The Washington area housing market seems to be making great strides this Spring as buyers without a home to sell are taking advantage of low interest rates an $8 000 1st time buyer tax credit a ready supply of newly constructed new condos.

The market is improving from the bottom up in terms of price a trend that is benefitting the condominium segment of the market as condos tend to be less expensive than single family homes in similar locations. This trend is highlighted in two recent articles.

One from the Washington Business Journal below notes that the supply of new condos continues to diminish rapidly.

Due to the lengthy construction process for multi-family buildings prices are expected to beginning rising in 2010 - 2011 inside the beltway. Another recent Washington Post article notes that the market for luxury homes is very slow right now as financing is difficult to find and new buyers entering the market are often purchasing new or vacant homes.

As a result few buyers are able to move up to the larger and more expensive homes that a languishing on the market. From The Washington Business Journal | Friday June 26th 2009 Report: New condo prices are down sales shoot up New condo prices in the Washington area were down almost 4 percent in the second quarter from a year ago with sales volume exceeding 600 units for the first time since fall 2007 according to a report from Delta Associates to be released June 29. Prices for new and converted condos fell the most in suburban Maryland down 7.6 percent. The drops in Northern Virginia and D.C. were lower at 2.9 and 2.6 percent. Delta an Alexandria research firm said two factors contributed to the increased sales volume: historically low interest rates and the busy homebuying season. A total of 618 units went under contract during the quarter. For the first half of the year 928 units went under contract with Arlington County and Alexandria leading the area with 242 units sold.