Real Estate Market Update October 2009
The real estate market outlook, based on results for the month of October 2009, saw one of the best months this year in terms of volume of sales. There were 127 homes sold in Charles County during the month of October compared to 114 homes sold in September. This increase represents a 27.8% increase over sales this time last year, certainly the direction we all hoped we would be heading. Currently, year-to-date, sales are down just 3.3% to sales in 2008. Based on pending sales, currently up 60% to last year, we should see a modest gain in overall sales for 2009 by years end.
On a continued positive note, the decline in the average price, while still down, rose from -16.39 in September to -9.05 in October. Year-to-date median pricing is down 13.3% to last year. Another important note is the “average sale price as a percentage to list price”. In a healthy market, this figure comes in around 98%-99%. Currently it is at 89.58%. This means buyers are getting an average of 10.5% off the original list price for homes that are selling. For sellers, this means the pressure for lower prices is still very strong.
Inventory remains consistent and unchanged compared to the data for September 2009, with just a modest decline. Out of 1216 listings Active on the market, 231 new active listings were added during October, and there were 150 new contracts pending, which is down slightly from September.
As for properties in Foreclosure, Realtytrac.com reported 80 new properties in default for the month of October in Charles County, which is significantly down. However, the total number of properties in Charles County that are in some state of Foreclosure (including Bank-owned) has increased to 992 properties, compared to 942 during the month of September. The number of properties in a state of Foreclosure continues to be of concern, and all these numbers are not reflected in the MRIS Trends Report because the majority of these homes are not currently being actively sold at this time.
Rental activity continues to remain strong. There are currently 183 rentals on the market. Over the past 30 days 60 homes have been rented in Charles County. The available rental inventory has remained consistent all year.
Some very good news in all of this is the “new and improved” tax credit. It is official. The tax credit of $8000 for homebuyers who have not owned a home in the past three years has been extended until April 30, 2010. In addition, a tax credit of up to $6500 has been included for homebuyers who are selling a home in which they have held as their principle residence for the past 5 years. I have included a more detailed outline within this report.