Home | Newsletter | Advertise
loading...

Shrinking Inventory and Rising Prices Could Mean the Return of a Seller’s Market

  • November 13th 2009

by Mark Wellborn

Shrinking Inventory and Rising Prices Could Mean the Return of a Seller’s Market: Figure 1

Two news items we saw recently made us think that the housing market pendulum could be swinging back in favor of sellers by next year.

The first was from Elizabeth Razzi’s Local Address blog. In the latest installment, she talks with the co-founder of Sawbuck.com Guy Wolcott about the shrinking inventory of homes in the DC area. Here are a few notable statistics: Fairfax County has a 2.7 month supply of homes, Montgomery County has a 3.8 month supply and DC proper a 5.1 month supply. Overall, the Metro area has a 4.5 month supply, well below the six-month threshold that indicates a balanced market.

The second item was a report from the National Association of Realtor’s annual conference in San Diego via The New York Times. NAR chief economist Lawrence Yun gave his forecast for the housing market, which included the somewhat bold prediction that home prices across the country will rise four percent next year. He also noted that he expects home resales will hit 5.7 million next year, up from a projected 5 million in 2009.

Depleted housing inventory and rising prices is usually good news for prospective home sellers. Combine those trends with the expanded first-time tax credit, and we don’t imagine buying will slow anytime soon.

See other articles related to: dc area market trends, dclofts

This article originally published at https://dc.urbanturf.com/articles/blog/shrinking_inventory_and_rising_prices_could_mean_the_return_of_a_sellers_ma/1516.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse