State of the Market

The Evers & Co. July 2010 Real Estate Report

While the average price in our area was at or above the previous year's level for the past 8 months, the dollar volume of sales was down for the first time in 14 months. Lawrence Yun, the chief economist for the National Association of Realtors said NAR indicators predicted that a slowdown in sales was expected after the surge created by the April 30th deadline for the First Time Homebuyers Tax Credit. It is a little unusual for our area to wait until July to experience such a slowdown, but the record heat may also have been a factor, and the slower sales of more expensive properties - possibly due to the stock market gyrations and ensuing lack of consumer confidence - was undoubtedly influential in reducing the total sales volume.

Meanwhile, prices in the area were up 10.6% over last July, and the inventory was only slightly higher at a 4.8 months supply. With interest rates at their lowest point in over 40 years, and prices still at relatively low numbers, sales this fall should exceed last year's numbers.

*Statistics are taken from the Metropolitan Regional Information System for three areas: Washington, D.C.; Montgomery County, Maryland; and Fairfax County, Arlington and Alexandria in Virginia. "Days on the Market" statistics for the Metro area were also derived from MRIS.