In November 2008, the Washington D.C. Metro real estate market slowed down significantly. The average days to sell a property (99 days) and the absorption rate (10.5%) remained unchanged. The average sales price ($400,330) and number of sales (420) decreased.
If we continue to experience the same trends as we have in the past, the average sales price will remain flat (or slightly increase) in December, then drop during the first two months of 2009. The real estate market should pick up again in March 2009 with increases in both home values and sales activity.
Absorption Rate - 1 out of every 10 homes for sale sold last month
The average absorption rate remained the same in November, changing only slightly from 10.78% in October to 10.5% in November. We are now in the Fall/Winter 2008 real estate market. It is an excellent time to buy a home! The inventory is high and demand is low. I expect these market conditions to remain until March 2009.
Days on Market - The homes that sold last month were on the market for 99 days
The average time to sell a home remained the same in November, changing slightly to 99 days from 100 days in October. It still takes over three months to sell a property in the current market.
Sales Price - The average home sold for $23,395 less last month
The average sales prices in the region decreased (5.5%) last month.
Montgomery County ($425,742; 10.8% drop)
Fairfax County ($409,082; .15% jump)
Arlington County ($513,040; 5.23% drop)
Washington D.C. ($510,641; 8.6% drop)
Baltimore County ($278,591; 1.78% drop)
Price Georges County ($264,885; 3% drop)
I expect to see property values remain flat or decrease slightly for the remaining months of the year, decrease during the first two months of 2009, and then increase in March.
Number of Sales - The average number of sales decreased last month
The number of sales decreased 22% in November. I expect to see the number of sales remain flat or decrease slightly until March 2009.
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