In January 2009, the real estate market remained slow. The average days to sell a property increased, while the average sales price and buyer demand (or absorption rate) remained low. The increase in the sales that we experienced in December did not continue in January. The number of sales dipped last month. We are starting 2009 off with an abundance of homes for sale, just as we had last year. However, this year should be different due to the low interest rates on home loans, low home values, government financial incentives to first time home buyers, and the strengthening on our overall economy.
Attention Buyers and Real Estate Investors! I now believe that we are entering the strongest buyers market that we have seen in a long time. Sales prices should remain flat for the entire year, while the number of sales will steadily increase. Once the foreclosure/short sale listings are sold we will start to return back to a balanced real estate market.
Absorption Rate - 1.1 out of every 10 homes for sale sold last month
The average absorption rate remained the same in January, changing only slightly from 10.45% in December to 11.3% in January. We are now approaching the 2009 Spring real estate market. It is an excellent time to buy a home! The inventory is high and demand is low. I now expect these market conditions to remain for the entire 2009!
Days on Market - The homes that sold last month were on the market for 115 days
The average time to sell a home increased in January, changing to 115 days from 103 days in December. It now takes over three and a half months to sell a property in the current market.
Sales Price - The average home sold for $13,000 less last month
Montgomery County ($421,840; 2.22% drop)
Fairfax County ($360,721; 10.58% drop)
Arlington County ($466,478; 10.75% drop)
Washington D.C. ($495,380; 10.86% jump)
Baltimore County ($265,095; 6.86% drop)
Prince Georges County ($252,315; 3.84% drop)
I expect to see property values to remain flat for the entire 2009 year!
Number of Sales - The average number of sales decreased last month
The number of sales decreased 31.28% in January. I expect to see the number of sales increase steadily through the 2009 year.
By: Adam Iobst A-Team Realty, LLC
For Additional Information visit http://www.a-teamhomesales.com/