The dog days of summer kept the real estate market relatively stable in August. The significant statistics were literally unchanged from August of 2009, and showed a slight decrease from the previous month. The total number of units sold was exactly the same as in July. The days on market increased by a few days , and the average sold price decreased slightly.  The market seems to have paused at this average price level and the Market Action Index shows that conditions currently favor buyers. Both prices and inventory levels are unchanged in recent weeks.   Buyers seem to have taken another wait and see attitude. Despite historically low interests rates and stable or decreasing prices, there has not been an urgency to enter into the fray.  The government reported recently that 1 in 7 Americans are living near the poverty level. Fear of loss of jobs has stopped otherwise ready buyers from moving forward. I suspect that until after the November elections there will not be much activity.

These are the days that in 5 or 10 years we will look back and say we wished we had bought when the prices and interest rates were so low.  Despite all the gloom in the forecast, owning your home is still the wisest long term investment you can make.

Commentary and analysis provided by Charlie Carroll, Managing Broker, Avery-Hess, Realtors

Find Your Home. Plan Your Life. www.averyhess.com

The first few months of 2010 show a slight upward trend in the housing market and the year over year figures indicate a rise from the same period last year. The total number of homes sold is up by nearly 50%, the average sales price continues to go up with a 3.5% increase, the average days on the market has decreased from 90 to 61, a 32% decline. Sellers are getting 95.5% of the asking price as opposed to 92.5% last year.

The market, while not fully “recovered,” is certainly headed back in the right direction. We should continue to see improvement as we get closer to the April 30^th deadline for the Federal Tax Credit benefits for first time and move-up buyers.

Commentary and analysis provided by Charlie Carroll, Managing Broker, Avery-Hess, Realtors

Find Your Home. Plan Your Life. www.averyhess.com

There’s good news and bad new for buyers and sellers in Arlington this month. The average sales price for single family detached homes increased by nearly 14%, good news for sellers, and actually good news for buyers knowing that values are going up. Of the 132 sales in January, nearly 70% were condos and townhouses. The average sales price for these attached homes decreased by 16% from the same period a year ago. As the prices on these units dropped, more sales occurred because of the affordability factor.

The Federal Housing Tax Credit is still in place but there are just two months left to act. It seems like we’ve been snowbound for most of the winter so far, but as the weather improves I predict the ready buyers will be unleashed into the marketplace and sales of affordable homes will rise as the incentive deadline approaches.

Interest rates have remained steady but indications are that the Federal Reserve will consider rate hikes as the year progresses. If you are in the market to purchase or sell, now is absolutely the best time to act. Inventory is still low but the shadow inventory (pending foreclosures) is lurking and could be released anytime. List your home now while competition is limited. Buyers, have your agent prepare a rent vs. buy analysis to show you the benefits of home ownership. Don’t wait too long and miss an opportunity.

Market data and commentary by Charles J. Carroll, Managing Broker at Avery-Hess, Realtors.

Search for homes in Arlington, and all of the DC Metro: www.averyhess.com

• Active listings: 803
• Closed sales: 230
• Pending sales: 213
• Average sold price: $509,003
• New Listings: 208
• Average days on market: 53

The significant concern is a 50% drop in new listings from October, resulting in a 15% drop in the total number of homes currently on the market. Declining inventory is problematic in a period where incentives are provided to both first-time and move-up buyers. This drop in inventory could be attributed to a seasonal change. Some homeowners may have decided to wait until early spring to list their homes because the Federal Housing Tax Credit has been extended to the end of April and they anticipate prices to be more favorable then. Regardless, it remains a good time for buyers with favorable interest rate, and reasonably priced homes.

Market data and commentary by Charles J. Carroll, Managing Broker at Avery-Hess, Realtors.

Search for homes in Arlington, and the rest of the DC Metro: www.averyhess.com

Avery-Hess Community Video: Ballston, Arlington, VA from Amit Kulkarni on Vimeo.

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• Active listings: 950
• Closed sales: 195
• Pending sales: 265
• Average sold price: $529,360
• New listings: 416
• Average days on market: 46

The number of units sold for the month was up 25% over the previous year, but down 12% from last month. While the average sales price was down 7.25% from a year ago it is up 5% from last month and is back above the half-million dollar mark. Meanwhile, the days on market continues to drop significantly. New listings and pending sales remains robust so it appears that reasonably priced homes in good condition are selling quickly.

In addition, the pool of qualified buyers seems to be growing as well. The list price to sales price ratio remained unchanged from a year ago at 95%, which suggests that the number of multiple bid situations decreased. The extension of the Federal Housing Tax Credit is good news for both first-time and move-up buyers. For the last few years, foreclosures basically eliminated the move-up segment from the market as banks became the sellers of property, but were not repurchasing. Now, with the number of foreclosures decreasing and the incentive for move-ups in place, hopefully we’ll begin to see a return to some level of normalcy in the  marketplace.

Market data and commentary by Charles J. Carroll, Managing Broker at Avery-Hess, Realtors.

Search for homes in Arlington, and the rest of the DC Metro: www.averyhess.com

• Active listings: 907
• Closed sales: 221
• Pending sales: 265
• Average sales price: $478,911
• New listings: 351
• Average DOM: 62

The number of units sold for the month was up 15% over 2008. However, the average sales price was down 6.5%. This would indicate sales were happening in the lower priced homes where first-time buyers are taking advantage of incentives and low interest rates. Another distinct factor is the decrease in the days on market (DOM). Down from 85 days in September 2008 to 62 days this year, it reflects lower inventory and an increase in the buyer pool causing increased interest. Consequently, when houses are in good condition and priced right, the buyers will come. If you’re thinking of selling, now is the perfect time.

Market data and commentary by Charlie Carroll, Managing Broker at Avery-Hess, Realtors.

Search for homes in Arlington County, and the rest of the DC Metro: www.averyhess.com

• New Listings: 285
• Pending Sales: 242
• Closed Sales: 214
• Average Sales Price: $ 537,120
• Average DOM: 71

As previously noted, Arlington County has not suffered the same declines in the market as most of Northern Virginia. Comparing August 2009 to August 2008 the numbers are not dramatically different. While the average sales price is down by 7.5%, the median sold price is up by 7.5% indicating that despite a drop of 10% in units sold, the higher end homes showed an increase in sales activity. Condo sales still represent nearly half of all sold properties for the month. Buyers continue to seek out properties, resulting in 242 pending sales. There were 285 new listings taken for the month, meaning inventory is being replenished.

Interest rates remain favorable. Though there are still some low appraisal issues, for the most part that does not present itself as a big problem.

Just a little over 2 months remain for first time buyers to purchase and close in order to receive the $8000 federal tax credit. Movements are afoot to request Congress to extend the credit time period–even making it permanent–but buyers should not gamble by waiting for that to happen.

Market data and commentary by Charlie Carroll, Managing Broker at Avery-Hess, Realtors.

Search for homes in Arlington County, and the rest of the DC Metro: www.averyhess.com