Housing Inventory Rises in August, But Not in DC

• September 8, 2010
• 3 Comments

by Mark Wellborn

Data out from ZipRealty shows that the inventory of homes on the market in metropolitan areas across the country increased at the end of August compared to the end of July. However in DC, inventory actually dropped 1.2 percent during that period.

While the increase in inventory nationally (0.4%) was notably less than a typical August increase of two percent, the current inventory will still take over a year to clear at the current sales pace, according to The Wall Street Journal:

The less-than-average gain in inventories is troubling, nonetheless, because demand has fallen sharply since the tax credit to spur sales expired earlier this year. At the current pace, it would take 12.5 months to clear the backlog of unsold homes, according to the National Association of Realtors.

Despite the fact that there was a dip in inventory in August, there were still 36,270 homes listed across the DC Metro area. Yet many buyers in DC proper are lamenting the lack of quality choices that have been available in recent months.

This article originally published at http://dc.urbanturf.com/articles/blog/housing_inventory_rises_in_august_but_not_in_dc/2450

3 Comments

1. ummm said at 7:23 am on Wednesday September 8, 2010:

   In struggling housing market, buyers and sellers are out of sync

   By Dina ElBoghdady
   Washington Post Staff Writer
   Sunday, September 5, 2010; 12:32 AM

   Jack Donnelly put off selling his Capitol Hill rowhouse for three years until he thought he saw glimmers of life in the housing market this past spring. At $950,000, he said, the red brick Victorian is a “solid deal.”

   Jackie Wright sees it differently. The row house is one of many homes competing for her attention in uncertain economic times. She’s been looking to buy a home in the District since April but is in no rush to commit, partly because she thinks mortgage interest rates - and prices - could sink even lower.

   As with many prospective sellers, Donnelly’s hopes for his rowhouse were forged in the past, before the housing bust, when homeowners assumed that real estate prices would inexorably rise. They expected to reap vast windfalls when their houses sold. But Wright’s eyes are turned to the future. She’s anxious about whether the coming months will bring more gloomy economic news and reluctant to gamble on a major purchase, especially if a flagging market might actually mean better deals ahead.

   “I keep thinking, ‘Do I really want to do this now? Shouldn’t I wait to see what happens in the next few months?’ ” Wright said.

1. Nikki said at 7:39 am on Wednesday September 8, 2010:

   Mr. Donnelly should watch a couple episodes of Real Estate Intervention. There are two factors to selling a home…price and presentation. I don’t know about the comps in the area but he is lacking on the latter…hence other properties in the area selling quickly at comparable prices. I’m sure author of the article is getting similar comments from real estate professionals all over the city. In comparison to the national market DC is a strong market with properties that are priced properly selling quickly. I bet a stager could get the property sold at that price.

   http://www.redfin.com/DC/Washington/110-13th-St-NE-20002/home/9911234

1. Citi said at 1:13 pm on Thursday September 9, 2010:

   I agree with Nikki.  My eye is so drawn to the clutter,I had a hard time focusing on the bones of the house.  If a home appears unkept, a buyer may wonder if the mechanics and general maintenance of a home have been neglected as well. The photos should show a clean, organized space so you can see the walls, floors, and architecual detail and especially the kitchen and bathrooms.  Also, with a home in this price range, a buyer would expect to see higher end kitchen appliances.

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