Last year, March sales were roaring because of the First Time Homebuyer’s Tax Credit, so it isn’t surprising that the dollar volume of sales this March actually declined 3% from last year at this time. Properties stayed on the market 31% longer than last year at this time, again because last spring’s market was fueled by the tax credit.
Those of us involved in the real estate market anticipated that this March would show a great improvement over February, and indeed it did, with a 53% increase in dollar volume of sales. While April 2011 should be even better than this past month, it will be hard to meet the landslide of sales we saw last April with buyers rushing to purchase before the April 30th tax credit deadline. The good news is that the average price of property, which is the last thing to improve in a market recovery, has gone up 11 out the past 12 months, with a whopping 10%increase this month over March 2010.
*Statistics are taken from the Metropolitan Regional Information System for three areas: Washington, D.C.; Montgomery County, Maryland; and Fairfax County, Arlington, Alexandria and Falls Church in Northern Virginia. .