Sister*Stats (June 2012)


Sister*Stats (April 2012)


The Dirt on the Market (March 2012)


Dirt on the Market (February 2012)

To read the entire newsletter, click here:  DOTM 2012 02 09


Dirt on the Market (January 2012)

 

For the January 2012 edition of “Dirt on the Market”, click:  DOTM 2012 01 10

Here’s an excerpt:


Metro DC Housing Market Analysis: 2011 08

Sales Slump; Median Sales Prices Hang On

September 8, 2011

(Washington, DC) – So far this year, sales volume in the metropolitan Washington, DC existing home market is outperforming 2008, when the home sales bottomed out in this region, but cannot seem to build a head of steam.  The region consists of Loudoun, Montgomery and Prince George’s counties; the cities of Manassas, Manassas Park, and Prince William County (PWAR); Arlington and Fairfax counties, the cities of Alexandria, Fairfax, and Falls Church (NVAR); and the District of Columbia.  The table below lists the January through August sales volume for each area for every year since 2006.  Sales in the entire region are about 9 percent behind 2010 (recall though that the market was artificially stimulated during the first half of 2010 by the First Time Buyers Credit) but roughly 3 percent higher than at the end of August 2008.

Since 2006, sales volume in Loudoun County and NVAR have consistently declined, falling in 2011 by 21 percent  and 22 percent respectively behind the January through August volume in 2006.  The highest monthly volume is typically found in NVAR and Montgomery County;  these two areas account for 51 percent of the region’s total sales volume in 2011.  Both have seen volume declines in the last two years, strongly affecting the region totals.

  

The District and Virginia suburbs seem to be faring better than the Maryland suburbs.  Montgomery County’s January through August sales volume is off by 31 percent compared to 2006 and in Prince George’s County, sales volume has declined 37 percent.  The District has the best record with a decline compared to 2006 of only 17 percent.  The Virginia suburbs’ declines range from 21 percent in Loudoun County compared to sales in 2006 and 27 percent in PWAR.

With the exception of Prince George’s County, the 2011 January through August median sales price beats both the 2009 and 2010 medians at the same time of year everywhere else in the region.  The regional median of $330,000 is $85,000 less than it was at the end of August in 2006 but $20,000 higher than it was two years ago.  The largest percentage increase since last year has been in Loudoun where the year-to-date median is now $380,000.  NVAR leads the region with a median of $418,000 followed in second place by the District with a 2011 median of $399,900.

 

 It takes longer to sell existing homes this year compared to last throughout the region.  Last year the average days on market was 62 days in metro DC; this year the average is 71 days.  The largest leap was in PWAR where an extra two weeks was added to the expected time to sell this year.  It is interesting that even with the big jump, PWAR still has the lowest average in the region.  Prince George’s County’s average exceeded 100 days four of the last eight months resulting in the highest average in the region.

 

The year-to-date average close price to original list price ratio in the metro DC area was 94.3 percent (as of August 31st).  Every month this year, the ratio was slightly below the 2010 ratio so the year-to-date average from 2010 is not much different, 94.5 percent.  The highest year-to-date average is in PWAR (96 percent) and the lowest is in Prince George’s County (89.4 percent).

The share of distressed sales so far this year has declined in every area except in Prince George’s County where 63 percent of 2011 sales were either short sales or bank owned properties.  The lowest share is found in the District (14 percent) and it is below 30 percent in Loudoun, Montgomery and NVAR.

Given the disappointing sales in metro DC this year, it is encouraging to see that the monthly sales volume actually increased in August compared to July (albeit by only four units).  With the exception of Loudoun, the component areas followed the usual trend – steady monthly sales volume declines through February of the following year.  Since sales volume was alarmingly low in the second half of 2010 (following the expiration of the First Time Buyers Credit June 30th), it would be nice to see month-over-year increases through the end of 2011.  The District and the northern Virginia suburbs did their part but August sales in Montgomery and Prince George’s fell behind August 2010 totals (-5 and -12 percent respectively).

For more detail, please see Metro DC EH Analysis 2011 08.


Metro DC Housing Market Analysis: 2011 07

Prince George’s County Continues to Struggle

August 9, 2011

(Washington, DC) – Prince George’s County is one of the components of the Metropolitan Washington, DC region (which also includes Montgomery County in Maryland, Arlington, Fairfax, Loudoun, and Prince William counties in Virginia and the cities of Alexandria, Falls Church, Fairfax, Manassas and Manassas Park in Virginia and Washington, DC).  Since 2006, Prince George’s has generated 14 percent of the region’s total existing home sales volume.  Even though it has always been known as an affordable alternative to the more costly DC suburbs, Prince George’s County is an anomaly in this region; its housing market is in a steep and steady decline.

Consider the fact that the entire metro DC region has suffered a 21 percent decline in its year-to-date median sales price (January through July each year) since 2006. Bad enough, to be sure, but the comparable decline in Prince George’s County is a whopping 50 percent and still falling.  While the year-to-date median sales price has seen modest increases throughout the metro area in 2010 and 2011, Prince George’s County has had six consecutive years of median price decreases.

  • Metro DC Jan-Jul 2006 MSP = $415,000;  Metro DC Jan-Jul 2011 MSP = $330,000
  • PGC Jan-Jul 2006 MSP = $320,000; PGC Jan-Jul 2011 MSP = $160,000

 

So far this year, the median sales price in Prince George’s County has declined 7 percent whereas the median has increased 18 percent for the entire region and while the metro area had three decreases in the last seven months, Prince George’s has had five.

  • Metro DC Jan 2011 MSP = $299,900; Jul 2011 = $355,000
  • PGC Jan 2011 MSP = $171,900; Jul 2011 = $160,000

Compare the July average days on market in the metro DC area of 64 days to the comparable average in Prince George’s County – 104 days.  The average across the region declined 19 percent from January to July 2011 while it increased 17 percent in Prince George’s County.

  • Metro DC Avg Days on Market Jan 2011 = 79 days; Jul 2011 = 64 days
  • PGC Avg Days on Market Jan 2011 = 89 days; July 2011 = 104 days
  • Metro DC YTD Avg Days on Market 2011 = 72 days
  • PGC YTD Avg Days on Market 2011 = 98 days

The year-to-date average close price to original list price ratio in the metro DC area was 94.2 percent (as of July 31st) with five consecutive months above 94 percent.  In Prince George’s County, the year-to-date average is 89.3 percent and it’s had five consecutive months below 90 percent.

Another troubling aspect of the Prince George’s County market is its share of distressed sales (short sales and bank-owned properties).  The ratio is trending down but it is still strikingly high.  Roughly 23 percent of metro DC’s sales in July 2011 were distressed.  About 57 percent of Prince George’s sales were distressed in July.  Through the end of July, the 2011 average share of distressed sales in the metro area was 32 percent; it was 64 percent in Prince George’s County.  Further, for the last two consecutive months the metro DC share was less than 25 percent; it was above 55 percent in Prince George’s County since May 2010.

By contrast, the other component jurisdictions and realtor associations in the metro DC area have all seen year-to-date median sales price increases in 2011 compared to 2010; the 2011 average days on market is below 80 days elsewhere in the region; the 2011 average close price to original list price ratio exceeds 93 percent everywhere but Prince George’s County; and the 2011 average share of distressed sales exclusive of Prince George’s ranges from 15 percent in the District of Columbia to 43 percent in the Prince William realtor association (PWAR).

For more detail, please see Metro Dc Housing Analysis 2011 07