As September Ends, Market Picks Up

It seemed for a while that September was moving at a snails pace. With interest rates at or below 4%, it seemed to me like the pool of motivated buyers was very, very small. Sure, there are people looking, but they’re in no rush to buy mostly because there’s nothing really to buy!

Although not final yet, I suspect September will close with around 175 or so sold properties, down from 185 in September 2010 and 223 in September 2009. Why? Check out these inventory levels:

Active Listings in Arlington
As of 9/30/2011: 685
September 2010: 764

The greatest indicator of market activity is the level of contracts ratified during the month:

September 2011: 171
September 2010: 181
September 2009: 264

 

Because of the way a real estate contract is written, activity this month will effect pricing 30-6o days out. Lower inventory will drive up prices, a month or two away. So what does my rant mean? Prices will be driven up towards the end of the year due to the lack of the inventory now!