Real Estate Trend Report February 2010

Absorption Rate

The absorption rate decreased slightly to 16% last month in our area. It is still a strong buyers market in the DC Metro area. We are starting this year with fewer properties for sale, compared to 2008 and 2009. The market trends are positive; inventory is decreasing while buyer demand is increasing. These are all indications that the real estate market in our area is strengthening. I believe that we may experience balanced market conditions in some areas this year!

At A-Team Realty, LLC we use an area’s absorption rate to determine that area’s market type. This is our model:

Days on Market

It currently takes about three months to sell a property in our area. It took less time to sell a property in January 2010 than it did in January 2008 and January 2009!

Number of Sales

The number of sales decreased last month; however, the number of sales is higher this January than it was in January 2008 and January 2009! I expect to see the average number of sales per month to double this summer.

Sales Price

We are very close to the average prices we experienced in January 2009. It appears that the increase we experienced late 2009 was only temporary. The increase may have been caused by the First Time Home Buyer Tax Credit that was scheduled to expire in November 2009. I believe that prices will increase like they did last year until the Fall of 2010.