This report was just released by MRIS.  MRIS is the MLS system that services the Fredericksburg real estate market, as well as Northern Virginia, among many other places.  The report is titled “First Quarter 2009 Trends in Housing Report Highlights,” and provides some interesting opinion on what is happening in the Washington area housing market, which includes the Fredericksburg real estate market.

First Quarter 2009 Trends in Housing Report Highlights
The Washington area housing market has moved into the early phase of the correction cycle and is poised to begin recovery:

Prices continue to decline, making homes more affordable and encouraging an increase in unit sales volume in the 1st quarter of 2009 as compared to a year earlier – especially in the Outer jurisdictions. And we expect prices to continue to drop into next year – until supply and demand come into better balance.
Days on market are down compared to a year ago, with properties moving the fastest in the Core jurisdictions. If interest rates remain at record lows through 2009, we expect days on market to continue to decline.
The ratio of inventory to sales (months of sales) is down sharply from a year ago, particularly in Prince William County. The ratio stands at 7.7 months metro-wide; a ratio of 6 months is regarded as normal and healthy – a ratio we may see by next year.

Source: MRIS

It is widely agreed that an absorption rate of 6 months is a standard, normal and healthy.  So, pay close attention to this ratio in our “Last 30 Days” series of posts, updating each segment of the Fredericksburg real estate market.