Mixed Bag

Summer ended on a bit of a whimper in the single family market. There were 12 new contracts in August compared to 16 in 2010, a drop of 25%. Furthermore, only two of the 12 were above $1 million which is a substantially lower ratio than any month in 2011 so far. On the other hand, the 20 new condo/townhome contracts in August were more than 50% higher than a year ago. A mixed bag.

So where do we go from here? It is a bit quiet right now but that often happens just after Labor Day as people deal with schools, new jobs, or just unwinding from long holidays. Some indicators don’t look so pretty. Consumer confidence plunged in August to a 28 month low. So did CEO confidence levels which may be even more important. Still, interest rates remain at historic lows, prices here at the beach are at levels that provide great value, and construction costs are down. Corporate profits remain very strong and the service businesses of law and lobbying in the DC area seem stable. As I said, a mixed bag……………..

Written by Leslie Kopp

September 9, 2011