-8% is the sound of a bubble popping

Back in February, when I looked at housing forecasts for 2006, I asked When will the first Realtor jump from a window?

Back then I didn’t know when a “correction” would happen, I only knew it would. It seems that correction is happening right about now.

How do I know? August 2006 home sales prices for DC are in from Bubble Meter and they ain’t pretty.

Wanna see a grown man cry? Show this table to anyone who is trying to sell or bought last month in the District or Northern Virginia:

Washington, DC

  • Median Sales Price YoY: – 8.70%
  • Average Sales Price YoY: -5.20%
  • Total Units Sold YoY: – 34.39%
  • Average Days on Market YoY: +103%
  • Active Listings YoY: +139%

Northern Virginia

  • Median Sales Price YoY: – 8.06%
  • Average Sales Price YoY: -3.44%
  • Total Units Sold YoY: – 34.8 %
  • Average Days on Market YoY: +219%
  • Active Listings YoY: +126%

1 Comment so far

  1. Homeowner (unregistered) on September 11th, 2006 @ 11:07 pm

    This is the best time to buy! However, the bubble wall started to thin July 4 ’05. My neighbor, who works with the military, thought he could sell his 1,200 SF condo (in a 60-y.o. bldg) in a suburban development not far from the Pentagon for more than $443K but ended up having to come down in price to below $400K.

    If interest rates hold in single digits and prices become more reasonable, there might be a resurgence in sales – so move fast!



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