According to a recent BusinessWeek article, throughout the U.S. we’re starting to see signs of life in the Housing Market. And though we are still a long way away from a full recovery, as foreclosure and unemployment rates remain high, some metro areas have entered into the early stages of a housing rebound.
Of the 21 metro areas that made Bloomberg BusinessWeek’s list of Most Improved U.S. Housing Markets 2010, the Washington-Arlington-Alexandria, DC-VA-MD region came in at an impressive No. 7. Denver topped the list at No. 1 followed by Boston, St. Louis, and Pittsburgh.
Many statistics needed for rankings such as BusinessWeek’s come from reports like the Trends in Housing Report, a joint publication of MRIS and Delta Associates which provides an in-depth look at the statistics and issues that shape the Mid-Atlantic housing market. Recently released was the 2010 First Quarter Trends in Housing Report.
Some signs from the current Report that support the BusinessWeek ranking and suggest the Washington, DC area’s housing market is heading in the right direction include:
- Prices continue to show signs of a moderate recovery. 1st quarter prices in the metro are up from the same quarter in 2009, with the Outer areas such as Loudoun, Prince William and Frederick Counties outperforming the Core and Inner jurisdictions.
- Days on market continue to decline compared to both last quarter and a year ago. An average of 71 days on market, a decline from an average of 110 days one year earlier, and the lowest time on market since 2006.
- The ratio of inventory to sales continues to decline in most jurisdictions from one year ago. The metro area containing 5.7 months worth of inventory, which is below the normal, healthy ratio of inventory to sales of 6 months, signaling that demand is beginning to outpace supply.
- The gap between buyer and seller demands is closing with the average sales price in the 1st quarter of 2010 at 93.8% of list price, the highest ratio in more than two years.
In a press release, David Charron, President and CEO of MRIS explained, “While the Mid-Atlantic housing market is not yet performing at the robust levels of 2005, it is clearly showing some important signs of recovery that are crucial to reestablishing a stable housing market.” To end on a good note, the Washington metro area housing market by most measures continues to perform better than most areas. If you’d like to learn more about the Mid-Atlantic’s Housing Market, Regional Economy and Outlook and much more on the factors that affect housing in our area, definitely take a look through the Trends in Housing Report.