Meanwhile the inventory in the Washington area is much higher then last year at this time. In Montgomery County, MD, in February 2007 inventory stood at 3736, but in 2008 that number had increased to a bloated 5722 an increase of over 50%.
In the Washington, DC area, in February there were 34,978 housing units available through the MRIS . This includes Washington, DC, Montgomery County, Prince George's County, Arlington, County, Fairfax County, Fairfax City, Alexandria City, Prince William's County, Loudoun County, Manasses City, and Manasses Park City. In these jurisdictions sales totaled a measly 2781. This represents a 12.6 months supply of housing units. The number include condos and single family residences from the MRIS. According to the knowledgeable Calculated Risk "Usually 6 to 8 months of inventory starts causing pricing problems, and over 8 months a significant problem." By 'pricing problems' , Calculated Risk means declining prices. Washington, DC area is at a 12.6 months of supply (well above the 'significant problems' 8 month threshold) . Expect major price declines in the Washington, DC area this year. In 2008, expected nominal price declines should range between 7% - 16% in most part parts of the Washington, DC area.
Some areas have of a much larger months of supply then others. Prince George's County has an astonishing 23 months supply, whereas Washington, DC has an elevated 8.6 months supply.
For more numbers please go to MRIS Market Statistics.
The Washington area is not recovering from the housing decline. Prices continue to fall. For real estate, this spring's real estate season will not be a recovery time in the DC area. Housing busts usually last many, many years. We still have many, many months to go before bottom in the Washington, DC area.