Saturday, August 28, 2010

20.5% drop in Home Sales Volume in Zip 20001 in July

The National Association of REALTORS(r) releases month-to-month housing numbers from across the country. As predicted, due to the acceleration of the markets because of the tax credit deadline in April, the July numbers for volume of sales of existing homes were low. Very low. In fact, historically low.
is the original press release for reference.

Should we all be freaking out?

Honestly, I don't think so. First, consider that real estate is a truly cyclical business. Ask any real estate agent you know and I'll bet they'll back me up on this. Second, everything can be looked at in context.

For clarity, and because real estate markets really are local, I have drilled down the numbers to the 20001 zip code. The volume reflects the total dollar volume of transferred sales. The comparison is to the same month of the previous year.

January 2010:
Sales volume up 16.67%
Average Sold Price up 7.69%

February 2010:
Sales volume down 1.10% (from 2009-$9,649,800 to 2010-$9,543,370)
Average Sold Price up 7.14%

March 2010:
Sales volume up 97.08% (Yes, really. From 2009-$6,940,770. to 2010-$13,678,890.)
Average sold price up 17.02%

April 2010:
Sales volume up 73.49% (2009-$14,958,443. to 2010-$25,950,725.)
Average sold price up 21.74%

May 2010:
Sales volume up 90.56% (2009-$16,481,150.-2010-$31,405,841.)
Average sold price up 11.79%

June 2010:
Sales Volume down 8.16% (Tax Credit deadline for contract ratification was 4/30)
Average sold price up 4.08%

July 2010:
Sales Volume down 20.50%
Average sold price up 24.21%

Best wishes,


Delores K. said...

Its really not a question of 'freaking out' as much as it is a question of paying attention to macroeconomic reality.

There are currently 162 resale and new homes in ZIP code 20001 on Trulia, including 3 open houses, as well as 40 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

In other words, 25% (1 in 4) properties for sale in 20001 are affected by foreclosure.

City-wide, 30% of residential property owners (nearly 1 in 3) have negative equity in their homes. See the chart below.


Anonymous said...

Don't you mean 20%

Mari said...

You point out the sales volume is way down, I notice the adverage sold price is up, way up. If I were a buyer it seems to mean that there are fewer choices and what is there, I can't afford it.

Anonymous said...

Yeah, but if you're the seller, life is good baby. Those who held onto to their homes through the darkness of Marion Barry (soon to return under Vincent "I am not a corpse" Gray), and those who took a risk and invested in this neighborhood more recently deserve to enjoy the rewards of a neighborhood to which we contribute by doing things like participating in running clubs, yoga, coffee shop readings, and listservs/blogspots.

Anonymous said...

Delores - who are you and why are you always fighting with Suzanne??