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Housing Market Update

Housing Market Update

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Research & Technology Center Montgomery County Planning Department

Housing Market Update
Montgomery County, Maryland

Sharon Suarez, AICP Housing Coordinator September 25, 2007

HOUSING MARKET UPDATE

Montgomery County, Maryland

September 25, 2007

Ove rview
The Research & Technology Center of the Montgomery County Planning Department monitors, analyzes and publishes reports on a variety of housing market trends and statistics. This information is used widely to: develop forecasts of future jobs, population and housing growth; shape County policies on affordable housing, growth, transportation and land use planning; assess the health of the local housing and construction sectors and of the County’s economy in general; prepare County revenue estimates; and respond to a wide range of data requests from County leaders, staff and the general public. Recent instability in the nation’s housing market has intensified interest in the condition of Montgomery County’s housing market. In response, the Research & Technology Center presents this Housing Market Update report, giving decision-makers and residents timely access to key housing market indicators, including: Time on the Market Median Home Sales Prices Home Sales Volume Household Income Emerging Housing Market Trends Additional housing market information is available in the following Research & Technology Center reports and in our online data centers, available at www.mcfacts.org. Economic Forces that Shape Montgomery County Senior Housing Report Montgomery County At-A-Glance MD355/I-270 Technology Corridor Report

Research & Technology Center

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Montgomery County Planning Department

HOUSING MARKET UPDATE

Montgomery County, Maryland

September 25, 2007

T ime on t he M arke t
Summer months typically provide the shortest times on the market. The average number of days that homes are staying on the market continues to shorten from last winter’s peak of 96 days to 68 days in July. This was just 9 days longer than the 59-day average in July of 2006. Time on the market averaged 25 days in July of 2004 and 2005, and 22 days in July of 2003.

M-NCPPC Research & Technology Center

Time-on-the-market peaked in February 2007.
Days on the market
150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 January-03 July-03 January-04 July-04 January-05 July-05 January-06 July-06 January-07 July-07 Montgomery County Fairfax County Loudoun County

Source: MRIS

Research & Technology Center

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Montgomery County Planning Department

HOUSING MARKET UPDATE

Montgomery County, Maryland

September 25, 2007

M e dian S ale s Price s
The median sales price of a new single-family detached home jumped sharply in the first quarter of 2007, topping $1.1 million for the first time. The median sales price for all types of housing in Montgomery County’s increased 8 percent overall in July while home prices were flat for the rest of the Washington, D.C. metro region. At $490,000, Montgomery County’s median sales price was the region’s highest. (Washington Business Journal, August 10, 2007) During the first quarter of 2007, prices for existing townhomes increased slightly. Over the same period, prices for existing single-family detached homes and new townhomes decreased slightly from their all-time highs in 2006, but remained well above historic levels.

Median Home Sales Price
Unit Type Single-Family Detached (New) Single-Family Detached (Existing) Townhouse (New) Townhouse (Existing) 2002 $475,700 $320,000 $265,135 $177,900 2003 $563,810 $376,000 $358,553 $223,000 2004 $666,540 $450,000 $427,501 $283,500 2005 $775,218 $530,000 $499,375 $340,000 2007 (1Q) 2006 $881,600 $1,133,029 $552,500 $540,000 $518,510 $505,462 $350,000 $364,000

Source: M-NCPPC, Research & Technology Center, STAR Report

M-NCPPC Research & Technology Center

Median price of a new single-family detached home tops $1.1 million.
$1,250,000

$1,133,029
$1,000,000

$881,600 $775,218
$750,000

New SingleFamily Detached Existing Single-Family Detached New Townhouse

$666,540
$500,000

$250,000

Existing Townhouse

$0

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (1Q)

Source: STAR

Research & Technology Center

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Montgomery County Planning Department

HOUSING MARKET UPDATE

Montgomery County, Maryland

September 25, 2007

S ale s Volume (F irst Quarter)
First quarter 2007 home sales volumes were below levels from the same period in previous years. Most in demand in first quarter 2007 were used single-family detached units, followed by used condominiums and used single-family attached units. According to the Office of Federal Housing Enterprise Oversight (OFHEO), home price appreciation in the Washington, D.C. region is ahead of the national average. Maryland posted the strongest gain in the region. (Washington Business Journal, May 31, 2007)

First Quarter Sales Volume
Unit Type
Single-Family Detached (New) Single-Family Detached (Existing) Single-Family Attached (New) Single-Family Attached (Existing) Condominium (New) Condominium (Existing)

2002
408 1,909 301 1,332 92 1,005

2003
195 1,563 300 1,142 44 1,034

2004
225 2,121 176 1,491 916 2,250

2005
182 1,967 132 1,527 156 1,872

2006
195 1,562 113 1,016 38 987

2007
98 1,553 53 834 200 911

Source: M-NCPPC, Research & Technology Center, STAR Report Note: Median prices are based on market priced housing and exclude bulk transfers of property, transfers made among relatives, and transfers made without transactions.

Research & Technology Center

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Montgomery County Planning Department

HOUSING MARKET UPDATE

Montgomery County, Maryland

September 25, 2007

House hold Income
Census figures released last week show that, compared with other affluent major metropolitan areas, the Washington metro area “ranks first in median income among blacks and non-Hispanic whites, and the regions’ Hispanics and Asians rank second. (Washington Post, September 2, 2007)

A Tre nd To Wa tch Close ly :
Rapid depletion of affordable rental stock as investors snap up old & new multifamily properties. The condo market is cooler now than it was a couple of years ago, and there is demand for apartment buildings. Alexandria-based Delta Associates has reported that investors “spent $1.6 billion on Class A and B apartments in the metro area during the first half” of 2007, compared to about $890 million a year ago. This uptick is significant and heralds a real investment demand for our multifamily properties. (Washington Business Journal, July 16, 2007) Apartment buildings are selling as fast as condo units were in 2005. According to Delta Associates, it is now the “deep pocketed equity funds and investment banks that are lined up to buy them…(and this has) prompted new and existing (multi-family) property owners to pound in ‘for sale’ signs as they look to cash out and get top dollar for properties.” (Washington Business Journal, July 16, 2007)

Research & Technology Center

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Montgomery County Planning Department

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