July Home Sales Slip in DC, But Still Strong

• August 10th 2011

by Mark Wellborn

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In July, pending home sales in the DC area fell more than expected, according to data released today by RealEstate Business Intelligence (RBI), but the number of signed contracts was still the highest for the month in six years.

4,563 home purchase contracts were signed in the region in July, a 10.9 percent drop from June and a larger than average dip for this point in the year. MRIS is attributing the drop to buyers pausing as a result of the debt ceiling debate, but despite that, new pending sales still reached their highest July total since 2005.

The report released this morning also stated that the median home sales price for the area slipped slightly to $370,000, however a slight month-over-month drop was in line with the seasonality of the home sales market. In June, the median sales price increased for the fourth month in a row, reaching $379,990, its highest level since July 2008.

One more interesting statistic from the report this morning is that new inventory dropped off notably; specifically, 5,374 new listings came to market in the area by the end of July, 12.7 percent fewer listings than in July 2010. The drop in new listings consequently affected overall active inventory. The DC area had 14,946 active listings at the end of July compared to 15,538 active listings in June and 16,590 a year ago.

“When consumers are thrown a lot of information (like the 400+ point drop in the down this morning), they generally take longer to make a purchase decision,” MRIS’ analyst Jonathan Miller said. “With the expected volatility of the financial markets in the coming weeks, the summer may remain cooler than originally anticipated. S&P’s controversial US downgrade, despite the rating agency’s dubious credibility, may ultimately be better for the economy/housing market in the long run.”

The area that MRIS analyzes includes DC, Montgomery County, Prince George’s County, Alexandria City, Arlington County, Fairfax County, Fairfax City, and Falls Church City.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/july_home_sales_slip_in_dc_but_still_strong/3953.