Could This Be the Bottom In Charles County?

The numbers are out and they confirm what those of us in the trenches already knew. One  thing positive is inventory is reduced substancially from last year at the same time. There are 882 single family homes and 271 townhomes on the market this year and last year at the same time there were 1306 single family homes and 309 townhomes. The number of listings are down 32.6%. This is good news. We need the inventory to be reduced to have prices go up. The most basic market rule is "supply and demand." Abundant supply with weak demand mean prices will fall. Short supply with strong demand will cause the opposite to occur.

Predominately because of short sales and foreclosures average prices are down by 20% over the same time last year.  Supply is down and with the $8,000.00 homebuyers incentive, demand is heating up. Remember, a purchase must be made by the end of the year to qualify for the credit. Interest rates are also low and lastly, it's Spring. Most folks want to move in nice weather if they have a choice. The majority of people would prefer that their children not be uprooted during the school year. If we do not get overly flooded with new foreclosure inventory, I think we are poised to start a slow ascent in values.

Although inventory is down 32.5% in single family homes and 12.3% in townhomes pending sales are only down 4.1%. This is good news. I will continue to monitor the numbers but they seem to be indicating  an end to the value dive.

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