Healthier Housing Inventory

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Housing inventory two-thirds of the way back to normal
Housing inventory two-thirds of the way back to normal

RISMEDIA, December 12, 2006?There are still plenty of negative numbers in terms of selling prices for homes throughout DC and Northern Virginia, according to November 2006 statistics released by MRIS, but the housing inventory is two-thirds of the way back to normal.

?We are definitely seeing healthier inventory levels,? said John McClain, senior fellow at the Center for Regional Analysis, George Mason University. ?Available inventory for the Greater Washington, DC Metro region is 70 percent of the way back to normal, compared to the all-time highs set in January through March of 2006.?

The Maryland suburbs are faring far better than those in Northern Virginia, largely due to the fact that the Northern Virginia region got much more overheated during the market boom of 2002-2005, according to McClain. ?Prices in Northern Virginia generally rose higher than those in Maryland, requiring sharper decreases as the market adjusts.?

McClain notes that Loudoun and Fauquier Counties are particularly hard hit due to the fact that many more new units have been built there. ?That creates competition which leads to lower prices, compared to an area like Prince Georges County, which has an inventory consisting primarily of existing units.?

McClain predicts that selling prices will continue to show slight decreases and overall flattening throughout the winter months, which are typically slow. But, he thinks that economic conditions are poised for a return to average inventory level and rising prices by April or May.

Average Selling Prices for November 2006:

Washington, DC: $497,291, down 10.96% from November 2005

Prince George?s County, MD: $344,956, up 5.84% from November 2005

Montgomery County, MD: $515,948, up 1.64% from November 2005

Frederick County, MD: $347,386, up 0.25% from November 2005

Alexandria, VA: $485,757, down 2.49% from November 2005

Fairfax County, VA: $521,353, down 3.82% from November 2005

Loudoun, VA: $501,673, down 6.38% from November 2005

Fauquier County, VA: $391,885, down 23.31 % from November 2005

Warren, VA: $298,988, up 6.94% from November 2005

For more information, visit Metropolitan Regional Information Systems.

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