Despite some choppy waters in August, there have been noteworthy shifts on both sides of the closing table. Buyer activity is moving back in line with historical trends while sellers are making fewer concessions in order to sell their homes. Falling supply and improving absorption rates in many regions also suggest that market balance is realigning towards neutral. Locally, a few indicators posted positive movement over August 2010, but do the rest of the numbers provide reason for optimism?
New Listings in the Washington D.C. region decreased 17.7 percent to 13,268. Pending Sales were up 21.7 percent to 10,127. Inventory levels shrank 15.9 percent to 58,620 units, dampening any potential oversupply issue down the road.
Prices were fairly stable. The Median Sales Price decreased 1.8 percent to $275,000. Days on Market increased 13.0 percent to 86 days. Absorption rates improved as Months Supply of Inventory was down 11.6 percent to 6.7 months.
The economy bobbed along just this side of positive in August. Consumer confidence, which often affects housing demand, showed some slack even as personal income and spending both increased modestly. Low interest rates, declining supply and stabilizing prices are beacons of hope in the harbor, but the recovery still needs wind in its sails.
