2010 Mid–Year Housing Report for the Northern Va DC Metro Area

The latest 2010 Mid Year housing report from MRIS paints a very rosy outlook for the DC metro and Northern Va real estate markets. Here are a few of the highlights from this quarters housing report:

Inventory—The number of units for sale (single family, townhouses, and condos) continue to be very low. Currently the Washington DC area has less then 5 months worth of units. In some areas like Loudoun County, Fairfax County, and Falls Church have less then 4.5% months of inventory. Six months is widely considered a health housing market.
Prices— We continue to see steady price increases across the board. The Washington DC region on a whole is up 4.7% over the last 12 months. Low inventory numbers of course drives pricing (low supply’s means higher prices)
New housing starts—- This number I think really speaks to the story of how bad our economy was leading up to the recovery. Our region is currently at 10-year + lows for housing starts. In 2000, we had over 150,000 new housing starts planned while this year we have 20,000 so far planned. This could be due to tight lending by banks for new homes starts and/or builders still not having enough confidence to begin new projects.
Days on Market— The 1^st question I normally get from home owners when I list their house is “How long will it take”. With inventory levels down the time on market has dramatically been reduced. Currently our area’s average has been around 43 days from listing to contract. A few years ago in Loudoun County the average DOM was as high as 131 days!
Unemployment— The DC area is leading the nation out of the “Great Recession” thanks in large part to a robust jobs market. Our current unemployment rate is 6% vs. the national average of 9.7%. As we all know our area is extremely lucky to have a very busy government sector. The Loudoun/ Dulles corridor is also fast becoming an IT hub.
Interest Rates— I’m sure everyone by now has heard about the mind-blowing interest rates floating around. I’ve heard of client getting 4.15% 15-year loans! This will literally save you hundreds of dollars a month in mortgage payments.

Overall, I think (I THINK… my opinion here.) we at least in the Washington DC metro area have started to turn the corner. The big unknown of course is exactly how much of these numbers were inflated because of the $8,000 tax credit. Some anecdotal evidence has started showing some slow down in foot traffic since the expiration of the tax credit. There also seems to be a lot of rumors about a double dip recession. I’m not quiet sure I see any evidence of that.

I was once told that if ask four economists there opinions on the direction of the economy that you would get five different opinions. The joke was funnier in good times….

Need help navigating the housing market? Want more detailed information on your neighborhood or area? Email me directly.

Take care,

Chuck

Serving all of your Ashburn, Chantilly,Fairfax,Herndon, Reston, Leesburg, Mclean and Loudoun County area Real Estate needs!