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301.590.8764
May 2011 Housing Statistics - Montgomery County
Median Prices Continue Modest Gains - Pending Sales Surge
In May 2011, the median sales price in Montgomery County, MD, was $357,250, 3.55% above the May 2010 median. Inventory or active listings, was down 2.7%, another indicator of market improvement. Total units sold was down 22.4% from 1,139 in May 2010 to 884 in May 2011 - not surprisingly since the federal home buyer tax credit expired in April 2010, resulting in an unusually high number of settlements in the months following the deadline. Days on market also increased from May 2010 (51 days) to May 2011 (69 days).
With the information above, it's difficult to get a true read on the state of housing recovery, as the impact of the 2009 - 2010 tax credit can still be seen in the May data for units sold (which reflects properties that went to settlement that month). One indicator that may help clarify the direction of the market is "new pending sales," which measures the number of new contracts and new contingent contracts (reflecting short sales, properties under contract but with inspection, financing or other contingencies still in place, and foreclosure deals.)
Pending sales were up 35.4% in May 2011 compared to May 2010. While that increase looks very dramatic, keep in mind that with the federal tax credit expiring in April 2010,  many sales that could have happened in May were pushed through earlier so buyers would qualify for the credit. So the May 2010 pending sales may be artificially low, but in 2011 we're still seeing the highest level of pending sales in the month of May since 2006.
Dividing active inventory by pending sales gives us an absorption rate expressed in months - in other words, how long would it take to sell the active inventory given the current  pace of sales? Months of inventory has decreased 32.6% from 4.08 months in May 2010 to just 2.75 months in May 2011.
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GCAAR is the voice for REALTORS® in Washington, DC and Montgomery County, Maryland. Representing over 8,900 real estate professionals in the greater capital area, GCAAR provides numerous services vital to its members' daily business needs and works with lawmakers to ensure public policy that encourages home ownership. |
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