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The Northern Virginia housing statistics are out for the month of July, and they confirm what we have all been feeling–despite low prices and even lower interest rates, confidence remains shaky. Buyers are simply not buying at a pace that will help improve the housing market.
Compared to previous months of July, inventory is not as high. Inventory might creep higher over the next couple of months as the foreclosure process, which stalled as a result of the robo-signing crisis, kicks back into gear.
July 2011 Active Listings (source: NVAR)
The biggest disappointment comes in the sales numbers. We are at all time lows for the number of homes sold in the month of July. Rumblings of a second recession, a job market that continues to remain weak and uncertain, and a lack of access to credit continue to plague buyer confidence and ability to buy.
July 2011 Homes Sold (source: NVAR)
I have kept a running line chart of Active Listings in relation to Homes Sold since the housing market crashed. As you can see, inventory has come down substantially–one of the factors that will lead to a more normal housing market. The number of homes selling each month now needs to increase to continue towards a more normal housing market.
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