The average month's supply of housing inventory in the close-in Metro area continued to decline in March, from a 7.6 month's supply in January, to a 6.9 month's supply in February, to a 6.6 month's supply in March. This indicates that inventory is not piling up; in fact, fall-out from the mortgage crisis in the form of forclosures is rare in most of these neighborhoods. However, the volume of sales is significantly lower from the previous year at this time, with sales volume this March 40% below what it was in March of 2007. Since our Metro area is about as prosperous as it was last year and interest rates are the same, this would seem to be more a sign of weak consumer confidence than actual economic decline.
Homes in Northwest Washington, close-in Montgomery County, Arlington and Alexandria continue to sell quickly if they show well and are fairly priced (that is, priced according to the most recent "sold" comparables). Since the spring market is just now beginning to pick up momentum, its over-all strength will be more easily determined in April, May and June, which are the hottest sales months of each year.
*Statistics are taken from the Metropolitan Regional Information Syatem for three areas: Washington, DC, Montgomery Country, Maryland and the close-in suburbs of Northern Virginia.