The number of houses for sale in Montgomery County was nearly flat in February compared to the same month a year ago and sales also declined, according to new market data.
Inventory in the county rose 0.2 percent last month in a year-over-year comparison and declined slightly in the Washington region compared to January, according to a report released Tuesday by real estate listing service Bright MLS.
Interest rates were up around 4.8 percent a few months ago but have fallen to 4.3 percent, which should lead to a market uptick, Bright MLS Vice President Andrew Strauch said. The problem is there aren’t enough options in the market to convince people to move from their current residence.
“People aren’t confident that they’ll be able to find what they want if they sell their house today,” Strauch said. “That’s part of the challenge.”
February inventory levels were the second-lowest in the past decade across the region, just 3.3 percent above the 2013 low of 6,092.
Uncharacteristically productive months in December and January could’ve harmed the February market, with more homes snapped up before the typical buying season, Strauch said. Warm weather was likely the culprit, and there could be a similar upswing as the temperature continues to climb.
“The market hits stride in the next 50 to 60 days and that’s when we’ll really understand what’s going on,” Strauch said.
The median sales price in the county was $419,950, a 2.3 percent increase from year-ago prices.
Montgomery County experienced a 7.6 percent decline in pending sales from February 2018 to February 2019.
Pending sales across the region declined on a year-to-year basis but were up 14.4 percent from January.
Home prices in the region reached record highs on a year-over-year basis for the 29th straight month, with the median of $427,000 marking a $17,000 bump from February 2018.
Sales, inventories and listings were down across all types of homes, but condominiums declined more than single-family detached and townhomes.
Condominium inventory was down 21 percent compared to February 2018, while single-family detached dropped 5.6 percent and townhomes 2.2 percent.
Strauch said the struggles for condominiums may be due to a combination of a lack of new construction compared to the other types of residences and a dearth of houses.
Pricing bumps for single-family homes suggest there is demand there, and active listings have picked up for both single-family and townhomes over the past few months, Strauch said.
February may have disappointed but typical seasonal growth could still occur in the coming months.
“I don’t think there’s any bad signs yet, there’s a number of factors that are keeping inventory off the market,” Strauch said. “The question is are they going to have enough options so that they can find some place to move to and bring more inventory on.”
