (3) Pricing data above are the very latest, but they are inherently 2 months old due to data collection limitations. Media reports are generally another 2 months old. The report above is prepared monthly from David's independent research for his clients. Click this link: to learn how this report is prepared. Contact David for current data on your market segment. Let David know if you'd like to get the monthly report by email.
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