This month’s numbers are stuck in the shadow of the spring 2010 incentive market. A number of factors hinder a full-scale housing recovery, yet there are positives that suggest improving consumer confidence. Slowing unemployment claims, strong corporate balance sheets and 13 months of private job growth are cause for long-dormant optimism. Let’s see if our local glass is half empty or half full.
New Listings in the Washington D.C. region decreased 19.1 percent from last March to 18,496 new homes. Pending Sales increased 2.4 percent to land at 12,452 contracts written. As a result, inventory levels decreased 5.7 percent from last year to reach 54,485 active listings.
Prices lost some ground – the March Median Sales Price of $245,000 decreased 2.0 percent. Negotiations moved toward buyers as Percent of Original List Price Received at Sale decreased 2.5 percent to 91.9 percent. The market moved toward balance as Months Supply of Inventory decreased to 6.1 months.
The national interest rate is 5.11 percent on a 30-year fixed; the national unemployment rate dropped to 8.8 percent in March. Several important changes to the mortgage industry are on the horizon. Ensuring access to adequate mortgage captial for qualified buyers is key to housing recovery. This will require substantial reforms to Fannie and Freddie.
