WASHINGTON, DC HOUSING REPORT FEBRUARY 2001 The Market Overall Combined sales of single family homes, condominiums and cooperatives fell 11% from the very strong January and were off, by 2% and 3% respectively, from the February totals of 2000 and 1999. The losses from last year were seen entirely on the single-family side with condo and co-op sales registering moderate gains. February sales were up substantially from the earlier years of the 1990's, however, by margins of 10% up to 238%. The combined inventory of homes and units is at an eleven-year low, 27% below the same point last year. Despite the lack of inventory, year-to-date sales totals are 6% ahead of last year and 9% ahead of 1999. This strong, consistent sales pace seen for over the last year has prevented any significant increase in inventory. Single Family New contracts for single family homes slowed in February, off 11% from the previous month and 13% from February of a year ago. This decline was accounted for primarily by homes priced under $150,000 (42% of the market) and from $300,000 to $450,000 (11% of the February sales market). On the other hand, significant sales gains in February were scored by homes priced from $450,000 to $600,000 (12% of the market) and homes priced over $750,000 (8% of the market). For the year-to-date, sales are off slightly (.02%) from the first two months of a year ago but they are still 13% ahead of the same period of 1999, 19% ahead of 1998 and 80% and more ahead of the earlier years of the 1990s. The major reason for the fall in sales is the continuing decline in inventory. The number of homes for sale at the end of February was 25% lower than that of a year ago and is at the lowest point of the last 11 years. The effective inventory stands at just over two months. Condominiums and Cooperatives Sales of condominiums and cooperatives were up 10% over February of last year and ahead of the February's of 1990-98 by margins of 22% to 188%. Sales were down 9% from February of 1999. Only lower priced units of $100,000 and below (44% of the market) showed losses when compared to last year with higher priced units showing significant gains. Units priced from $300,000 to $500,000 (14% of the market) managed to see an 143% increase in inventory compared to last year which translated into a 250% increase in number of sales. For the year-to-date, condo and co-op sales are 20% ahead of last year's pace, 4% ahead of 1999, and ahead of the same periods in 1990-98 by margins of 39% to 231%. The inventory of units for sale at the end of February was at an eleven-year low, 32% below the same point last year. Units priced from $150,000 to $500,000 saw an increase in inventory of 37% compared to last year and not surprisingly there was a corresponding sales increase of 55%. The effective inventory stands at 1.02 months, the second lowest point of the last eleven years. Prepared by Peter Clute and Fred Kendrick PARDOE Real Estate ERA March 14, 2001 Data from the Greater Capital Area Association of Realtors