Recent Trends in the Real Estate Market

In October 2008, the real estate market experienced a brief positive trend. The average days to sell a property decreased slightly and the average sales price increased slightly. The absorption rate and the number of sales decreased. This same “upswing” in sale price has occurred every year over the past three years in October. If we continue to experience the same trends as we have in the past, the average sales price will remain flat (or increase slightly) over the next two months, then drop during the first two months of 2009, and then pick up in March.

Absorption Rate – 1 out of every 10 homes for sale sold last month

The average absorption rate decreased in October, changing from 12.32% in September to 10.78 in October. We are now in the Fall/Winter 2008 real estate market. It is an excellent time to buy a home! The inventory is high and demand is low. I expect these market conditions to remain until March 2009.

Days on Market - The homes that sold last month were on the market for 100 days

The average time to sell a home decreased slightly to 100 days (3.9% drop) in October. It now takes about three and a half months to sell a property. The average number of days to sell a property increased in Fairfax and DC and decreased in all other counties track last month.

Sales Price - The average home sold for $17,699 more last month

The average sales prices in the region increased slightly (4.36%) last month.

Montgomery County ($477,224; 4.19% jump)

Fairfax County ($408,464; 6.66% jump)

Arlington County ($541,339; 5.78 jump)

Washington D.C. ($558,816; 7.4% jump)

Baltimore County ($283,273; 2.08% jump)

Price Georges County ($273,233; 4.34% drop)

I expect to see property values remain at flat for the remaining months of the year, decrease in January and February, then increase in March. .

Number of Sales - The average number of sales decreased last month

The number of sales decreased 12.34% in October. I expect to see the number of sales remain flat or decrease slightly until March 2009. All counties experienced decreases in the number of sales last month, except Washington D.C. The good news is that the number of sales increased in September and October 2008 as compared to September and October 2007.