The latest Real Estate Business Intelligence (RBI) analysis of the DC metro area housing market -- with data through May 2012 -- was released June 11.
In May, the level of active listings was at its lowest May-level since 2005. The reduction in supply is putting upward pressure on prices, as evidenced by the rise in the median sales price from May 2011. Generally, when housing inventory declines buyers must compete for fewer available properties leading to an increase in prices and shorter days on market. Clearly, homes in the Washington Metro area are now selling faster and at higher prices than last year.
The price gain over May 2011 reflects the fourth consecutive year-over-year gain, and the second consecutive double-digit increase for home prices in the region. Days-on-market have dropped 17.6%. These trends signal that it is a Seller’s market heading into the summer months.
The median sale price in the DC Metro Area is up 11% from May 2011. This is the fourth consecutive year-over-year increase and the second straight month of double-digit price growth metro-wide. Pricing in all jurisdictions within the metro area increased relative to May 2011. Year-to-date medians are also on the rise, up 7.7% for the metro area.
Pending sales in the Washington market continues on an upward trajectory, as the region posted its 13th consecutive year-over-year increase in new contracts. In total, 5,593 contracts were signed in May, a 1.6% rise from the previous year.
The condo segment of the market grew the most with 1,362 new contracts in May, 100 more than May 2011, a 7.9% gain. Roughly half of the new contracts are detached homes, a quarter are attached townhomes, and a quarter are condos.
There were 10,510 active listings in the DC Metro Area at the end of May, a 32.4% decline from May 2011. This is the 15th consecutive year-over-year inventory decline. The shrinking supply indicates a stabilizing market, as sales have increased and listings have declined. As interest rates remain low and demand rises, the low supply will continue to put upward pressure on prices.
* * *
Real Estate Business Intelligence (RBI) is the research component of local multiple listing service MRIS. RBI provides the most recent and accurate housing market statistics to the public based on actual sales recorded in MRIS. At RBI you can search sales statistics by your local zip code, county, or region.