DC Market First Quarter Growth

District home sales jump in first quarter

Home sales in the first quarter were down 6.6 percent from a year ago nationally, but sales of existing homes in the District jumped 9.3 percent, the second biggest increase in the country.

A quarterly report from the National Association of Realtors also says Washington-area home prices rose a modest 1.2 percent from year-ago levels, while nationally, median home prices fell 1.8 percent to a two-year low. Prices fell in almost half the U.S. cities listed in the NAR report.       
       
The median price of an existing home in the Washington area was $427,800 last quarter, compared with $422,800 a year ago.

The biggest gain in year-over-year median prices was in Cumberland, Md., up 17.1 percent, to $100,000. Sales in the District were outpaced only by a 20 percent gain in Wyoming, but sales were down 5.7 percent from a year ago in Virginia and down 10 percent in Maryland.

While the numbers look better locally than they do nationally, the National Association of Realtors said the report shows a broad stabilization in the housing market.

“It appears the worst of the price correction is behind us,” said NAR President Pat Combs. “More stable home prices and declining mortgage interest rates are increasing buying power, which should encourage potential buyers who’ve been on the sidelines.”

The most expensive market in the nation last quarter was San Jose, Calif., with a median home price of $788,000. The cheapest market was Elmira, N.Y., at $75,300.

Source: Washington Business Journal – 12:27 PM EDT Tuesday, May 15, 2007, Jeff Clabaugh, Staff Reporter

Response to 60 Minutes Segment on 5/13/07

NAR and GCAAR supports all business models and favors none.  Our membership includes at least Realtors® who work on a full service basis as well as those who consider themselves to be limited service, fee-for-service, minimum service, and discounters.  Real estate is a highly competitive business.  About one in every 86 adults is a Realtor®.  During this market slowdown, it has become even more competitive.  The real estate industry has harnessed technology for the benefit of consumers, and will continue to do so.  Real estate is both high tech and high touch.  There is no such thing as a “standard commission.”  Commissions are negotiable and prices vary.  The fact is that commission rates have decreased 16% from 1991 to 2004.(source: Real Trends).  

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