Do you know the current status of the home sales market? Although the jury may still be out over this topic, the verdict is making its way in slowly but steadily. Several major real estate gurus and experts report about it in last month's Washington's Business Journal and some of the results may surprise you. Bottom line? -- Buyers are still in a favorable position though sellers are finally seeing price gains.
The findings reported for this past April indicated that the Washington D.C. Area led the nation in real estate/home price gains. As Tucker Echols, one of the area's real estate experts, reports - median prices in the Washington had risen nearly 2.5% in April compared to March of this year.
Not surprisingly, this increase is actually the best gain of the 20 markets that were surveyed in the Shiller Home Price Index, which uses the repeat sales pricing technique to measure housing markets. Interestingly enough, the D.C. Metropolitan area has also surpassed most markets in annual real estate gains. In fact, median home prices in the area have increased by nearly 8% in April of this year - compared to the numbers that were reported just last year during this time.
Since the home buyer's tax credit ended in April, sales in many areas fell in May and are continuing the trip downward. Just last month, National Association of Realtors found that existing home sales in May were actually down 2.2%. April sales were revised higher to show an 8% gain over March. Contrary to popular belief, sales of existing homes were up by an astounding 19.2% during May of this year as compared to last year.
In April, first-time buyers made up 49% of sales but this figure only dropped to 46% in May. There is a lot of debate nationally about the long-term impact of the tax credit on the market, but the Washington DC Metropolitan area is one place where the tax credit had the desired effect of stabilizing pricing and reducing inventory.
Amazingly, national home sales are actually on the rise by nearly 5%; and prices, even in our somewhat challenged economy, are up by 15% this year compared to last year. One thing that our sources from The Journal agree upon is that things are certainly changing - for the better. As more statistics are revealed, we'll check back in with the "jury" to see where we stand on this topic - stay tuned!
One important key for both buyers and sellers is price. For sellers, working with Rachel guarantees you correct placement in the market and a proven track record to achieve the best price for your home. For buyers, it is about having a top-notch expert guide you through the process & help you negotiate the best price. Rachel Valentino is on top of DC's real estate scene and active in all avenues of the market - including private residences, new construction, luxury market and the condo and co-op community.
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