According to the most recent survey released by Real Estate Business Intelligence, Washington D.C. and the Northern Virginia metro area housing markets have been among the first to recover from the prolonged recession. The area made another strong showing in May, with 4,478 sales closing – 18.8 percent better than April closings and 14.3 percent above May 2011.
The market's closings definitely mirror the diminishing impact of foreclosures on buyers' decisions. In May, foreclosure sales in this market fell for the 25th consecutive month, and May’s 307 foreclosure sales were down 7.3 percent from May 2011, as reported in the survey.
As previously reported in this blog, foreclosure sales and availability have declined, which allowed the market's median sales prices to rise for the fourth consecutive month. In May, the median price of $392,500 was up 11 percent over the same month a year ago. Prices were especially high in Falls Church, Virginia, where the median price of $875,000 represented a 66.7 percent increase over the median from May of last year.
The current inventory of available for-sale homes are also at their lowest number – 10,510 active listings last month – since 2005.
"As interest rates remain low and demand rises, the low supply will continue to put upward pressure on prices," the report states. "This price growth could entice hesitant sellers to enter the market."
Although, the report also warns that the listings may indicate that many individuals, who worry about the economy' future, are still comfortable remaining in their current homes.
While the nation's capital is clearly ahead in housing market recovery, lenders from all areas in the United States could benefit from using loan servicing software. Whether to balance an influx of new borrowers, or simply to stay abreast of current clients, it is important to stay organized and ensure that a realistic repayment plan is in effect for every borrower.