The Evers & Company September 2010 Real Estate Report

While the average price in our area grew 9.1% in September- a gain for the 10th month in a row- the dollar volume of sales is down for the 3rd consecutive month, and the months’ supply is up to 5.1 months, making it the highest inventory yet this year. All of this means that we are still suffering a letdown from the spring market that was inflated by the First Time Home Buyers Tax Credit. While rising prices are a positive reaction to the big spring market, if inventory continues to grow, prices could also retreat.

On the other hand, with our strong local economy, record low mortgage interest rates and, most recently, an improving stock market, we should see a boost in consumer confidence which could lead to stronger sales, lower inventory and continued price gains,- a scenario which should develop, if not this fall, then certainly in early spring.

* Statistics are taken from the Metropolitan Regional Information System for three areas: Washington, D.C.; Montgomery County, Maryland; and Fairfax County, Arlington, Alexandria and Falls Church in Virginia.