Basically, in the Northern Virginia ( DC suburbs):
- The number of sales are way down in Dec 05 compared to December 04
- The inventory is way up in Dec 05 compared to December 04
- The median and average sales price was higher in Dec 05 compared to December 04
The bubble continues to pop in the DC area.
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Thank you, David, for the info. It is good that the number of sales are down and inventory is up, but I cannot understand why the prices are still going up. I am waiting for the prices to come down. I hope they will this year. They have to considering all the factors involved. The high prices are not justified, but as long as there are buyers who are willing to pay, I guess it does not matter whether justified or not. That's disappointing, but we have to see what will happen later on, and I should not lose hope.
ReplyDeleteMy comparison was between December 04 and December 05. Prices rose in that time period.
ReplyDeletePrices for mid priced housing units are are slowing declining last month.
I've noticed the Market Summary for December is still not posted.
ReplyDeleteUsually they post that the same time they post the other detailed reports
It's funny. The lates article dated in August talks about a housing suppy problem ;)
ReplyDeletehttp://www.nvar.com/newsdetail.lasso?articleno=nvarn100455
Could the reason the prices are up be that sellers are still asking a lot, but fewer buyers are willing to pay? Thus we end up with high inventory (few houses selling), few sales, but high prices for the few sales that there are?
ReplyDeleteWhile I agree there is a housing bubble, it may take quite a while for prices to fall. Denial is a powerful emotion, and a lot of these would-be sellers simply will not break for a while. In addition, I expect all kinds of crazy loan schemes to help them hold the line.
ReplyDeleteI'm comfortable renting, though.
I agree. It will time a little longer for prices to start down. Most are still quoting YOY. It is only the last few months that prices are down. And.......sellers are not desperate ....yet. When they are, and sell out COMPS will come down, appraisals will folow, then prices will follow. Same senario as early 90's
ReplyDeletePersonally, I think expecting prices to fall a lot and quickly, i.e., this year or next year, might be setting oneself up for disappointment. ARMs and IOs will start coming due over the next 2-3 years. This year, I would expect to see a lot of whining in the press from people who can't sell at the price they expected, but I'm not sure we'll see large reductions for a few more years. Just my amateur opinion- I could be totally wrong.
ReplyDelete