Market activity may appear to be low in year-over-year comparisons due to the 2010 tax credit. We knew this was coming. Several other themes warrant attention beore we dig into the numbers. First, we’ve had several months in a row of private job growth. Second, interest rates, in concert with food and energy costs, are rising. Third, the anticipation of rising rates often motivates buyers. A recovery looms. Now, let’s take a look at those numbers.
New Listings in the Washington D.C. region increased 2.1 percent from last February to 12,885 new homes. Meanwhile, Pending Sales increased 32.3 percent to arrive at 9,718 contracts written. This meant inventory levels decreased 4.6 percent from last year to reach 54,760 active listings.
Prices slid a bit – the February Median Sales Price of $235,500 decreased 5.8 percent. Negotiations moved toward buyers as Percent of Original List Price Received at Sale decreased 2.7 percent to 91.4 percent. The absorption rate increased 0.8 percent as Months Supply of Inventory checked in at 6.2 months.
The national average interest rate was 5.23 percent on a 30-year fixed. The U.S. government would like to play second fiddle to the private sector in the mortgage market. Shifting the risk burden makes fiscal sense but could threaten an already fragile recovery. The Center for Responsible Lending states that it would take 14 years for the typical American family to save enough money for a 20 percent down payment, based on national average home prices.
