The New York Times editorial concerning the housing recovery has received lots of national attention, and for good reason.  The editorial board raises important questions regarding just how much the recent improvements in the national housing market have resulted from buyers collective fear of looming interest rate hikes.  Hard to say, but this has certainly factored into some of the recent activity both nationally and locally.  It could be one of the main drivers behind the (welcome) increase in new listings over the last 5 months in the DC Metro market, which we elaborate upon in this recent blog post.

Another point made by the NY Times editorial hasn't reared its head in the DC Metro market...at least not yet. 

Similarly, home prices have gone up, rising 12.4 percent from July 2012 to July 2013. But month-to-month price gains have slowed considerably the last several months. This suggests that prices have begun to plateau, even as millions of homeowners who owe more on their mortgages than their homes are worth are counting on rising prices to restore their equity. [emphasis added]

The 10-year average July-to-August month-to-month price change is -2.5% for the DC Metro area.  The 2013 July-to-August percent change: -2.4%. We'll keep an eye on this indicator when the September stats are reported on the 10th, but don't be surprised if there is a month-to-month decrease again: The 10-year average August-to-September median sale price change is -5.2%.

Pace of inventory decline slows, even as sales growth continues

OVERVIEW

Demand remained strong in the Baltimore Metro Region in August.  The number of sales and pending contracts increased.  Inventories continue to decline, but the pace has slowed to only a single digit year-over year decrease for the second consecutive month.  The decline in overall inventories has been mitigated by the continuing trend of increased new listing activity. Demand for condo and townhome properties continues to be strong.  Townhome sales drove the majority of the increases in both sales and new contracts.  Smaller units had the highest increase in median sales price, with units less than 800 square increasing by 20.5 percent, or four times the 5.0 percent increase for all units.  The overall high demand and low supply contributed to median sale price gains within the region and resulted in the highest August-level median sales price in since 2008.  The median days-on-market continues to be historically low, and is now at its lowest August-level in eight years.  Rising prices and strong demand should continue to encourage new sellers to enter the market, increasing new listings and helping to meet pent up demand.

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