RBI: DC Metro Area Home Prices Up 8.1%

The latest Real Estate Business Intelligence (RBI) analysis of the DC Metro Area housing market -- with data through August 2012 -- was released September 10.

Demand remains strong in the Washington DC Metro housing market in August, as many indicators reach multi-year highs. 

• Sales rose to their highest August-level in three years, and new contracts reached their highest August-level in seven years.
   
• Prices continue to climb, up year-over-year for the seventh straight month, and their highest August-level in five years.
   
• Low inventory of active and new listings persists, and is playing a major role in the price appreciation.
   
• The condo market remains strong with double-digit growth in sales and new contracts compared to last year, higher than townhomes and detached homes.

Sales

There were 4,062 sales in August in the Washington DC Metro Area, a 6.4% increase from this time last year, and the fifth consecutive year-over-year gain.

• Sales of detached homes rose 4.7% compared to August 2011.  
• Townhome sales increased 5.1%.  
• The condo market continues to lead all segments in year-over-year sales growth for the third consecutive month, increasing 12% from this time last year.

Prices

 

At $385,000, the median home price in the DC metro area is 8.1% higher than August 2011.  This is the seventh consecutive year-over-year increase for home prices, which is being driven by strong demand and consistently low inventories.

 

• The median price for detached homes rose 7.9% from last year, a $35,000 gain in value. 
• Townhome prices rose 6.9%, an increase of $23,175 over August 2011.
• Condo prices are up 6.3%, a $16,500 rise in value.

 

Contracts

There were 4,482 new contracts signed in August in the metro area, up 7.5% from this time last year.    

• Contracts on condos jumped 15.7% over August 2011.
• Townhome contracts rose 9.9% compared to last year.
• New contracts for detached homes rose 2.3%.

Inventory

There were 9,191 active listings in the Washington DC Metro Area at the end of August, 35.8% below this time last year, and the lowest August-level since 2004.  The number of active listings in the metro area continues to shrink, and is down year-over-year for the 18th consecutive month. 

The low inventory of homes for sale is driving down the median days on market, which at 26 days is 11 days below August 2011.  The sales-to-list price ratio has also been impacted by the low supply, and is up to 96.2% from 94.2% a year ago. 

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As you review these statistics it is important to keep in mind that RBI’s methodology defines the DC Metro housing market as encompassing a vast area including:

• Washington, DC
• Montgomery County and Prince George’s County in Maryland
• Alexandria City, Arlington County, Fairfax County, Fairfax City, and Falls Church City in Virginia

More detail on a specific area can be found by searching RBI housing statistics by zip code.

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.