Montly Market Update Report for April 2009
While some news sources are reporting an increase in consumer optimism for the Washington DC region, the recent publication of housing statistics remains grim. During the first quarter, home values in Charles County had dropped into the single digits of decline, indicating signs that we were approaching a flattening of home values, but a huge spike in April’s statistics pushed the decline back into double digits. Year-to-date median prices fell from – 8.6% over last year to – 12.1% as we saw a 20% decline of median sale prices during the month of April over last years data.
While there were 145 contracts written last month in Charles County, only 59% of them, or 86, actually settled. Arguably, there are some longer-term contracts which will offset future statistics in this area, however, you should note that there is a percentage of contracts that never make it to settlement. While the level of inventory remained consistent to the previous month, the fewer amount of sold properties increased the overall supply of inventory vs. demand ratio, which currently represents 14.3 months of inventory supply, up from 13 months supply during March. Further indications are that the inventory supply continues to rise ahead of demand by about 1% per month. There is a steady flow of Bank-owned inventory as well as preforeclosures hitting the market. According to Realtytrac, there are currently 256 homes in Charles County in preforeclosure status. During the month of April another 144 homes in the county went into default.
Another noteworthy statistic is the average sales price as a percentage of the average list price, which currently sits at 87.3%. This percentage remains comparable to the previous month. For prospective purposes, a home is listed at $400,000. Market statistics tell us that a buyer will end up paying $349,200, which is 12.7% below the original list price.
Many buyer programs are still available, including the $8,000 tax credit for first time home buyers, and loan programs such as a rural development loan. Many of my sellers will notice that we have begun advertising some of our homes with “100% Financing Available”. Any of our properties that qualify for the rural development loan have this banner in our ads.
Details were expected last month from the Charles County Commissioners on the money allocated to Charles County from the Governments Housing Relief Program. The Southern Maryland Board of Realtors is contacting the Commissioners weekly for updates, and have been told that the commissioners are still ironing out details of the program, and are making changes to it. Currently there is no estimated time for which this program will be in effect. The $5.1 million allocated to Charles and St Mary’s Counties is expected to assist buyers with closing help and offer incentives to purchase Bank-owned homes.
