Falling leaves and falling prices are now occurring in many of the bubble markets. The days of double digit price appreciation are long gone.Even David Lereah, the cheerleading chief economist of the National Association of Realtors, said that "the market has him 'as nervous as a two-tailed cat in a room full of rocking chairs"
Today, the leaves were busy falling in the Washington, DC area. There were leaves everywhere. The housing inventory continues to increase. Price declines are occurring.
Condo prices are particularly vulnerable as there has been a huge amount of condo construction in the past few years in the DC area. Prices for new 1br condos in nice inside the Beltway neighborhoods are updwards of 300K ( many costing over 400k).
The chart on the right is provided by a poster on this blog who took the time to take data from the Maryland Association of Realtors. It shows stagnating and declining prices in the last two months in parts of Maryland.
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The issue is how long it is going to take for the sellers to break. How long will they / can they let houses sit with no offers?
ReplyDeleteIs that happening yet? Are people putting condos for sale at $300,000 (and more) and not getting any offers?
"Are people putting condos for sale at $300,000 (and more) and not getting any offers? "
ReplyDeleteOne guy I know has reduced his 1br condo twice. It is now just below 200K
I saw the graph related to sales in Suburban MD, but Fairfax is not declining as much, as far as I can tell. Anybody got facts for Fairfax?
ReplyDeleteI've made a chart for NoVa, which includes Fairfax, Arlington, and Alexandria. It uses data taken from the statistics website for the Virginia Assocation of Realtors.
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