Real Estate Trend Report February 2010

Absorption Rate

The absorption rate increased to 18% 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 absorption rate was also lower in 2008 and 2009 (closer to 11%). 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!

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 number of sales increase until the fall of 2010.

Sale Prices

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.